The industry for automotive OEM coatings is responsible for a vibrant competitive scenario along with a robust market presence in the various region of the world. In particular, the Asia-Pacific region appears more lucrative than the other geographies.
The automotive industry is booming and major automakers have boosted their vehicle production capabilities to meet the growth in demand for automobiles. The focus of each vehicle-maker has shifted towards the manufacturing of durable surfaces of cars, whether it is passenger cars, light or heavy commercial vehicles. This is also augmented by the increase in consumer preference towards vehicles with sophisticated technologies, durable interiors and exteriors, and added visual appeal. The Automotive OEM Coatings Market has scaled great heights to meet the demands of the automotive industry by providing superior performance coatings for vehicles.
The global automotive OEM coatings market was evaluated at $6,426 million by the year 2015. The industry is touted to reach an impressive value of $9,379 million by the end of 2022. This would be feasible with a projected CAGR of 5.6% during the period 2016–2022. The potency of these coatings in ensuring overall durability and appearance of the vehicle, as well as safeguard it from weather forces has contributed to the rapid progress of the entire industry.
Industry features vibrant competitive scenario
The growth of the industry is influenced by the presence of several factors. The increase in consumer preference for various layers of coating in automotive, whether it is primers, basecoats, electrocoats, or clearcoats has propelled the market’s progress. To tap the immense potential of the market, there are a lot of market players who are making their presence felt in the coatings scene and contributing to a robust competitive landscape. Whether it is product launches, mergers, takeovers, or new marketing strategies, the market boasts of a vibrant competitive scenario.
PPG Industries, a prominent name in the industrial coatings market, has recently raised its offer for Akzo Nobel, with a view to buying the specialty chemicals brand at a cash-and-stock deal worth $28.8 billion. The offers from PGP comes across as a strategic move to create a paint and coatings giant in the entire market.
Axalta Coating Systems, is also set to introduce the next generation in coil spring coatings, named as Alesta® Spring Black. The product is a new hybrid epoxy powder coating that is meant to provide flexibility and mechanical resistance along with superior corrosion resistance. The addition of another innovative and cost-effective automotive coating in its portfolio is sure to earn greater revenues for the company in the long run. In addition to this, Axalta has also opened its now regional office in Dubai for expanding its presence in the Middle East region.
Another move that marks a significant market strategy is the latest by BASF and Landa Labs. The strategic long-term partnership is intended to allow BASF to employ Landa’s nano-pigment technology in a new portfolio of easy dispersible ultra-high transparency pigments. The revolutionary technology allows highest quality consistency for the final automotive coating.
The several marketing strategies and business propositions being employed by the industry players engaged in the automotive OEM coatings market are a testimony to its interesting competitive landscape. A geographical analysis of the market would project more opportunities and prospects for growth in various regions of the world.
Asia-Pacific poised for promising growth
The global automotive OEM coating market has a strong presence in all those regions that tend to have a higher production scale of automobiles. It is relatively easier for coatings companies to be located in vicinity to auto parts makers, to readily offer the paints and coating solutions tailored for specific products.
The Asia-Pacific region, along with LAMEA (Latin America, Middle Eastern, and Africa) countries, together accounted for nearly two-fifths of the total market, in terms of volume. This trend is expected to continue from 2016 till 2022, owing to the rapid pace of urbanization. Considering the volume of automotive coatings demanded, the Asia-Pacific region is projected to grow at a CAGR of 4.7% till 2022.
The urbanization and higher purchasing power of the population in developing economies of India, China, and Brazil would be essentially instrumental in the development of the market. China, in particular, was accountable for nearly one-third of the total Asia-Pacific market in 2015. Overall consumer spending on advanced automobiles by the urban population in these emerging nations would increase and create a greater demand for durable and efficient high-performance coatings.
The LAMEA countries, with Middle East nations as a part of an economically progressive region, have tremendous potential for further market opportunities. The higher disposable income of the population coupled with encouraging consumption of automobiles has triggered a boom in the automobiles market in the region. It would be safe to expect that countries, such as Dubai, Saudi Arabia, Qatar, and Kuwait would invite major automobile coating companies and automakers to invest in the region and earn better revenues.
A large number of key competitors engaged in the automotive OEM coating market are adhering to strict compliance standards and also meeting the demand for high-quality pigments in their coatings. The limelight has now shifted towards the need for more eco-friendly coatings for automotive parts. It is also imperative that these paints and coatings meet high specification requirements, which include resistance to extreme temperatures, weather, and foreign particles. Thus, the global automotive OEM coating market is poised for substantial growth in the immediate few years.