Automotive Original Equipment Manufacturer Coatings Market Size and Future Scope

Owing to the surging manufacturing and sales of automobiles, especially in the Asia-Pacific (APAC) region, the global automotive original equipment manufacturer (OEM) coatings market generated a revenue of $10,997.4 million in 2018. Moreover, the market value is expected to surge to $13,661.4 million by 2024, while the market will demonstrate a CAGR of 4.2% from 2019 to 2024 (forecast period), as per the estimates of the market research firm, P&S Intelligence. According to the India Brand Equity Foundation (IBEF), the automotive industry in India will reach a value of Rs. 16.16-18.18 trillion (US$ 251.4-282.8 billion) by 2026.

Besides, the APAC region is witnessing rapid technological advancements and innovations in automotive OEM coatings, which is also fueling the expansion of the automotive OEM coatings market. Many coating producing companies are increasingly focusing on developing novel technologies, processes, and products in order to meet the rising demands of automobile manufacturers. Additionally, the demand for coatings that provide greater functionality, regulatory compliance, low maintenance costs, and reduced emissions is surging among end users.

This is, in turn, propelling the advancement of the market. Apart from these factors, the soaring investments being made in many countries for amplifying automobile production are also creating lucrative growth opportunities for the players operating in the automotive OEM coatings market. For instance, many luxury automotive companies are rapidly expanding their base in developing countries, such as Brazil, Indonesia, and India in order to attract middle-class and upper-middle-class customers. 

In addition, the increasing disposable income of people and the rapid macroeconomic progress of these countries are further boosting the sales of vehicles and allied products, such as accessories and coatings, in these emerging economies. Based on layer, the automotive OEM coatings market is classified into clearcoat, basecoat, primer, and electrocoat. Out of these, the clearcoat category is predicted to dominate the market in 2024, while the basecoat category is predicted to exhibit the fastest growth during the forecast period. As the use of clearcoat on vehicles provide protection from harmful ultra-violet rays, a thick coating of clearcoat is being increasingly applied on automobiles. 

The market is also categorized, on the basis of technology, into solvent-borne coatings, water-borne coatings, UV-cured coatings, and powder coatings. Out of these, the solvent-borne coatings category contributed the highest revenue to the market in 2018, and this trend is expected to continue throughout the forecast period as well. However, in the coming years, the requirement for water-borne coatings will surge sharply, primarily because of the increasing implementation of strict regulations and rising environmental concerns regarding the emission of volatile organic compounds (VOCs). Geographically, the Asia-Pacific (APAC) region is expected to dominate the automotive OEM coatings market during the forecast period. 

This is attributed to the surging automobile production in regional countries, such as India, Indonesia, and China. China was the second-largest manufacturer of two-wheelers and the largest manufacturer of commercial vehicles and passenger cars in the world, as of 2019. Moreover, the country witnessed the sales of 15.5 million two-wheelers during that year and this number is predicted to rise sharply in the coming years, on account of the growing popularity of electric vehicles in the country. This will subsequently propel the demand for automotive OEM coatings in the country in the future.

Hence, it is safe to say that the market will advance rapidly in the coming years, mainly because of the mushrooming manufacturing and sales of automobiles all over the world.

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