International. A notable trend in the global automotive refinish coatings market is the switch from solvent-based to water-based coatings.
This has been mainly due to the strict regulatory reforms of environmental bodies. Solvent-based automotive refinish coatings have contributed fundamentally to the market so far in terms of revenue, and the regulations framed against them by the authorities will likely negatively impact the market. As of now, manufacturers are focusing on developing efficient water-based automotive refinish coatings. This would have an impact on the contours of the market in the coming years.
The base coating segment ranked first by more than 30% in the market in 2015. The rapid absorption of used vehicles and the increase in the number of traffic accidents have boosted the segment in the last two years. In the future, however, the segment will cut back on some of its shares due to the availability of internal substitutes, such as primer additives.
Geographically, the key segments of the global market for automotive refinish coatings are North America, Europe, Asia Pacific, Latin America, and the Middle East and Africa. Of these, North America leads the global market and is dragged down by Asia Pacific and Europe. The factors driving the market in North America are the high disposable income and timely repairs carried out by vehicle owners, along with growth in the used vehicle market. Strict rules, on the other hand, are negatively affecting the region's market.
Automotive markets in the world's rapidly growing economies such as India, Brazil, China and South Africa are forecast to grow at a healthy pace from 2016 and 2021. The increase in car sales in the region will likely be fueled by factors such as rising disposable income and solid GDP growth. "The increase in car sales in these countries is expected to lead to a considerable expansion of the vehicle pool and have a direct positive impact on the global demand for automotive refinish coatings," explains the lead analyst of the report.
