International. The automotive refinish coatings market is directly related to the automotive market and has experienced substantial growth over the past decade. According to a new study by Persistence Market Research, this is mainly due to the rapid growth of vehicle ownership in emerging economies with the consequent increase in the accident rate.
Higher government regulations regarding high VOCs may have a greater impact on the growth of the automotive refinish coatings market which are projected to record a solid CAGR of 5.7% from 2017 to 2022.
Polyurethane has the maximum potential in the automotive refinish coatings market and is anticipated to gain share at the expense of other resin-type segments in 2017. The polyurethane segment is projected to be worth just below $4.7 billion by the end of 2022. North America is the largest region in the polyurethane segment of the automotive refinish coating market. Alkyd is the second largest in terms of resin-type segments, but is about to lose market share in the medium term. Along with North America, Europe's alkydic segment is predicted to surpass one billion dollars by the end of the forecast period, the only other region to do so.
Heavy commercial and light commercial vehicles have a relatively similar market share. While both are estimated to lose market share points, the drop should be considerably more pronounced in the heavy commercial segment, which is estimated to grow with a lower CAGR of about 5% through 2022 and key stakeholders in the automotive refinish coating market are advised to take this into account when designing their strategies.
There is a battle for supremacy between compact and medium-sized passenger vehicles, and the latter is proceeding slowly. There is an absolute dollar opportunity of more than $855 million in the mid-size passenger car segment over the five-year period. Mid-size passenger cars are generally preferred in North America and Europe because these regions are well developed and customers there are less price sensitive than their counterparts in emerging economies. However, if a company is looking to enter the high-volume compact passenger vehicle segment, it would do well to consider targeting APEJ as the continent should have the highest CAGR.
The primer segment has a revenue share of about one-third of the automotive refinish coatings market by the cladding structure and is evaluated to gain a substantial share throughout the study period. The North American primer market contributes one-third of the primer market and is expected to be worth more than $1.3 billion by 2022.
