International. The global automotive paints market is estimated to be $8.74 trillion in 2018 and is projected to reach $10.65 trillion by 2025, at a CAGR of 2.88 percent from 2018 to 2025.
Increasing vehicle production (especially passenger cars), stringent VOC emissions regulations for paint manufacturing and changing customer preferences for paint textures are projected to drive the automotive paint industry and advances in paint technology.
Polyurethane-based coating is widely used in the automotive OEM and finishing paint process due to its excellent combination of properties, including good elasticity at low temperatures, abrasion resistance, water and solvent resistance, dry cleaning and machine washability. In addition, high performance (color, clarity and finish) can be achieved with a very thin coat of paint that does not increase the thickness of the paint or change design factors, including draping. Therefore, polyurethane-based paints have the largest market in the automotive paint market, by resin type.
Meanwhile, powder coating technology is projected to grow at the fastest rate during the forecast period from 2018 to 2025. A key factor driving the growth of powder coatings is reduced waste compared to liquid paints and increasingly stringent environmental regulations for zero or no VOC coatings. The powder coating is eco-friendly and only emits a small amount of volatile organic compounds. It is anticipated to experience rapid growth due to its unique characteristics such as high corrosion resistance, high-quality finish and abrasion. It also offers protection against moisture, heat and chemicals.
On the other hand, the automotive industry in the Asia Oceania region has been dynamic in recent years and has seen an increase in annual vehicle production and sales. According to OICA, Asia Oceania has the largest share of global vehicle production, which is about 54 percent in 2017 and is expected to grow in the future. With such a large share, Asia Oceania has witnessed substantial growth in demand for automotive paints. Due to an increase in consumer disposable income, China has become a key market for premium vehicles, which in turn would drive demand for innovative and advanced automotive paints. Therefore, Asia Oceania is anticipated to be the largest market for automotive paints.
