United States. The performance of the automotive coatings manufacturer industry is expected to grow in 2012 by about 3.5% to about $1.3 billion, according to a report by market analysis IBISWorld.
The study says the recession has caused effects on the industry, with consumers enduring the non-major disruptions their vehicles suffer. In 2008, automakers were already experiencing a decline in consumer demand for new vehicles. Things took a worse turn in 2009, U.S. vehicle sales fell to record lows and motor vehicle manufacturing revenues plummeted.
The sharp decline in demand for automobiles led to a decrease in the sector's demand for automotive paints. However, revenue from motor vehicle manufacturing has rebounded aggressively from 2009 to 2012, which has helped revitalize the paint industry.
IBISWorld also says the recession has had lasting effects on vehicle refinish shops, which is also an important market for the sector. Because consumers kept essential repairs at bay and left behind services like car paints, this segment also reduced purchases of car paints during the recession.
But, finally, the report says that water-based coatings are the future of automotive technology and demand is expected to increase. Companies in the industry will experience growing demand for their products over the next five years, driven by an expanding economy. Revenue is expected to grow over the next five years through 2017.
