Growth Drivers

• Growing Demand for Innovative and Eco-Friendly Paints – The automotive manufacturing industry is witnessing a high demand for innovative and eco-friendly paints, which is a key growth driver for the growth of the market during the forecast period. Eco-friendly water-based paints are developed with less toxicity of lead to reduce the exposure of repainting workers to metals. According to various research, eco-friendly paints with lead concentrations ranging from 0.25 μg/g to 107,928 μg/g are being increasingly manufactured, as a result of this shift amongst consumers.

• Rise in Global Automobile Production Owing to Rising Disposable Income –The robust growth of the automotive industry is the key factor for the growth of the market size during the forecast period. As of 2020, the global light-duty vehicle fleet comprises over 1 billion vehicles.

• Higher Expenditure for Vehicle Maintenance to Achieve an Elegant and Classy Look –People are spending more to keep their vehicles in good condition. The expenditure on maintaining a vehicle raised to more than USD 2,000 in 2019 from 1000 in 1997 i.e., about 85% with a 3% growth per year. Moreover, the demand for a classy and elegant look for the vehicle is also estimated to boost the market growth. New colors are developed such as dark seltzer, redolent red, and abstraction blue to give depth and class to the cars.

• High Use of Polyurethane Paints to Increase Durability and Prevent Rusting –The high durability standards of solvent-based polyurethanes are replaced by water-based polyurethanes to protect the environment and decrease solvent exposure. The good substrate adhesion, abrasion resistance, toughness, and protection from corrosion increased the demand for use of polyurethane paints market. Urethane resins contribute to 20% of the demand for resins across the globe.

• Growing Resale Market in Automotive Industry Owing to Low Budget – With the decreased price of new cars in resales and growing resale platforms, consumers are more interested to get used cars. In fact, the value of used car sales was approximately USD 1.25 trillion in 2020.

Challenges

• Emission of Volatile Organic Compounds

• Rapid Change in Consumer Preference

• Adverse Health Issues in Painters-Long-term exposure to solvent fumes released from paints can cause headaches, dizziness, nausea, and breathing issues such as asthma. These paints can be fatal where the ventilation space is very less or absent. The high presence of volatile organic compounds leads to psychological and neurological problems, cancer, fertility problems, and skin irritations in painters working for longer hours. The prevalence of health issues leads to employee shortage decreasing market growth.

The global automotive paint market is segmented and analyzed for demand and supply by technology into water-borne, solvent-borne, and powder coatings. Out of these, the water-borne segment is anticipated to hold the largest market size by the end of 2035. Water-borne paints are cost-efficient and inexpensive, which upsurges the growth of the market during the forecast period. Moreover, the growing environmental concerns and high demand for eco-friendly automotive paint are estimated to boost the market during the forecast period. In a survey, close to 75% of the people were environmentally aware and said they were more likely to make eco-friendly changes in their lifestyle.