The global automotive paint market is estimated to garner a revenue of USD 37 Billion by the end of 2035 by growing at a CAGR of ~5% over the forecast period, i.e., 2023 – 2035. Further, the market generated a revenue of USD 20 Billion in the year 2023. Increasing vehicle production, the rise of consumer awareness, and advancements in technology of painting are estimated to boost the growth of the market size during the forecast period. The covid impact has decreased the growth since 2019 and again boosted in 2021. In 2021, more than 9 million motor vehicles were produced in the U.S., while over 78 million vehicles were manufactured across the world. Additionally, rising personal income of individuals, improvement in lifestyle standards, and increasing investments in the development of automotive paints are expected to increase growth opportunities for the market.
Get more information on this report:The upsurge in innovative and eco-friendly automotive paints and demand for the aesthetic and glossy look is expected to boost the growth of the market trends during the forecast period. In 2017, the value of total automotive paints produced was around USD 8.5 billion globally. This is estimated to increase to over USD 10 billion by 2025. The resale value of old cars is increased with the colors of paint. Textured paints are a new trend to bring owners a tactile and visual experience. Besides, the increasing concern of people on health issues and adverse reactions caused by inhalation of volatile organic compounds used in solvent-based paints rise the demand for eco-friendly paints anticipating the escalation in the growth of the market.
Base Year |
2022 |
Forecast Year |
2023-2035 |
CAGR |
~5% |
Base Year Market Size (2023) |
~ USD 20 Billion |
Forecast Year Market Size (2035) |
~ USD 37 Billion |
Regional Scope |
|
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.
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.
The Asia Pacific automotive paint market, amongst the market in all the other regions, is projected to hold the largest market share by the end of 2035. The growth is attributed to the high production of electric vehicles in the region. The growing consumer preference for rich texture, aesthetic finish, and glossy look is estimated to boost the market during the forecast period. The growth in sales of electric cars is twice in 2021 with about 7 million including fully electric and plug-in hybrids. In 2021, China has tripled the sales of electric cars with 3 million units, contributing to half the sales across the globe.
Our in-depth analysis of the global automotive paint market includes the following segments:
By Coating |
|
By Texture |
|
By Technology |
|
By Resin |
|
By Channel |
|
By Vehicle |
|
3M
3M innovation of the robotic paint repair system has received the SURCAR award. The imperfections of paint on vehicles are detected manually which is labor intensive and time-consuming process that is now replaced by Finesse-it of 3M.
BASF SE has developed many variations in color options for automotive color trends collection 2021-2022.
In 2023, market players might incur losses due to huge gap in currency translation followed by contracting revenues, shrinking profit margins & cost pressure on logistics and supply chain.
Controlling Inflation has become the first priority for global economies from last quarter of 2022 and to be followed in 2023. With skewed economic situations, rise in interest rate by governments to control spending and inflation, spiked oil and gas prices, high inflation, geo-political issues including U.S. & China trade war, Russia-Ukraine conflict to intensify the global economic issues.
The interest rates in the U.S. may be less sensitive in 2023 as compared to 2022; sigh of relief for businesses. Positive business sentiments, healthy business balance sheets, growth in construction spending (private construction value in 2022 stood at $1,429.2 billion, 11.7 percent (±1.0 percent) above the $1,279.5 billion spent in 2021, Residential construction in 2022 was $899.1 billion, up by 13.3 percent (±2.1 percent) from $793.7 billion in 2021, non-residential construction touched $530.1 billion, 9.1 percent (±1.0 percent) above the $485.8 billion in 2021.) showcases minimal impact of recession in the country.
Similarly, spiked spending in the European and major Asia economics including, India, China & Japan to showcase less impact on the global demand.
Author Credits: Smruti Ranjan, Rajrani Baghel
Ans: Rise of automobile production, demand for innovative and eco-friendly paints,the high price of raw materials, and high use of polyurethane paints are the major factors driving the growth of the automotive paint market.
Ans: The market is anticipated to attain a CAGR of ~5% over the forecast period, i.e., 2023 – 2035.
Ans: Emission of volatile organic compounds, rapid change in consumer preference, and adverse health issues of painters are the challenges affecting the market growth.
Ans: The market in the Asia Pacific region is projected to hold the largest market share by the end of 2035 and provide more business opportunities in the future.
Ans: The major players in the market are 3M, BASF SE, PPG Industries, Inc., Akzo Nobel N.V., Axalta Coating Systems, The Sherwin-Williams Company, Kansai Paint Co., Ltd, Nippon Paint Holdings Co., Ltd, Dupont, Clariant, Solvay.
Ans: The company profiles are selected based on the revenues generated from the product segment, geographical presence of the company which determine the revenue generating capacity as well as the new products being launched into the market by the company.
Ans: The market is segmented by coating, texture, technology, resin, channel, vehicle, and by region.
Ans: The water-borne segment is anticipated to garner the largest market size by the end of 2035 and display significant growth opportunities.
Submit Your Request For Proposal (RFP)