Automotive refinish coatings help restore the aesthetic appearance of damaged vehicles along with providing protection from UV radiation and corrosion. Waterborne coatings are increasingly being adopted due to their low VOC emissions and eco-friendly nature.
The Global Automotive Refinish Market is estimated to be valued at US$ 12.43 Bn in 2024 and is expected to exhibit a CAGR of 6.4% over the forecast period 2024 to 2031.
Key Takeaways
Key players operating in the automotive refinish market are Akzo Nobel N.V., Axalta Coating Systems, LLC, BASF SE, Berger Paints India Limited, Covestro AG, Donglai Coating Technology (Kunshan) Co., Ltd., Hebei Chenyang Industry & Trade Group Co., Ltd.
The growing vehicle fleet worldwide due to rising income levels and urbanization is driving the demand for automotive refinish coatings. Developing economies are expected to witness high growth in the aftermarket for automotive refinish coatings.
Major players are expanding their production facilities globally especially in developing markets to tap the growing demand. AkzoNobel inaugurated a new automotive refinish coating plant in India in 2023 to strengthen its presence.
Market key trends
The increasing adoption of waterborne coatings presents a key trend in the Automotive Refinish Market Size. Waterborne coatings emit lower VOCs and help body shops and automotive refinishers comply with stringent environmental regulations. They also dry faster and require less energy during curing. Major players have developed advanced waterborne technologies to improve the performance parameters of such coatings. The growing demand for passenger vehicles and increasing road accidents will continue driving the automotive refinish market during the forecast period.
Porter’s Analysis
Threat of new entrants: Low-to-medium as this is an established industry with significant initial capital requirements and regulations to adhere to.
Bargaining power of buyers: Medium as there are multiple established players but buyers have some influence over pricing as they can choose between competing products.
Bargaining power of suppliers: Medium-to-high as raw materials require technical specifications to meet industry and regulatory standards limiting alternatives for manufacturers.
Threat of new substitutes: Low as there are currently no cost-effective alternatives that can match the performance of existing refinish coatings.
Competitive rivalry: Intense as it is a mature industry with established brand loyal customers and manufacturers competing on product quality, service, and pricing.
Geographical Regions
Asia Pacific currently accounts for the largest share in terms of value owing to presence of major automobile manufacturing hubs in developing economies. China, Japan and India contribute substantially to regional demand.
North America is expected to witness the fastest growth during the forecast period due to recovering vehicle parc and expanding refinish industry driven by insurance claims and accidents in the region. Stringent environmental regulations also drive innovation.
*Note:
1.Source: Coherent Market Insights, Public sources, Desk research
2.We have leveraged AI tools to mine information and compile it
About Author - Money Singh
Money Singh is a seasoned content writer with over four years of experience in the market research sector. Her expertise spans various industries, including food and beverages, biotechnology, chemicals and materials, defense and aerospace, consumer goods, etc. LinkedIn Profile