Lead vendors in the automotive sector are constantly jostling for consumer attention; companies are pushing their R&D budgets to the max to develop the best, most innovative and coolest new accessory, or feature to make the driving experience safer and more enjoyable for consumers.
And now Nissan has even developed self-cleaning cars that could make traditional car washes useless. The Japanese car maker announced that is has developed “ultra-ever dry”, a dirt and grime resistant paint that repels both oil and water and has been proven to stand up to mud, sleet, rain and even frost.
It is technological advances like this that are keeping the Global Automotive Refinish Coatings Market on its toes. And while it’s certainly not the fastest growing segment of the automotive sector, the market is still posting a CAGR of 3.73 percent from 2014-2018.
Automotive coatings are products that enhance the appearance and durability of a vehicle by protecting it from external factors like weather and debris. They typically appear in one of three forms; powder coatings, water-based coatings and solvent-based coatings.
Market Drivers, Challenges and Trends
A lot of the modest market growth in this area can be attributed to advances in automotive refinish coatings technology. For instance, vendors such as BASF SE and PPG Industries are developing efficient refinish coatings, which will reduce the cycle time for automotive body shops and also improve cost savings. Reduction in cycle time results in a decrease in the time taken to refinish and deliver a vehicle. In addition, vendors such as AkzoNobel NV are focusing on developing self-healing automotive refinish coatings.
However, there are some challenges acting as roadblocks to more aggressive market growth, such as rising raw material costs.
Refinishing coatings are made from materials like polymers, cellulosics, adhesion promoters, titanium dioxide, epoxy resins, and related solvents but the price of these materials has been steadily increasing. Fluctuations in oil prices and a shortage of materials have also contributed to rising costs, leading to an increase in manufacturing costs and a decrease in profit margins for vendors
But even in the face of these challenges, a few market trends spell good news for the automotive refinishing coatings market.
Stringent environmental regulations in North America and Europe are actually resulting in a growing preference for water-based coatings. The main aim of such regulations is to reduce volatile organic content in coatings; consequently, there has been a decrease in demand for solvent-based coatings. Although water-based coatings have certain limitations such as low chemical resistance, surface performance, and flexibility, low resistance to low temperatures, and high drying time, vendors are trying to improve these products. Innovations in this area will be a big contributor to market growth over the projected period.
For more insights, view our Global Automotive Refinish Coatings Market 2014-2018 report.
