Automotive coatings, adhesives and sealants: Key market research findings
- Increasing focus on UV-curable coatings
- OEMs account for a majority of the market’s revenue
- Key vendors – AkzoNobel, Axalta Coating, Henkel, PPG, and Sherwin-Williams
Technavio’s market research analysts predict the global automotive coatings, adhesives, and sealants market to grow at a CAGR of around 6% between 2016 and 2020. The growth of this market is fueled by the availability of coatings that are specific for fuel efficient vehicles. Many countries are enforcing regulations to improve efficiency and reduce carbon emissions of vehicles. Established vendors are offering products that meet the three major performance parameters – unique coating formulations for plastics that match the rest of the vehicle, durability, and adequate flow and leveling of the plastic-coated automotive part that does not result in imperfections such as air bubbles. During 2015, the global automotive coatings, adhesives, and sealants market was dominated by the APAC region with a market share of approximately 47%. The presence of many established manufacturing facilities, especially in India and China, will propel the growth of the market in this region during the forecast period.
The new market research report from Technavio presents a breakdown and analysis of the automotive coatings, adhesives and sealants market based on the end-user.
“Vendors in the market are currently focusing on UV-curable coatings. UV-curable coatings exhibit high performance and offer faster assembly line benefits. Vendors are developing and offering innovative UV-cure products such as clearcoats. PPG is involved in the R&D of a UV-curable clearcoat that offers scratch and mar resistance. UV-cure automotive OEM coatings currently account for less than 3% of the market,” says Chandrakumar Badala Jaganathan, Lead Analyst, Chemicals & Materials, Technavio Research.
By 2020, the OEMs segment will continue its market dominance with a market share of around 53%. The growth of this segment of the market can be attributed to the increased production of automobiles in APAC. The increase in the production of smaller vehicles such as microcars, subcompacts, and superminis is likely to provide prospects for the growth of the OEM coatings market. The introduction of innovative products is also expected to impact the growth of the automotive coatings, adhesives, and sealants for the OEM market over the next four years.
The key vendors in the market include AkzoNobel, Axalta Coating, Henkel, PPG, and Sherwin-Williams. The global automotive coatings, adhesives, and sealants market is fragmented and extremely competitive due to the presence of several international and regional vendors. The market is driven by technology and is easily affected by macroeconomic factors and raw material costs. The strong position of international players will limit the entry of new players in the market during the forecast period.
A more detailed analysis is available in the Technavio report, Global Automotive Coatings, Adhesives, and Sealants Market 2016-2020.
