Waterborne automobile coatings provide protection from corrosion and improves the appearance of automobiles. These coatings offer benefits like low VOC emission, high gloss and weather resistance. Growing automobile production globally is fueling the demand for waterborne automobile coatings.
The global Waterborne Automobile Coatings Market is estimated to be valued at US$ 86.39 Bn in 2023 and is expected to exhibit a CAGR of 5.5% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
Stringent regulations regarding VOC emission: Stringent regulatory standards aimed at reducing VOC emissions from automobile coating are driving the demand for waterborne coatings. For instance, REACH in Europe has imposed limitations on the use of hazardous chemicals in automobile coatings. Such regulations are favoring the adoption of waterborne coatings among automakers.
Growing demand for eco-friendly products: Consumers are increasingly preferring eco-friendly products. Automakers are focusing on developing sustainable coating technologies to cater to the rising demand for green products. Waterborne coatings produce 80% less VOCs and meet sustainability standards. Thus, the growing inclination towards eco-friendly products is boosting the waterborne automobile coatings market.
SWOT Analysis
- Strength: Waterborne automobile coatings provide protection against harsh weather conditions and UV radiation. They offer superior finish, shine and corrosion resistance compared to solvent-based coatings.
- Weakness: The process of curing waterborne coatings is longer compared to solvent-based coatings. They have higher volatile organic compound (VOC) emissions during curing.
- Opportunity: Increasing environmental regulations regarding VOC emissions are driving the demand for eco-friendly waterborne automobile coatings. Many countries have banned the use of hazardous solvents in automobile coatings.
- Threats: Fluctuations in raw material prices can increase the cost of waterborne coatings. Easy availability of cheaper solvent-based coatings continues to be a challenge.
Key Takeaways
The global waterborne automobile coatings market is expected to witness high growth, exhibiting CAGR of 5.5% over the forecast period, due to increasing stringent environmental regulations restricting the use of solvent-based coatings.
Regional analysis: Asia Pacific dominates the global waterborne automobile coatings market and is expected to continue its dominance during the forecast period. Countries like China, Japan and India have huge automobile manufacturing industries and growing stringent environmental norms, which is elevating the demand for waterborne coatings in the region. North America and Europe are also sizable markets for waterborne automobile coatings due to presence of major automobile brands and presence of regulations regarding VOC emissions.
Key players operating in the waterborne automobile coatings market are Akzo Nobel N.V., BASF SE, Axalta Coating Systems, Berger Paints India Limited, Nippon Paint Company Limited, Kansai Paint Company Limited, PPG Industries Inc., Williams-Hayward Protective Coatings Inc., Tikkurila Oyj, The Valspar Corporation, RPM International Inc., and The Sherwin Williams Company.
The global waterborne automobile coatings market is moving towards consolidation as major players are focusing on acquisitions of smaller players to strengthen their presence in growing regional markets like Asia Pacific and Middle East. Innovation and development of eco-friendly product variants with low VOC and mercury content will be the key differentiator for key players in the market.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
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