Car clear coat is a paint or lacquer that is applied to the outer surface of a vehicle as the final step in the painting process. Clear coat provides protection against environmental factors such as sun damage, acid rain, and corrosion. It also gives a shiny and glossy appearance to vehicles. Rapid urbanization and rising disposable income levels in developing countries have significantly fueled automotive demand over the past decade. The sales of passenger and commercial vehicles have increased steadily, necessitating higher production volumes from automakers globally. Car clear coat forms an integral part of the vehicle finishing process and its demand is directly correlated with automotive output.
The global car clear coat market is estimated to be valued at US$ 23.74 Bn in 2023 and is expected to exhibit a CAGR of 8.9% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
One of the key trends in the Global Car Clear Coat Market Size is the rising demand for UV-cured coating systems. UV-cured coatings have gained widespread acceptance in the automotive industry due to their advantages over solvent-borne and water-borne coatings. UV-cured coatings have higher production efficiency as they require lower curing temperatures and shorter curing times. This enables automakers to increase painting line speeds. UV-cured coatings also emit lower volatile organic compound (VOC) levels, thereby reducing the environmental footprint of the automotive finishing process. Their resistance to chemicals, scratching, and weathering is also better than traditional coatings. Leading car clear coat manufacturers are investing in new product developments to capitalize on the surging popularity of UV-cured systems.
Porter’s Analysis
Threat of new entrants: Difficult entry for new players due to high capital investment required for R&D and manufacturing processes.
Bargaining power of buyers: Large buyers have moderate power due to availability of alternatives. However, stringent regulations and customized requirements limit options.
Bargaining power of suppliers: Few global suppliers exist with specialized production capabilities and technology. This gives them significant influence over prices.
Threat of new substitutes: No close substitutes available currently, but continuous product innovation can introduce alternative surface protection options.
Competitive rivalry: Intense competition among established players to gain market share through new product developments, acquisitions and regional expansions. Price competition also affects industry profitability.
Key Takeaways
The global Car Clear Coat Market is expected to witness high growth over the forecast period of 2023 to 2030. Regional analysis
The Asia Pacific region dominates the market currently due to high vehicle production in China and India. Growth momentum is anticipated to continue with increasing vehicle adoption and aftermarket spending in emerging economies. North America and Europe are also major regional markets driven by regulations to enhance road safety.
Key players operating in the Car Clear Coat Market are PPG Industries, Inc., Axalta Coating Systems, LLC, BASF SE, Sherwin-Williams Company, Nippon Paint Holdings Co., Ltd., Kansai Paint Co., Ltd., Akzo Nobel N.V., 3M Company, KCC Corporation, Noroo Holdings Co., Ltd., Valspar Corporation, Jotun Group, Hempel A/S, Carpoly Chemical Group Co., Ltd., Guangdong Maydos Building Materials Limited Company. Key players are focusing on new product innovations to enhance features such as durability, shine and aesthetics to target multiple vehicle types and applications globally.
*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