by Waterborne automobile coatings are water-based paints and coatings used on automobiles during manufacturing processes and repairs. They offer benefits like low volatile organic compound (VOC) emissions and easy cleaning compared to solvent-borne coatings. Waterborne coatings are primarily used for application on car bodies, trims, bumpers, and other plastic components. Stringent regulations regardingVOC emissions from paints and coatings are driving OEMs and repair shops to adopt waterborne 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 Dynamics:
One of the key drivers for the growth of the waterborne automobile coatings market is the growing demand for eco-friendly products. Consumers are increasingly looking for sustainable options and automakers are promoting their eco-friendly credentials. Adoption of waterborne coatings helps in reducing VOC emissions significantly during the painting process as compared to solvent-borne coatings. Also, stringent environmental regulations laid by governments across the globe regarding VOC emission control are further promoting the shift towards less hazardous waterborne automobile coatings. For instance, the Euro 6 standard in Europe established stringent rules for vehicle emissions. This driver, coupled with regulations and growing environmental consciousness, is expected to support the demand for waterborne automobile coatings over the forecast period.
Segment Analysis
The global waterborne automobile coatings market is segmented based on resin type, coat type, vehicle type, and region. Based on resin type, the acrylic segment dominates the market and accounted for over 35% of the total share in 2024 owing to its excellent aesthetic properties and corrosion resistance. The polyurethane segment is expected to witness the highest CAGR during the forecast period due to increasing demand for UV-curable and thermally durable coatings.
PEST Analysis
- Political: Stringent environmental regulations regarding VOC emissions are being implemented across major countries, driving demand for waterborne coatings.
- Economic: Increasing vehicle production and rising disposable income in developing nations are fueling market growth.
- Social: Growing consumer preference toward non-toxic, environment-friendly products is boosting the adoption of waterborne coatings.
- Technological: Advancements in coating technologies have led to the development of high-performance, low-VOC waterborne coatings for automotive applications.
Key Takeaways
The global waterborne automobile coatings market is expected to witness high growth during the forecast period of 2023 to 2030. 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.
Regional analysis showed that Asia Pacific dominated the market and accounted for over 40% share in 2024 due to high vehicle production in China, India, and Japan. Europe is expected to witness the fastest growth rate during the forecast period owing to stringent environmental regulations.
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.
*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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