by Waterborne automobile coatings are paints and powder coatings that use water as a solvent instead of volatile organic compounds (VOCs). They offer advantages such as low VOC emissions, fast drying properties, and excellent corrosion resistance. Waterborne coatings are increasingly being used for both exterior and interior automotive applications such as bumpers, wheels, trim components, and more. Their low environmental impact and regulatory compliance have made them a popular choice in the automotive industry.
The 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:
Growing environmental regulations regarding VOC emissions: Stringent government regulations around the world pertaining to VOC emissions from paints and coatings are expected to drive the adoption of waterborne automobile coatings. Their low VOC content helps manufacturing companies adhere to environmental standards.
Rising customer demand for eco-friendly products: Growing consumer awareness about sustainability and environmental protection is fueling the demand for green products in the automotive industry. Automakers are opting for waterborne coatings to market themselves as eco-friendly and environmentally responsible. This is expected to significantly support the waterborne automobile coatings market growth over the forecast period.
Segment Analysis
The waterborne automobile coatings market is segmented into primer, basecoat and clearcoat. The clearcoat segment dominates the market and is expected to witness high growth over the forecast period. This is because clearcoat provides protection and shine to the painted surface of automobiles and acts as the outermost layer. Clearcoats help in protecting paint from UV rays, acid rain, bird droppings etc. thereby increasing the lifespan of the automobile paint.
PEST Analysis
- Political: Favorable regulations regarding low VOC coatings across regions will boost the waterborne automobile coatings market. Various countries and regions have stringent regulations to reduce vehicle emissions.
- Economic: Increasing disposable income and growing automobile demand especially in developing nations of Asia Pacific is fueling the market growth. Higher adoption of personal vehicles results in increased demand for automobile coatings.
- Social: Rising consumer preference for luxurious and aesthetically appealing vehicles enhances the usage of premium quality automobile coatings. Social status symbol associated with owning lavish cars also drives the market.
- Technological: Advancements in nanotechnology has enabled development of hydrophobic and self-cleaning coatings. Investments in R&D of eco-friendly coating solutions supports the industry.
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 automobile production across the world. Asia Pacific dominates the regional analysis led by China, India and Japan. This is because of massive automobile manufacturing hub and rising vehicle parc in the region.
Key players operating in the Waterborne Automobile Coatings 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 Asia Pacific Waterborne Automobile Coatings market is projected to grow the fastest owing to rapid industrialization, increasing disposable income, and growing automotive sector in the region. China, India and Japan account for the major share of the regional market. Key players focus on expansion in Asia Pacific to tap the growth potential.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
Ravina Pandya, Content Writer, has a strong foothold in the market research industry. She specializes in writing well-researched articles from different industries, including food and beverages, information and technology, healthcare, chemical and materials, etc. With an MBA in E-commerce, she has an expertise in SEO-optimized content that resonates with industry professionals.
