Technological innovations and advancements in original equipment manufacturer (OEM) coatings are pushing up the popularity of these coatings across the world. Many OEM paint and coatings manufacturing organizations are increasingly focusing on new products, technologies, and processes for providing the most efficient and advanced products for automakers. Automobile manufacturing companies are also looking for advanced benefits and features in automotive coatings such as reduced emissions, lesser maintenance costs, regulatory compliance, and greater functionality.
The flourishing automotive industry, especially in the Southeast Asian countries such as Indonesia, India, and Thailand is propelling the sales of automotive OEM coatings. The surging requirement for four-wheeler and two-wheeler vehicles, on account of the soaring disposable income of the people living in these countries and rapid improvements in road infrastructure and connectivity, is massively boosting the demand for automotive OEM coatings. Because of these factors, the global automotive OEM coatings market will exhibit substantial growth in the future.
As a result, the valuation of the market would rise from $10,997.4 million to $13,661.4 million from 2018 to 2024. Furthermore, as per the forecast of P&S Intelligence, a market research firm based in India, the market would progress at a CAGR of 4.2% between 2019 and 2024. Depending on layer, the automotive OEM coatings are divided into electrocoat, clearcoat, primer, and basecoat. Amongst these, the usage of the clearcoat layer will be the highest in the future.
The application of these coatings on vehicles offers enhanced protection from harmful ultra-violet (UV) rays. Moreover, automakers usually apply a thicker coating of clearcoat for making the vehicle highly resistant against the UV rays. This is, in turn, boosting the requirement for clearcoat coatings in various applications pertaining to the automotive industry. Solvent-borne coatings, water-borne coatings, UV-cured coatings, and powder coatings are the main types of automotive OEM coatings available in the market.
Out of these, the utilization of the solvent-borne coatings was found to be the highest in the past years and this trend is predicted to continue in the forthcoming years. However, with the rising environmental concerns being raised in several countries and the enactment of strict regulations and policies regarding the emission of volatile organic compounds (VOCs), the sales of water-borne coatings will surge across the world in the coming years.
Globally, the automotive OEM coatings market is predicted to register rapid expansion in the Asia-Pacific (APAC) region in the future years. This would be a result of the soaring automotive manufacturing in the regional countries such as India, China, and Indonesia and the subsequent growth in the demand for automotive OEM coatings. In APAC, the sales of these coatings are shooting-up in China, mainly on account of the country being the second largest two-wheeler manufacturer in the world.
Hence, it can be said with full certainty that the sales of automotive OEM coatings would skyrocket all over the globe in the years to come, primarily because of the mushrooming automobile manufacturing in various countries and the growing requirement for enhanced coatings in automobiles.