Automotive coatings to witness substantial consumption

A series of set regulations concerning the environmental issues surrounding coatings accompanied by a considerable reduction in the prices have encouraged the suppliers as well as the automotive manufactures to introduce coating technologies that could meet the pollution reduction goal. With increasing change in the consumer inclination for newer technologies, the manufacturers have turned to base coats or clear coat systems.

The waterborne coatings generally use water as a solvent in order to dissolve a resin which makes the technology easy to apply and eco-friendly. Both U.S and Europe have initiated regulations that need the waterborne coatings to depict a VOC content of less than 3.5 pounds every gallon of water to make them into environment-friendly solutions. 

Major automotive OEM coating suppliers along with automotive manufacturers are involved in the production and applications of such coatings to appease the rapidly changing customer expectations. Constantly developing technologies introduce enhanced coatings that offer anti-oxidant & anti-corrosion properties, are more durable and have a larger contribution towards mitigating environmental degradation and meeting newer regulatory standards. 

For instance, BASF introduced coating surface modifications that provide firm resistance from the weather and easy-to-clean effect. Global automotive coatings market size is anticipated to reach $26.5 billion by 2024, with demand from the OEM and refinish applications.

Within the growing world economy, there has been a significant increase in purchasing power of consumers at hand. Easy availability of car loans has encouraged a large portion of millennials to purchase their own cars. The European Union had witnessed an increase to 15.2 million new car registrations in 2017. 

A consistent increase in the production and sales of automotive across the world has encouraged the demand for coatings. As per the China Association of Automobile Manufacturers, more than 27 million vehicles were sold in 2018 in the region. This comprised of 23.79 million passenger cars and 4.38 million commercial vehicles. The Chinese government expects annual automobile production of up to 35 million units by the year 2025. 

The European Union, on the other hand, had produced about 19.2 million motor vehicles in 2018 accounting for nearly 20% of the 98.1 million vehicles that was the total output worldwide in the same year. Rising per capita income has enhanced the standards of living over a period of time, consequently encouraging the adoption of luxury cars.

The auto fleet across the world is on its way to slip into being run by electricity, with the sales of electric vehicles expanding 75% in 2018, ensuring promising new growth opportunities for automotive coatings market players. Prominent industry players such as Nissan, Tesla, Hyundai, Toyota and Mercedes among others have been greatly involved in the manufacturing of electric vehicles. 

While a wide range of benefits from various automotive coatings has supported the market growth, there are some factors that shall prove to act as a hindrance to the product deployment. With the numerous environmental regulations implemented by various countries, the application process for coatings has become difficult as they need a controlled environment. 

Coatings like ceramic coatings can be extremely expensive and require professionals for the work. With the majority of the operational costs dependent on the raw materials, fluctuating prices for the same can limit the production of coatings, rendering a negative impact over its market.

However, major firms involved in the introduction of improved technologies accompanied by the consistent demand for automobiles will boost automotive coatings industry forecast over the coming years.