February 29, 2024

The Global Waterborne Automobile Coatings Market Growth is Driven by Increased Environmental Sustainability

Waterborne automobile coatings are currently driving increased environmental sustainability in the global auto manufacturing industry. Waterborne coatings are produced using predominantly water instead of organic solvents, offering significant advantages over traditional solvent-borne coatings in terms of reduced VOC emissions and toxicity. Waterborne coatings provide outstanding corrosion protection and durability for automotive bodies and components. Their curing process emits up to 80% fewer VOCs compared to solvent-borne coatings, helping auto manufacturers lower their environmental footprint in compliance with stringent emission regulations.

The global waterborne automobile coatings market features a wide range of coatings designed for varied automotive applications from primer coatings and basecoats to clearcoats. Waterborne primers and basecoats deliver unparalleled adhesion and pigment orientation on metal substrates. Meanwhile, waterborne clearcoats produce a brilliant gloss and depth of shine comparable to solvent-borne alternatives. The key benefits of reduced odor, faster drying, and lower fire risk have made waterborne coatings increasingly popular among automakers.

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 key trends:

Stringent emission regulations adopted by governments globally are a major driver for increasing adoption of waterborne automobile coatings. Major auto manufacturing regions like Europe and North America have implemented strict VOC legislations over the past decade. These regulations aim to reduce air pollution caused by solvent emissions and encourage the use of environment-friendly coatings. Waterborne coatings meet the stringent emission limits of under 150 g/L or 4.3 lbs/gal for automobile coatings as per European and North American standards. Their increased uptake supports automakers compliance with clean air norms. Rising environmental awareness and sustainability priorities of auto companies are also fueling the demand for zero and low VOC coating technologies.

Porter’s Analysis

  • Threat of new entrants: The waterborne automobile coatings market requires high R&D investments and strict compliance with environmental regulations which poses significant barriers for new companies.
  • Bargaining power of buyers: Large automotive manufacturers have significant bargaining power over coatings suppliers due to the oligopolistic nature of the market. However, stringent environmental policies help balance the bargaining power.
  • Bargaining power of suppliers: Key raw material suppliers like resin manufactures have some bargaining power due to the differentiated nature of their products and technologies. However, the bargaining power is balanced by presence of substitute materials.
  • Threat of new substitutes: Alternatives like powder and UV-cured coatings pose potential threat. However, strict environmental norms favor continued use of waterborne coatings.
  • Competitive rivalry: The market is consolidated with top players competing intensely on product quality, technology, and pricing. However, growing regulations on solvent-borne coatings increase barriers, limiting new competition.

Key Takeaways

The global waterborne automobile coatings market is expected to witness high growth. 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.

Asia Pacific currently dominates the market owing to large automobile production in China and India. Growing stringent environmental regulations for solvent-borne coatings and increasing vehicle production are driving deman in the region. Europe is another major market for waterborne automobile coatings supported by presence of major automobile manufacturers and stringent environmental policies like REACH. Germany and UK hold major shares in the regional market. North America is also a significant market led by the US. Recovery in automobile sales along with focus on sustainability is supporting market growth.

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. The market is led by global companies focusing on new product launches and mergers to gain shares.

*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it