by 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 Overview:
Waterborne automobile coatings are environment-friendly coatings used on automobiles to protect the body from corrosion and provide aesthetics at the same time. These coatings are water-based and provide excellent gloss, and superior film formation properties without emitting volatile organic compounds (VOCs) that are harmful to human health and environment. Stringent government regulations regarding emissions from automobile coatings is driving demand for low and zero VOC coatings globally, thereby propelling growth of the waterborne automobile coatings market.
Market key trends:
One of the major trends in the waterborne automobile coatings market is development of bio-based coatings. Increase in environmental protection activities across the globe is encouraging market players to develop eco-friendly and sustainable coating solutions. For instance, AkzoNobel launched its Interpon D2525 bio-based coating powder made from fully bio-based polyester resins derived from vegetable oils. Such developments are expected to gain traction in the market over the forecast period. Another key trend observed in the market is increasing popularity of waterborne basecoats. Automobile OEMs are increasingly adopting waterborne basecoat systems to lower VOC emissions from the paint shop. Waterborne basecoat provides an excellent finish along with reduced environmental impact and compliance with regulations.
Porter’s Analysis
- Threat of new entrants: The threat of new entrants in waterborne automobile coatings market is moderate. High capital requirement for infrastructure and R&D acts as a barrier.
- Bargaining power of buyers: The bargaining power of buyers is high due to availability of alternatives. Buyers can negotiate on price and delivery terms.
- Bargaining power of suppliers: The bargaining power of suppliers is also high as raw materials require strict quality standards. Suppliers can influence prices of raw materials.
- Threat of new substitutes: Threat from substitutes like powder coatings and UV-curable coatings is moderate as they require less curing time but have limitations.
- Competitive rivalry: The competitive rivalry in the market is high owing to presence of numerous local and global players.
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.
Regional analysis: Asia Pacific region dominates the waterborne automobile coatings market and is expected to grow at the fastest rate during the forecast period. Increasing automotive manufacturing and sales in China, India, Japan and Southeast Asian countries will drive the APAC market.
Key players: 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.
*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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