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BOOM IN AUTOMOTIVE INDUSTRY FUELING AUTOMOTIVE OEM COATING SALES

Date: May 19, 2021Author: pnsintelligence 0 Comments

The rapid expansion of the automotive industry, especially in the emerging
economies of Southeast Asia such as Thailand, Indonesia, and India is one of the
key factors responsible for the mushrooming demand for automotive original
equipment manufacturer coatings across the world. The soaring demand for
four-wheeler and two-wheeler vehicles, on account of the surging disposable
income of people and rapid improvements in road infrastructure and connectivity,
is fueling the boom in the automotive industry in these countries.

Apart from the aforementioned factor, the technological innovations and
advancements being made in automotive OEM coatings, especially in the
Asia-Pacific (APAC) region, are also positively impacting their sales. Several
OEM coating and paint producers are increasingly focusing on developing advanced
products. Moreover, many automobile manufacturing companies are increasingly
preferring the use of coatings having greater functionality, lesser maintenance
costs, and lesser emission generation characteristics. This is subsequently
fueling the popularity of automotive OEM coatings around the world.

Furthermore, the launch of strategic alliances between various automobile
manufacturing companies is also predicted to fuel the expansion of the global
automotive original equipment manufacturer (OEM) coatings market. For example,
Tata Motors Limited and Volkswagen AG signed a Memorandum of Understanding (MoU)
in April 2017 for manufacturing automobiles and automotive components. Because
of these factors, the valuation of the market is predicted to grow from
$10,997.4 million in 2018 to more than $13,661.4 million by 2024.

As for the performance of region in the global market, the Asia-Pacific
automotive OEM coatings market accounted for the largest share in 2018, and it
is expected to display the fastest growth in the forecast years. It is due to
the booming automotive industry in countries, such as Indonesia, India, and
China. As of 2019, China was the second-largest producer of two-wheelers and
largest producer of commercial vehicles and passenger cars. Additionally, the
growing adoption of lightweight vehicles and electric vehicles is increasing the
application of OEM coatings in the region.

Due to the presence of few major players, the automotive OEM coatings market has
a consolidated nature. This consolidated market is led by only seven
manufacturers: Akzo Nobel N.V., BASF SE, PPG Industries Inc., Nippon Paint
Holdings Co. Ltd., Axalta Coating Systems Ltd., The Sherwin-Williams Company,
and Kansai Paint Co. Ltd. These players are adopting measures like product
launches, geographical expansions, strategic alliances, and mergers, to gain a
competitive edge in the market.

Thus, the increasing demand for automobiles is driving the growth of the market
during the forecast period.

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