Sales of Automotive OEM Coatings To Soar in Asia-Pacific in Future
In recent years, the sales and manufacturing of automobiles have surged sharply in the Southeast Asian region, primarily in countries, such as Indonesia, India, and Thailand. This has been mainly because of the increasing per capita income and rapid urbanization in these countries. Moreover, the improving road infrastructure and connectivity is also pushing up the demand for four-wheeler and two-wheeler vehicles in the region. Owing to these factors, the automobile industry is exhibiting rapid expansion, which is driving the demand for automotive original equipment manufacturer coatings.
Besides, rapid technological advancements in these coatings and growing investments being made for augmenting automobile production are also predicted to fuel the growth of the global automotive OEM coatings market from $10,997.4 million in 2018 to $13,661.4 million by 2024. Coating manufacturing organizations are actively focusing on developing new technologies, processes, and products in order to cater to the soaring needs of automakers. Moreover, the end users are increasingly preferring coatings that provide reduced emissions and greater functionality and have low maintenance costs.
Furthermore, many luxury automobile manufacturing companies are rapidly expanding their base in developing nations, such as Brazil, India, and Indonesia in order to tap the upper-middle-class and middle-class populations in these countries. In addition, the rapid economic progress of these countries is also propelling the automotive OEM coatings market at a CAGR of 4.2% from 2019 to 2024. Depending on layer, the market is divided into clearcoat, basecoat, primer, and electrocoat categories.
Amongst these, the clearcoat category is predicted to contribute the highest revenue to the market by 2024, whereas the basecoat category is expected to exhibit the highest growth rate in the market between 2019 and 2024. The use of clearcoat coatings on vehicles is necessary to protect them from ultra-violet rays and thus, a thicker coating of clearcoat is usually applied on vehicles. This subsequently generates a high requirement for clearcoat coatings all over the world.
Commercial vehicle OEMs and light vehicle OEMs are the primary end users of automotive coatings. Between the two, commercial vehicle OEMs recorded higher use of these coatings in the past, and this trend will continue in the coming years as well. This is credited to the extensive manufacturing of commercial vehicles for passenger conveyance and trade purposes. Automotive OEM coatings are majorly applied on plastic parts and metal parts. Between these, the use of these coatings was found to be higher on metal parts during the last few years.
This was because of the large-scale use of metal-based automotive parts and components across the world. Globally, the Asia-Pacific was the largest region in the automotive OEM coatings market in the past. Moreover, this region is also predicted to be the fastest-growing region in the coming years. This is attributed to the growing automobile manufacturing in countries, such as India, China, and Indonesia. Additionally, China was the world’s largest commercial vehicle and passenger car manufacturer and second-largest two-wheeler manufacturer as of 2019.
Hence, the demand for automotive OEM coatings will surge sharply in the coming years, primarily because of the soaring automobile manufacturing all over the world.