A new report on the global automotive refinish coatings market has found that the sector is highly consolidated, with five companies holding 65 per cent market share in recent years.
Transparency Market Research found that two major companies, Axalta Coatings Systems and PPG Industries alone hold 40 per cent share in the global market.
The report also finds that with stringent rules and regulation pertaining to VOC emissions, particularly in Europe and North America, the consumption of solvent-based coatings has seen a massive reduction.
The global automotive refinish coatings market is currently segregated into clear coat, primer, base coat, filler, activator, and others. Of these, base coat holds the top position in the market and is also expected to hold a 31 per cent share of the global market by the end of the assessed period. On the other hand, the activators segment is predicted to display high growth during the same period, ensuing in a minimal rise in its share by 2024 with North America anticipated to hold the dominating position in the market.
TMR analysts say the ongoing trend has forced many manufacturers to concentrate more on development of effective waterborne varieties of automotive refinish coatings, a trend that is likely to have a significant impact on the market’s dynamics in future. It is expected that the global automotive refinish coatings market is likely to display a 5.7 per cent compound annual growth rate (CAGR) during the forecast period 2016-2024. The market, which was valued at US$6.6 billion in 2015, is likely to touch US$10.8 billion by the end of the assessed period.
According to the researchers, developing countries across the world are likely to witness a surge in their automotive market over the years. Countries such as China, South Africa, India, and Brazil are expected to remain at the forefront of this surge, due to rising populations and increases in disposable income. The rise in these developing countries is likely to, in turn, act as catalysts in the growth of the automotive refinish coatings market.
Another finding of the report is the numerous strict rules and regulations regarding emissions and how these have been levied for declining usage of certain elements and chemicals in automotive refinish coatings. This has seen the sales of solvent-based products dwindle, including higher levels of organic compounds in comparison to water-based products. Several efforts made by government and environment sustenance bodies are likely to increase knowledge amongst consumers, and this has seen a steep decline of sales in solvent-based coatings in recent years.