The automotive refinish coating market size is estimated to be USD 11,544.3 million in 2024. Displaying a CAGR of 5.3% from 2024 to 2034, the sector is slated to be worth USD 19,352.3 million by 2034.
Demand for automotive refinish coatings is accelerating as a result of the increased sales of automobiles. Rising population as well as the increasing disposable income of the younger generations is enabling automotive sales to speed up.
Automotive owners desire customization for their vehicles. Consumers are looking to have their vehicles stand out on the street. For this purpose, consumers are seeking a glossy look and distinctive color.
Automotive coating is one way through which consumers are giving new life to their vehicles. The availability of a wide array of colors entices car drivers. Thus, sales of automotive refinish coating are booming.
Global Automotive Refinish Coating Industry Assessment
| Attributes | Key Insights |
|---|---|
| Estimated Automotive Refinish Coating Market Size (2024E) | USD 11,544.3 million |
| Projected Automotive Refinish Coating Market Value (2034F) | USD 19,352.3 million |
| Value-based CAGR (2024 to 2034) | 5.3% |
Commercial fleets are increasingly taking the recourse of coatings on used vehicles. These entities desire to give off the air of sophistication. One way through which sophistication is achieved is with cars that look polished. Thus, commercial entities represent a significant consumer base for the automotive refinishing coating market.
Technological development is helping key players deliver products with increased capabilities. Through technological advancements, mechanics are able to finish jobs rapidly.
Technology has also allowed colors to become deeper and more vibrant in terms of finishing. Thus, a significant number of automotive refinishing coating companies are investing in technology to bolster demand.
Apart from decorating, refurnishing is also sought to protect cars. Cars with flaky or peeling paints put owners at risk, while also damaging the overall health of the vehicle. Paint offers an extra layer of protection to vehicles while also adding a new sheen. Thus, refurnishing is being sought after for automobiles at a rapid rate.
Sales of second-hand automobiles are increasing as the cost of buying new cars climbs at a rapid rate. Sellers of second-hand cars opt for a final refurnishing to increase the sales value of vehicles.
On the other hand, buyers also feel the need in a considerable number of cases for new varnishing for their previously used vehicles. A few buyers even purchase second-hand cars to put their own spin on the vehicle, making use of refurnishing to make these more distinctive. Thus, increased trade in the second-hand car sector benefits the automotive refinishing coating market.
The growth of the automotive refinishing market is further aided by the rising popularity of electric vehicles. Several consumers desire to add to the distinctiveness of their vehicles with new coating and this is estimated to propel automotive coating demand.
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Sustainability Influences the Automotive Refinishing Sector
As with many other sections of the automotive sector, demand for automobile coatings too is set to be highly influenced by sustainability trends. Strict environmental regulations are compelling several repair shops to adopt eco-friendly products.
With the emission from paints seen as harmful to the environment, repair shops are also concentrating on reducing volatile organic compounds (VOC) emissions. The use of recyclable materials is increasing worldwide. Thus, industry players are required to keep up with the trends and adopt sustainable practices.
Personalization Trend Expanding the Scope of Refinishing
The millennial population is looking for cars to emulate their own identity. Coating is being demanded to make cars more colorful to go along with vibrant personalities. Thus, repair shops are focusing on widening the palette of colors available to coat cars with.
Several types of coatings are witnessing innovations. The introduction of metallic and pearlescent finishes has given a new dimension to the type of coatings available. Commercial vehicles, meanwhile, are being branded with distinctive colors to increase their association with their respective companies.
DIY Trends to be Prominent in Automobile Refinishing Sector
A considerable number of consumers are shunning repair and paint shops to do their own painting and refinishing skills. The do-it-yourself (DIY) trend is helping consumers get their ideal color and touch without having to rely on external individuals who might not understand their exact wants.
The rise of social media also helps push this trend. By looking at influencers and celebrities in the car sector, consumers get unique ideas for refinishing. While social media does drive consumers to auto body shops, it also influences them to do coating on their own.
The DIY trend, however, acts as a threat to the growth of the industry. The easy availability of products for refinishing, such as aerosol sprays and touch-up kits, also influences consumer inclination to do the job themselves.
Smart Coating Solutions to Open Up New Avenues for Auto Shops
The automotive coating sector has not escaped from the clutches of technological innovations. These innovations range from showcasing to consumers how cars will look after the finishing to adding functionality to paint.
To better impress consumers, key players are increasing the capabilities of coatings by integrating these with augmented reality (AR) and virtual reality (VR). These technologies allow consumers to visualize the final coating more effectively. The technology also provides manufacturers with a roadmap for the final look.
The coating is no longer restricted to just paints. The process is also being fortified with smart sensors. These sensors have the ability to provide real-time data on wear and tear as well as environmental conditions, enhancing the experience of drivers. Thus, smart coating solutions are seen as a new way forward for auto retailers.
Enhanced Durability and Toughness to Play a Prominent Role
There is a strong emphasis on developing coatings with superior durability and performance characteristics. Modern automotive refinishing coatings are being formulated to provide better resistance to environmental factors, such as UV radiation, corrosion, and chemical exposure.
Enhanced durability ensures that vehicles maintain their aesthetic appeal and structural integrity over a longer period, reducing the need for frequent touch-ups or repaints. Innovations in resin technologies and cross-linking mechanisms are key drivers in this trend, resulting in coatings that offer improved adhesion, flexibility, and impact resistance, ultimately extending the lifespan of the vehicle's finish.
The industry size was tipped to be USD 8,467.4 million in 2019. Throughout the historical period, the industry grew at a CAGR of 4.9%, reaching a size of USD 10,963.1 million in 2023.
The pandemic turned out to be disastrous for many auto repair and paint shops. With regulations in place, shops were forced to shut down, with several being compelled to pack up. However, as regulations decreased, there was more scope for auto repair shops.
The forecast period is set to witness progress happen at a rate far outpacing the historical period. The sheer amount of vehicles being purchased by the population is a prime factor in boosting the automobile refinishing sector.
The rising purchasing power of customers further plays a notable role in this. The automobile sector also sees more second-hand cars worldwide. Thus, the scope of automotive coatings is expanding, leading to solid growth over the forecast period.
The electric revolution has taken hold of the industry. More electric vehicles populating the streets is also signaling positivity for the service. A significant number of electrical vehicle owners are doing paint jobs on their vehicles so as to make these closely resemble standard cars. Alternatively, a few are going in the opposite direction and making these even more different from traditional vehicles.
Principal Consultant
A few Tier 1 companies that have a notable presence in the industry include PPG Industries, Inc., BASF SE, Axalta Coating Systems, Sherwin-Williams, and AkzoNobel N.V. PPG Industries, Inc. is well-known for its innovations. For example, the Envirobase High Performance waterborne system, which reduces environmental impact by minimizing VOC emissions is one such product from the company. BASF SE, meanwhile, having already established itself in the landscape, is now focusing on sustainability.
A handful of prominent Tier 2 companies in the sector include Nippon Paint Holdings Co., RPM International Inc., and Valspar Corporation. While not having the financial capabilities of Tier 1 companies, these firms still strive to maintain significant revenue capabilities.
Nippon Paint Holdings Co., for instance, offers a variety of services, consisting of products, such as primers, basecoats, and clearcoats. RPM International Inc., on the other hand, has a number of subsidiaries providing coating services, including Tremco and Carboline.
A few notable Tier 3 companies are KAPCI Coatings, Kansai Paint Co., Ltd., KCC Corporation, Noroo Paint & Coatings Co., and The Lubrizol Corporation. Tier 3 companies control a notable revenue share of the industry as a substantial portion of car owners are willing to trust local services.
Like Tier 1 and Tier 2 companies, Tier 3 companies are also focused on sustainability and offering a variety of services. Both KAPCI Coatings and Kansai Paint Co. Ltd. are focused on eco-friendliness and diversifying portfolios.
Rising income among the upper classes is boosting sales of luxury vehicles in both Europe and North America. High sales of luxury vehicles also involve more expenditure to make cars appear luxurious. Thus, the sector has a vibrant future in these regions.
The Asia Pacific is also catching up to Western nations. Automotive production in countries like South Korea and Japan is advancing at a stellar rate, providing more routes for the sector’s progress.
| Countries | CAGR 2024 to 2034 |
|---|---|
| China | 5.9% |
| United States | 2.9% |
| United Kingdom | 2.1% |
| India | 7.9% |
| South Korea | 2.4% |
| Spain | 3.9% |
| France | 3.7% |
The industry is projected to progress at a CAGR of 2.9% in the United States from 2024 to 2034. In the United States, the drive for vehicles’ appearance to reflect the personality of the owner is high. Thus, automotive refinishing coatings have wide appeal in the country.
The second-hand automotive business in the United States is also moving forward at a rapid pace. Thus, there are multiple routes for the industry’s progress in the country.
The demand for automotive refinish coatings in India is set to register a CAGR of 7.9% through 2034, making the country one of the most promising ones in Asia Pacific. The myriad of auto paint and repair shops in India is multiplying fast and thus the scope of refinishing coatings in the country is vast.
Consumers in India are also well aware of the importance of maintaining resale value. With services like Cardekho and Cars 24 enhancing the resale capabilities of local consumers, there is a surging need for coating and paint jobs.
The sector in the United Kingdom is anticipated to rise at a CAGR of 2.1% over the next ten years. Demand in the country is developing due to the increasing focus on vehicle restoration and the vintage car culture.
With a substantial portion of consumers in the country enamored of car-driving heroes like James Bond, there is a great want in the United Kingdom for cars resembling classic versions of themselves. Thus, automotive refinishing coatings are being sought after at an increased rate. Stringent environmental regulations in the United Kingdom also drive demand for eco-friendly and low-VOC coatings.
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Epoxy is the most prominent type of material used. The base coat is the product that is set to be mainly used in automotive refinishing coatings. By learning the prominent segments in the sector, investors are provided with better investment opportunities.
| Segment | Epoxy-based (Material Type) |
|---|---|
| Value Share (2024) | 51.9% |
When it comes to the material, the choice of consumers is clear. The epoxy-based segment is anticipated to account for 51.9% of the industry share in 2024.
Epoxy-based materials are popular due to the durability and toughness these provide. This safety is ensured due to the superior adhesion as well as resistance to chemicals and environmental factors provided by the material.
Epoxy coatings are particularly effective in preventing corrosion and wear, making these ideal for refinishing jobs. Additionally, these coatings offer excellent mechanical properties and a smooth finish, which enhances the overall appearance of the vehicle. Their high versatility in application, including primers and topcoats, further contributes to dominance.
| Segment | Base Coat (Product Type) |
|---|---|
| Value Share (2024) | 35.8% |
Base coat is anticipated to account for 35.8% of the industry share in 2024. The coat often defines the overall look of the vehicle. Thus, for both consumers and service providers, the base coat plays a prime part in the overall refinishing job.
Base coats are responsible for the color and effects like metallic or pearlescent finishes. Base coats are also essential in providing safety for the color.
Clear coats are also complemented by base coats. Demand for vibrant, customized colors and the need for superior finish quality drive the dominance of the base coat segment in the automotive refinishing industry.
The competitive landscape of automotive refinishing coating is vastly fragmented. A substantial amount of consumers are not hesitant to have local repair shops do the refinishing job, however small-scale the operation. Thus, the barrier to entry for new entrants is low or even non-existent.
Overall, the industry is driven by technological advancements, evolving consumer preferences for vehicle aesthetics, and stringent environmental regulations prompting the development of low-VOC and waterborne coatings. As the demand for automotive refinishing continues to grow, companies are investing heavily in research and development to stay ahead in this dynamic and competitive market.
Emerging players are focusing on niche segments, innovative formulations, and regional expansions to gain traction. The competitive landscape is also influenced by strategic partnerships, mergers, and acquisitions aimed at enhancing product offerings and expanding geographical presence. For instance, collaborations between automotive manufacturers and coating companies are common to develop custom solutions that meet specific performance and aesthetic criteria.
Sustainability is a prominent trend in the competitive landscape. Like a myriad of automotive companies, there is a prominent push for vehicles to become more eco-friendly. Key players in the sector are helping in this by manufacturing products with less harmful environmental emissions. The landscape of the industry is inviting in the extreme to small-scale players as well as new entrants.
Industry Updates
Based on the material type, the automotive refinish coating market is divided into epoxy, polyurethanes, acrylics, and alkyd.
Based on end-use, the automotive refinish coating market can be segregated into OEM and aftermarket.
Based on the technology, the automotive refinish coating market is segmented into solvent-borne and water-borne.
Based on the vehicle type, the automotive refinish coating market is divided into passenger cars, compact, midsize, and luxury.
Based on the product type, the automotive refinish coating market is divided into the primer, base coat, top coat, and clear coat.
Based on commercial vehicles, the automotive refinish coating market is bifurcated into LCV and HCV.
The sector has been analyzed with these regions covered: North America, Latin America, Europe, South Asia, East Asia, Oceania, and the Middle East and Africa.
The market is estimated to reach USD 11,544.3 million in 2024.
The industry is expected to increase at a CAGR of 5.3% over the forecast period.
The market is predicted to reach USD 19,352.3 million by 2034.
Axalta Coating Systems, LLC and 3M Company.
The country is set to witness a CAGR of 2.9% from 2024 to 2034.
1. Executive Summary 2. Industry Introduction, including Taxonomy and Market Definition 3. Market Trends and Success Factors, including Macro-economic Factors, Market Dynamics, and Recent Industry Developments 4. Global Market Demand Analysis 2019 to 2023 and Forecast 2024 to 2034, including Historical Analysis and Future Projections 5. Pricing Analysis 6. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034 6.1. Material Type 6.2. Product Type 6.3. Technology 6.4. Vehicle Type 6.5. Commercial Vehicles 6.6. End Use 7. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Material Type 7.1. Polyurethanes 7.2. Acrylics 7.3. Alkyd 7.4. Epoxy 8. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Product Type 8.1. Primer 8.2. Base Coat 8.3. Top Coat 8.4. Clear Coat 9. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Technology 9.1. Solvent Borne 9.2. Water Borne 10. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Vehicle Type 10.1. Passenger Cars 10.2. Compact 10.3. Midsize 10.4. Luxury 11. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Commercial Vehicles 11.1. LCV 11.2. HCV 12. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By End Use 12.1. OEM 12.2. Aftermarket 13. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Region 13.1. North America 13.2. Latin America 13.3. Western Europe 13.4. South Asia 13.5. East Asia 13.6. Eastern Europe 13.7. Middle East & Africa 14. North America Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries 15. Latin America Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries 16. Western Europe Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries 17. South Asia Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries 18. East Asia Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries 19. Eastern Europe Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries 20. Middle East & Africa Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries 21. Sales Forecast 2024 to 2034 by Material Type, Product Type, Technology, Vehicle Type, Commercial Vehicles, and End Use for 30 Countries 22. Competition Outlook, including Market Structure Analysis, Company Share Analysis by Key Players, and Competition Dashboard 23. Company Profile 23.1. Axalta Coating Systems, LLC 23.2. 3M Company 23.3. AkzoNobel N.V. 23.4. PPG Industries, Inc. 23.5. The Sherwin-Williams Company 23.6. Dow Inc. 23.7. Nippon Paint Holdings Co., Ltd. 23.8. Kansai Paint Co., Ltd. 23.9. Covestro AG 23.10. KAPCI Coatings 23.11. Bernardo Ecenarro S.A. 23.12. DSM Coating Resins B.V. 23.13. Allnex Group 23.14. BASF SE 23.15. Cresta Paint Industries Ltd.
Chemicals & Materials
October 2023
REP-GB-6134
309 pages
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Automotive Refinish Coating Market
