The automotive paints market is projected to grow from USD 8.4 billion in 2023 to USD 9.9 billion by 2028, at a CAGR of 3.2%. The key factors driving the automotive paints is increase in production of passenger cars, EVS and increase in sales of SUVs is driving. Also, there is increase in adoption for powder coating and water-borne coating technologies in automotive sector to reduce the environmental impact. Hence these factors is driving the automotive paints market.
Polyurethane resin is projected to have the highest demand in automotive paints market
Polyurethane-based coatings are popular in automotive OEM and refinish painting because they offer a unique combination of properties, this includes good elastic property at very low temperatures, solvent and water resistance, abrasion resistance, machine washability and dry cleanability. In addition to these benefits, polyurethane-based coatings do not increase paint thickness or change styling factors, such as drape. Also, with an increase in need of automotive paints by OEMs, the paint manufacturers have started investing in expanding their plant capacity for polyurethane resins. For instance, BASF SE has announced a single-digit million-euro investment in the capacity expansion of water-based polyurethane dispersions (PUDs) at its Castellbisbal site in Spain to increase the production capacity. Hence, polyurethane-based paints have the largest market in automotive paints market, by resin type.
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The solvent-borne paint segment, by technology type, holds the largest market share.
Solvent-borne paints have traditionally held the highest market share in automotive paint technology due to several advantages that have made them the preferred choice for many automotive manufacturers. While waterborne paints are gaining traction due to their environmental benefits, solvent-borne paints still offer several advantages such as superior durability & adhesion, easier to spray, faster drying time, and has wider range of colors and finishes that make them a popular choice.For instance, A study by the Automotive Industry Action Group found that solvent-borne paints typically dry within 15-30 minutes, while waterborne paints can take up to several hours to fully cure. This difference in drying time can significantly impact production throughput. Also, solvent-borne paints generally exhibit better flow and leveling properties compared to waterborne paints, which gets spread more evenly on the surface, resulting in a smoother and more uniform finish. Hence, due to despite emergence of waterborne paints, solvent-borne paints continue to hold a significant share of the automotive paint market due to their superior performance, efficiency, and versatility, making them a crucial component in the automotive manufacturing process.
Global Automotive Paints Market Ecosystem Analysis
The major companies in the automotive paints market have the latest technologies, diversified portfolios, and strong distribution networks globally. The major players in the automotive paints market include Axalta Coating System, LLC. (US), PPG Industries, Inc. (US), Akzo Nobel N.V. (Netherlands), The Sherwin Williams Company (US), and BASF SE (Germany).
ASIA PACIFIC Region Holds the Largest Share of the Automotive Paints Market
The rapid adoption of electric vehicles (EVs) in the Asia Pacific region is driving demand for specialized automotive paints that can withstand the unique challenges of EV batteries and lightweight materials. Governments across the region are incentivizing EV adoption through subsidies and tax breaks, further fueling the demand for EV-specific paints. For instance, China, the world’s largest EV market, offers generous subsidies to EV manufacturers and consumers. This has led to an explosion in EV sales, with China accounting for over 60% of global EV sales in 2022 according to The International Council on Clean Transport (ICCT). Similarly, India is also implementing policies to promote EV adoption. The Indian government has set ambitious targets for EV sales, aiming to have 30% of all new car sales be EVs by 2030.
Key Players
Major manufacturers in the Automotive paints market include PPG Industries LLC. (US), Axalta Coating Systems LLC, (US), Akzo Nobel N.V. (Netherlands), BASF SE (Germany), The Sherwin Williams Company (US), Valspar (US), DOW Chemical (US), 3M (US), and KCC (South Korea).
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