As the disposable income of people is rising across the globe, the sale of vehicles is increasing as well. It would have been hard to imagine a few years backs that vehicles could be owned by people belonging to lower classes as well. However, vehicles are becoming cheaper, thanks to technological advancements in the automotive industry, and therefore, the consumer base for vehicles is not limited to the elite class anymore. In addition to this, people who are not able to afford brand new vehicles always the option of buying second-hand vehicles, which are cheap and often in good enough condition to function properly.
It is because of these factors that the demand for automotive refinish coatings
is growing. These coating provide an aesthetic appeal to vehicles, along with protecting them against different weather conditions and corrosion. Furthermore, automotive refinish coatings can also provide a whole new look to a used vehicle, thereby making it nearly as good as a new vehicle. These coatings are also utilized for vehicle maintenance and repair. Owing to this, the global automotive refinish coatings market is projected to generate a revenue of over $11,099.7 million by 2023, rising from $7,855.3 million in 2016, witnessing a 5.1% CAGR during the forecast period (2017–2023).
Primer & filler, clearcoats, and basecoats are the major automotive refinish coatings, among which, the demand for clearcoats was the highest in the past. Clearcoats are utilized for protecting the basecoat and providing a shiny look to the vehicle. These coatings also provide durability, scratch resistance, and protection against environmental damage to the overall coating. Epoxy, polyurethane, acrylic, and alkyd are the resin types utilized for making automotive refinish coatings. As polyurethane provides benefits such as fairly smooth surface, thick coating, chipping resistance, and chemical resistance, its demand was the highest in the past.
Geographically, Asia-Pacific has been the largest automotive refinish coatings market
in the past and is further expected to retain its position in the global domain during the forecast period. This can be ascribed to the surging demand for passenger cars, commercial vehicles, and two-wheelers in developing countries, including India and China. Additionally, the commercial fleet in the region is growing on account of the rising disposable income of people and increasing logistics demand.
Hence, the demand for automotive refinish coatings is rising because of the rising vehicle sales and increasing adoption of second-hand vehicles.