The rapid expansion of the automotive industry, especially in the emerging economies of Southeast Asia such as Thailand, Indonesia, and India is one of the key factors responsible for the mushrooming demand for automotive original equipment manufacturer (OEM) coatings across the world. The soaring demand for four-wheeler and two-wheeler vehicles, on account of the surging disposable income of people and rapid improvements in road infrastructure and connectivity, is fueling the boom in the automotive industry in these countries.
Furthermore, the launch of strategic alliances between various automobile manufacturing companies is also predicted to fuel the expansion of the global automotive original equipment manufacturer (OEM) coatings market. For example, Tata Motors Limited and Volkswagen AG signed a Memorandum of Understanding (MoU) in April 2017 for manufacturing automobiles and automotive components. Because of these factors, the valuation of the market is predicted to grow from $10,997.4 million in 2018 to more than $13,661.4 million by 2024.
Furthermore, the market is predicted to register a CAGR of 4.2% from 2019 to 2024. Depending on layer, the market is divided into clearcoat, electrocoat, primer, and basecoat. Out of these, the clearcoat category is predicted to demonstrate the highest growth in the market in the forthcoming years. This is credited to the fact that clearcoat coatings are extensively applied on automobiles as they protect the vehicles from harmful ultra-violet rays.
On the other hand, the basecoat category is predicted to exhibit the fastest growth in the automotive OEM coatings market in the forthcoming years. When technology is taken into consideration, the market is classified into solvent-borne coatings, water-borne coatings, UV-cured coatings, and powder coatings. Out of these, the solvent-borne coatings category recorded the highest growth in the market in the past years and this trend will continue in the coming years as well.
Geographically, the automotive OEM coatings market will demonstrate the fastest and the highest growth in the Asia-Pacific (APAC) region in the upcoming years, as per the estimates of P&S Intelligence, a market research company based in India. This will be due to the escalating automobile manufacturing in the regional countries such as India, China, and Indonesia. As per various reports, China was the second-largest two-wheeler manufacturer in the world in 2019.
Hence, it is safe to say that the demand for automotive OEM coatings will surge sharply all over the world in the coming years, primarily because of the expansion of the automotive industry, especially in the APAC countries such as China and India.
Source: www.psmarketresearch.com
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