Waterborne Automobile Coatings Market Is Estimated To Witness High Growth Owing To Increasing Environmental Regulations
The Waterborne Automobile Coatings Market is estimated to be valued at US$ 18,040.5 Mn in 2022 and is expected to exhibit a CAGR of 8.5% over the forecast period 2023-2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
Waterborne automobile coatings refer to automotive paints and coatings that utilize water as a solvent instead of organic solvents. They offer superior appearance, protection, and durability to automotive bodies. Waterborne coatings are increasingly being used on new vehicles and in auto repair shops due to their low volatile organic compound (VOC) emissions compliant with stringent environmental regulations.
Market Dynamics:
Rising environmental regulations regarding VOC emissions: Stringent government regulations worldwide limiting the use of solvent-borne coatings due to their high VOC content is a key factor driving the growth of the market. Regulatory bodies such as European Union and U.S. EPA have set strict VOC emission standards to curb air pollution, which is boosting adoption of waterborne coatings by automakers and auto repair shops.
Growing automotive industry in developing countries: Expanding vehicle parc globally especially in emerging economies such as China, India, Brazil owing to rising disposable incomes is augmenting the demand for automotive coatings including waterborne types. According to International Organization of Motor Vehicle Manufacturers, over 95 million vehicles were produced worldwide in 2021 indicating substantial coatings requirement.
Segment Analysis
The global waterborne automobile coatings market is segmented by resin type, coating type, vehicle type and region. Based on resin type, the acrylic segment holds the largest market share owing to its excellent properties such as good clarity, color retention, gloss and adhesion. It prevents corrosion and provides a smooth & hard finish to the vehicles.
PEST Analysis
Political: Stricter environmental regulations regarding VOC emissions are expected to boost the growth of waterborne coatings. Economic: Rising disposable income and growing automotive production are fueling the demand in emerging economies. Social: Increasing consumer preference for non-polluting and environment-friendly products is driving the market. Technological: Advancements in resin and additive formulations have improved the performance characteristics of waterborne coatings.
Key Takeaways
The Global Waterborne Automobile Coatings Market Size is expected to witness high growth, exhibiting CAGR of 8.5% over the forecast period, due to increasing vehicle production and stringent environmental regulations concerning VOC emissions.
The Asia Pacific region dominates the market and is expected to maintain its lead position throughout the forecast period due to rapid growth of the automotive industry in China and India. Regional analysis related content comprises Regional analysis related content (The Asia Pacific waterborne automobile coatings market will be the fastest growing region, driven by rising automotive demand from countries like China, India and Japan.)
Key players operating in the waterborne automobile coatings market are BASF SE, Akzo Nobel N.V., Kansai Paint Co., Ltd., PPG Industries, Inc., Sherwin Williams Company. Key players are focusing on expansions and new product launches to strengthen their market position.