Showing posts with label US Automotive Paints and Coatings Market Size. Show all posts
Showing posts with label US Automotive Paints and Coatings Market Size. Show all posts

Thursday, November 9, 2023

Driving into the Future: In-Depth Analysis of the US Automotive Paints and Coatings Market

 What Is The Size Of Us Automotive Paints And Coatings Industry?

US Automotive Paints and Coatings Market is expected to grow at a CAGR of ~% between 2022-2028 and is expected to reach ~USD Mn by 2028.

The resurgence of the US automotive industry post-disruptions has led to increased vehicle production and demand for paints and coatings. As consumers seek vehicles with enhanced aesthetics and durability, the need for high-quality coatings rises.

The evolution of electric and autonomous vehicles (EVs and AVs) demands specialized coatings to accommodate their unique designs and technological requirements. This drives innovation and customization within the coatings industry.

Additionally, stringent environmental regulations are propelling the shift towards eco-friendly coatings, including water-based and low-VOC formulations. These sustainable options align with industry and consumer demands for environmentally conscious practices.

Moreover, advancements in coating technologies, such as nanotechnology and smart coatings, offer improved functionalities like self-healing and increased durability, attracting interest from manufacturers aiming to enhance vehicle performance and longevity.

Lastly, the growing trend of vehicle personalization and customization fuels demand for unique finishes and colors, driving the coatings industry to offer a wide range of options to cater to consumer preferences.

US Automotive Paints and Coatings Market by Resin Type

US Automotive Paints and Coatings market

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The US Automotive Paints and Coatings market is segmented by resin type into Polyurethane, Acrylic, Epoxy and Others. Based on Resin Type, Polyurethane segment is emerged as the dominant segment in US Automotive Paints and Coatings market in 2022.

polyurethane coatings are known for their exceptional durability, chemical resistance, and high gloss retention. In the automotive industry, where performance and aesthetics are paramount, PU coatings offer a compelling solution for achieving a long-lasting, glossy finish that withstands harsh environmental conditions. Polyurethane coatings are also favored for their application versatility, being used for everything from basecoats to clearcoats. This flexibility simplifies the coating process for manufacturers while maintaining consistent quality and appearance.

US Automotive Paints and Coatings market is segmented by application into Automotive OEM and Automotive Refinish. Automotive OEM market is dominant in application segment in US Automotive Paints and Coatings market in 2022.

The strong resurgence of the US automotive industry following the disruptions of the previous years has led to increased production and demand for new vehicles. This has subsequently driven the need for a substantial volume of paints and coatings for vehicle assembly.

The rise of electric and autonomous vehicles has further contributed to the dominance of the OEM market. These advanced vehicles often require unique coatings to accommodate their specific design, materials, and technological components. Electric vehicles, for example, might necessitate coatings that offer additional thermal management properties.

US Automotive Paints and Coatings by Region

The US Automotive Paints and Coatings market is segmented by Region into North, East, West, South.

In 2022, the dominance region is South region in US Automotive Paints and Coatings market. the South region hosts a significant portion of the country's automotive manufacturing and assembly plants. States like Tennessee, Kentucky, Alabama, and Georgia are home to major automobile production facilities, leading to a higher demand for automotive paints and coatings for both original equipment manufacturing (OEM) and aftermarket applications.

Competition Scenario in US Automotive Paints and Coatings Market

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The US automotive paints and coatings market features a competitive landscape characterized by established players and technological innovators competing for market share. Leading global companies such as PPG Industries, Axalta Coating Systems, and Sherwin-Williams are prominent players in the market. These companies offer a comprehensive range of automotive paints and coatings, including primers, basecoats, clearcoats, and specialty finishes, catering to both OEMs (original equipment manufacturers) and aftermarket segments.

The market's competitive dynamics are driven by factors such as product quality, durability, environmental sustainability, and the ability to provide custom solutions to meet diverse customer needs. As the automotive industry undergoes transformations with the rise of electric and autonomous vehicles, companies that can offer coatings tailored to these emerging trends might gain a competitive edge.

What is the Expected Future Outlook for the Overall Automotive Paints and Coatings Market?

The US Automotive Paints and Coatings market was valued at USD ~Million in 2022 and is anticipated to reach USD ~ Million by the end of 2028, witnessing a CAGR of ~% during the forecast period 2022- 2028.

The automotive paints and coatings industry is witnessing a continuous influx of innovative technologies. From advanced formulations that enhance durability and resistance to smart coatings with self-healing properties, the industry is poised to deliver improved aesthetics, protection, and functionality. Nanotechnology, water-based coatings, and digital application techniques are likely to reshape the sector.

Furthermore, the increasing adoption of electric vehicles (EVs) and autonomous vehicles (AVs) is influencing the automotive paints and coatings market. EVs, with their different design requirements and lightweight materials, may drive demand for specialized coatings. AVs could require coatings with enhanced sensors' compatibility and communication capabilities, aligning with the new needs of these advanced vehicles.

The automotive paints and coatings market's growth trajectory will vary across regions. Developing economies with expanding automotive sectors could experience robust growth due to increased vehicle ownership. Mature markets might focus more on innovation and sustainability, influenced by consumer preferences and regulatory frameworks.

However, industry may face supply chain disruptions, impacting raw material availability and prices. Companies will need to develop resilient supply chains and explore alternative sources to mitigate such challenges.

The future of the automotive paints and coatings market is shaped by a confluence of factors. Technological advancements, sustainability considerations, changing vehicle dynamics, and digitalization will play pivotal roles in driving the market's direction. Market players that can adapt to these trends, offer innovative solutions, and align with evolving consumer and regulatory demands are likely to thrive in the evolving automotive paints and coatings landscape.

Thursday, October 19, 2023

The US Automotive Paints & Coatings market is expected to become ~USD 3.3 Bn. Industry by 2028

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The United States Automotive Paints and Coatings market which currently has a market size of ~USD Bn. is anticipated to grow at a CAGR of ~9.5% in between 2022-2028 as per the findings of Ken Research.

STORY OUTLINE

  • Rising production and sales of automotive vehicles increase the demand for automotive paints and coatings as the vehicles have to be painted.
  • Increasing accidents and collisions also increase the demand for automotive paints and coatings as the vehicles have to be painted after being repaired post-accidents.
  • Technological advancements in the field of paintings and coatings such as UV curable coatings, E-coat, Robotics and automation, Additive Manufacturing, and Electrochromic coatings also accelerate the US Automotive Paints and Coatings market.
  • Rapid pollution caused by automotive paints and coatings allow the market to further develop such paints that cause lesser pollution which ultimately leads to the growth of US Automotive Paints and Coatings market.

A fast growing industry, rising sales of vehicles, technological advancements, and rising accidents along with rising pollution caused by automotive paints and coatings are the various reasons responsible for the growth of US Automotive Paints and Coatings market. This market is anticipated to grow at a CAGR of ~9.5% in between 2022-2028.

Size of US Automotive Paints and Coatings market

  • Rising total vehicle sales in the US: raising the demand for Automotive paints & coatings

demand for Automotive paints & coatings

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Automotive paints and coatings are primarily used in automobiles. Each vehicles whether heavy or light or electric or automotive needs to be painted and coated. For such purpose, wall paints or regular paints cannot be used. For the purpose of painting vehicles, only automotive paints can be used that are specifically designed to be painted on automobiles.

In 2018 and 2019, almost 17 million automotive vehicles were sold each year. However, 2020 saw a sharp decline in the sale of automotive vehicles due to the arrival of covid-19 pandemic. In 2020, only 14.5 million automotive vehicles were sold.

In 2021, the number again started to increase as the covid-19 slowed down. In this year, almost 16 million vehicles were sold. Lastly in 2022, approximately 15 million vehicles were sold.

As the automobiles are manufactured and sold, the demand for automotive paints and coatings also increase as these paints and coatings are to be used in every automotive and vehicle that is manufactured and sold.

Thus, the rising sales of vehicles in the country results in an increased demand for automotive paints and vehicles which ultimately contributes in the growth of US Automotive Paints and Coatings market.

  • Rising accidents and collisions results in requirement for repairing which uses automotive paints and coatings.

US automotive paints and coatings Industry

The number of accidents and collisions have been rising in the United States. When vehicles meet with accidents and collisions, they need to be repaired. And, the process of repairing them use automotive paints and coatings.

Almost 1 in every 63 people have a chance of getting in an accident in the US as per the data of 2020. Out of 163 accidents, 1 turns out to be fatal which means there are 0.7% chances of an accident turning out to be fatal.

Speaking of accidents by vehicles type, then Passenger cars tend to cause most of the injuries (54%) followed by a SUV (21%), and trucks (10%). In 2020, there were at least 5,250,000 car crashes which means on an average, 14,000 car accidents happen daily.

All these numbers are very high and when there are so many accidents happening, the demand for repairing the vehicles also rise. And automotive paints and coatings are widely used in the task of repairing vehicles. This results in heavy demand for automotive paints and coatings which ultimately acts as a driver of the US Automotive Paints and Coatings market.

  • Technological advancements: a boon for US automotive paints and coatings industry

US Automotive Refinish Market Analysis

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Technology also plays a great role in the growth of the US Automotive paints and coatings market. There are various technological advancements in the field of automotive paints and coatings that make the task of painting a vehicle easier and quicker.

Some of the technologies that are widely used in the process of painting and coatings of vehicles include UV curable coatings, E-coat, Robotics and automation, Additive Manufacturing, and Electrochromic coatings.

UV curable coatings are very fast drying paints. This technology has changed the process of applying automotive paints and technology. Usually, it takes a lot of time for the paints to dry. But with this technology the paints or coating dries very quickly due to the use of UV light.

E-Coat, or otherwise known as Electrodeposition Coatings is a technological advancement that works by immersing the automotive in an E-coat tub and the paint is applied on the vehicle with the help of electric charge.

The usage of robotic systems in automotive paintings and coatings is another technological advancement in this field. These systems or robots generally have an arm which can move in all the angles horizontally and vertically to apply the paint. This methods happens to be very precise and provides full coverage with minimizing wastage.

Additive Manufacturing is another technology that is primarily used to create designs and patterns on vehicles. This technology is really great for those who want to customize their vehicles. It is also known as 3D printing. General Motors is a very famous example of a company who uses this technology.

Electrochromic Coatings is another technology that allows the paint to change its color when an electric stimulus is used. The color change usually takes place due to oxidation.

These were some of the various technological advancements that are used in automotive paints and coatings industry. These technologies make the work of painting easier and quicker which ultimately helps in the growth of US Automotive paints and coatings market.

  • Rising pollution caused by Automotive paints and coatings:

pollution caused by Automotive paints and coatings

Pollution caused by automotive paints and coatings is a dark side of the US automotive paints and coatings industry. Every year, lots of waste is generated through these paints which put a great negative effect on the atmosphere and our lives.

In fact, about 80-90% of all the pollution that is caused by automotive manufacturing comes from the painting and coatings only.

Furthermore, paints and coatings are known to form at least 55% of the micro-plastics in the water bodies. This high amount of micro-plastics pollute the environment and water bodies making it very difficult for the sea animals to survive and thrive.

Lacquer paint is widely used to paint automobiles but is not at all sustainable. In fact, almost 85% of this paint evaporates in the air causing air pollution.

These paints also tend to have a very high VOC which is an initialism for volatile organic compound which simply means that these paints tend to vaporize very quickly polluting the environment.

Waste disposal, air pollution, water pollution, and high VOC are the various down sides of using traditional automotive paints and coatings. However, these disadvantages only accelerate the US Automotive Paint and Coatings market as now it has become very important to develop such paints and coatings that do not pollute the environment. This need to develop low pollution causing paints and coatings becomes a growth driver for the US Automotive Paints and Coatings industry.

CONCLUSION

The US Automotive Paints and Coatings market is primarily concerned with the painting of the automobiles. There are various reasons responsible for the growth of US Automotive Paints and Coatings market such as high automotive vehicles sales, rise in accidents and collisions, technological advancements and pollution caused by automotive paints and coatings. As per Ken Research, this market is anticipated to grow at a CAGR of ~5% in between 2022-2028.