Waterborne automobile coatings provide corrosion resistance and protect vehicles from harsh environmental conditions. They offer superior quality finish, durability and are environment friendly as they contain low or no volatile organic compounds (VOCs). The growing environmental regulations regarding VOC emissions have increased the demand for waterborne automobile coatings.
The global waterborne automobile coatings Market is estimated to be valued at US$ 86.39 Bn in 2023 and is expected to exhibit a CAGR of 5.5% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Opportunity:
The opportunity for environment friendly solutions is driving the growth of the waterborne automobile coatings market. Strict regulations imposed by various governments and regulatory bodies worldwide have compelled automobile manufacturers to adopt eco-friendly products in their production processes. Waterborne coatings released lesser VOCs in the atmosphere as compared to solvent borne coatings. They are capable of meeting stringent environmental norms pertaining to VOC emissions. Additionally, waterborne coatings do not emit toxic fumes and hence provide a safer work environment for paint shop workers. Thus, the growing emphasis on developing sustainable and eco-friendly coating technologies will boost the demand for waterborne automobile coatings during the forecast period.
Porter's Analysis
Threat of new entrants: Low as it requires huge capital investment for R&D and manufacturing facilities.
Bargaining power of buyers: Moderate as some key automotive OEM buyers have bargaining power due to their large purchase volumes.
Bargaining power of suppliers: High as suppliers of raw materials such as resins and polymers have capability to influence prices.
Threat of new substitutes: Moderate threat from substitute coating technologies such as powder and UV-cured coatings.
Competitive rivalry: Intense as key players compete on pricing, new product development and customer service.
SWOT Analysis
Strengths: Environment-friendly and adhere to stringent emission norms. Provide superior corrosion protection and aesthetic appearance.
Weaknesses: High production costs. Vulnerable to fluctuations in raw material prices.
Opportunities: Increasing vehicle manufacturing and emphasis on eco-friendly coatings in emerging economies.
Threats: Stringent environmental regulations raise compliance costs. Shift towards powder and UV-cured coatings.
Key Takeaways
The global waterborne automobile coatings market is expected to witness high growth over the forecast period of 2023 to 2030. The global waterborne automobile coatings Market is estimated to be valued at US$ 86.39 Bn in 2023 and is expected to exhibit a CAGR of 5.5% over the forecast period 2023 to 2030.
Asia Pacific region currently dominates the market owing to presence of major automobile manufacturing hubs in China, India, Japan and South Korea. China is the largest producer and consumer of automobiles globally. The region is estimated to maintain its dominance during the forecast period with growing automotive sector in developing nations.
Key players operating in the waterborne automobile coatings market are Akzo Nobel N.V., BASF SE, Axalta Coating Systems, Berger Paints India Limited, Nippon Paint Company Limited, Kansai Paint Company Limited, PPG Industries Inc., Williams-Hayward Protective Coatings Inc., Tikkurila Oyj, The Valspar Corporation, RPM International Inc., and The Sherwin Williams Company. Strategic partnerships and new product innovations are among the key strategies adopted by major players to gain competitive edge in the market.
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