The global 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 coatings consist of aqueous dispersions of polymers like acrylics, polyesters, epoxies and alkyds. They are used as primers, basecoats and clearcoats in automotive original equipment manufacturing (OEM) applications. Waterborne coatings offer advantages such as low volatile organic compound (VOC) emissions, consistent film thickness and high corrosion resistance. They help automobile manufacturers comply with stringent environmental regulations regarding VOC emissions. The growing automotive production is expected to drive the demand for waterborne automobile coatings during the forecast period.
Market key trends:
One of the key trends in the waterborne automobile coatings market is the increasing popularity of eco-friendly and sustainable coatings. Automotive manufacturers are under pressure to reduce the environmental impact of their operations. This is driving them to use green coatings like waterborne coatings that emit lower levels of VOCs. Waterborne coatings contain up to 80% water in their composition and emit negligible amounts of VOCs. Their growing adoption will support the expansion of the market during the forecast period amid tightening environmental regulations globally.
Porter’s Analysis
Threat of new entrants: The threat of new entrants is moderate as the automobile coatings market requires large capital investments and regulatory compliances that make it difficult for new companies to enter.
Bargaining power of buyers: The bargaining power of buyers is high due to the presence of many established players offering similar products. Buyers can negotiate on price and quality.
Bargaining power of suppliers: The bargaining power of suppliers is moderate since raw material suppliers have control over prices and there are adequate alternative supplier options available.
Threat of new substitutes: The threat of substitutes is low as there aren't any close substitutes for waterborne coatings used in automobile production.
Competitive rivalry: High due to presence of many global and regional players offering price-based competition.
Key Takeaways
The Global Waterborne Automobile Coatings Market Demand is expected to witness high growth, exhibiting a CAGR of 8.5% over the forecast period 2023-2030, due to increasing automobile production across the world.
Regional analysis: Asia Pacific dominates the global market and is expected to grow at the highest CAGR during the forecast period owing to massive automobile manufacturing hubs and swift infrastructure growth in China, India, Japan, and South Korea. Growth in the European and North American markets is driven by stringent environmental regulations regarding volatile organic compound emissions.
Key players: AkzoNobel, PPG Industries, Sherwin Williams, Axalta Coating Systems, Kansai Paints, Nippon Paints, BASF, and Valspar. AkzoNobel holds a major share of the global market and is one of the leading suppliers to automotive OEMs globally.
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