Automotive OEM Coatings Market
March 2016 www.coatingsworld.com Coatings World | 69
to restrain market growth. In addition, harmful environmental
effects by conventional solventborne coatings coupled with inability of industry participants to meet OEMs’ expectations in
terms of environment durability and sustainability of the coating is expected to serve as key market challenge over the forecast
period. However, increasing R&D investments along with ongoing product development to improve performance of coatings is
expected to augment market growth over the next seven years.”
To quantify this growth, Grand View Research found that
the automotive coatings market is expected to reach $27.69
billion by 2022. Global automotive coatings market demand
was 3,769.2 kilo tons in 2014 and is expected to exceed 5,000
kilo tons by 2022, growing at a CAGR of over 4.5% from
2015 to 2022.
Other highlights of the report’s findings include:
• Basecoat was the largest product segment in 2014 and is
expected to show rapid growth at an estimated CAGR of over
5 percent from 2015 to 2022 on account of increasing usage
per vehicle as it imparts exterior aesthetics, color along with
decorative effects.
• Light vehicle OEM was the largest end-use segment in
2014 and is expected to witness significant growth over the next
seven years on account of increasing demand for passenger cars
in China, India, Thailand, Mexico and Saudi Arabia. Rising in-
dustrialization is expected to stimulate market for commercial
vehicles, which is further expected to fuel market growth.
• Asia Pacific was the largest regional market and is expected
to witness swift market growth, at an estimated CAGR of 5. 6
percent from 2015 to 2022, owing to increasing vehicle production in China, India, Indonesia, Thailand, Japan and Malaysia.
Moreover, increasing government spending on road infrastructure is expected to spur market growth.
A Focus on Emerging Markets
Steven Markevich, Axalta Coating Systems’ executive vice president and president, transportation coatings and Greater China,
said that the global automotive demand has been growing approximately three percent a year which is in-line with global
GDP growth.
“As a global company serving the automotive and commercial vehicle markets, Axalta is taking advantage of that growth
where it is occurring and, at the same time, investing for future
growth in emerging regions,” Markevich said.
Regarding high-growth regions like China and other emerging markets, Markevich stated that Axalta is committed to serving the global automotive market.
“To this end,” he stated, “we have invested to expand capacity in China, Mexico, India, Argentina and Brazil during the last
three years. In addition, Axalta facilities have been upgraded in
Europe and North America. Finally, our new Global Innovation
