Coatings World - October 2015

Kerry Pianoforte, Editor

According to a report by Allied Market Research, “World Automotive Refinish Coatings Market - Opportunities and Forecast, 2014–2020,” the global market for automotive refinish coatings will be worth $11.3 billion by 2021 and will grow at a CAGR of 6. 3 percent during 2015–2021. The solventborne refinish coating technology segment currently accounts for about half of the revenue; however, by 2020, waterborne refinish coating revenues will match-up to the solvent-borne segment, the report states.

Continuous adoption of newer technologies, rising disposable income and growing consolidation of used vehicle market are some of the prime factors for automotive refinish coatings market growth. Allied Market Research cited increasing road accidents, vehicle customization – especially in China, India and Brazil – and the growing trend of recreational vehicles as contributing to overall market growth. However, environmental issues related to solventborne refinish coatings and price volatility of raw materials are factors that could hinder the growth of the global automotive refinish coatings market.

Within different product categories, the basecoat refinish coating segment is predicted to remain the largest market with approximately 33.0 percent revenue in 2014. Polyurethane would be the largest resin segment, both in terms of volume and revenue, in 2014. The key reason driving the growth of the polyurethane segment is its characteristic as a foam that assists manufacturers to make automotive seating, which can be assembled, disassembled and recycled.

Growth by Region

The Asia Pacific and North American regions collectively held ap-
proximately 62 percent of the overall automotive refinish coatings
market revenue in 2014, according to Allied Market Research. By
segment, waterborne coatings are expected to grow at the fastest
rate. In 2014, base coat and clearcoat collectively accounted for
more than half of the overall refinish coatings market revenue.
“Despite a challenging business environment in key regions,
refinish business is experiencing steady growth from an over-
all perspective,” said John Outcalt, PPG vice president, Global
Refinish. “In Asia Pacific growth is slowing somewhat yet re-
mains strong, led by China, India and Australia. Growth is
strong in Central and Eastern Europe, aided by a recovering
economy in Western Europe. With the U.S. economy on the re-
bound and miles driven returning to their pre-recession levels,
PPG Refinish is experiencing increased growth in its collision
business, despite the increased rate of “totals” and expansion
of accident avoidance technology. We’re also seeing significant
growth in commercial refinish, due in part to PPG’s strategic
transition from a diversified portfolio offering to a concentrated
focus on coatings.”
“In North America, driven by enhanced safety features of new
vehicles, we anticipate a continued slowdown of market volume,”
said Paul Whittleston, vice president, Automotive Refinish and
Industrial Coatings North America at BASF. “However, safety
features also create opportunities for collision repair experts. For
example, we see an increase in the need for small damage repair
and the requirement for even more training of technicians to be
able to perform the work efficiently and effectively.”

In EMEA, Whittleston noted that consolidation is taking place reducing the number of bodyshops that are now more professional and able to meet the needs of insurance companies and work providers for high quality repairs more quickly.