Demand for Automotive Refinish Coatings Expected to Soar in APAC in...

Demand for Automotive Refinish Coatings Expected to Soar in APAC in Coming Years

Posted 2022-12-07 04:16:40

With the increasing income of people and the surging gross domestic product (GDP) of many countries, the sales of automobiles are booming, which is, in turn, pushing up the demand for automotive refinish coatings. For example, due to the surge in the GDP, the sales of automobiles in China grew by 28.03 million four-wheelers in 2016. This subsequently fueled the demand for refinish coatings, as these coatings are heavily required for automobile maintenance and repair.

Similarly, in India, the sales of used cars increased from 1.6 million units in 2011 to 3.3 million units in 2016. The U.S. also witnessed a massive rise in the sales of used trucks and cars, with the sale of 17.6 million units in 2016, because of the lower prices of these vehicles in comparison to new vehicles. Apart from this, the mushrooming demand for recreational vehicles is also fueling the sales of automotive refinish coatings.

Recreational vehicles (RVs) are trailers and motor vehicles that are equipped with basic home amenities, including a living space. Many countries in North America and Europe have witnessed a sharp surge in the sales of these vehicles in the recent years, due to the rise in the disposable income of people and customization requirements. For example, 33,398 units of RVs were shipped across the world in October 2016, as compared to the worldwide shipment of only 28,346 units in 2015.

With the ballooning sales of these vehicles, manufacturers are increasingly focusing on making modifications, in order to provide economically viable and customized RVs to customers. This growing trend of modification and customization of RVs is fueling the demand for automotive refinish coatings, thereby driving the expansion of the global automotive refinish coatings market. Primer & filler, basecoat, and clearcoat are the most widely used types of automotive refinish coatings around the world.

Out of these, the demand for clearcoats is predicted to rise rapidly in the coming years. This is credited to the fact that these coats protect the basecoats and provide a shiny look to the vehicle. Moreover, this coat provides protection against scratch and harmful environmental factors and also adds durability to the overall coating. Automotive refinish coatings are applied on different types of vehicles such as commercial vehicles, passenger cars, and two-wheelers.

Out of these, the application of these coatings is predicted to rise rapidly on two-wheelers in the coming years, owing to the soaring sales of both used and new two-wheelers globally. Across the globe, the demand for automotive refinish coatings is predicted to surge in Asia-Pacific (APAC) in the upcoming years. This is ascribed to the mushrooming sales of vehicles in the regional countries such as China and India and the growing number of vehicle manufacturing facilities in the region.

Hence, it can be safely said that the demand for automotive refinish coatings will shoot up in the future, primarily because of the surging sales of automobiles, ballooning popularity of customized RVs, increasing average lifespan of vehicles, and the growing incidence of road accidents in various countries.