North America Automotive Paints & Coatings Market size surpassed USD 2,867.7 million in 2019 and is anticipated to expand at a CAGR of 4.9% between 2020 and 2026. Growth is attributed to the accelerated vehicle production and shifting preference of consumers for refurbished vehicles.
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Automotive paints and coatings provide vehicles with a range of benefits, which is driving the market growth. The efficacy of the coating in offering protection against UV rays, micro scratches, and the effective color retention properties are substantially augmenting the size of the market. Therefore, due to the extensive usage of paints and coatings along with a rising number of vehicles on the road are significantly contributing to the North American automotive paints & coatings industry growth.
The market is also driven by the escalated sales of used cars in North America. In a country where a car is an important commodity, more people are favoring used cars. The sale of new cars has reflected an unprecedented trend whereas the sale of used cars in the United States is growing year after year. In the U.S., the sale of used cars increased by 1.5% during 2018 and 2019, on the other hand, the sale of new cars had to witness a decline during the same period. The growing preference for used cars is creating opportunities for repair and maintenance application, thereby, bringing out more consumers for automotive paints & coatings and increasing the market value at the same time.
The COVID-19 outbreak, however, plummeted the automotive sales and had a severe toll on the paint industry growth. The lockdown measures which were taken by governments forced the manufacturers to shut down operations and brutally affected the business profitability. The rising unemployment led to reduced consumer spending and dipping economic growth in the initial months of 2020. This, in turn, resulted in the alleviated demand for paints and coatings in the region and hence hampered the North America automotive paints & coatings market growth. But with the relaxations in the movement of goods and reviving economy, the sales figures are likely to rebound to their pre-COVID-19 levels.
Based on the coating type of automotive paints & coatings for passengers vehicles application, electrocoat held more than 55% of the market share in 2019. The high demand for electrocoat is majorly due to low curing temperature, higher corrosion resistance, and superior throw power. Furthermore, improving VOC formulation and HAP’s free properties are gaining popularity and are likely to create future growth opportunities.
Based on coating technology for passenger vehicle application, waterborne coating accounted for more than half of the market share and is expected to exhibit the highest growth rate of 6.8% during the forecast timeframe. The growth is supported by increasing preference for waterborne coatings due to reduced costs and efficiency to provide safeguard against critical weather conditions.
Based on texture type for passenger vehicle application, the metallic segment is projected to grow with a CAGR of 5.4%, showing the highest growth rate compared to other textures. The demand for metallic texture coating is growing primarily owing to the availability of pigments of the aluminum flake which provide distinguishing finishing and a varying appearance with changing viewing angles. The wide application of metallic paints & coatings in customized and sports vehicles is further supporting the industry growth.
Key players in the automotive paints and coatings market include 3M, Axalta Coating Systems, BSAF SE, Cabot Corporation, Covestro LLC, Diamond Vogel, DuPont de Nemours, Inc., Eastman chemical company, Kansai Paint Co., Ltd., The Sherwin Williams Company, PPG Industries Inc., and U.S. Paint Corporation.