Asia Pacific Automotive Coatings Market size valued at USD 11.75 Billion in 2020 and is expected to witness 5.5% CAGR between 2021 and 2027. Rising demand for low maintenance and high-performance vehicles coupled with long-lasting and economical coatings among consumers will propel the market growth.
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Rising per capita income and increasing spending power of middle-class families in Asia Pacific is increasing the demand for affordable vehicles in the region. This factor has also increased the bulk production of vehicles in China and India as well as export of automobiles, driving the automotive coatings market revenue.
The basecoat segment will observe around 5.4% growth rate during the forecast period. Basecoat is highly used as the primary color coat to the vehicle surface which enhances the overall final look of the product. Increasing technology advancement and shifting of basecoat from solvent-borne to waterborne technology owing to less odor is also impelling the market growth.
The UV-Cured segment revenue was over USD 2.65 billion in 2020 and is set to grow at a CAGR of 6.5% through 2027, owing to rapid urbanization and increasing per capita income of middle-class families in APAC region. Increasing environmental concerns as well as sustainable development will also increase research & development investment in UV curable technology.
Plastic end-use segment value of automotive coatings is expected to surpass USD 5.25 billion by 2027. Plastics as a raw material is highly used in automotive coatings due to its excellent mechanical properties and flexibility. Automotive plastics are used in automobiles to enhance the interior and to make the vehicle more comfortable. Changing consumer behavior is driving the demand for lightweight, affordable, and fuel-efficient vehicles which in turn is fueling the market expansion.
The light vehicle OEM segment in the Asia Pacific automotive coatings market accounted for USD 4.6 billion revenue in 2020, led by increasing demand of passenger vehicle. Changing lifestyle and increasing spending power of consumers has raised the demand and importance of custom designed cars especially sports cars in the region.
Key market players include BASF SE, Bayer AG, Nippon Paint Holdings Co., Ltd., Kansai Paint Co., Ltd., The Valspar Corporation, AkzoNobel N.V. and The Sherwin-Williams Company.
Companies are focusing on strategic initiatives such as acquisition, agreement, and merger to expand their presence into the market. In September 2020, BASF launched novel waterborne basecoat line. The product developed is an eco-friendly automotive refinish coating owing to low value of volatile organic compounds (VOCs). New product will increase the efficiency of body shops as well as will improve the environmental footprint.