Increasing Automobile Production Fueling Demand for Automotive OEM Coatings

A number of factors such as the rising technological advancements and innovations and expanding automotive industry in the developing countries will drive the automotive original equipment manufacturer (OEM) coatings market at a CAGR of 4.2% during the forecast period (2019–2024). The market was valued at $10,997.4 million in 2018 and it is projected to reach $13,661.4 million revenue by 2024. In recent years, the surging preference for powder coatings over liquid coatings has become a prominent market trend, due to the lower content of volatile organic compounds (VOCs) in the former.

One of the key growth drivers of the automotive OEM coatings market is the increasing technological advancements being made in automotive OEM coatings in the Asia-Pacific (APAC) region. Coating manufacturing companies in APAC are largely focusing on developing novel products, processes, and technologies to meet the ever-changing demands of automakers. Automobile manufacturers are opting for coatings with greater functionality, low maintenance cost, and reduced emissions. The end users are looking out for advanced coatings to comply with the stringent government regulations.

Moreover, the flourishing automobile industry in countries such as Indonesia, India, and Thailand will also contribute to the market growth in the coming years. The mounting sales of four-wheeler and two-wheeler vehicles in these countries, primarily on account of the escalating purchasing power and improving road connectivity and infrastructure, are driving the demand for these coatings in these Southeast Asian nations. Additionally, the growing strategic alliances between automakers will also fuel the expansion of the market in the forecast years.

Globally, Asia-Pacific (APAC) will account for the largest share in the automotive OEM coatings market throughout the forecast period, while progressing at the highest rate. This can be primarily credited to the presence of leading automobile companies in the region, particularly in India, China, and Indonesia. Among APAC nations, China will generate the highest revenue in the market in the foreseeable future, due to the large-scale production of vehicles in the region. According to the International Trade Administration, the annual domestic automobile production in China will reach around 35 million units by 2025.

Thus, the increasing technological advancements being made in the APAC automotive industry and prospering automobile sector in developing countries will support the market growth in the immediate future.

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