Persistent Market research has just published a study stating that the automotive OEM coating additives market is slated to grow at a significantly high CAGR during the period that the study covered – 2018 to 2026. The coating is the base layer that used on vehicles which protects them from dents or scratches, in addition to giving them an attractive external appearance. In order to further enhance the look of the vehicle, after the primary automotive OEM coating additive, several layers of varnish are applied.
Generally, in a passenger vehicle, four layers of coating are used comprising the clearcoat, basecoat, primer, and E-coat. The main coating layers are the clearcoat and basecoat. It is expected that water-borne technology will gain more traction in the automotive OEM coating additives for interior purposes, as it consists of approximately 80 percent of water, which is considered to be more eco-friendly. Hence, it is considered that the demand for this coating technology will spurt for future automotive vehicles, as it will lead to energy savings in the future. There has been more investment in eco-friendly coatings for vehicles, and greater concern regarding harmful rays like ultra-violate rays and it is expected that this will boost the annual growth rate over the coming years.
Automotive OEM Coating Additives Market: Dynamics
It is expected that a substantial growth in overall vehicle production and the growing number of aging vehicles will lead to increase in the overall demand for automotive OEM coating additives during the period that the study covered. It was also stated that growth in infrastructure in tandem with environmental concerns are likely to boost the growth of the automotive OEM coating additives market. Qualitative aspects like UV resistance, oxidation resistance, stain resistance, scratch resistance, durability, and aesthetic look are other aspects that can make the automotive OEM coating additives market a lucrative one during the 2018-2026 period. Another factor that will contribute to the demand is the increase in vehicle production in countries like China, Mexico, Indonesia, and South Korea.
There is also greater awareness regarding eco-friendly coatings like powder coatings, UV-cured coatings, and water-borne coatings.
Factors that can have a negative impact on the demand include the development of alternative technologies and counterfeit products. Another one is volatility in the price of raw materials, comprising resins, titanium oxides, and pigments.
In the automotive OEM coating additives market, manufacturers are focused on manufacturing result-oriented and efficient automotive OEM coating additives by using cost-effective paint additives that have high reliability. Moreover, increasing penetration of automatic paint color changing technology is likely to create fresh opportunities for automotive OEM coating additive manufacturers over the forecast period.
Manju Mathew, an MBA in marketing, completed publisher training courses from the Oxford Brookes University and New York University. She started with marketing and PR roles before moving on to her current position as a full time writer. Currently living in Dubai, her life as an expat has sharpened her observation skills and flair for writing. She enjoys writing about luxury cars like Ferrari, Lamborghini, etc even if she can only dream of owning them.
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