Automotive Refinish Coating Market size was over USD 11.6 billion in 2024 and is estimated to reach USD 22.8 billion by the end of 2037, expanding at a CAGR of 5.8% during the forecast timeline, i.e., 2025-2037. In 2025, the industry size of the market is projected to be valued at USD 12.3 billion.
The demand for customized vehicles is driving the growth of this industry. Custom paint jobs, sleek finishing, and unique graphic designs are heightening the surge for special formulations. This is further, increasing the demand for good-quality coating solutions. According to a 2022 American Coatings Association report, the global coating raw materials market was estimated to reach USD 63.5 billion by the end of the same year.
Participation in car shows to display statement pieces is also inspiring vehicle owners to opt for customization. Such competition is propelling the demand for specialized solutions in the automotive refinish coating market. Events are being held to gather the leading companies with an opportunity to showcase their portfolio. This is additionally, escalating the product’s reach to international consumers. In November 2024, AAPEX is scheduled to be held in Las Vegas. In this expo, the Autocare Association and U.S. Commercial Service will collaborate to offer new opportunities. The U.S. exhibitors, including refinish coating suppliers will be able to connect with international buyers for market expansion.
Growth Drivers
Challenges
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Base Year |
2024 |
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Forecast Year |
2025-2037 |
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CAGR |
5.8% |
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Base Year Market Size (2024) |
USD 11.6 billion |
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Forecast Year Market Size (2037) |
USD 22.8 billion |
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Regional Scope |
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Type (Primer, Basecoat, Clearcoat, Activator/Hardener)
Basecoat segment is predicted to hold more than 34.2% automotive refinish coating market share by 2037. The rising number of old cars is leveraging the demand for quality basecoats. Variations in colors and finishing make this segment suitable for creating personalized vehicle aesthetics. Innovative formulations can improve its durability and application. Water-based and other sustainable basecoats can easily comply with strict environmental regulations, further, promoting expansion in research and development. In May 2023, 3M partnered with Svante Technologies to develop a science-based climate-friendly solution. The developed coating material is dedicated to capturing and removing atmospheric CO2.
Material (Polyurethanes, Acrylics, Alkyd, Epoxy)
Based on material type, the polyurethane segment is presenting lucrative growth in the automotive refinish coating market. Its superior resistance to harsh chemicals, UV light, and extreme weather makes it preferable for professional customizers. The high-gloss finish provides a pleasing visual appeal to the vehicle. Various options for application methods such as spraying and brushing can be utilized for a range of substrates. The usage of waterborne polyurethane coatings over traditional solvent-based solutions is increasing. Further, being fit to operate along environmental regulations. In September 2020, BASF launched a waterborne basecoat product line for automobile paint. Such innovations are creating a developmental scope in the production of sustainable coating materials.
Our in-depth analysis of the market includes the following segments:
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Product Type |
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Material |
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Vehicle |
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North America Market Analysis
North America in automotive refinish coating market is projected to dominate over 30.7% revenue share by 2037. The inflated automobile industry of this region is propelling the industry to expand. Increased vehicle ownership is subsequently growing the number of collisions. Thus, the surge in refurbishing services, such as refinishing has also multiplied. The region owns global market leaders including PPG Industries, Axalta Coating Systems, BASF, and others, who are contributing to technical development. In May 2024, PPG announced an investment of USD 0.3 billion to build a new paint and coatings manufacturing facility in Tennessee. The facility will accommodate an advanced manufacturing plant to produce high-quality coating solutions.
The U.S. is augmenting the market to present significant growth. The rise of DIY automobile repair and refinishing projects is fueling the industry with lucrative opportunities. Evolving consumer preferences about old vehicle restorations are leveraging the demand for specialized refinish products. Cost-effective solutions are reshaping the growth dynamics. In April 2024, BASF launched the Glasurit 100 Line which can be a cost-effective option for car body shops. The usage of 100 Lines can reduce process timing by 40% and material input by 30%, resulting in expense reduction. The availability of such budget-efficient options are encouraging for more innovative solutions.
The Canada automotive refinish coating market is poised to generate remarkable revenue. Easy and high-performance applications have made coating solutions popular for DIY projects. Frequent need for vehicle repair due to harsh weather conditions, leading to increased demand for refinishing services. According to an AIA Canada report published in March 2023, the aftermarket, including repair of the automobile industry is worth over USD 37.8 billion. The country embarks on further development such as UV-cured coating in refinishing coating solutions. Enhanced efficiency for implementing coatings has influenced the market to grow more.
APAC Market Statistics
The Asia Pacific automotive refinish coating market is estimated to experience significant growth during the forecast period. The growing adoption of autonomous technologies in the automobile industry is fueling the sector. The shift of consumer trends and regulatory development toward sustainability has inspired the penetration of bio-based materials. The expanding distribution network of raw materials is also captivating foreign investments. Regulations on VOC emissions are pushing manufacturers to introduce eco-friendly refinish coatings. In April 2024, BASF launched eco-efficient clearcoats and undercoats in this region. The new product portfolio offers higher productivity, reducing CO2 emissions.
India is emerging to be one of the largest consumer bases for the market. Global leaders are opting to grasp the investment and expansion opportunities in this country. In October 2023, PPG Asian Paints launched Cartisan, a state-of-the-art car detailing service provider in India. The launch was a strategic move to expand the automotive refinish portfolio in India market. The booming automobile and aftermarket sector due to increasing disposable income is creating lucrative growth opportunities. Rapid urbanization is driving the automotive industry to expand, additionally, rising demand for personalized refinish solutions.
China is growing to become one of the biggest resources for production in the market. Overall economic growth is inspiring consumers to invest in personalized auto care products. Massive manufacturing facilities are also supporting local companies. Global leaders are also investing to serve the country's specific needs. In August 2024, BASF inaugurated the new application and technical center in Jiangmen, China. The expansion will focus on developing coating technologies to increase the energy efficiency of electric vehicles. This further, solidifies its portfolio by complying with the zero-emission target of China.
Prominent players are adopting various market expansion strategies including new product and site launches, collaborations, and R&D activities. Leaders in the market are focusing on producing more sustainable and affordable automobile painting solutions. In August 2022, Axalta launched a new basecoat technology, CromaxGen. This product helps to optimize productivity and cost for body shops. This product helped to consolidate and expand the company’s portfolio in Latin America. Some of the key players in the industry include:
Author Credits: Rajrani Baghel
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