Table of Contents
•The Asia-Pacific (APAC) automotive coatings market is primarily driven by growing automotive production within the Association of South East Asian Nations (ASEAN) countries, along with positive macroeconomic indicators that steer business opportunities.
•Indonesia, Malaysia, and Thailand remain key hotspots for original equipment manufacturer (OEM) coatings due to favorable government policies, tax subsidies, incentives, and other programs facilitating adoption of smaller and greener cars.
•Lack of government regulations to restrict and reduce volatile organic compound (VOC) emissions from coatings has resulted in slower penetration of sustainable products within the APAC region. Such products include water-borne coatings, high-solids solvent-borne coatings, and powder coatings.
•Automotive OEMs, however, have started adopting environment-friendly coatings and are specifying and authorizing sustainable formulations. This is expected to steer technological advancements in the automotive OEM coatings market.
•Furthermore, automotive OEMs are continuously looking to make automotive production more cost efficient. This has led to the need for coating products that dry quickly, eliminate layers of coatings, and combine multiple functionalities into a single coating layer.
Market participants are focusing on developing innovative products, technologies, and processes such as primerless coatings, compact processes, wet-on-wet-on-wet systems, and nano coatings to remain competitive in the marketplace.
Adoption of environmentally-sustainable products such as water-borne and powder coatings remains modest in the Southeast Asian (SEA) region due to the lack of regulatory enforcement.
Increasing expansion of automotive OEMs in SEA presents significant growth opportunities for coating manufacturers. Automotive OEMs are increasingly demanding environmentally-sustainable products with superior aesthetics and durability.
Automotive OEMs are continuously looking to reduce vehicle manufacturing costs. Offering products with a superior price performance index will remain a key competitive aspect.
Rising standards of living and a growing middle class population, along with a stable gross domestic product (GDP) growth in the SEA region, favor automotive production, which presents significant opportunities for the paints and coatings market.
Product and Technology Trends
•The automotive OEM coatings market is dynamic with a constant demand for rapid technological advancements from OEMs. Beyond coatings, application procedures that involve significant time, labor, and energy increase the overall production costs for customers.
•Coating manufacturers are, therefore, developing solutions that optimize production process by reducing the number if steps involved in coatings, as well as by eliminating additional coating layers in the system.
•Axalta Coating Systems developed a wet-on-wet two-tone process to increase Ford’s production capacity and has also introduced a primer surface that offers chip-resistant characteristics which eliminates the need for an additional layer of coating for chip resistance.
•Another commendable effort in this context is BASF SE’s Integrated Process II that is a highly efficient coating technology where base-coats are formulated with stone chip protection and UV resistance, thereby, eliminating the need for primers. The base-coat offers the functionality and appearance that meet automotive OEM specifications.
•This process has significantly reduced the capital investment in primer facilities and minimized material, labor, energy, and operating costs involved in automotive production. Over and above this, the state-of-the-art technology offers eco-efficiency and improved productivity, which remain critical for OEMs.
Material and Other Trends
•One of the critical elements of coatings in the automotive industry is the color, finish, and aesthetics. Automotive OEMs are trying to continuously differentiate themselves from competition in terms of appearance.
•Formulating and establishing a wide range of colors remains critical for coating manufacturers. Furthermore, special effects and other functionalities such as scratch and ultraviolet (UV) resistance are of paramount importance.
•Self-healing coatings are expected to grow in this region after the forecast period, as scratches in automobiles will become a critical concern for end users. Self-healing coatings are formulated using oxetane-substituted chitosan precursor integrated with the Two Component (2K) Polyurethane (PU) resin. When there is a scratch, the molecule splits up to create reactive ends that close the molecular chain with the aid of UV rays.
•Furthermore, self-healing coatings have proven to be cost-efficient, as the raw material is derived from exoskeletons of lobsters, crabs, and shrimps. These materials are being developed primarily in North America and Europe and are expected to penetrate into the APAC region during the forecast period.
•Increasing raw material prices due to spike in oil prices present significant challenges to coating manufacturers. Coating manufacturers are unable to transfer increased costs to customers, as automotive OEMs are already striving to reduce manufacturing costs.
Key Questions This Study Will Answer
At what stage of its lifecycle is the market in and how is it expected to grow?
What are the key factors driving and restraining market growth?
What are the dynamics influencing the growth of the different market segments?
What are the growth opportunities for the different segments in the market?
Who are the leading market participants?
What are the key competitive factors governing the market?
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