The automotive refinish coatings market is anticipated to grow at a CAGR of 7% during the forecast period 2023-2030. Automobiles must be fixed periodically to improve their appearance and recover from damages caused by environmental elements such as severe temperature, stones, and collisions. The expansion of the automotive refinish coatings market is anticipated to be driven by an increase in the number of accidents, the adoption of innovative technologies, and rising disposable incomes in developing nations. In addition, the increasing demand for recreational vehicles in the developed countries of North America and Europe is anticipated to fuel the market for refinish coatings. 

Impact of Covid 19: Market is rebounding however, restricted by raw material price 

Due to the lockdowns and concerns about the epidemic, people drove significantly less. Less driving results in fewer collisions and less vehicle maintenance. As people returned to the roads in 2021, the vehicle refinish coatings business grew, according to major coatings producers. However, the raw material situation remains a significant problem. The market is currently functioning well and is slowly rebounding to pre-COVID-19 levels. The automotive refinish business shows additional signs of improvement, however, COVID-19 and raw material price concerns continue to offer hurdles for the sector, as do global supply networks. 

Increasing Need for Leisure and Eco-Friendly Solutions Driving the Market

One of the significant factors positively affecting the global market for automotive refinish coatings is the increasing need for leisure and repair and maintenance vehicle activities, as well as the rise in fatal road accidents. In addition, the rising need for automotive refinish coatings to preserve the aesthetic appearance of vehicles is fueled by the increasing sales of luxury vehicles, a result of fast urbanization and rising incomes. In addition, leading competitors are producing eco-friendly refinish coatings made from organic chemicals and delivering customized colors and printing to improve the consumer experience. In addition, the rising awareness of vehicle maintenance among the general population is resulting in a global increase in the use of automotive refinish coatings. In addition, increasing environmental consciousness and a number of efforts launched by governments in a variety of nations are promoting the adoption of low volatile organic compound (VOC) emissions. This creates profitable growth potential for market participants in the business. 

Automotive body shops and repair facilities employ automotive refinish coatings to refinish vehicles. In the past five years, the worldwide automotive refinish coatings market has experienced a significant expansion. This was primarily due to an increase in car accidents and the propensity of vehicle owners to fix their vehicles. Increasing government prohibitions on the use of coatings with high volatile organic compound (VOC) levels may hinder the growth of the solvent-borne business. Therefore, the market for water-borne refinishing coatings, is expected to witness higher demand as their VOC levels are quite low. 

By Technology: Solvent-Borne Coatings to Lead 

In 2021, solvent-borne technology accounted for 47% of the global volume. The segment is anticipated to grow slowly due to severe VOC emission level standards. However, technological and innovative advancements have led to the production of high solid formulations. The rising usage of high solid formulations in the automotive industry, as a result of their high-quality finish and decreased emissions, has contributed to the expansion of solvent-borne technology. Increasing applications in luxury automobiles and consumer preferences for vehicle upkeep are expected to drive the demand for refinish coatings. 

By Resin: Polyurethane Takes Over 40% of the volume 

In 2021, polyurethane dominated the market, accounting for 40 percent of the global volume. Due to the segment's remarkable features, including great performance in a variety of environmental situations and tolerance to extreme temperatures, growth is anticipated to be substantial. The need for polyurethanes will increase due to their great resilience to abrasion and impact, as well as their exceptional resistance to grease, oil, and water. Extensive use of polyurethane in tropical conditions due to features such as fungal resistance and UV protection is anticipated to contribute to the segment's growth in the future years. 

By Product: Topcoat Dominated due to Durability and Chemical Stability 

In 2021, topcoat emerged as the dominant product sector, accounting for 32% of the whole volume. As a final layer on the automobile's surface, it is widely employed in automotive refinishing. Due to the product's excellent durability, gloss finish, abrasion resistance, chemical stability, and UV radiation protection, the segment's growth is anticipated to increase. Primers are applied to car surfaces in order to provide a foundation for the desired paint. It is anticipated that automotive makers will continue to use these products since they aid in the smooth finishing of paints and protect surfaces from the external environment. Increasing auto output in developing economies is anticipated to stimulate industry expansion. The majority of filler is utilized in the resurfacing of vintage automobiles, where gaps and scratches must be filled to create smooth surfaces. These are the substances that are put to surfaces and harden over time to allow paints to adhere. It is projected that a rise in the number of aging automobiles and crashes will increase the demand for fillers in refinishing applications. 

By Geography: APAC Remains as the Global Leader 

Geographically, the global market for automotive refinish coatings is divided into North America, Europe, Asia-Pacific, and LAMEA. More than 35 percent of the global consumption of refinish coatings is accounted for by Asia-Pacific. This is primarily due to the region's rising pre-owned automobile sales, taxi services, and automotive repair and body shops. The global automotive refinish coatings market is further categorized based on product type, technology, and resin utilized by various refinish coatings in order to provide a comprehensive insight of the market situation.  By volume, the Middle East and Africa is anticipated to expand at a CAGR of 5.5% over the projected period, owing to the rising demand for maintenance of luxury and performance vehicles in the UAE and Saudi Arabia. Increased disposable income in the region as a result of the maturation of the oil and gas industry has boosted sales of luxury automobiles in the region, hence bolstering the expansion of the refinishing applications market. 

Competitive Scenario: Market Dominated by Big Players 

The market for automotive refinish coatings expanded significantly as a result of the diverse strategies adopted by the leading industry participants. Acquisition and expansion are among the most notable corporate strategies. The study offers a detailed analysis of the leading companies in the global market, including Axalta Coating Systems, BASF SE, Kansai Paint Co. Ltd., Mitsui Chemicals, PPG Industries, Inc., Nippon Paints, Sherwin Williams, 3M Co., and Matrix System Automotive Finishes. As key players are engaged in R&D and ongoing product innovation, the nature of the business is extremely competitive.

Historical & Forecast Period

This study report represents analysis of each segment from 2022 to 2032 considering 2023 as the base year. Compounded Annual Growth Rate (CAGR) for each of the respective segments estimated for the forecast period of 2024 to 2032.

The current report comprises of quantitative market estimations for each micro market for every geographical region and qualitative market analysis such as micro and macro environment analysis, market trends, competitive intelligence, segment analysis, porters five force model, top winning strategies, top investment markets, emerging trends and technological analysis, case studies, strategic conclusions and recommendations and other key market insights.

Research Methodology

The complete research study was conducted in three phases, namely: secondary research, primary research, and expert panel review. key data point that enables the estimation of Automotive Refinish Coatings market are as follows:

• Research and development budgets of manufacturers and government spending
• Revenues of key companies in the market segment
• Number of end users and consumption volume, price and value.
• Geographical revenues generate by countries considered in the report
• Micro and macro environment factors that are currently influencing the Automotive Refinish Coatings market and their expected impact during the forecast period.

Market forecast was performed through proprietary software that analyzes various qualitative and quantitative factors. Growth rate and CAGR were estimated through intensive secondary and primary research. Data triangulation across various data points provides accuracy across various analyzed market segments in the report. Application of both top down and bottom-up approach for validation of market estimation assures logical, methodical and mathematical consistency of the quantitative data.

Key questions answered in this report

• What are the key micro and macro environmental factors that are impacting the growth of Automotive Refinish Coatings market?
• What are the key investment pockets with respect to product segments and geographies currently and during the forecast period?
• Estimated forecast and market projections up to 2032.
• Which segment accounts for the fastest CAGR during the forecast period?
• Which market segment holds a larger market share and why?
• Are low and middle-income economies investing in the Automotive Refinish Coatings market?
• Which is the largest regional market for Automotive Refinish Coatings market?
• What are the market trends and dynamics in emerging markets such as Asia Pacific, Latin America, and Middle East & Africa?
• Which are the key trends driving Automotive Refinish Coatings market growth?
• Who are the key competitors and what are their key strategies to enhance their market presence in the Automotive Refinish Coatings market worldwide?