by The car clear coat market is estimated to be valued at US$ 23.74 Bn in 2023 and is expected to exhibit a CAGR of 8.9% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
Car clear coat is a paint layer applied on the top of basecoat in automotive refinishing process to provide protection, shine and gloss to the painted surface. It protects the vehicle from environmental threats like pollution, bird droppings, tree sap etc. It is available in both solvent-borne and water-borne formulations for commercial vehicles as well as passenger cars.
Market Dynamics:
The car clear coat market is driven by increasing automobile production globally owing to rising disposable incomes. As per International Organization of Motor Vehicle Manufacturers, global automobile production reached over 95 million units in 2020 and is expected to grow steadily over the forecast period. Moreover, increasing demand for passenger vehicles due to growing urbanization is also fueling the market growth. Furthermore, continuous demand for automotive refinishing from aftermarket is positively impacting the clear coat sales.
However, stringent regulations regarding volatile organic compound (VOC) emissions from solvent-borne car clear coat products is expected to hinder the market growth. Various regions have imposed strict norms regarding VOC content in automotive coatings. For instance, South Coast Air Quality Management District (California) has limited VOC content to 250 grams per liter for car refinishing. This is forcing manufacturers to shift towards environment-friendly and low VOC water-borne coatings.
Furthermore, introduction of new technological advancements like powder coatings, UV-cured coatings and 2K Urethane coatings by manufacturers provide opportunities for car clear coat market expansion during the forecast period. Powder coatings do not emit VOCs and provide durable and long-lasting gloss.
SWOT Analysis
Strength: The Global Car Clear Coat Market is seeing high growth owing to factors like increasing demand for aesthetically appealing and protected car exteriors. Clear coats provide scratch and weather resistance while enhancing gloss and appearance. Leading players offer innovative clear coat technologies like UV curing systems.
Weakness: Strict environmental regulations around VOC emissions can increase production costs. Cured clear coats are difficult to repair without complete refinishing.
Opportunity: Growing preference for premium and luxury vehicles trends is fostering demand. Development of bio-based or green clear coats presents opportunities to address sustainability issues.
Threats: Intense competition among existing players. Volatility in raw material prices can squeeze margins.
Key Takeaways
The global car clear coat market is expected to witness high growth, exhibiting CAGR of 8.9% over the forecast period, due to increasing preference for aesthetically appealing vehicles. Premium and luxury vehicle segments continue gaining traction in both developed and emerging markets which is driving the demand for high-quality clear coats.
Regional analysis: North America dominates the global car clear coat market, accounting for over 30% share of the total market revenue in 2023. Stringent regulatory environment pertaining to vehicle refinishing is boosting the demand for innovative and eco-friendly clear coat technologies in the region. Asia Pacific exhibits fastest growth owing to rising vehicle parc and increasing consumer spending on vehicle customization and modification in countries like China and India.
Key players: Key players operating in the car clear coat market are PPG Industries, Inc., Axalta Coating Systems, LLC, BASF SE, Sherwin-Williams Company, Nippon Paint Holdings Co., Ltd., Kansai Paint Co., Ltd., Akzo Nobel N.V., 3M Company, KCC Corporation, Noroo Holdings Co., Ltd., Valspar Corporation, Jotun Group, Hempel A/S, Carpoly Chemical Group Co., Ltd., Guangdong Maydos Building Materials Limited Company. Leading manufacturers are focusing on new product launches, capacity expansion and mergers & acquisitions to gain higher revenue shares.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
About Author - Money Singh
Money Singh is a seasoned content writer with over four years of experience in the market research sector. Her expertise spans various industries, including food and beverages, biotechnology, chemical and materials, defense and aerospace, consumer goods, etc. LinkedIn Profile
