The Waterborne Automobile Coatings Market is estimated to be valued at US$ 86.39 Bn in 2023 and is expected to exhibit a CAGR of 5.5% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market Overview:

Waterborne automobile coatings are water-based paint formulations used to coat both exterior and interior automobile parts and components. They offer superior finish, aesthetics and protection from environmental factors. The low volatile organic compound content of waterborne coatings make them an environment-friendly and sustainable alternative to solvent-borne coatings.

Market key trends:

Stringent environmental regulations regarding VOC emissions from coatings are expected to be a major driver for the waterborne automobile coatings market over the forecast period. Governments across regions are imposing strict norms on VOC content in automobile coatings to curb air pollution. For instance, REACH (Registration, Evaluation, Authorisation and Restriction of Chemicals), a EU regulation restricts the VOC content in automobile coatings to 130 grams per liter. Such stringent regulations are anticipated to boost the adoption of waterborne coatings among automakers as they contain 70-90% water thereby emitting near-zero VOCs. The trend towards sustainable and eco-friendly coating solutions is further projected to propel the demand for waterborne automobile coatings between 2023 and 2030.

Porter's Analysis

Threat of new entrants: Low cost of entry and availability of raw materials pose moderate threats of new entrants in the market. Bargaining power of buyers: Large automobile manufacturers have significant bargaining power over suppliers due to their bulk purchase volumes. Bargaining power of suppliers: Suppliers of raw materials like resins have moderate bargaining power due to availability of substitutes. Threat of new substitutes: Eco-friendly and low-VOC coatings are emerging as substitutes but have not achieved widespread acceptance yet. Competitive rivalry: Intense competition among existing players to capture more market share.

SWOT Analysis

• Strengths: Waterborne coatings provide superior performance, durability and are eco-friendly.
• Weaknesses: Higher production costs compared to solvent-borne coatings.
• Opportunities: Increasing regulations on VOC emissions are driving demand.
• Threats: Economic slowdowns can negatively impact automobile production volumes.

Key Takeaways

The global Waterborne Automobile Coatings Market is expected to witness high growth, exhibiting CAGR of 5.5% over the forecast period, due to increasing environmental regulations regarding VOC emissions. Asia Pacific dominates the market with over 50% share due to the large presence of automobile manufacturers in countries like China and India. Regional demand is expected to grow the fastest in Asia Pacific at a CAGR of over 6% during the forecast period.

Key players operating in the Waterborne Automobile Coatings market are Akzo Nobel N.V., BASF SE, Axalta Coating Systems, Berger Paints India Limited, Nippon Paint Company Limited, Kansai Paint Company Limited, PPG Industries Inc., Williams-Hayward Protective Coatings Inc., Tikkurila Oyj, The Valspar Corporation, RPM International Inc., and The Sherwin Williams Company.