The Europe automotive paints and coatings market is expected to grow at a CAGR of over 3% during the forecast period. Major factor driving the market studied is increasing demand from automotive refinish sector. On the flip side, fluctuating automotive industry and unfavorable conditions arising due to the COVID-19 outbreak are hindering the growth of the market.
- Growing demand for light weight electrical vehicles is forecasted to offer various opportunities for the growth of the market over the forecast period.
- By resin type, polyurethane resin is expected to dominate the market studied over the forecast period.
Key Market Trends
Automotive Refinish to Witness the Rapid Growth during the Forecast Period
- Automotive refinishing coatings are used to enhance the appearance and repair the damages caused by external factors, such as temperature, and damage from accidents, stones, and other debris.
- The refinishing coatings are considered for after market applications of light vehicles, buses, heavy-duty trucks, and specialty OEMs, and are also used by automotive body shops and repair centers for refinishing vehicles.
- The increased focus on R&D and innovative methods to reduce the cycle time is driving the need for automotive refinish coatings and the reduced cycle time encourages the customers to go for automotive refinish coatings more often, which in turn increases its demand for automotive paints and coatings.
- Owing to the above mentioned factors demand of paints and coatings from automotive refinish application is likely to show rapid growth over the coming years.
Germany to Dominate the Market
- The economic growth of the country is affected by the factors, such as trade tensions leading to reduced exports, and tariff disputes triggered by the US government. However, the country is expected to rise from such fluctuations in economic performance over the forecast period.
- Germany leads Europe’s automotive market with 41 assembly and engine production plants that contribute to one third of the total automobile production in Europe. The new car market in the country, overall, exceeded three million vehicles.
- The sales/registrations of new vehicles are increasing steadily in the country with improvement in the economy reflecting consumer confidence. This is expected to provide stable contribution to the paints & coatings from the automotive sector.
- According to the International Organization of Motor Vehicle Manufacturers (OICA), car production in Germany decreased 9.3% in 2018, and demand is decreasing further in 2019. While domestic new passenger car registrations increased 0.5% in H1 of 2019, they fell 3.1% in the EU, a core market for German car sales.
- Closure of many automotive manufacturing plants due to spread of COVID-19 is likely to hamper the growth of automotive paints and coatings in Europe. However in the long run market is forecasted to recover at a steady state.
The Europe automotive paints and coatings market is partially fragmented in nature with only few major players dominating the market. Some of the major companies are Akzo Nobel N.V., ppg asianpaints, Berger Paints Europe Limited, Kansai Nerolac Paints Limited and Nippon Paint (Europe) Company Limited.
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