The market for topcoat is expected to grow at a CAGR of more than 5% during the forecast period. The major factor driving the growth of the market studied is the increasing demand from the aerospace industry. However, the decline in the automotive industry is expected to hinder the market’s growth.
- By end-user industry, the automotive segment dominated the market and the aerospace segment is expected to witness significant growth.
- Asia-Pacific dominated the market and is expected to witness the fastest growth during the forecast period.
Key Market Trends
Automotive Industry Dominated the Market
- Priming layer clear coat is the final layer of coating for any vehicle and the main aim of this coat is to protect the body from the environment, chemicals, scratches, corrosion, UV resistance, etc.
- The coats are available as 1K, 2K, and powder (not common) systems, and are primarily acrylic- or polyurethane-based coatings. For instance, 2K SUPACYRLIC TOP COAT by Goldstar Paints is a 2k Acrylic Hi-gloss enamel, is used for automobile coatings.
- Furthermore, robust demand from the automotive industry during production and aftermarket has boosted the market to a great extent.
- However, decreasing automotive production and sales across the globe are likely to have a negative impact on the topcoats market.
- On a brighter side, increasing sales of pre-owned vehicles, growing cab services, and increasing vehicle repair and body shops in Asian countries are also likely to boost the demand for top coat coatings.
Asia-Pacific to Dominate the Market
- Asia-Pacific was the largest market for automotive coatings, followed by North America and Europe.
- The automotive production in India and ASEAN countries is likely to boost the demand for automotive coatings in Asia-Pacific.
- Coming into 2019, automotive production in China was affected and automotive sales declined in India. This trend continued throughout 2019 and is also likely to be the same in 2020 owing to COVID-19. However, the automotive industry is projected to recover by the second half of 2020.
- Additionally, stall in the global aerospace industry due to coronavirus breakdown is also expected to act as hindering factor to the market.
- However, the Asia-Pacific region is likely to witness the highest growth during the forecast period.
The market studied is consolidated among the top players. Some of the prominent players in the market includes Akzo Nobel N.V., Hempel A/S, BASF SE, PPG Industries, Inc., and The Sherwin-Williams Company, among others.
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