How is Rising Adoption of Second-Hand Vehicles Driving Automotive Refinish Coatings Market?

As the disposable income of people is rising across the globe, the sale of vehicles is increasing as well. It would have been hard to imagine a few years backs that vehicles could be owned by people belonging to lower classes as well. However, vehicles are becoming cheaper, thanks to technological advancements in the automotive industry, and therefore, the consumer base for vehicles is not limited to the elite class anymore. In addition to this, people who are not able to afford brand new vehicles always the option of buying second-hand vehicles, which are cheap and often in good enough condition to function properly.

It is because of these factors that the demand for automotive refinish coatings is growing. These coating provide an aesthetic appeal to vehicles, along with protecting them against different weather conditions and corrosion. Furthermore, automotive refinish coatings can also provide a whole new look to a used vehicle, thereby making it nearly as good as a new vehicle. These coatings are also utilized for vehicle maintenance and repair. Owing to this, the global automotive refinish coatings market is projected to generate a revenue of over $11,099.7 million by 2023, rising from $7,855.3 million in 2016, witnessing a 5.1% CAGR during the forecast period (2017–2023).

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Automotive refinish coatings are of three types in terms of technology, namely ultraviolet-cured, solvent-borne, and water-borne. While the demand for solvent-borne coatings was the highest in the past, owing to advantages such as flexibility to be used with other solvents, durability, and high gloss, the demand for water-borne coatings is predicted to increase significantly in the years to come. Water-borne coatings make use of water as carrier, instead of solvents, which makes coatings less flammable. Moreover, the growing focus of regulatory authorities on decreasing hazardous air pollutants and volatile organic compounds is also leading to the growing adoption of water-borne technologies.

Geographically, Asia-Pacific has been the largest automotive refinish coatings market in the past and is further expected to retain its position in the global domain during the forecast period. This can be ascribed to the surging demand for passenger cars, commercial vehicles, and two-wheelers in developing countries, including India and China. Additionally, the commercial fleet in the region is growing on account of the rising disposable income of people and increasing logistics demand.