According to a report by P&S Intelligence, the global automotive OEM coatings market is expected to generate a revenue of over $13,661.4 million by 2024, rising from $10,997.4 million in 2018, and is predicted to advance at a 4.2% CAGR during the forecast period (2019–2024). These coatings are utilized for providing finishing to automobiles, and they also protect vehicles from extreme weather conditions, corrosion, ultraviolet (UV) exposure, and dust. These days, owing to technological advancements, manufacturers are developing advanced products, which are more efficient and effective. These developments are focused towards different benefits, including reduced emissions, greater functionality, less maintenance cost, and regulatory compliance.

However, the demand for water-borne automotive OEM coatings is predicted to increase considerably in the years to come, which is primarily due to the surging concerns regarding environmental deterioration. Solvent-borne coatings contain volatile organic compounds (VOC) that are extremely harmful for the environment. In addition to this, governments of different countries have implemented strict regulations regarding VOC emissions, due to which, the adoption of water-borne coatings is growing. Automotive OEM coatings are applied on plastic and metal parts. The demand for these coatings was higher for application on metal parts of vehicles, which can be attributed to the fact that most of the automotive parts and components are made of metal.

Geographically, the Asia-Pacific region has been the largest automotive OEM coatings market up till now, and it is further projected to be the major user of these products in the coming years as well. The major reason for this is the growing automotive production in countries including Indonesia, China, and India. Moreover, China has emerged as a major automotive industry across the globe and the increasing production of electric and lightweight vehicles in the country are driving the demand for automotive OEM coatings.

Hence, the increasing penetration of luxurious vehicles in developing countries is driving the requirement for automotive OEM coatings.