Automotive OEM Interior Coatings Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)

The Automotive OEM Interior Coatings Market report has been segmented by Resin (Epoxy, Polyurethane, Acrylic, and Other Resins), Layer (Primer, Base Coat, and Clear Coat), Vehicle Type (Passenger Cars, Light Commercial Vehicles, Heavy Commercial Vehicles, and Other Vehicle Types), and Geography (Asia-Pacific, North America, Europe, South America, and the Middle East and Africa). The report offers market size and forecasts for Automotive OEM Interior Coatings in revenue (USD million) for all the above segments.

Market Snapshot

Automotive OEM Interior Coatings Market - Summary
Study Period: 2016-2026
Base Year: 2020
Fastest Growing Market: Asia Pacific
Largest Market: Asia Pacific
CAGR: <2 %

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Market Overview

The automotive OEM interior coatings market was valued at USD 2417.55 million in 2020 and the market is projected to register a CAGR of around 2% during the forecast period (2021-2026).

The outbreak of COVID-19 is likely to bring several short-term and long-term consequences in the automotive industry, which is likely to affect the OEM interior coatings market. ​The supply of many components from China has been delayed. This has resulted in the automotive industry, globally, running out of materials for production. According to OICA, the global production of automotive fell by around 16% in the year 2020, compared to 2019. Many OEMs shut down the majority of their European production, which includes leading German manufacturers shutting down the majority of their manufacturing units in Europe with other OEMs closing for a longer time. With automotive production slowing down and the COVID-19 pandemic further worsening the situation for the industry, the market for OEM automotive interior coatings is negatively affected in the short-/mid-term with a sluggish recovery rate during the latter part of the forecast period.

· Over the long term, the major factor driving the market studied is the preference for personal transport owing to the pandemic crisis. The consumer preference for personal transport has grown over the recent years due to better development of roads and infrastructure, startup innovations in the car rental industry, and availability of low-cost cars that are affordable for the middle-class people. Furthermore, the spread of COVID-19 across the world changed consumers’ preference, from public transport and ride-sharing to personal transport.

· Declining automotive production is expected to hinder the growth of the market studied.

· Rise in investment opportunities in the Middle East and Africa and upcoming demand for electric vehicles are likely to act as opportunities in the future.

· Asia-Pacific dominated the market across the world, with the largest consumption from countries, such as China, India, Japan, and South Korea.

Scope of the Report

The automotive OEM paints and coatings can be classified as water-based or solvent-based, depending on the drying technique employed. Water-based coatings contain water as a volatile compound and solvent-based coatings contain volatile compounds like benzene. The market is segmented by resin, layers, vehicle type, and geography. By resin, the market is segmented into epoxy, polyurethane, acrylic, and other resins. By layer, the market is segmented into primer, base coat, and clear coat. By vehicle type, the market is segmented into, passenger cars, light commercial vehicles, heavy commercial vehicles, and other vehicle types. The report also covers the market size and forecasts for the automotive OEM interior coatings market in 15 countries across major regions. For each segment, the market sizing and forecasts have been done on the basis of revenue (USD million).

Resin
Epoxy
Polyurethane
Acrylic
Other Resins
Layer
Primer
Base Coat
Clear Coat
Vehicle Type
Passenger Car
Light Commercial Vehicles
Heavy Commercial Vehicles
Other Vehicle Types
Geography
Asia-Pacific
China
India
Japan
South Korea
Rest of Asia-Pacific
North America
United States
Canada
Mexico
Europe
Germany
United Kingdom
Italy
France
Rest of Europe
South America
Brazil
Argentina
Rest of South America
Middle East and Africa
Iran
South Africa
Rest of Middle East and Africa

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Key Market Trends

Passenger Car Segment to contribute Significant Demand to the Market

· The passenger car segment has the largest demand in the market studied.

· In passenger car interiors, various types of single and multi-component and solvent-borne and waterborne coatings are used for coating various substrates, such as ABS and polycarbonate materials. Laser etchable coatings are also used for these purposes.

· They are used to coat various interiors, such as center clusters, meter clusters, instrument panels, speaker grills, armrest and armrest bezels, steering wheels, door trim, and handles. The crucial characteristics of these coatings are high gloss and a smooth finish.

· The global passenger car production has been in steady decline since 2017. In 2019, a total of 67.16 million cars were produced, a steady decline from 70.45 million units and 73.45 million units produced in 2018 and 2017, respectively.

· COVID-19 further aggravated this decline in 2020. In 2020, the global passenger car production declined by more than 16.9% when compared to 2019. The production declined from 67,163,769 units in 2019 to reach about 55,834,456 in 2020.

· However, the demand for automotive OEM interior coatings from the passenger car segment is expected to increase at a higher rate relative to the commercial and other vehicles segments, post-recovery, owing to the change in mobility preference to personal mode of transport in the wake of social distancing measures.

· All the aforementioned advantages are expected to boost the passenger car segment during the forecast period.

Automotive OEM Interior Coatings Market - Segmentation Trends

Asia-Pacific to dominate the Market

· Asia-Pacific is the largest market for automotive OEM interior coatings. Growth in the regional market is driven by the huge automotive production base coupled with increased investments in the Asia-Pacific region, primarily from major economies, such as China, India, and ASEAN countries.

· According to OICA, around 25.23 million, 8.07 million, 3.51 million, and 3.39 million units of vehicles were produced in China, Japan, South Korea, and India, respectively, contributing to over 50% of the global automobile production in the year 2020.

· The Chinese automotive manufacturing industry is the largest in the world. The industry witnessed a slowdown in 2018, wherein the production and sales declined. A similar trend continued, with the production witnessing a 7.5% decline during 2019. The performance of the automotive industry was affected by the economic shifts and China's trade war with the United States.

· The Chinese government is planning to have a minimum of 5,000 fuel cell electric vehicles by 2025 and 1 million by 2030. With government promoting the use of electric, hybrid, and fuel cell electric vehicles, the market is expected to grow in the future.​

· India is a growing economy and holds great potential for future market opportunities. The country’s economy is expected to further grow in the coming years. Despite demonetization and GST reforms affecting the national production volume, the impact of these reforms is slowly waning. Moreover, the country’s government has been taking initiatives to attract Foreign Direct Investments (FDIs) in the manufacturing sector, to make India a manufacturing hub.

· The automotive industry is one of the largest manufacturing sectors in the country and contributes about 7.5% to the nation’s GDP, by employing more than 37 million workers. In 2018, India became the fourth-largest automobile market in the world and the seventh-largest commercial vehicle manufacturer.

· However, in 2020, the automotive industry declined even further due to COVID-19. The production halt in the automobile sector due to the lockdown from March to May has severely affected the automotive OEM interior coatings market in the country. After a severe decline of automotive production in Q1 2020 of about 24.9%, in Q2 2020 the production fell off the cliff with more than 52.4% decline over Q2 2019. The overall automotive production in 2020 was 3,394,446, decreasing from 4,524,366 in 2020, thus witnessing a decline of 25%.

· According to the Department of Promotion Industry and Internal Trade (DPIIT) around USD 24.5 million worth FDIs were attracted by the Indian automobiles market between the period of April 2000 to June 2020. Factors such as these will show a significant impact on the automotive OEM interior coatings market in the country.

· The Indian government has recently reduced customs duty on the import of components for electric vehicles from a range of 15-30% to 10-15%, along with tax breaks and fiscal packages for the automotive industry, to fight the recent demand shocks amid COVID-19 crisis.

· In 2019, the electric vehicle sales in South Korea registered a growth of 7% over 2018, reaching 34 thousand electric vehicles sold. In 2019, Hyundai announced plans to invest more than KRW 300 billion for setting up an electric vehicle parts plant in the country by 2021. This new plant will manufacture electric vehicles, which include setting up suppliers' chain for its interior parts, in turn, boosting the demand for the OEM interior coatings in the country.

· Overall, the demand for the automotive OEM interior coatings is expected to be moderate to low during the forecast period, while the automotive industry in the country will try to recover from this crisis in the coming years.

Automotive OEM Interior Coatings Market - Regional Trends

Competitive Landscape

The global automotive OEM interior coatings market is partially consolidated in nature, with the top players accounting for around 50% of the global market. The major companies include The Sherwin-Williams Company, Akzo Nobel N.V., Kansai Nerolac Paints Limited, BASF SE, and Axalta Coating Systems, LLC, among others.

Recent Developments

  • In February 2020, PPG Industries announced the acquisition of Industria Chimica Reggiana (ICR) SpA, a manufacturer of paints and coatings for the automotive refinish and light industrial coatings industries. ICR is based in Italy and manufactures automotive refinish products, including putties, primers, basecoats, and clear coats under the SPRINT brand.
  • In July 2019, BASF SE expanded its automotive coatings production in North America with investments of nearly USD 40 million. The investments add capacity to the company’s production plants in Greenville, Ohio, and Tultitlan, Mexico.

Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Assumptions

    2. 1.2 Scope of the Study

  2. 2. RESEARCH METHODOLOGY

  3. 3. EXECUTIVE SUMMARY

  4. 4. MARKET DYNAMICS

    1. 4.1 Drivers

      1. 4.1.1 Mobility Preference for Personal Transport

      2. 4.1.2 Growing Demand for Better Interiors in Vehicles

    2. 4.2 Restraints

      1. 4.2.1 Declining Automotive Industry

      2. 4.2.2 Detrimental Impact of COVID-19

    3. 4.3 Industry Value-Chain Analysis

    4. 4.4 Porter's Five Forces Analysis

      1. 4.4.1 Bargaining Power of Suppliers

      2. 4.4.2 Bargaining Power of Consumers

      3. 4.4.3 Threat of New Entrants

      4. 4.4.4 Threat of Substitute Products and Services

      5. 4.4.5 Degree of Competition

  5. 5. MARKET SEGMENTATION

    1. 5.1 Resin

      1. 5.1.1 Epoxy

      2. 5.1.2 Polyurethane

      3. 5.1.3 Acrylic

      4. 5.1.4 Other Resins

    2. 5.2 Layer

      1. 5.2.1 Primer

      2. 5.2.2 Base Coat

      3. 5.2.3 Clear Coat

    3. 5.3 Vehicle Type

      1. 5.3.1 Passenger Car

      2. 5.3.2 Light Commercial Vehicles

      3. 5.3.3 Heavy Commercial Vehicles

      4. 5.3.4 Other Vehicle Types

    4. 5.4 Geography

      1. 5.4.1 Asia-Pacific

        1. 5.4.1.1 China

        2. 5.4.1.2 India

        3. 5.4.1.3 Japan

        4. 5.4.1.4 South Korea

        5. 5.4.1.5 Rest of Asia-Pacific

      2. 5.4.2 North America

        1. 5.4.2.1 United States

        2. 5.4.2.2 Canada

        3. 5.4.2.3 Mexico

      3. 5.4.3 Europe

        1. 5.4.3.1 Germany

        2. 5.4.3.2 United Kingdom

        3. 5.4.3.3 Italy

        4. 5.4.3.4 France

        5. 5.4.3.5 Rest of Europe

      4. 5.4.4 South America

        1. 5.4.4.1 Brazil

        2. 5.4.4.2 Argentina

        3. 5.4.4.3 Rest of South America

      5. 5.4.5 Middle East and Africa

        1. 5.4.5.1 Iran

        2. 5.4.5.2 South Africa

        3. 5.4.5.3 Rest of Middle East and Africa

  6. 6. COMPETITIVE LANDSCAPE

    1. 6.1 Mergers and Acquisitions, Joint Ventures, Collaborations, and Agreements

    2. 6.2 Market Ranking Analysis

    3. 6.3 Strategies Adopted by Leading Players

    4. 6.4 Company Profiles

      1. 6.4.1 Akzo Nobel N.V.

      2. 6.4.2 Axalta Coating Systems, LLC

      3. 6.4.3 BASF SE

      4. 6.4.4 FUJIKURA KASEI CO.,LTD.

      5. 6.4.5 Kansai Nerolac Paints Limited

      6. 6.4.6 KCC CORPORATION

      7. 6.4.7 NB Coatings

      8. 6.4.8 PPG Industries, Inc.

      9. 6.4.9 The Sherwin-Williams Company

    5. *List Not Exhaustive
  7. 7. MARKET OPPORTUNITIES AND FUTURE TRENDS

    1. 7.1 Rise in Investment Opportunities in the Middle-East and Africa

    2. 7.2 Upcoming Demand for Electric Vehicles

**Subject to Availability

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Frequently Asked Questions

The Automotive OEM Interior Coatings Market market is studied from 2016 - 2026.

The Automotive OEM Interior Coatings Market is growing at a CAGR of <2% over the next 5 years.

The Automotive OEM Interior Coatings Market is valued at 2417 Million USD in 2016.

Asia Pacific is growing at the highest CAGR over 2021- 2026.

Asia Pacific holds highest share in 2020.

Akzo Nobel N.V., BASF SE, The Sherwin-Williams Company, Axalta Coating Systems, LLC, Kansai Nerolac Paints Limited are the major companies operating in Automotive OEM Interior Coatings Market.

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