Owing to strong economic growth in developing countries, the demand for vehicles has been increasing significantly, thereby driving the growth of the automotive industry. While before the popularity of luxurious vehicles in countries such as Indonesia, India, and Brazil was low, now manufacturers in the industry are focusing on further expansion in these countries. The major aim is to tap into middle-class and upper-middle class population. This anticipated growth in the demand for vehicles is also projected to result in the rising demand for various automobile accessories, including automotive original equipment manufacturers (OEM) coatings.


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.


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Automotive OEM coatings are of four types, in terms of layers, namely clearcoat, electrocoat, basecoat, and primer. Out of all these, the demand for clearcoat was the highest in the past, and this product is further predicted to be utilized the most in the coming years as well. Clearcoat offers a number of advantages, such as protection from UV rays, because of which a thicker coat of this layer is applied on vehicles, as compared to other coats. Automotive coatings can be UV-cured, water-borne, powder-based, or solvent-borne, among which, the demand for solvent-borne coatings was higher in the past.


Globally, in terms of volume, APAC was the largest and fastest market for automotive OEM coatings during the historical period and is expected to maintain the trend during the forecast period as well. This can be mainly attributed due to the presence of major automotive manufacturers.

Considering the future industry scenario, China is expected to lead the APAC automotive OEM coatings market, generating revenue worth $3.4 billion in 2024. This significant growth rate is attributed to the country’s gigantic numbers in automotive vehicle production. For instance, China is world’s second largest two-wheeler manufacturer and largest passenger car and commercial vehicle manufacturer in 2019. As per industry expert, country’s two-wheeler sales stood at 15.5 million units, which is expected to increase with the help of e-bikes over the coming years.