July 15, 2024
car clear coat market

Car Clear Coat Market is Estimated To Witness High Growth Owing To Rising Vehicle Production

The Car Clear Coat Market is estimated to be valued at US$ 23.74 Bn in 2023 and is expected to exhibit a CAGR of 8.9% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market Overview:
Car clear coats are the top most coating layer applied on vehicles for protection and shine. They provide a glossy finish and protection to the paint from environmental damages like UV light, scratches, and moisture. They help in improving the durability and lifespan of vehicles paint.

Market key trends:
Waterborne car clear coats are gaining popularity owing to their low VOC content. They emit fewer pollutants during production and application as compared to solvent-borne car clear coats. The strict environmental regulations regarding VOC emissions are propelling the demand for waterborne car clear coats. With green building norms and sustainable construction practices gaining prominence, waterborne car clear coats are expected to dominate the car clear coat market during the forecast period. Their eco-friendly nature and easy clean-up are the additional benefits driving their increased adoption in the automotive industry.

Here is the Porter’s Analysis, SWOT Analysis and Key Takeaways for the given Car Clear Coat Market:

Porter’s Analysis

Threat of new entrants: The car clear coat industry requires high capital investment for R&D, manufacturing and distribution facilities which acts as a barrier for new players.

Bargaining power of buyers: The bargaining power of buyers is moderate. However, the presence of many established manufacturers limits options for buyers.

Bargaining power of suppliers: The bargaining power of suppliers is high due to the availability of raw materials from a few dominant players globally.

Threat of new substitutes: There is a threat from new substitute products; however, the awareness of clear coat benefits holds its demand.

Competitive rivalry: The competitive rivalry in the industry is high due to the presence of global established manufacturers.

SWOT Analysis

Strength: Strong distribution network of key players and continuous technology advancements.

Weakness: Strict environmental regulations for solvent-borne coatings and fluctuations in raw material prices.

Opportunity: Growth in the automotive refinish industry and rising vehicle repair and maintenance activities.

Threats: High R&D costs and threat of economy slowdowns affecting the automotive industry.

Key Takeaways

The Global Car Clear Coat Market size is expected to witness high growth, exhibiting a CAGR of 8.9% over the forecast period, due to increasing vehicle production and sales globally. The Asia Pacific region dominates the market and is expected to grow the fastest due to the presence of emerging economies like China and India with rising disposable income and motorization rate.

Regional analysis: North America and Europe also have significant market shares globally. However, Asia Pacific is projected to grow at the highest CAGR during the forecast period, with China and India being the major contributors to the regional market growth. Growing automotive manufacturing and robust infrastructural development are fueling the demand for car clear coats in the region.

Key players: Key players operating in the car clear coat market are PPG Industries, Inc., Axalta Coating Systems, LLC, BASF SE, Sherwin-Williams Company, Nippon Paint Holdings Co., Ltd., Kansai Paint Co., Ltd., Akzo Nobel N.V., 3M Company, KCC Corporation, Noroo Holdings Co., Ltd., Valspar Corporation, Jotun Group, Hempel A/S, Carpoly Chemical Group Co., Ltd., and Guangdong Maydos Building Materials Limited Company.

*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it