Automotive OEM Interior Coatings Market - Industry Analysis, Market Size, Share, Trends, Application Analysis, Growth And Forecast 2022 - 2027

Report Code: CMR 65658 Report Format: PDF + Excel

Automotive OEM Interior Coatings Market Overview

The Automotive OEM Interior Coatings Market size is forecast to reach US$2.9 billion by 2027 after growing at a CAGR of 2.1% during the forecast period 2022-2027. The Automotive OEM Interior Coatings are primarily composed of Epoxy, Polyurethane, Acrylic, Alkyd, Polyvinyl Acetate (PVA), Polyester, or other resins.  They are used for a wide range of interior applications such as instrument panels, meter clusters, center clusters, speaker grills, steering wheels, door trim, and handles. An increase in the production of vehicles can act as a major driver for the market. On the other hand, environmental regulations regarding VOC (Volatile organic compounds) and HAP (Hazardous Air Pollutants) and fluctuating prices of raw materials including resins, titanium oxides, solvent, pigments, and additives are likely to obstruct the market and hinder its growth.

COVID-19 Impact

There is no doubt that the COVID-19 lockdown has significantly reduced automotive, and production activities which in turn, has resulted in the country-wise shutdown of automotive sites, shortage of labor, and the decline of supply and demand chain all over the world, thus, affecting the market. Studies show that the outbreak of COVID-19 sharply declined the production of automotive in 2020 due to a lack of operations across multiple countries around the world. According to OICA (International Organization of Motor Vehicle Manufacturers), the production of automobiles decreased by 16% globally in the year 2020, compared to 2019. However, a slow recovery in the automotive industry has been witnessed across many countries around the world since 2021. For instance, the Indian government has significantly reduced customs duty for the imports of electric vehicles components from a range of 10-15% to15-30%, along with provisioning tax breaks and economic packages for the automotive industry, in order to sustain and recover from the decline of activities in automotive sectors during COVID-19 crisis. In this way, a slow and steady increase in automotive production activities will require the use of Automotive OEM Interior Coatings composed of Epoxy, Polyurethane, Acrylic, or others in order to coat interiors such as instrument panels, meter clusters, center clusters, and speaker grills. This will eventually lead to an increase in demand for Automotive OEM Interior Coatings which indicates a slow and steady recovery of the market in the upcoming years.

Report Coverage

The report: “Automotive OEM Interior Coatings Market – Forecast (2022-2027)”, by IndustryARC covers an in-depth analysis of the following segments of the Automotive OEM Interior Coatings Industry.

By Resin: Epoxy, Polyurethane, Acrylic, Alkyd, Polyvinyl Acetate (PVA), Polyester, Polypropylene, Polyethylene, Polyvinyl Chloride, Others.
By Layer: E-Coat, Primer, Basecoat, Clear Coat, and Top Coat.
By Coating Technology: Water-borne, Solvent-borne, Radiation-Curable, Others.
 By Vehicle Type: Passenger Cars, Light Commercial Vehicles, Heavy Commercial Vehicles, Others.
By Geography: North America (USA, Canada, and Mexico), Europe (the UK, Germany, France, Italy, Netherlands, Spain, Russia, Belgium, and the Rest of Europe), Asia-Pacific (China, Japan, India, South Korea, Australia, and New Zealand, Indonesia, Taiwan, Malaysia, and the Rest of Asia-Pacific), South America (Brazil, Argentina, Colombia, Chile and the Rest of South America), the Rest of the World (the Middle East, and Africa).

Key Takeaways

  • The Epoxy Resins in Automotive OEM Interior Coatings Market is expected to see the fastest growth, especially during the forecast period. Its wide range of characteristics, corrosion resistance, and heat resistance properties made it stand out in comparison to other resins in the market.
  • Water-borne coating technology in the Automotive OEM Interior Coatings Market is expected to see the fastest growth, especially during the forecast period, owing to its increasing demand and benefits over other types of Automotive OEM Interior Coating technology.
  • Asia-Pacific dominated the Automotive OEM Interior Coatings Market in 2020, with countries like China, Japan, South Korea, and India most likely to drive the market growth, owing to the increasing demand for Automotive OEM Interior Coatings from automotive sectors of the region.

Figure: Asia-Pacific Automotive OEM Interior Coatings Market Revenue, 2021-2027 (US$ Billion)

For more details on this report - Request for Sample

Automotive OEM Interior Coatings Market Segment Analysis – By Resin

The Epoxy Resin held the largest share in the Automotive OEM Interior Coatings Market in 2021 and is expected to grow at a CAGR of 2.3% between 2022 and 2027, owing to the increasing demand for epoxy resin due to the characteristics and benefits it offers over other types of resin. For instance, it has a wide range of characteristics, easy processing, corrosion resistance and they are less affected by heat, water, and other factors as compared to Polyurethane, Acrylic, Alkyd, and other resins. Moreover, epoxy resins are easier to process, have high strength, high mechanical properties, low reduction during cure, along with good adhesion to all types of fibers, which makes them ideal for use in Automotive OEM Interior Coatings in comparison to other resins. Hence, all of these factors are most likely to boost market growth in the upcoming years.

Automotive OEM Interior Coatings Market Segment Analysis – By Layer

Primer held a significant share in the Automotive OEM Interior Coatings Market in 2021 owing to its increasing demand due to the properties and advantages they offer. Primers are generally used as an undercoat in materials before the use of base coat or topcoat. Primers offer a wide range of benefits over the base coat, clear coat, or topcoat such as it provides a stable surface for other coats to be layered on top of it, it ensures better adhesion of paints and coatings to the surface, increases the durability of the coating, helps to hide the seams and blemishes, along with providing supplementary protection to the materials being coated. All of these factors will eventually increase the demand for Primers to be used in Automotive OEM Interior Coatings, thus, boosting the market growth.

Automotive OEM Interior Coatings Market Segment Analysis – By Coating Technology

The Water-borne Coatings held a significant share in the Automotive OEM Interior Coatings Market in 2021, owing to a range of advantages they offer over other types of coating technology. Waterborne coatings are surface coatings that contain 80% water and a small number of other solvents such as polyvinyl ether and glycol. It offers a wide range of properties and benefits such as excellent adhesion properties, good resistance to heat and abrasion, along with anti-corrosion properties in comparison to solvent-borne and other types of coatings. Moreover, water-borne coatings are environment friendly due to low VOC and HAP levels which makes them less toxic and flammable in comparison to solvent-borne, and other coating technology. All of these factors are most likely to increase the demand for water-borne Automotive OEM Interior Coatings, thus, boosting the market growth in the upcoming years.

Automotive OEM Interior Coatings Market Segment Analysis – By Vehicle Type

Passenger Cars held the largest share in the Automotive OEM Interior Coatings Market in 2021 and is expected to grow at a CAGR of 2.4% between 2022 and 2027, owing to the increasing production of passenger cars across the globe. For instance, recent insights from the European Automobile Manufacturers' Association (ACEA) states that total passenger car production during the fourth quarter of 2020 reached around 34 million in Asia-Pacific, 14 million in Europe, 1.3 million in the Middle East/Africa, 1.7 million in South America, and 9.6 million in North America respectively. This, in turn, will help increase the demand for Automotive OEM Interior Coatings required for coating interiors for passenger cars such as instrument panels, meter clusters, center clusters, speaker grills, and so on. This is most likely to lead to market growth in the upcoming years.

Automotive OEM Interior Coatings Market Segment Analysis – By Geography

The Asia Pacific held the largest share in the Automotive OEM Interior Coatings Market in 2021 up to 31%. The consumption of Automotive OEM Interior Coatings is particularly high in this region due to its increasing demand from the automotive sector. For instance, a recent study published by the OICA (International Organization of Motor Vehicle Manufacturers) during the fourth quarter of 2020 states that around 25 million, 3.5 million, 8 million, and 3.4 million units of vehicles were produced in China, South Korea, Japan, and India, respectively, which in turn, contributed to approx. 50% of the global automobile production during the year 2020. Likewise, according to the Department of Promotion Industry and Internal Trade (DPIIT), the Indian Automobiles market invested around $ 24.5 million worth of FDI (Foreign Direct Investment) during the year June 2020. Hence, an increase in demand for the production of automotive will also require the use of Automotive OEM Interior Coatings. This is most likely to lead the growth of the Automotive OEM Interior Coatings Market in the upcoming years.

Automotive OEM Interior Coatings Market Drivers

An increase in automotive production is most likely to increase demand for the product

According to a recent study published by the German Association of Automotive Industry during the fourth quarter of 2020, the new registration of motor vehicles reached up to 16,763 units in Europe, 37,467 units in Asia, 3080 units in South America, 17,421 units in North America, 12,733 units in Western Europe, and 5180 units in other regions worldwide. Likewise, according to the European Automobile Manufacturers Association (ACEA), the EU demand for new passenger cars significantly increased by 25.2% from January-June 2021 and reached around 5.4 million units in total. Hence, an increase in demand and production of motor vehicles will also increase the demand for Automotive OEM Interior Coatings required for coating interiors of vehicles such as instrument panels, meter clusters, center clusters, speaker grills, and others. This is most likely to drive the growth of the market in the upcoming years.

An increase in demand for Electric Vehicles (EV) is most likely to increase demand for the product

According to a recent study published by the International Netherlands Group (ING), the demand for the production and development of Electric Vehicles has been increasing since the pandemic. It states that the global sales of new Electric Vehicles have increased by 50% in 2021, and is expected to increase by 8% in 2022. It further states that the sales of Electric Vehicles have increased by 14% in Europe, 9% in China, and 4% in the US. In this way, an increase in demand and production of electric vehicles from the automotive sectors globally will also increase the use of Automotive OEM Interior Coatings. This is most likely to drive market growth in the upcoming years.

Automotive OEM Interior Coatings Market Challenges

Fluctuating prices of raw materials including resins, titanium oxides, solvent, pigments, and additives may confine the market growth

Shortage and lack of availability of key raw materials along with a significant increase in prices are causing disruption to the coatings industries in the UK, Europe, and other regions across the world. For instance, BCF’s monthly raw material prices survey shows the largest increase in prices of solvent in January 2021 in comparison to last year. The results depicted an increase in prices of acetone by 123%, n-butyl acetate by 91%, IPA by 41%, and n-butanol by 54%. Likewise, a sharp increase in prices for epoxy resins has been seen during the first quarter of 2021, an increase of 60% in comparison to the third quarter of 2020. Other raw materials prices are also expected to increase by 2022. Hence, fluctuating prices of such raw materials may confine the market growth.

Strict regulations regarding VOC (Volatile organic compounds) and HAP (Hazardous Air Pollutant)  may cause an obstruction to the market growth

The Environmental Protection Agency (EPA) regulates the coatings of vehicles in the home environment as well as in professional facilities. EPA Regulation 40 in the Federal Code of Regulations, has listed the laws for the permissible methods of vehicle coatings applications along with the person who can apply it. Since most automotive coatings contain VOCs or HAPs, this regulation was primarily enforced with those elements in mind. It further states that Spray application of automotive coatings to a metal or a plastic substrate that contain compounds of lead (Pb), chromium (Cr),  nickel (Ni), manganese (Mn), or cadmium (Cd), should be performed effectively as per the EPA's Summary of Regulations Controlling Air Emissions from Coating Operations. The misuse of these regulations can lead to a serious charge or penalty. All of these factors may confine the market growth.

Automotive OEM Interior Coatings Industry Outlook

Technology launches, acquisitions, and R&D activities are key strategies adopted by players in this market. Automotive OEM Interior Coatings top 10 companies include:

  1. Akzo Nobel N.V.
  2. Axalta Coating Systems LLC
  3. BASF SE
  4. Fujikura Kasei Co. Ltd
  5. Kansai Nerolac Paints Limited
  6. KCC CORPORATION
  7. NB Coatings
  8. Nippon Paint
  9. PPG Industries Inc.
  10. The Sherwin Williams

Recent Developments

  • In February 2020, PPG Industries acquired Industria Chimica Reggiana (ICR) SpA. ICR is a manufacturer of automotive refinish products, which includes primers, clear coats, and base coats under the SPRINT brand.
  • In July 2019, BASF SE made an investment of around $40 million in order to expand its production of automotive coatings in North America. The expansion was done to increase the company’s capacity in production plants located in Greenville, Mexico, Ohio, and Tultitlan.

Relevant Reports

Automotive Coatings Market – Forecast (2021 - 2026)
Report Code: CMR 61816

Automotive Interior Materials Market – Forecast (2021 - 2026)
Report Code: ATR 0023

For more Chemicals and Materials related reports, please click here

1. Automotive OEM Interior Coatings Market- Market Overview
    1.1 Definitions and Scope
2. Automotive OEM Interior Coatings Market - Executive Summary
    2.1 Key Trends by Resin
    2.2 Key Trends by Layer
    2.3 Key Trends by Coating Technology
    2.4 Key Trends by Vehicle Type
    2.5 Key Trends by Geography
3. Automotive OEM Interior Coatings Market – Comparative analysis
    3.1 Market Share Analysis- Major Companies
    3.2 Product Benchmarking- Major Companies
    3.3 Top 5 Financials Analysis
    3.4 Patent Analysis- Major Companies
    3.5 Pricing Analysis (ASPs will be provided)
4. Automotive OEM Interior Coatings Market - Startup companies Scenario Premium Premium
    4.1 Major startup company analysis:
        4.1.1 Investment
        4.1.2 Revenue
        4.1.3 Product portfolio
        4.1.4 Venture Capital and Funding Scenario
5. Automotive OEM Interior Coatings Market – Industry Market Entry Scenario Premium Premium
    5.1 Regulatory Framework Overview
    5.2 New Business and Ease of Doing Business Index
    5.3 Successful Venture Profiles
    5.4 Customer Analysis – Major companies
6. Automotive OEM Interior Coatings Market - Market Forces
    6.1 Market Drivers
    6.2 Market Constraints
    6.3 Porters Five Force Model
        6.3.1 Bargaining Power of Suppliers
        6.3.2 Bargaining Powers of Buyers
        6.3.3 Threat of New Entrants
        6.3.4 Competitive Rivalry
        6.3.5 Threat of Substitutes
7. Automotive OEM Interior Coatings Market – Strategic Analysis
    7.1 Value/Supply Chain Analysis
    7.2 Opportunity Analysis
    7.3 Product/Market Life Cycle
    7.4 Distributor Analysis – Major Companies
8. Automotive OEM Interior Coatings Market– By Resin (Market Size - US$ Million/Billion)
    8.1 Epoxy
    8.2 Polyurethane
    8.3 Acrylic
    8.4 Alkyd
    8.5 Polyvinyl acetate (PVA)
    8.6 Polyester
    8.7 Polypropylene
    8.8 Polyethylene
    8.9 Polyvinyl Chloride
    8.10  Others
9. Automotive OEM Interior Coatings Market– By Layer (Market Size - US$ Million/Billion)
    9.1 E-Coat
    9.2 Primer
    9.3 Basecoat
    9.4 Clear Coat
    9.5 Top Coat
10. Automotive OEM Interior Coatings Market– By Coating Technology (Market Size - US$ Million/Billion)
    10.1 Water-borne
    10.2 Solvent-borne
    10.3 Radiation-Curable
    10.4 Others
11. Automotive OEM Interior Coatings Market– By Vehicle Type (Market Size - US$ Million/Billion)
    11.1 Passenger Cars
    11.2 Light Commercial Vehicles
    11.3 Heavy Commercial Vehicles
    11.4 Others
12. Automotive OEM Interior Coatings Market - By Geography (Market Size - US$ Million/Billion)
    12.1 North America
        12.1.1 USA
        12.1.2 Canada
        12.1.3 Mexico
    12.2 Europe
        12.2.1 UK
        12.2.2 Germany
        12.2.3 France
        12.2.4 Italy
        12.2.5 Netherlands
        12.2.6 Spain
        12.2.7 Russia
        12.2.8 Belgium
        12.2.9 Rest of Europe
    12.3 Asia-Pacific
        12.3.1 China
        12.3.2 Japan
        12.3.3 India
        12.3.4 South Korea
        12.3.5 Australia and New Zealand
        12.3.6 Indonesia
        12.3.7 Taiwan
        12.3.8 Malaysia
        12.3.9 Rest of APAC
    12.4 South America
        12.4.1 Brazil
        12.4.2 Argentina
        12.4.3 Colombia
        12.4.4 Chile
        12.4.5 Rest of South America
    12.5 Rest of the World
        12.5.1 Middle East
            12.5.1.1 Saudi Arabia
            12.5.1.2 UAE
            12.5.1.3 Israel
            12.5.1.4 Rest of the Middle East
        12.5.2 Africa
            12.5.2.1 South Africa
            12.5.2.2 Nigeria
            12.5.2.3 Rest of Africa
13. Automotive OEM Interior Coatings Market – Entropy
    13.1 New Product Launches
    13.2 M&As, Collaborations, JVs, and Partnerships
14. Automotive OEM Interior Coatings Market – Industry/Segment Competition Landscape Premium
    14.1 Company Benchmarking Matrix – Major Companies
    14.2 Market Share at Global Level - Major companies
    14.3 Market Share by Key Geography - Major companies
    14.4 Market Share at Country Level - Major companies
    14.5 Market Share by Key Product Type/Product category - Major companies
15. Automotive OEM Interior Coatings Market – Key Company List by Country Premium Premium
16. Automotive OEM Interior Coatings Market Company Analysis - Business Overview, Product Portfolio, Financials, and Developments
    16.1 Company 1
    16.2 Company 2
    16.3 Company 3
    16.4 Company 4
    16.5 Company 5
    16.6 Company 6
    16.7 Company 7
    16.8 Company 8
    16.9 Company 9
    16.10 Company 10 and more

"*Financials would be provided on a best efforts basis for private companies"