Pollution Reduction Driving Demand for Water-Based Coatings
Feb. 13, 2017—An Infiniti Research report expects the automotive paints and coatings market to reach $33.49 billion by 2021, growing at a CAGR of 4.95 percent.
The market for automotive paints and coatings was valued at $26.3 billion in 2016. Although the report states that restrictions on emissions and other pollutants will slow the growth of some segments of the market, it will also create opportunities for paints and coatings. Demand for solvent-based products is falling, but the water-based segment is growing at a CAGR of 5.63 percent, higher than that of the overall market.
As concerns over the environment grow, the report states automobile manufacturers are striving to reduce energy consumption and carbon emissions. The European Renewable Energy Directive, for example, has placed a cap on the use of volatile organic compounds (VOCs) in coatings, as have other regulatory organizations around the world. This is driving the demand for water-based coatings and other products that are better for the environment, and slowing the growth of solvent-based products.
Manufacturers are finding other ways to adapt to the need for cleaner and more efficient processes as well, the report details. They are changing their coating processes, reducing the use of primers and increasing their focus on base coats. They are also using more plastic parts in their vehicles, giving rise to a need for coatings that adhere equally well to both plastic and metal. With automobile production rising both in Europe and North America, coating manufacturers will need to adapt to these new demands in order to remain competitive.