The global automotive coating resin market size is expected to reach US$ 38.4 billion by 2024, and register a CAGR of 5.2% over the forecast period (2019 - 2027).
Coating resins (polymer compounds) have primary application in manufacture of paints and coatings. These materials serve the purpose of providing a protective layer for a wide range of objects, and help them resist environmental conditions such as corrosion, staining, weather, and hardness. Coating resins are viscous, industrially produced substances that undergo a process called 'curing' which converts synthetic resin into rigid polymers.
Owing to its ability to harden permanently, coating resin finds application in several end use industries such as automotive, furniture, and marine among others. Resins that are used for manufacturing automotive coating are called automotive coating resin.
Automotive coatings are applied to vehicles to protect them from extreme weather conditions, and pollution. Automotive coatings are primarily used as additives in the automotive sector, alongside other additives such as silver, enamel, and stearates. Synthetic resin provides a shiny, glossy look when applied to the vehicle. Automobile manufacturers use coating resins for passenger vehicles and light duty vehicles, as well as for heavy duty vehicles.
Automotive coating resin can either be oil based or water based. Oil based coating resins have been widely used in the past decade, however research has found that volatile organic chemicals present in the oil based coating resin results in higher emission of hazardous gases. Regulatory measures were set up by regulatory bodies in North America and the European Union to reduce the usage of oil based resins which contain harmful organic compounds that were found to pose a risk to the ozone layer. These factors have restrained growth of the automotive Coating Resin market considerably. However, research and development activities by key players to develop an environmentally friendly alternative for oil based coating are expected to benefit the market in the near future. In comparison with oil based resins, water based resins have considerably low concentration of harmful organic compounds.
Owing to the rapidly expanding economy, in addition to industrialization and increasing disposable income in countries such as China and India, the Asia Pacific region is expected to be the fastest growing market for automotive coating resin. Another reason for Asia Pacific contributing the highest market share is that it has presence of key international car manufacturers, as well as local companies engaged in manufacturing of coating resin. Europe is expected to closely follow Asia Pacific in terms of demand for automotive coating resins, owing to a rapid recovery by the European automobile industry from the recession that had affected the industry in 2009. Demand for coating resins that are environmentally friendly are expected to witness a high demand in the North America market, owing to strict regulations implemented by regional regulatory agencies.
Some of the prominent players in the global automotive coating resin market are Allnex Belgium SA/NV, The Dow Chemical Company, Azko Nobel N.V., BASF SE, and Nuplex Industries Ltd.