Original Equipment Manufacturer (OEM) Coatings Market Analysis
Original Equipment Manufacturer (OEM) Coatings Market - Global Industry Insights, Trends, Outlook, and Opportunity Analysis, 2018-2026
Original Equipment Manufacturer (OEM) coatings are applied on substrates for decoration and protection purposes. These coatings prevent corrosion, and wear and tear of the substrate. Twenty first century OEM coatings are 100µm thick. They are designed to provide dust, moisture, and UV-resistance. The lifespan of the automobiles increase on application of OEM coats. Initially, automobile coats were metallic (lead, chromium and heavy metals), however, due to increased awareness about their toxic tendencies, the market shifted to application of water based paints.
The major drivers fueling growth of this market are improved life and performance of products on application of OEM coatings and the increased automobile production in both developed and emerging markets. The major challenges faced by this market include the instability in raw material prices, and environmental concern regarding VOC’s that have resulted in a declining solvent-based coating market in favor of water-based and powder coatings.
OEM Coatings Market Taxonomy
On basis of formulation
On basis of product type
On basis of substrate
On basis of end user industry
The coatings applied are of two types, liquid and powder coatings. Powder coatings offer better durability and have the environmental advantage of not possessing any solvents or VOC’s. Water-based coatings market is ever increasing in favor of solvent based coatings. Radiation cured coatings employ UV light instead of heat, which eliminates waste streams commonly seen in solvent coatings.
The largest end user is the automobile industry, followed by furniture, and aerospace industries. In addition, metal is the most coated substrate due to automobile industry’s market share.
OEM Coatings Market Outlook
In June, 2017, PPG Industries Inc. opened its new paints and coatings manufacture plant in Lipetsk, Russia. The plant is projected to consolidate PPG’s market position in the Asian, Middle East, and European markets. Major players in the OEM coatings market are Axalta Coating Systems, BASF SE, PPG Industries Inc., Nippon Paint, Kansai Paint, Akzo Nobel, Sherwin Williams Company, Bayer AG, KCC Paint, and Arkema SA.