AUTOMOTIVE REFINISH MARKET SIZE AND SHARE ANALYSIS - GROWTH TRENDS AND FORECASTS (2024-2031)
Global automotive refinish market is estimated to be valued at USD 12.43 Billion in 2024 and is expected to reach USD 19.25 Billion by 2031, exhibiting a compound annual growth rate (CAGR) of 6.4% from 2024 to 2031.
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The increasing vehicle population across regions and rising accidents are driving the need for automotive refinishing. Additionally, the growing consumption of innovative and advanced refinishing technologies, such as waterborne coatings, is also a key trend in the market. Traditional solvent-borne coatings are losing share to these eco-friendly waterborne variants. Moreover, rising per capita income and purchasing power is boosting the number of collision repairs and hence fueling the market growth.
Market Driver - Rising disposable income and consumer preference for aesthetically pleasing vehicles
With the steady rise in disposable incomes across major economies worldwide, consumers are now able to spend more on non-essential luxury and aesthetic products. Maintaining the exterior appearance of one's vehicle has become a matter of personal pride and social status for many. Those owning older vehicles now have more capacity to invest in repairs and refinishing work to restore the new car look and feel.
This affluent middle class population is driving the demand for regular repairs and refinishing services aimed at keeping their vehicles looking as fresh and vivid as possible. Even minor denting or scratch marks that may not essentially impact performance are enough now to prompt car owners into paint and body shops. The self-owned vehicles have transformed from a mode of utility and basic transportation to a style statement and extension of personal branding.
With urbanization continuing at a rapid pace, parking issues have also worsened in many cities leading to more frequent minor accidental damages. Rather than living with such imperfections, vehicle owners today would readily spend on restoring the original aesthetic appeal. Additionally, the widespread use of smartphones has made people constantly aware of even tiny defects through frequent photographs and social sharing of their vehicles. No one wants to be spotted with a worn or damaged looking car.
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Technological advancements in refinish coatings and painting techniques
The automotive refinishing industry has come a long way from basic primer, paint and clear coat applications. Advanced materials research and digital tools are revolutionizing workflows to achieve faster cycle times, higher quality finishes and greater sustainability.
New generations of basecoats now offer bolder, long-lasting colors that precisely match original shades even years later. UV-resistant clear coats provide unparalleled gloss retention and durability to withstand extreme weathering. Meanwhile, new substrate adhesion promoting primers tenaciously bond various surfaces for challenging repairs. What's more, innovative refinish products are continuously being developed from renewable resources for reduced environmental footprint.
Key Takeaways from Analyst:
Global automotive refinish market is expected to witness steady growth over the next decade driven by rising vehicle ownership and road accidents globally. The North America region will continue to dominate the market owing to the presence of major automobile markets along with increasing miles clocked per vehicle per year.
However, stringent environmental regulations around volatile organic compound (VOC) emissions represent a major challenge for refinish coatings. Waterborne coatings are emerging as safer alternatives but require significant reforms in application equipment.
Advent of connected cars also brings opportunities for refinish paint suppliers to better track vehicle usage and predict repair needs. Data-linked supply chains can help achieve just-in-time inventory management for automobile manufacturers and body shops. Virtual reality based training tools are gaining popularity among technicians given shortage of skilled labor.
Asia Pacific are relatively mature paint refinish markets. However, opportunities exist in adopting innovative coating technologies like pearlescent, matte, and customized color-changing effect paints among luxury and sports vehicles.
Market Challenge - Increasing competition from aftermarket refinish products and services
The global automotive refinish market is facing significant challenge from increasing competition arising from aftermarket refinish products and services. Many independent repair shops and general automotive parts suppliers have started offering refinish coatings and painting services to vehicle owners at competitive prices. This has intensified the competition for established automotive OEMs and refinish brands. Increased availability of low-cost refinish products through e-commerce channels and expanding distribution networks of aftermarket players have given more choice to customers. Aftermarket refinish options are generally cheaper compared to OEM recommended refinish solutions, posing pricing pressure. Vehicle owners are also willing to try alternative options for minor repairs and touching up scratches to save costs.
Opportunity: Increasing adoption of waterborne and powder coatings due to their environmental benefits
The stringent environmental regulations being introduced by various governments regarding emission of volatile organic compounds (VOCs) from paints and coatings present a major opportunity for waterborne and powder coating technology providers in the automotive refinish market. Waterborne coatings produce 60-80% lesser VOC emissions compared to solvent-borne coatings. Similarly, powder coatings are 100% free from VOCs. Both these technologies are gaining acceptance from automotive OEMs and refinish brand owners as they help comply with strict environmental norms. The rising ‘green’ or sustainability aspirations of consumers are further driving higher demand for environment-friendly refinish options. More vehicle repair shops and refinish centers are installing booths and equipment compatible with low-VOC technologies. This growing shift towards waterborne and powder coatings will significantly boost their adoption in the coming years.
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Insights by Technology - Paints Segment Holding Significance Due to Their Pivotal Role in Automotive Protection and Aesthetics
In terms of technology, the paints segment is estimated to contribute 48.7% share of the market in 2024 owing to their critical function in automotive protection and aesthetics. As one of the most important exterior components, automotive paints play a vital role in shielding vehicle bodies from environmental damage like extreme weather, road debris, and potential corrosion caused by water and humidity. They form a durable coating that acts as a barrier to prevent underlying metal from rusting and deteriorating over time. In addition to protection, high-quality paints also enhance the visual appeal and resale value of vehicles by maintaining an attractive, glossy finish. Automakers devote considerable resources to R&D of advanced paint chemistries that offer enhanced characteristics like resilience to UV rays, chemical resistance, and longevity of the painted surface. Consumer preference for certain premium colors further drives paint manufacturers to expand their palette of innovative and customizable shades. With automobiles representing significant investments, owners rely on protective and beautifying paint coatings to retain the quality and longevity of their vehicles.
In June 2022, AkzoNobel announced plans to strengthen its presence in Africa by reaching an agreement with Kansai Paint to acquire its paints and coatings business in the region. The acquired activities, which generated around US$ 280 million in consolidated revenue, will provide AkzoNobel with a strong platform for future growth in Africa. The transaction includes the Plascon brand, which has over a century of heritage in South Africa, complementing AkzoNobel's own Dulux brand. Both companies share a commitment to innovation and sustainability, and the acquisition will enable the combined entity to offer a wider range of innovative and sustainable solutions to customers across the continent.
Insights by Application - Passenger Cars Segment is Leading the Market as the Primary Mode of Personal Transportation with Elevated Private Usage Rates
In terms of application, the passenger cars segment is estimated to contribute 64.5% share of the market in 2024 given their predominance on roads globally. As personal transportation, passenger cars see high rates of private usage compared to commercial vehicles. Their growing numbers worldwide and rapidly evolving designs necessitate frequent repairs and refinishing work to maintain aesthetics. Furthermore, passenger cars undergo renewal of exterior paintwork more often to align with changing trends and owner preferences for stylish and luxurious appearances. With the rise of autonomous, electric and smart connected vehicles, automobile designs are advancing at a rapid pace. Progressive features like sensor arrays and digital displays introduce fresh challenges for seamlessly blending new materials into vibrant painted exteriors. This drives the need for automotive refinish products customized for novel car architectures of the future. Automakers also focus on differentiating their marques in the competitive passenger car segment through striking designs and colors enabled by sophisticated refinishing technologies.
Insights by End User - Body Shops Driving the Market as the Primary Sales Channel for Automotive Refinish Products
In terms of end user, the body shops segment is estimated to dominate the market revenue share with 70.2% in 2024 since they constitute the primary sales channel for automotive refinish products. Body shops perform the majority of repair, repainting and customization work demanded by vehicle owners. To deliver quality refinishing services efficiently, body shops rely on a stable supply of top-quality paints, coaters, thinners and other materials from reputed manufacturers. This ensures they can cater to diverse repair requirements for different vehicle models, ages and damage types. It is also important for body shops to maintain an ample inventory of popular shades and formulas aligned with seasonal trends. Streamlined procurement reduces turnaround times and improves customer satisfaction levels. Well-established refinish product distributors play a crucial role in regular delivery and just-in-time replenishment of paint supplies based on individual workshops' needs. A fulfilling relationship with suppliers helps body shops run their operations smoothly and remain profitable.
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North America has been the dominant region in the global automotive refinish market. The region is expected to hold 42.7% of the market share in 2024. The large presence of major automakers as well as refinish product manufacturers such as General Motors, Ford Motor Company, Ford Motor Company, Toyota Motor Corporation, etc. in the region has solidified its leadership position in North America. The U.S. specifically is home to "Detroit" which has historically been the manufacturing hub for automobiles not just in the country but around the world. With a massive installed base of vehicles on the road, the need for refinish products to repair and maintain the existing fleet remains high. Additionally, North American consumers tend to upgrade their vehicles more frequently which leads to a steady demand for refinish services from body and repair shops.
Asia Pacific has emerged as the fastest growing regional market for automotive refinish in recent times on the back of rapidly motorizing emerging economies. While countries like Japan and South Korea have seen car ownership rates saturate over the years, economies such as India and Indonesia are still at an early stage of growth with the middle-class population experiencing rising disposable incomes. This has translated to increased spending on personal vehicles and allied aftermarket segments. Furthermore, Asia Pacific's strategic importance as a global manufacturing center for automakers has been on the rise too with several companies setting up local production facilities. The combination of more vehicles on the road alongside repair needs of those produced locally is fueling Asia Pacific's rise in the Automotive Refinish Market.
Going forward, Asia Pacific is expected to gain further ground on the leader North America due to its favorable long-term fundamentals including a younger demographic profile and continued urbanization trends. However, developed markets such as Western Europe should also see renewed demand as macroeconomic conditions improve post the pandemic. Countries like Germany and the U.K. still have vibrant automotive manufacturing capabilities albeit smaller in size compared to North America. The Automotive Refinish Market will thus continue tracking closely the production and usage patterns of automobiles globally with dynamics varying across regions.
Automotive Refinish Market Report Coverage
| Report Coverage | Details | ||
|---|---|---|---|
| Base Year: | 2023 | Market Size in 2024: | US$ 12.43 Bn |
| Historical Data for: | 2019 To 2023 | Forecast Period: | 2024 To 2031 |
| Forecast Period 2024 to 2031 CAGR: | 6.4% | 2031 Value Projection: | US$ 19.25 Bn |
| Geographies covered: |
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| Segments covered: |
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| Companies covered: |
Akzo Nobel N.V., Axalta Coating Systems, LLC, BASF SE, Berger Paints India Limited, Covestro AG, Donglai Coating Technology (Kunshan) Co., Ltd., Hebei Chenyang Industry & Trade Group Co., Ltd., Kansai Paint Co., Ltd., Mipa SE, Nippon Paint Holdings Co., Ltd., PPG Industries, Inc., Sherwin-Williams Company, Solvay S.A., Speedokote LLC, and Valspar Corporation |
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*Definition: The global automotive refinish market consists of products and services used to repair, repaint, and refinish vehicles that have been damaged in accidents or have wear and tear on their original factory paint finish. This market includes automotive paints such as primers, basecoats, clear coats, sealers, and colorants along with other refinishing products like fillers, thinners, and spray guns. Customers in this market include vehicle repair shops, body shops, collision repair centers, and independent auto refinishers.
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About Author
Ameya Thakkar
Ameya Thakkar is a seasoned management consultant with 9+ years of experience optimizing operations and driving growth for companies in the automotive and transportation sector. As a senior consultant at CMI, Ameya has led strategic initiatives that have delivered over $50M in cost savings and revenue gains for clients. Ameya specializes in supply chain optimization, process re-engineering, and identification of deep revenue pockets. He has deep expertise in the automotive industry, having worked with major OEMs and suppliers on complex challenges such as supplier analysis, demand analysis, competitive analysis, and Industry 4.0 implementation.
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