Regional Analysis

Automotive Refinish Market Regional Insights

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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.