AUTOMOTIVE COATING RESIN MARKET ANALYSIS

Market Challenges And Opportunities

Market Dynamics

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.