ORIGINAL EQUIPMENT MANUFACTURER (OEM) COATINGS MARKET ANALYSIS

Original Equipment Manufacturer (OEM) Coatings MarketSize and Trends

OEM Coatings Market Outlook

• Asia Pacific is the largest market for OEM coatings. The market is driven by strong performance of automobile and furniture industries. The rise in personal transportation and transit of consumer goods and raw materials have boosted all segments of the automotive industry. According to China Association of Automobile Manufacturers (CAAM) and Society of Indian Automobile Manufacturers (SIAM), in 2016, sales of cars stood at 28.03 million and 3 million in China and India, respectively. Furniture industry growth is a result of a flourishing residential construction, which is the result of shift in the population, from rural to urban settlements.
• North America and Europe also presented sturdy vehicle sales, with the U.S. being the second largest cars market, after China. Furthermore, the presence of luxury car makers in these regions, has resulted in a high value coatings market, despite the low volume of coatings used. The solvent-based coatings market is in decline with powder and water-based coatings as preferred alternatives.
• Latin American markets have witnessed a slowdown in the automobile industry. Political turmoil in Brazil, Argentina, Colombia, and Venezuela has contributed to this slowdown. Uncertainty in Mexico regarding renegotiation of the North American Free Trade Agreement (NAFTA) has caused panic amongst manufacturers who have access to the lucrative U.S. market. Despite this, Mexico has overtaken Brazil in recent years and continues to be a major automobile manufacturing and consumer market.
• The GCC countries have witnessed burgeoning growth in the construction industry, thus augmenting growth of the furniture industry. The large scale construction projects are partly state-funded and are a result of a vision to make the countries less dependent on hydrocarbons revenue. The planned privatization of Saudi Aramco is projected to bring in billions of dollars, which the government plans to invest in other sectors including construction.