Global Automotive OEM Interior Coatings Market Grows Steadily at a CAGR of 1.87%

Introduction

The automotive production industry is incredibly dependent on OEM coatings for automobiles. One of its roles is to protect the harsh environment. Automobiles are coated with the highest-quality, most resilient materials. Automobile coatings are a great mechanical barrier against abrasion and chemical exposure. Interior automobile coatings improve the surface's aesthetic appeal and incorporate functional elements that ooze comfort and luxury. Different precautions are taken when applying these coatings to stop the metal from rusting.

Market Dynamics

Growing Need for Improved Car Interiors Drives the Global Market

The growing demand for high-performance cars and new aesthetic looks in automobiles in recent years has been one of the significant factors influencing the demand for interior OEM coatings from the components used in the interior of cars, such as dashboards, steering wheels, cover seats, and other plastic finishing in the interior of the car. The growing demand for customized cars from the luxury car segment is also anticipated to drive up demand for interior OEM coating in the coming years. Customization typically entails changing the engine, the paint job, or adding aftermarket accessories to make a car look different from the factory version. Additionally, in recent years, car enthusiasts' demand for interior OEM coatings has increased due to the availability of straightforward customization at reasonable prices with updated technology.

Increased Domestic Demand Creates Tremendous Opportunities

The industry is likely to grow to satisfy domestic demand. The potential to increase manufacturing in Sub-Saharan Africa is amply demonstrated by many foreign automakers setting up facilities in Ghana, Ethiopia, Angola, Nigeria, Rwanda, Namibia, South Africa, Kenya, and other countries (SSA). In South Africa, the SAIPA Group of Iran and Mureza may collaborate to create a car that will retail for USD 12,434. According to reports, the vehicle made from SKD and CKD kits will reportedly be manufactured in Zimbabwe and Botswana at former Mazda and Hyundai facilities. Recently, the country also outlawed the importation of used cars to support domestic manufacturing. This will probably present a sizable opportunity for the country's OEM interior coating over the ensuing years. Therefore, opportunities for the OEM interior coatings market during the forecast period are likely to arise from such upcoming investments and shifting governmental policies to support the manufacturing sector in the area.

Regional Analysis

Asia-Pacific is the highest revenue contributor and is anticipated to expand at a CAGR of 2.22% during the forecast period. Interior coatings for cars are used mainly by tier 1 and tier 2 suppliers of automotive OEM parts. However, most of the country's auto interior parts are usually used in domestic auto manufacturing. The country's auto production and sales influence the demand for interior automobile coatings. The main offender is the employment of lean production techniques by the automotive sector to lower inventory overhead costs. The greatest car manufacturing sector in the world is found in China. The industry slowed down in 2018, and both production and sales decreased. Similar patterns persisted, and in 2019 production decreased by 7.5%. Economic changes and China's trade dispute with the United States impacted the automotive industry's performance.

Europe is anticipated to grow at a CAGR of 1.29% during the forecast period. Germany leads the region's automotive market with 41 assembly and engine production facilities, or one-third of all European auto production. Germany, one of the top manufacturing hubs for the automotive industry, is home to manufacturers from various segments, including equipment producers, suppliers of materials and components, engine manufacturers, and integrators of complete systems. The country's growing electric vehicle market is anticipated to positively affect the interior coatings market. Germany is one of the major countries on the continent in terms of electric vehicle production and consumption. Despite a decline in overall car sales in the country over the past few years, the number of electric vehicle registrations has significantly increased. The government's initiative to have 100% electric cars on the road by 2040 helps to fuel this expansion. German automakers are investing heavily in the nation's electric vehicle manufacturing.

Key Highlights

• The global automotive OEM interior coating market was valued at USD 2,508.75 million in 2022. It is expected to reach USD 2,963.97 million by 2031, growing at a CAGR of 1.87% during the forecast period (2023–2031).
• Based on resin, the global automotive OEM interior coatings market is bifurcated into epoxy, polyurethane, and acrylic. The polyurethane segment is the highest contributor to the market and is expected to grow at a CAGR of 1.98% during the forecast period.
• Based on the layer, the global automotive OEM interior coatings market is bifurcated into the primer, base coat, and clear coat. The primer segment is the highest contributor to the market and is expected to grow at a CAGR of 2.01% during the forecast period.
• Based on the vehicle type, the global automotive OEM interior coatings market is bifurcated into passenger cars, light commercial vehicles, and heavy commercial vehicles. The passenger cars segment is the highest contributor to the market and is expected to grow at a CAGR of 1.93% during the forecast period.
• Asia-Pacific is the most significant revenue contributor and is expected to grow at a CAGR of 2.22% during the forecast period.

Competitive Players

Competitive Players

The global automotive OEM interior coatings market’s major key players are AkzoNobel NV, Axalta Coating Systems, BASF SE, Fujikura Kasei Co. Ltd, Kansai Nerolac Paints Limited, NB Coatings, PPG Industries, The Sherwin-Williams Company, and KCC Corporation.

Recent Developments

Market News

• In August 2022, Axalta Introduced New Basecoat Technology for Latin American Automotive Refinish Market.
• In October 2022, BASF opened a surface treatment innovation and technology center in China for Chemetall.

Segmentation

Global Automotive OEM Interior Coatings Market: Segmentation

By Resin

• Epoxy

• Polyurethane

• Acrylic

By Layer

• Primer

• Base Coat

• Clear Coat

By Vehicle Type

• Passenger Cars

• Light Commercial Vehicles

• Heavy Commercial Vehicles

By Regions

• North America
• Europe
• Asia-Pacific
• South America
• The Middle East and Africa