Automotive Paint Additives Market Size, Share & Trends Analysis Report By Type (Blending Solvents, Flow Enhancers, Fisheye Eliminator, Other), By Applications (Automotive Decorative Paint, Automotive Antirust Paint, Automotive Fire-Retardant Paint, Other), By Vehicle Type (Passenger Cars, Commercial Vehicle) and By Region(North America, Europe, APAC, Middle East and Africa, LATAM) Forecasts, 2023-2031

Market Overview

The global automotive paint additives market size was valued at USD 4,280.21 million in 2022. It is projected to reach USD 7,740.12 million by 2031, registering a CAGR of 6.8% during the forecast period (2023-2031). The rising production of automobiles is anticipated to drive growth in the global market for automotive paint additives.

Automotive paint additives are constituents of paint formulations that are utilized in minimal proportions to augment the overall quality and attributes of paints. The use of additives in a precise sequence, at an appropriate stage, and in an optimal quantity has been found to enhance the longevity, quality, aesthetics, and flow characteristics of paint. The automobile industry utilizes a range of additives, including wetting and dispersion agents, deformers, specialty additives, thickening and setting agents, emulsifiers, and effluent treatment additives. The incorporation of additives during the mixing process disrupts the formation of bubbles inside the paint, which occurs when the paint is being prepared for application.

Market Dynamics

Global automotive paint additives market drivers

Increasing automobile production

The automobile sector has undergone substantial expansion in the previous decade, especially in nations such as China, the U.S., Japan, India, Germany, and the U.K. While the early stages of the global automobile industry were concentrated in the United States, Japan, and Germany, today's factories are branching out into emerging markets like China, Thailand, and India. Rapid expansion in the automotive sector is being linked to rising industrialization in developing nations, which has resulted in a rise in demand for commercial vehicles, including trucks, tractors, and trailers.

Furthermore, the market has been bolstered by rising demand and manufacturing of automobiles in developing countries. For instance, the automotive industry in India is the fourth largest in the world after growing by 9.5% yearly to 4.2 million units. As a result, the global market for automotive paint additives is expected to expand in response to the increasing manufacturing of automobiles.

Increasing demand for eco-friendly automotive paints additives

A rise significantly influences the market's growth in the inclination towards eco-friendly paints compared to conventional paints. The distinction lies in the solvent-based composition of conventional paint additives vs the water-based composition of environmentally friendly paint additives, which accounts for this discrepancy. Petrochemical-based materials that contain volatile organic compounds (VOCs) are bad for the environment and are used as solvent-borne paint additives.

Hazardous compounds in VOCs are anticipated to cause immediate and long-term negative health impacts. Diluting aqueous paint ingredients with water significantly lowers the content of VOC (volatile organic compound). As a result, the market for automotive paint additives is expected to develop due to the rise in demand for eco-friendly paints, which lessen the harmful effects on the environment.

Global automotive paint additives market restraint

Rising prices of raw materials

Over the past few months, the price of the raw ingredients needed to produce paint additives has increased dramatically. Given that raw materials account for more than half of the operating costs for paint factories, the price of commodities and raw materials is quite important. As a result, the ultimate cost of automobile paint additives has increased due to the rise in commodity costs. Therefore, rising raw material costs are projected to impede the market expansion for automotive paint additives.

Global automotive paint additives market opportunities

Growing production of eco-friendly and cost-effective automotive paints additives

The escalation in the production of car paint additives has resulted in heightened pollution levels, primarily ascribed to the release of volatile organic compounds (VOCs). The release of volatile organic compounds is commonly observed when solvent-based paints are utilized in the process of spraying. This emission occurs due to the combination of gaseous solvent components with the air present within the spray booth.

Moreover, there is a notable escalation in the cost of the raw materials used in the production of vehicle paint additives, impeding the market's growth potential for these particular items. Therefore, increased production of affordable and environmentally friendly automotive paint additives will present attractive growth opportunities for market players.

Regional Analysis

Region-wise, the global automotive paint additives market is segmented into North America, Europe, Asia-Pacific, and LAMEA. 

North america dominates the global market

North America is the most significant global automotive paint additives market shareholder and is estimated to exhibit a CAGR of 6.12% during the forecast period. The primary factors predicted to propel the growth of the automotive paint additives market in North America are the expansion of business by incorporating new manufacturing plants by leading automotive paint additives companies and initiatives taken by automobile companies to improve the quality of automotive paint additives to reduce the environmental impact. In addition, automotive paint additive companies are expanding their business in North America by incorporating new manufacturing plants. For instance, Nippon Paint, one of the global leaders in the automotive paints market, incorporated a new 270,000-square-foot factory in East Chattanooga, which will propel the market growth, which, in turn, will boost the demand for automotive paint additives.

Asia-Pacific is expected to grow at a CAGR of 8.21% during the forecast period. Players operating in the region have introduced numerous paint additives due to the increased automobile production and demand for long-lasting vehicle paints. This demand has supplemented the global market growth across the region. In addition, the continuous development of the automobile industry and increased demand for automotive paints are the key factors influencing the automotive paint additives market growth in Asia-Pacific. Moreover, implementing stringent government regulations to opt for eco-friendly paints to reduce the adverse environmental effects drives market growth in this region.

Europe is the third largest region. Germany, France, the U.K., Italy, and various other countries have been covered under Europe. The regional automotive paint additives market growth is driven by an increase in vehicle production and a surge in demand for innovative and eco-friendly automotive paint additives for automobiles. This increased demand has led to the market's growth, enabling key players to manufacture improved and efficient products, which propels the market's growth. Factors such as an increase in demand for automotive paint additives in countries such as the UK, Germany, and France and the acquisition of small automotive paint additives manufacturers by giants are anticipated to propel the growth of the European market. Moreover, the increase in demand for innovative and eco-friendly automotive paints is boosting the market's growth.

Segmental Analysis

The global automotive paint additives market is segmented into type, application, and vehicle type.

Based on type, the global market is divided into blending solvents, flow enhancers, fisheye eliminators, and others. 

The fisheye eliminator segment dominates the global market and is estimated to exhibit a CAGR of 5.1% during the forecast period. A fisheye eliminator prevents fisheye, a small crater/hole on the surface surrounded by a paint ring, and increases the gloss. It also reduces the surface tension of wet paints, improves the paint flow out, inhibits solvent trapping, reduces the telegraph of sand scratches, and helps to prevent the beading of the liquid on the contaminated substrate. The development of the automobile industry and the increase in demand for eco-friendly paints are the major factors that propel the adoption of fisheye eliminators in automotive paint additives.

Blending solvents can be defined as solvents specifically formulated to help dissolve the dry edges of a freshly sprayed 2K clear coat. Blending solvents allows users to keep the repairs to a single panel by creating an invisible blend. The development of the automotive industry and the rise in the need for eco-friendly paint additives are the key factors expected to exhibit the growth of the automotive paint additives market.

Based on the application, the global market is segregated into automotive decorative paint, automotive antirust paint, automotive fire-retardant paint, and others. 

The automotive decorative paint segment dominates the global market and is expected to exhibit a CAGR of 5.7% during the forecast period. This segment includes the additives that are mostly employed to enhance the visual appeal of automobiles. In terms of application, this particular sector holds the greatest market share and is expected to continue its dominance throughout the projected timeframe.

The automotive antirust paint obstructs or impends metal corrosion by reducing the direct access of water and air to the metal. Anti-corrosion coating acts as a barrier and protects the metal, preventing contact between corrosive materials or chemical compounds. The adoption of automotive antirust coatings is expected to increase as they protect the metal against degradation due to salt spray, moisture, oxidation, or exposure to various industrial or environmental chemicals.

Based on vehicle type, the global market is categorized into passenger cars and commercial vehicles.

The passenger cars segment owns the highest automotive paint additives market share and is expected to exhibit a CAGR of 6.2% during the forecast period. In 2018, passenger vehicles accounted for more than 50–60% of the global automotive sales. The need for passenger vehicles has increased considerably, which, in turn, is anticipated to augment the demand for automotive paint additives. Similarly, manufacturers have widened their product offerings, covering a broad array of vehicle segments such as hatchbacks, sedans, crossovers, and SUVs, which boosts the segment's growth. Various automobile paint manufacturers are focusing on developing eco-friendly and innovative paints to prevent corrosion and damage to the surface of vehicles, which provides lucrative growth opportunities for the players operating in the automotive paint additives market.

The commercial vehicles segment garners a significant global market share and is predicted to continue the trend during the forecast period. This is attributed to an increase in the production of commercial vehicles to meet the growing consumer needs and an upsurge in demand for eco-friendly paint additives for vehicles due to the implementation of stringent government rules to control pollution. In addition, a rise in urbanization and industrial output has led to a surge in demand for commercial vehicles in developing countries, which bodes well for future expansion. For instance, the commercial vehicle segment in the Indian automotive industry experienced exponential growth in both light commercials and medium and heavy commercial vehicle segments, which is expected to propel the demand for automotive paint additives for commercial vehicles.

Recent Developments

• October 2023- Gerdau Graphene introduced two graphene additives designed specifically for water-based paints and coatings. The utilization of NanoDUR and NanoLAV in the production of paints and coatings has the potential to effectively mitigate the total environmental consequences associated with this manufacturing process while simultaneously maintaining the pH levels unchanged.