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Automotive Coating to Gain from Increased Demand for Energy-Efficient Technologies Finds Frost & Sullivan - Upswing of automotive production in North America and Europe enhances growth opportunities for coatings, finds Frost & Sullivan’s Visionary Science team - Frost.com
Automotive Coating to Gain from Increased Demand for Energy-Efficient Technologies Finds Frost & Sullivan

 

PRZOOM - /newswire/ - London, United Kingdom, 2016/09/01 - Upswing of automotive production in North America and Europe enhances growth opportunities for coatings, finds Frost & Sullivan’s Visionary Science team - Frost.com.

   
 
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Automotive original equipment manufacturers (OEMs) are concerned about the rising energy consumption at their paint shops and the resultant increase in carbon emissions. These environmental issues and OEMs’ desire to accelerate production cycle times have prompted automotive OEM coating suppliers to develop integrated coating processes such as those that do away with primer coatings. This drop in primer requirement will be offset by the amplified need for base coat to achieve superior performance and aesthetics.

Another important feature of environment-friendly vehicles is lightweighting achieved through the greater use of plastic parts in automobile production. This translates to a new market for coating technologies that can seamlessly paint over plastic and metal substrates. However, the gradual replacement of metal parts with plastics and composite materials will dampen the demand for automotive OEM coatings on metal substrates.

New analysis from Frost & Sullivan, Analysis of the North American and European Automotive OEM Coatings Market, finds that the market earned revenues of $2.81 billion in 2015 and estimates this to reach $3.37 billion in 2022. During this period, the market is expected to register a compound annual growth rate (CAGR) of 3.3 percent and 2.0 percent in North America and Europe, respectively.

To request exclusive information about this research and to schedule your one-on-one strategy dialogue with our analysts now, please click here or send an email to Jana Schoeneborn, jana.schoeneborn[.]frost.com.

“There is also a fast emerging market for safe and sustainable products due to the cap on the use of volatile organic compounds (VOCs) in coatings by the European Renewable Energy Directive and California Air Resources Board (CARB),” saidFrost & Sullivan Visionary Science Research Analyst Vinay Venkatesan. “In response, coating OEMs are likely to develop non-polluting and high-performing water-borne, high-solids and powder-based coatings.”

While the VOC regulations are implemented strictly in Europe, there is considerable variance in their enforcement across the East and West coast regions of the United States. As a result, North American OEMs are reluctant to invest in new equipment that support sustainable technologies and continue to be heavily reliant on solvent-borne technologies.

In both Europe and North America, automotive production is on the upswing. Coating OEMs are developing superior base coat products to make the most of this opportunity and the rising consumer demand for dynamic colours and sophisticated coating finishes.

“The continuous evolution of automotive quality standards has had a knock-on effect on coating systems, resulting in improvements such as extreme stone chip resistance, etch and mar resistance and high corrosion protection,” noted Venkatesan.

The automotive OEM coatings market is highly consolidated; leading participants such as PPG, BASF, and Axalta Coating Systems contribute to the majority of market shares in both Europe and America. As there are only a handful of global companies supplying to a largely fragmented automotive OEM market, customers have been very demanding in terms of cost efficiency and performance. Therefore, coating companies are working on diversifying their product portfolio to offer a wide array of products and services across all layers. This strategy will go a long way in enhancing market penetration in both regions.

Analysis of the North American and European Automotive OEM Coatings Market is part of the Future of Chemicals & Materials in Infrastructure & Mobility Growth Partnership Service program. Frost & Sullivan’s related studies include: European and North American Paint Additives Market, North America Paints and Coatings Market, Fiber-reinforced Cement - High-Tech Materials TOE, Advanced Insulation Materials Technologies for Building and Construction, Opportunities in the Global Pressure Sensitive Adhesives Market and North American and European Construction Adhesives and Sealants Market. All studies included in subscriptions provide detailed market opportunities and industry trends evaluated following extensive interviews with market participants.

About Frost & Sullivan
Frost & Sullivan (frost.com), the Growth Partnership Company, works in collaboration with clients to leverage visionary innovation that addresses the global challenges and related growth opportunities that will make or break today's market participants.

Our “Growth Partnership” supports clients by addressing these opportunities and incorporating two key elements driving visionary innovation: The Integrated Value Proposition and The Partnership Infrastructure.

The Integrated Value Proposition provides support to our clients throughout all phases of their journey to visionary innovation including: research, analysis, strategy, vision, innovation and implementation.
The Partnership Infrastructure is entirely unique as it constructs the foundation upon which visionary innovation becomes possible. This includes our 360 degree research, comprehensive industry coverage, career best practices as well as our global footprint of more than 40 offices.

For more than 50 years, we have been developing growth strategies for the global 1000, emerging businesses, the public sector and the investment community. Is your organization prepared for the next profound wave of industry convergence, disruptive technologies, increasing competitive intensity, Mega Trends, breakthrough best practices, changing customer dynamics and emerging economies?

Analysis of the North American and European Automotive OEM Coatings Market / MBF1-39

 
 
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Automotive Coating to Gain from Increased Demand for Energy-Efficient Technologies Finds Frost & Sullivan

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Frost & Sullivan | Automotive Coating
Contact: Jana Schoeneborn - Frost.com 
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