A recent report by Allied Market Research has projected that the global automotive paint additives market is expected to reach $5.63 billion by 2026, marking a significant growth at a CAGR of 7.0%. The market, which was valued at $3.29 billion in 2018, has shown exceptional promise and growth prospects in the automotive industry.
Currently, North America leads the global market, closely followed by Asia-Pacific, Europe, and LAMEA. The United States, in particular, dominated the North America automotive paint additives market in 2018 and is poised to maintain its lead in the coming years.
The growth of the automotive paint additives market can be attributed to the development of the automotive industry and the increasing demand for eco-friendly paint additives. Additives such as blending solvents, flow enhancers, and fisheye eliminators have become crucial in improving the quality of automotive paints for vehicles. As the automotive industry continues to expand and the need for sustainable, high-quality paints increases, the demand for these additives is only expected to grow.
Leading automotive paint additives companies are also making significant strides in the industry. Nippon Paint, for instance, has established a new 270,000-square-foot factory in East Chattanooga as part of its expansion in North America. This strategic move is expected to further propel the market growth and drive the demand for automotive paint additives.
The rise in vehicle production and the surge in demand for innovative and eco-friendly automotive paints have further accelerated the growth of the market. Additionally, stringent government regulations across the globe mandating the use of eco-friendly paints to reduce environmental impact have contributed to the market’s expansion.
While the automotive paint additives market shows promise, challenges such as the increase in raw material prices pose potential hindrances to its growth. However, the production of cost-effective and eco-friendly automotive paints presents lucrative opportunities for market players.
In terms of market segments, flow enhancers are anticipated to exhibit remarkable growth, with the automotive decorative paint segment contributing significantly to revenue in 2018. Moreover, Asia-Pacific has emerged as the fastest growing region for automotive paint additives, followed by Europe, North America, and LAMEA.
Key players in the automotive paint additives market include BASF SE, PPG, Akzo Nobel N.V, Eastman Chemical Company, LLC, The Sherwin-Williams, Kansai Paint Co., Ltd, Nippon Paint Holdings Co., Ltd., DuPont, Clariant, Solvay, and others.
The global automotive paint additives market is undoubtedly on an upward trajectory, driven by technological advancements, industry expansion, and the growing focus on sustainability. As the industry continues to evolve, it is essential for key players to remain agile and innovative in order to capitalise on the opportunities and address the challenges that lie ahead.