The United States Automotive Paints and Coatings market which currently has a market size of ~USD Bn. is anticipated to grow at a CAGR of ~9.5% in between 2022-2028 as per the findings of Ken Research.
STORY OUTLINE
- Rising production and sales of automotive vehicles increase the demand for automotive paints and coatings as the vehicles have to be painted.
- Increasing accidents and collisions also increase the demand for automotive paints and coatings as the vehicles have to be painted after being repaired post-accidents.
- Technological advancements in the field of paintings and coatings such as UV curable coatings, E-coat, Robotics and automation, Additive Manufacturing, and Electrochromic coatings also accelerate the US Automotive Paints and Coatings market.
- Rapid pollution caused by automotive paints and coatings allow the market to further develop such paints that cause lesser pollution which ultimately leads to the growth of US Automotive Paints and Coatings market.
A fast growing industry, rising sales of vehicles, technological advancements, and rising accidents along with rising pollution caused by automotive paints and coatings are the various reasons responsible for the growth of US Automotive Paints and Coatings market. This market is anticipated to grow at a CAGR of ~9.5% in between 2022-2028.
- Rising total vehicle sales in the US: raising the demand for Automotive paints & coatings
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Automotive paints and coatings are primarily used in automobiles. Each vehicles whether heavy or light or electric or automotive needs to be painted and coated. For such purpose, wall paints or regular paints cannot be used. For the purpose of painting vehicles, only automotive paints can be used that are specifically designed to be painted on automobiles.
In 2018 and 2019, almost 17 million automotive vehicles were sold each year. However, 2020 saw a sharp decline in the sale of automotive vehicles due to the arrival of covid-19 pandemic. In 2020, only 14.5 million automotive vehicles were sold.
In 2021, the number again started to increase as the covid-19 slowed down. In this year, almost 16 million vehicles were sold. Lastly in 2022, approximately 15 million vehicles were sold.
As the automobiles are manufactured and sold, the demand for automotive paints and coatings also increase as these paints and coatings are to be used in every automotive and vehicle that is manufactured and sold.
Thus, the rising sales of vehicles in the country results in an increased demand for automotive paints and vehicles which ultimately contributes in the growth of US Automotive Paints and Coatings market.
- Rising accidents and collisions results in requirement for repairing which uses automotive paints and coatings.
The number of accidents and collisions have been rising in the United States. When vehicles meet with accidents and collisions, they need to be repaired. And, the process of repairing them use automotive paints and coatings.
Almost 1 in every 63 people have a chance of getting in an accident in the US as per the data of 2020. Out of 163 accidents, 1 turns out to be fatal which means there are 0.7% chances of an accident turning out to be fatal.
Speaking of accidents by vehicles type, then Passenger cars tend to cause most of the injuries (54%) followed by a SUV (21%), and trucks (10%). In 2020, there were at least 5,250,000 car crashes which means on an average, 14,000 car accidents happen daily.
All these numbers are very high and when there are so many accidents happening, the demand for repairing the vehicles also rise. And automotive paints and coatings are widely used in the task of repairing vehicles. This results in heavy demand for automotive paints and coatings which ultimately acts as a driver of the US Automotive Paints and Coatings market.
- Technological advancements: a boon for US automotive paints and coatings industry
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Technology also plays a great role in the growth of the US Automotive paints and coatings market. There are various technological advancements in the field of automotive paints and coatings that make the task of painting a vehicle easier and quicker.
Some of the technologies that are widely used in the process of painting and coatings of vehicles include UV curable coatings, E-coat, Robotics and automation, Additive Manufacturing, and Electrochromic coatings.
UV curable coatings are very fast drying paints. This technology has changed the process of applying automotive paints and technology. Usually, it takes a lot of time for the paints to dry. But with this technology the paints or coating dries very quickly due to the use of UV light.
E-Coat, or otherwise known as Electrodeposition Coatings is a technological advancement that works by immersing the automotive in an E-coat tub and the paint is applied on the vehicle with the help of electric charge.
The usage of robotic systems in automotive paintings and coatings is another technological advancement in this field. These systems or robots generally have an arm which can move in all the angles horizontally and vertically to apply the paint. This methods happens to be very precise and provides full coverage with minimizing wastage.
Additive Manufacturing is another technology that is primarily used to create designs and patterns on vehicles. This technology is really great for those who want to customize their vehicles. It is also known as 3D printing. General Motors is a very famous example of a company who uses this technology.
Electrochromic Coatings is another technology that allows the paint to change its color when an electric stimulus is used. The color change usually takes place due to oxidation.
These were some of the various technological advancements that are used in automotive paints and coatings industry. These technologies make the work of painting easier and quicker which ultimately helps in the growth of US Automotive paints and coatings market.
- Rising pollution caused by Automotive paints and coatings:
Pollution caused by automotive paints and coatings is a dark side of the US automotive paints and coatings industry. Every year, lots of waste is generated through these paints which put a great negative effect on the atmosphere and our lives.
In fact, about 80-90% of all the pollution that is caused by automotive manufacturing comes from the painting and coatings only.
Furthermore, paints and coatings are known to form at least 55% of the micro-plastics in the water bodies. This high amount of micro-plastics pollute the environment and water bodies making it very difficult for the sea animals to survive and thrive.
Lacquer paint is widely used to paint automobiles but is not at all sustainable. In fact, almost 85% of this paint evaporates in the air causing air pollution.
These paints also tend to have a very high VOC which is an initialism for volatile organic compound which simply means that these paints tend to vaporize very quickly polluting the environment.
Waste disposal, air pollution, water pollution, and high VOC are the various down sides of using traditional automotive paints and coatings. However, these disadvantages only accelerate the US Automotive Paint and Coatings market as now it has become very important to develop such paints and coatings that do not pollute the environment. This need to develop low pollution causing paints and coatings becomes a growth driver for the US Automotive Paints and Coatings industry.
CONCLUSION
The US Automotive Paints and Coatings market is primarily concerned with the painting of the automobiles. There are various reasons responsible for the growth of US Automotive Paints and Coatings market such as high automotive vehicles sales, rise in accidents and collisions, technological advancements and pollution caused by automotive paints and coatings. As per Ken Research, this market is anticipated to grow at a CAGR of ~5% in between 2022-2028.
