The new APAC Automotive OEM Coatings Market report says that the outlook for automotive coating manufacturers remain bright, chalking it up to strong government backing and favourable macroeconomic indicators.
Although the surge of smaller cars is expected to considerably affect the volume of coating used per vehicle, growing car production volumes will boost overall coating consumption.
“Original equipment manufacturers are continuously looking to reduce the number of steps involved in automotive manufacturing. As a result, the coatings industry is seeing innovations and R&D activities to optimize processes, materials and cost,” said Frost & Sullivan Chemicals, Materials and Food Senior Research Analyst Soundarya Shankar.
“Developing ultraviolet and infrared cured coatings, wet-on-wet-on-wet coatings, primerless coatings, and quick drying coatings will provide a competitive edge for manufacturers in the market.”
On the flip side, greater efficiency in coating application lowers the volume of paint used. For instance, state-of-the-art spray guns with high volume low pressure (HVLP) and low pressure low volume (LPLV) features are designed for higher transfer efficiency, thus limiting sale volumes. Recycling of paints and the reduction in old and leftover paints will further contribute to the decline in the total volume of paint consumed for automotive coating.
In addition, the price-sensitive nature of customers in this region curbs the adoption of high-performance products. SEA countries, especially, remain major low-cost manufacturing centers.
“Offering products with a superior price performance index will remain a key competitive aspect,” stated Shankar. “Establishing partnerships and joint ventures with local companies will also help global coating manufacturers address consumer requirements and facilitate their further expansion into the Asia-Pacific market.”