OEM Coatings Market - Global Industry Size, Share, Trends, Opportunity, and Forecast, Segmented By Type (Powder Coatings, Water-borne Coatings, Solvent-borne Coatings, Radiation Curable Coatings), By Application (Transportation, Consumer Products, Heavy Equipment, Machinery), By Region and Competition, 2020-2030F

Market Overview

Global OEM Coatings Market was valued at USD 75.33 Billion in 2024 and is anticipated to project robust growth in the forecast period with a CAGR of 4.80% through 2030. OEM coatings play a crucial role in the manufacturing process of a wide range of equipment and machinery, spanning industries such as automotive, aerospace, and industrial machinery. These coatings are specifically designed to enhance the durability, corrosion resistance, and overall appearance of the products they are applied to.

The growth of the OEM coatings market has been significantly driven by the rapid expansion of the transportation industry, particularly in the automotive sector. According to the World Bank, the global transport market is valued at USD4.2 trillion, representing 6.8% of the world’s GDP. Much like the broader global economy, the transport sector has evolved into a highly complex, interdependent, and technology-driven industry. It remains a major consumer of energy and natural resources, underscoring its critical role in global economic activity. With the increasing demand for vehicles worldwide, coupled with the shift towards electric and hybrid vehicles, the demand for OEM coatings has witnessed a substantial rise.

Also, technological advancements in coating formulations have paved the way for the development of more efficient and environmentally friendly products. These advanced coatings now offer superior performance characteristics, including improved scratch resistance and anti-corrosion properties, making them highly sought after in various industries.

One notable emerging trend in the market is the growing of demand for waterborne are gaining popularity due to and gaining popularity due to their lower volatile powder coatings. These types of coatings are gaining popularity due to their lower volatile organic compound (VOC) emissions compared to traditional solvent-based coatings. As environmental regulations continue to tighten, the demand for these eco-friendly coatings is expected to experience a further surge.

Key Market Drivers

Growth in Automotive Industry

The automotive industry has long been a significant end-user of Original Equipment Manufacturer (OEM) coatings. These coatings play a crucial role in enhancing a vehicle's durability, corrosion resistance, and overall appearance. As the automotive industry continues to experience robust growth, the demand for high-quality OEM coatings has also surged. Preliminary estimates indicate that the automobile industry recorded sales of approximately 4.3 million vehicles in 2024, reflecting a growth of nearly 5% from the 4.11 million units sold in 2023. This expansion was primarily fueled by the strong demand for SUVs, which accounted for 54% of total sales. While some automakers view this growth rate as a positive sign, particularly given the high sales base of previous years, others remain cautious, anticipating continued challenges in the year ahead.

One key factor driving the growth of the automotive OEM coatings market is the evolving consumer preferences. In today's market, consumers are not only looking for vehicles that are functional but also aesthetically appealing. This shift in consumer demand has led to an increased focus on the development and availability of high-quality OEM coatings that can enhance a vehicle's appearance, leading to further growth in the OEM coatings market. The automotive OEM segment experienced robust growth in 2022, both in terms of volume and revenue. Axalta and Nippon reported approximately 18% and 22% growth, respectively, in their mobility coatings sales, driven by increased sales volume and higher price realization. PPG also recorded over 10% growth, supported by higher selling prices across all regions and increased sales volumes in the U.S. and Latin America.

Also, the rising environmental consciousness among consumers has also contributed to the growth of the OEM coatings market. With a growing emphasis on sustainability, there is a rising demand for eco-friendly coatings in the automotive industry. Waterborne and powder coatings, for example, are gaining popularity due to their lower emission of volatile organic compounds (VOCs) compared to traditional solvent-based coatings. This eco-friendly aspect of OEM coatings appeals to environmentally conscious consumers, further driving the growth of the market.

Surge in Technological Advancements

In recent years, technological advancements have played a significant role in driving the growth of the OEM coatings market. These advancements have revolutionized the industry, leading to the development of innovative coating formulations that offer not only improved performance but also enhanced environmental sustainability.

For instance, extensive research and development efforts have resulted in coatings with superior scratch resistance, anti-corrosion properties, and exceptional thermal stability. These properties are particularly crucial for industries like automotive, where coatings not only enhance the vehicle's appearance but also ensure its long-lasting durability even in challenging conditions.

Furthermore, the rise of electric vehicles has introduced new requirements for coatings. According to BloombergNEF, nearly one in five passenger vehicles sold globally in 2023 was an electric vehicle (EV). EVs accounted for 18.6% of total worldwide sales, while Clean Energy Ministerial (CEM) countries performed slightly better, with EVs comprising 19.4% of their total sales. These vehicles demand specialized coatings with excellent electrical insulation properties to meet the unique challenges posed by their advanced technology. Manufacturers have responded to this need by developing cutting-edge coatings specifically tailored to the electric vehicle market.

Sustainability has emerged as another key driver for research and development in the OEM coatings market. With environmental regulations becoming increasingly stringent, there is a growing demand for coatings with significantly lower volatile organic compound (VOC) emissions. Coating manufacturers are actively investing in sustainable solutions to meet these regulatory requirements and address the industry's environmental concerns.

In summary, technological advancements, coupled with the specific needs of industries like automotive and electric vehicles, have fueled the growth of the OEM coatings market. As research and development efforts continue to push the boundaries of innovation, we can expect to see even more advanced coatings that offer superior performance, increased durability, and reduced environmental impact.

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Key Market Challenges

Volatility in Price of Raw Materials

The fluctuating prices of raw materials have a direct and significant impact on the production costs of OEM coatings. These coatings, widely used in various industries including automotive, construction, and electronics, rely on key components such as resins, pigments, and solvents. However, the prices of these components often experience sudden and unpredictable changes due to various factors.

Supply chain disruptions, caused by natural disasters or geopolitical tensions, can disrupt the availability and distribution of raw materials. Additionally, changes in commodity markets, influenced by global economic conditions and trade policies, can also contribute to price fluctuations. These factors collectively create a volatile environment for manufacturers, making it challenging to maintain stable production costs.

The consequences of this volatility extend beyond the manufacturers themselves. The end consumers, who rely on products that utilize OEM coatings, may experience increased prices as a result. For example, in the automotive industry, the fluctuating costs of OEM coatings can directly impact the overall cost of vehicles. This presents a challenge for manufacturers as they strive to balance the need for high-quality coatings that enhance a vehicle's appearance and longevity, with the necessity of keeping deliver market the challenges posed production costs manageable.

In order to mitigate the impact of raw material price fluctuations by unpredictable raw, unpredictable raw material costs requires manufacturers must carefully navigate this complex landscape material costs requires a strategic approach. costs requires a strategic approach and ongoing adaptation This includes building strong relationships with suppliers, exploring alternative sourcing options, and implementing efficient inventory management systems. By doing a strategic approach and ongoing adaptation. As the so strategic approach and ongoing adaptation. As the OEM coatings market, manufacturers can minimize the negative effects of volatile raw material costs and continue to deliver high-quality products to the market.

Navigating the challenges posed by unpredictable raw material costs requires a strategic approach and ongoing adaptation. As the OEM coatings market continues to evolve, it becomes increasingly important for manufacturers to stay agile and proactive in managing their supply chains and production processes. By doing so, they can not only mitigate the risks associated with price fluctuations but also seize opportunities for growth and innovation in the industry.

Key Market Trends

Growing Shift Towards High-Performance Coatings

High-performance coatings offer a wide range of benefits that are highly sought after by various industries, including the automotive, aerospace, and industrial equipment sectors. These coatings are meticulously designed to provide exceptional durability, superior corrosion resistance, and an appealing aesthetic, all of which are indispensable in these industries.

In today's competitive market, consumers have become increasingly discerning, demanding vehicles that not only excel in functionality but also captivate with their visual appeal. This is where high-performance coatings come into play. These coatings not only enhance a vehicle's appearance but also safeguard it against harsh environmental conditions, effectively prolonging its lifespan.

Furthermore, the demand for high-performance coatings is not limited to the automotive industry. In aerospace and industrial equipment sectors, these coatings are equally crucial. They offer unmatched protection against extreme temperatures, corrosive substances, and wear and tear, ensuring the longevity and reliability of critical components.

As industries continue to prioritize exceptional performance, durability, and environmental considerations, the shift towards high-performance coatings is becoming increasingly prominent. This noteworthy trend is poised to shape the future of the OEM coatings market, driving innovation and advancement in coating technologies.

Segmental Insights

Type Insights

The water-borne coatings segment is the fastest-growing category in the global OEM coatings market, driven by their environmental benefits and superior performance. Water-borne coatings are more eco-friendly than traditional solvent-borne coatings, with lower volatile organic compound (VOC) emissions, making them the preferred choice in the market. This shift aligns with global sustainability efforts, fueled by both consumer demand and stricter regulatory pressures. Additionally, water-borne coatings are non-toxic and non-flammable, further enhancing their appeal in environmentally conscious markets.

Despite their green credentials, water-borne coatings do not compromise on performance. They offer excellent durability, corrosion resistance, and aesthetic qualities, often matching or exceeding the properties of solvent-based alternatives. Their low odor and quick drying time also contribute to a more efficient and pleasant application process.

As a result, water-borne coatings have gained popularity across various industries, particularly the automotive sector, where coatings are crucial for enhancing appearance and prolonging vehicle life. They are also widely used in construction, furniture, and electronics, where high performance and sustainability are key drivers.

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Regional Insights

Asia Pacific emerged as the dominant region in the Global OEM Coatings Market in 2024, holding the largest market share in terms of value. The Asia-Pacific region holds a dominant position in the global OEM coatings market, primarily driven by the substantial growth in automobile production within the region. Notably, countries such as China, India, and Japan have emerged as major players in the global automotive manufacturing landscape, generating significant demand for OEM coatings.

Moreover, the presence of a multitude of original equipment manufacturers (OEMs) and the availability of cost-effective labor and raw materials have further solidified the position of Asia-Pacific as a prominent manufacturing hub for the automotive industry. This has facilitated the establishment of robust supply chains and efficient production processes, contributing to the region's overall competitiveness in the OEM coatings market.

Recent Developments

• In January 2025, BASF Coatings has released its latest Color Report for Automotive OEM Coatings, highlighting a shift in global automotive color preferences. Consumers are gradually moving away from traditional choices such as white and silver, creating opportunities for more vibrant hues, warm neutrals, and a broader, more diverse color palette across the industry.
• In May 2024, BASF's Coatings division has announced the expansion of its e-coat manufacturing facility at the Mangalore, India site. This strategic move is driven by increasing demand for e-coat solutions from local automotive OEMs in India, as well as customers across the South Asian and ASEAN markets.
• In February 2024, AkzoNobel has introduced a new 2K solvent-borne primer in conductive and dark grey, designed for automotive OEM exterior plastic parts, which are increasingly posing adhesion challenges for customers.

  Plastics like polypropylene have low polarity, resulting in low surface energy and poor adhesion. This makes coating components such as bumpers, rocker panels, and contrasting features particularly challenging.

• In July 2023, BASF Shanghai Coatings' Minhang and Caojing sites, along with BASF Coatings’ resin plant in Caojing, Shanghai, achieved 100% renewable energy usage across their operations in 2023. This milestone brings BASF’s Coatings division closer to its global sustainability goals, including carbon reduction, material efficiency, and the development of safe and sustainable solutions.
• In May 2021, PPG, a leading global supplier of paints, coatings, and specialty materials, successfully completed the acquisition of Wörwag, a renowned and highly regarded manufacturer of coatings for industrial and automotive applications worldwide. This strategic acquisition further strengthens PPG's position in the market, expanding its portfolio of high-performance coatings and enhancing its ability to meet the evolving needs of customers in various industries.
• In February 2020, PPG Industries, a trusted name in the coatings industry, made an exciting announcement regarding its acquisition of Industria Chimica Reggiana (ICR) SpA. Based in Italy, ICR is a distinguished manufacturer of paints and coatings for the automotive refinish and light industrial coatings sectors. With a wide range of products, including putties, primers, basecoats, and clear coats, all under the acclaimed SPRINT brand, ICR is known for its exceptional quality and innovation. This strategic move by PPG further strengthens its presence in the automotive coatings market and reinforces its commitment to delivering superior solutions to its customers.
• In July 2019, BASF SE, a globally recognized leader in the chemical industry, made significant investments totaling nearly USD 40 million to expand its automotive coatings production in North America. These investments were made to enhance the capacity of BASF's production plants located in Greenville, Ohio, and Tultitlan, Mexico. By expanding its production capabilities, BASF aims to meet the growing demand for its high-quality automotive coatings, further solidifying its position as a preferred supplier to the automotive industry in North America.

Key Market Players

• The Lubrizol Corporation
• BASF SE
• Kao Corporation
• PPG Industries, Inc.
• Hempel A/S
• Jotun A/S
• The Sherwin-Williams Company
• Akzo Nobel N.V.
• Nippon Paint Holdings Co., Ltd
• Allnex GMBH

Report Scope:

In this report, the Global OEM Coatings Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

• OEM Coatings Market, By Type:

o   Powder Coatings

o   Water-borne Coatings

o   Solvent-borne Coatings

o   Radiation Curable Coatings

• OEM Coatings Market, By Application:

o   Transportation

o   Consumer Products

o   Heavy Equipment

o   Machinery

• OEM Coatings Market, By Region:

o   North America

§  United States

§  Canada

§  Mexico

o   Europe

§  France

§  United Kingdom

§  Italy

§  Germany

§  Spain

o   Asia-Pacific

§  China

§  India

§  Japan

§  Australia

§  South Korea

o   South America

§  Brazil

§  Argentina

§  Colombia

o   Middle East & Africa

§  South Africa

§  Saudi Arabia

§  UAE

Competitive Landscape

Company Profiles: Detailed analysis of the major companies present in the Global OEM Coatings Market.

Available Customizations:

Global OEM Coatings Market report with the given market data, TechSci Research offers customizations according to a company's specific needs. The following customization options are available for the report:

Company Information

• Detailed analysis and profiling of additional market players (up to five).

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