2016 Trends Pushes Automotive Refinish Coatings Close to 11.3 billion by 2020

Automotive vehicles require frequent repair to enhance façade. They need to recover the damages caused by various external conditions including stones, accidents and extreme temperature among other factors. Automotive refinish coatings are applied by repair centers and body shops to refinish the vehicles. Refinish coating industry has observed a rapid growth during the last five to six years worldwide. This has primarily due to the rise in number of vehicle accidents paired with proclivity of car owners to repair their possession. In addition, increasing government mandates on the application of VOC level coating is likely to restrict the growth of solvent – borne segment. Thus, the sector is more inclined towards the water – borne category, as they contain low volatile organic compound. 

Industry experts at Allied Market Research indicate that there are many trends to lookout for in 2016. They outline that advanced platform for R & D would enable manufacturers to make major breakthroughs, that would help in the delivery of functionality, color and durability in refinish coating for vehicles from trucks, heavy machinery, cars to consumer electronics. In a recent incident PPG invested about $7.8 M at Coatings Innovation Center located in Allison Park, PA. The company has its headquarters in Pittsburgh.  

Secondly, companies are also busy upgrading their automotive training centers in different locations. Facility upgradations include complete makeover, along with new color mixing rooms, expanded classrooms and latest digital media systems among others. Distributors and automobile refinish technicians attending classes at the famous Valspar’s Automotive Training Center located in Grand Prairie, Texas would benefit from an advanced learning environment, thanks to the company’s decision to renovate. Commenting on the recent development Pete William, Sales Director for North America region said "Our goal is to provide the best training in the industry, and this ultra-modern facility gives us the learning environment to deliver that along with our expert staff." He added "Students will come away with a comprehensive education on the Valspar paint process, giving them the skills necessary to enhance the quality and productivity of their refinish operations.

Thirdly, many countries are seen launching mega project in new markets to create investment opportunities in many sector including auto refinish coating. Intention of Egyptian companies to invest in countries such as India has recently made headlines. Kapci Coatings, a reputed Egyptian manufacturers producing refinish products has planned to spend about $50 million in 5 plants in India. Egyptian Ambassador to India, Hatem Tageldin revealed that Kapci India has already accepted the proposed market share and hence plans on expanding its operations in India. Kapci has started the construction of its first plant in Karnataka.
 

Business strategies such as acquisitions and mergers and collaboration among other factors have helped in growth of the industry. In a mega deal AkzoNobel has agreed to acquire the industrial coating business of BASF for about EUR 475 million. This would enable Akzo Nobel to strengthen its status in the sector. 

A report published by Allied Market Research (AMR) titled “World Automotive Refinish Coatings Market - Opportunities and Forecast, 2014 – 2021” outlines the market dynamics. As per the study the industry registers a CAGR of 6.3 percent by 2020. Research analysts at AMR further reveal that the sector would garner about 11.3 billion between 2015 – 2020. The report offers relevant statistics on the market by product type, technology, resin and geography. Investors, manufacturers and marketing professionals planning to expanding their reach would find the market research report worth their time and investment. To conclude, the report covers all the important aspects of the industry to offer actionable as well as relevant data. 

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