LONDON--(EON: Enhanced Online News)--The market for automotive paints and coatings is a large one, with a value of USD 26.3 billion in 2016. While the industry faces some challenges in terms of environmental regulations and other factors, Infiniti Research expects the automotive paints and coatings market to reach USD 33.49 billion by 2021, growing at a CAGR of 4.95%. Although restrictions on emissions and other pollutants will slow the growth of some segments of the market, they are also creating opportunities for other segments. Demand for solvent-based products is falling, but the water-based segment is growing at a CAGR of 5.63%, higher than that of the overall market.
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The necessity of reducing VOCs
As concerns over the environment grow, automobile manufacturers are striving to reduce energy consumption and carbon emissions. The European Renewable Energy Directive, for example, has placed a cap on the use of volatile organic compounds (VOCs) in coatings, as have other regulatory organizations around the world. This is driving the demand for water-based coatings and other products that are better for the environment, and slowing the growth of solvent-based products.
Manufacturers are finding other ways to adapt to the need for cleaner and more efficient processes as well. They are changing their coating processes, reducing the use of primers and increasing their focus on base coats. They are also using more plastic parts in their vehicles, giving rise to a need for coatings that adhere equally well to both plastic and metal. With automobile production rising both in Europe and North America, coating manufacturers will need to adapt to these new demands in order to remain competitive.
Finding the perfect location
While greater attention to the environment has become a worldwide trend, laws and regulations are constantly in flux, and differ from country to country, sometimes even within a country. The US, for example, has a nation-wide limit on the acceptable volume of pollutants created during production processes, but some states or cities create their own, stricter requirements — California’s limit is a little over half that of the rest of the country. And with all the uncertainty and upheaval from the country’s recent election, it can be difficult to predict how these laws might change in the future.
This is one area where market intelligence is invaluable. Entering a new market is full of risks, especially if it is in an unfamiliar country. Laws and regulations can be difficult to navigate, and detailed research can identify particulars such as regional rules and the optimal location to open a production facility. It can also pinpoint incentive programs and how best to take advantage of them, as well as outline potential competition and partners.
Infiniti Research offers expert market intelligence covering 100 countries in over 30 languages, providing actionable insights to help companies stay ahead of the curve and identify future markets before their competitors. Infiniti’s specialized research analysts have completed thousands of successful projects for Fortune 500 companies, including a recent project from a leading Asian chemical company, whose key products are chemicals and materials science. They approached Infiniti to develop an effective market entry strategy for its solvent-soluble fluoropolymer in architectural markets across Europe and the Middle East.
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About Infiniti Research
Established in 2003, Infiniti Research is a leading market intelligence company providing smart solutions to address your business challenges. Infiniti Research studies markets in more than 100 countries to help analyze competitive activity, see beyond market disruptions, and develop intelligent business strategies.
With 13 years of experience and offices across three continents, Infiniti Research has been instrumental in providing a complete range of competitive intelligence, strategy, and research services for over 550 companies across the globe.