The automotive paints and coatings market stands as a fundamental pillar within the global automotive industry. It plays a crucial role in protecting vehicles from environmental damage while enhancing their aesthetic appeal. With increasing vehicle production and a growing focus on eco-friendly technologies, this industry is set to witness steady growth over the next decade.
According to market projections, the global automotive paints and coatings market is anticipated to grow from USD 14.89 billion in 2024 to USD 18.7 billion by 2034, representing a compound annual growth rate (CAGR) of 2.30%.
Understanding the Market Landscape
Automotive paints and coatings encompass a variety of product types, including primers, basecoats, clearcoats, and electrocoats. These are manufactured using a wide array of materials such as polyurethane, epoxy, and acrylic. In addition, multiple technologies are employed in the application process—most notably waterborne, solvent-borne, powder-based, and UV-cured coatings.
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These coatings serve various types of vehicles, ranging from passenger cars and light commercial vehicles to heavy commercial vehicles. The rising adoption of electric vehicles is expected to significantly fuel market demand in the coming years.
Key Market Highlights
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Asia Pacific emerged as the revenue leader in 2025.
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North America is set to exhibit impressive growth during the forecast period.
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Waterborne technology held the largest market share in 2025.
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Solvent-borne coatings are projected to expand rapidly due to increased usage in electric vehicles.
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Passenger cars remained the dominant vehicle segment.
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Light commercial vehicles (LCVs) are expected to register notable growth in the years ahead.
Emerging Trends Shaping the Industry in 2025
Rise in Automotive Workshops
The increasing number of automotive repair and customization workshops worldwide has boosted demand for specialized coatings. This trend supports the ongoing growth of both aftermarket and OEM segments.
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Popularity of Functional Coatings
Functional coatings have gained traction due to their ability to provide protection against corrosion, UV exposure, and mechanical wear. Their multifunctional benefits are increasingly appealing to car owners and manufacturers alike.
Shift Toward Eco-Friendly Paints
Environmental sustainability has become a key driver. Manufacturers are investing in research and development to create water-based, low-VOC coatings that meet regulatory standards while maintaining performance.
Technology Insights
Why Waterborne Technology is Leading the Way
In 2025, waterborne coatings dominated the market due to their eco-friendly properties, safety benefits, and cost-effectiveness. These coatings emit fewer volatile organic compounds (VOCs) and are easier to handle, making them a preferred choice among manufacturers aiming to comply with stringent environmental norms.
Solvent-Borne Coatings on the Rise
Despite growing environmental concerns, solvent-borne coatings are gaining ground—especially in the electric vehicle (EV) sector. These coatings offer faster drying times, superior durability, and robust resistance to harsh weather conditions. Their adoption is expected to grow significantly in the coming years.
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Vehicle Type Analysis
Dominance of Passenger Cars
Passenger cars remained the largest end-user segment in 2025. The rise in demand for luxury and premium vehicles, particularly in developed economies such as the U.S., Germany, France, and Italy, has been a key growth factor. Consumers’ increasing attention to vehicle aesthetics and maintenance further fuels the demand for high-quality paints and coatings.
Growth in Light Commercial Vehicles
Light commercial vehicles are anticipated to record a strong CAGR throughout the forecast period. Growing sales in emerging markets like India, Vietnam, and Thailand, along with the need for frequent repainting due to road accidents, are contributing to this trend.
Regional Insights
Why Asia Pacific Leads the Market
Asia Pacific remains the powerhouse of the automotive paints and coatings industry. Countries such as China, India, Japan, and South Korea are experiencing high production volumes of commercial and passenger vehicles. The presence of established paint brands, including Berger Paints, Nippon Paint, and PPG Paints, adds to the region’s dominance.
Public sector investments and the rising number of automotive service centers further support regional market expansion. In March 2025, PPG announced the opening of a new automotive coatings facility in Thailand, reinforcing Asia Pacific’s strategic importance.
North America’s Promising Growth Outlook
North America is emerging as a significant growth region, largely due to the increasing focus on electric vehicles. The U.S. and Canada are witnessing substantial investments from companies like Tesla, Rivian, and Ford to expand their manufacturing capabilities.
Additionally, growing interest in car modification and maintenance services has pushed demand for innovative coatings. Prominent industry players like Axalta Group and Sherwin-Williams are key contributors to the region’s progress.
Recent Industry Developments
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March 2025: Covestro launched a new automotive coatings lab in Nuremberg aimed at developing next-gen paint technologies.
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February 2025: AkzoNobel introduced a new range of waterborne coatings specifically designed for repair applications.
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April 2024: Nippon Paint launched ‘Mastercraft’, a new brand targeting automotive customers with a wide selection of paint products.
Final Thoughts
The automotive paints and coatings market is set to progress steadily, driven by rising vehicle production, increasing EV adoption, and a strong push toward eco-friendly technologies. With robust developments across Asia Pacific and emerging trends in functional and sustainable coatings, the industry is well-positioned for a dynamic decade ahead.
Source : https://www.towardsautomotive.com/insights/automotive-paint-and-coatings-market-sizing