Rising Repair and Maintenance Activates & Increase Demand for Vehicles are Expected to Drive the U.S. Refinished Paints Market in the forecast period of 2019 to 2026

DRIVERS

RISING REPAIR AND MAINTENANCE ACTIVATES:

Access Full Report at https://databridgemarketresearch.com/reports/u-s-refinished-paints-market/

The automobile industry is designing more technically innovative vehicles. Significant developments in the vehicle technology for example novel safety features and upgraded performance are changing the nature and necessity of maintenance and repair of motor vehicles.

The participants such as Symantec Corporation (U.S.) are now posing wide-ranging services for maintenance and repair of motor vehicles. The service and maintenance providers deliver different aftersales and services for the vehicles.

The technological developments such as automated manual transmission (AMT) and development of pre-collision technology is adapted by the participants at rapid pace. Now, more people are investing in the reparation and maintenance of their cars. The well-timed mending of the car saves a lot of money which may later be necessary in case of negligence. Moreover, increase in number of car spas and workshops which offers services for maintenance of the automobiles has assisted in driving the refinished paints market.

INCREASE DEMAND FOR VEHICLES:

The need and demand for automobiles is growing at alarming rate across the globe. According to an article published recently by The Statistics Canada, the approximate unit sale of passenger car in North America was 2,076,945.00 units in the year 2017. The auto industry contributes noticeably towards the global economy, and in future, numerous studies are primed to attribute to the sales of the automobiles globally.

Due to rapid change in the lifestyle of people, the automotive sector is increasing at lucrative rate. Nowadays, large number of the populace owns vehicle. Moreover, as the trades are also swelling the need of automobiles such as trucks and other transportation vehicles has also augmented, eventually, affecting the growth of refinished market.

RESTRAINTS

VOLATILITY IN RAW MATERIAL PRICES:

The refinished paints are made by fraternization of numerous raw materials such as pigments, solvents, resins and binder. Solvents are volatile organic compounds (VOC) and are used to dissolve or change the physical properties of other materials. These solvents are generally used to bring down the viscosity of paints to the chosen level, which helps in reducing its cost. The binders are generally characterized as oils, resins and plasticizers which offer paints to avoid corrosion. Additives are added in small proportion to the paint to improve its performance characteristics in numerous ways. The paint industry is raw material extensive and on an average raw materials accounts for 60.0% of the net sales in the industry. Most of the raw materials used in this industry are petroleum based and the prices of crude oil keeps on fluctuating, which also affects the prices of refinished paints.

However, fluctuation in raw material prices and unavailability of the raw materials which are used in the refinished paints act as one of the key challenge for the growth of refinished paints market.

OPPORTUNITY

TECHNOLOGICAL DEVELOPMENT IN REFINISHED PAINTS

The paint has upgraded applicability and is applied with the help of spray paint guns. In addition, another substantial development made in refinished paints market is expansion of “alkyd” enamel paints. The enamel paints has numerous advantages such as high resistance to chemicals and solvents, shorter application times and availability of different colors. Many tools for painting were presented in the refinished paints such as organic paints. This paint is applied with the help of dip coating process. The dip coating process improves the appearance and durability of the paint coated on the vehicle. In addition to this, the waterborne paints are in compliance with VOC regulations as they have less amount of solvent content in them. They are also eco-friendly. The waterborne refinished paints are becoming more popular in various parts of the world owing to their eco-friendly nature. According to an article published by Environmentally Protection Agency of U.S recently, it has been stated that major key player such as Mercedes (Germany) has been using waterborne basecoats since the year 2005.

CHALLENGE

REGULATIONS IMPOSED TO REDUCE SOLVENT EMISSIONS:

The refinished paint uses many technologies for applying coats paints such as solvent borne, waterborne and powder technologies. Solvent borne coating of paint is considered to be less environmentally friendly as they consist of volatile organic compounds which make them deleterious for the environment.

Volatile Organic Compounds (VOCs) are the compounds that can be found in almost everything from paints to deodorant and cleaning product formulations. These compounds are responsible for the generation of ground-level ozone, which has been proved to be a public health concern. Therefore, in order to reduce ground-level ozone, many regulations have been issued by the U.S. The original VOC Solvents Emissions Directive has been amended through article 13 Paints Directive (Directive 2004/42/EC) and Vehicle Refinishing the road vehicles as defined in Directive 70/156/EEC are been implicated on the refinished paints to reduce solvent emissions. Numerous environmental regulations are also imposed for limited emission of volatile organic compounds.

Such regulations imposed by the government obstruct the production of the refinished paints.

Market Trends:

U.S. refinished paints market is segmented into four notable segments which are resin type, technology, vehicle type and layer.

  • On the basis of resin type, the market is segmented into polyurethane resin, epoxy resin, acrylic resin, others
  • On the basis of technology, the market is segmented into solvent-borne, waterborne and powder
  • On the basis of vehicle type, the market is segmented into passenger car, buses, LCV and trucks
  • On the basis of layer, the market is segmented into primer, basecoat, clearcoat and sealer

Major Players: U.S. Refinished Paints Market

Some of the major players operating in this market are The Sherwin-Williams Company, Nippon Paint Holdings Co., Ltd, Speedokote LLC, Kirker Automotive Finishes, General Motors, Kansai Paint Co., Ltd., Axalta, The Lubrizol Corporation, NISSAN MOTOR CO., LTD., and PPG Industries.