Global Automotive Refinish Market Outlook
Revenue, 2023
$920M
Forecast, 2033
$1.62B
CAGR, 2024 - 2033
5.8%
The Automotive Refinish industry revenue is expected to be around $1029.8 million in 2024 and expected to showcase growth with 5.8% CAGR between 2024 and 2033. The automotive refinishing industry, in Latin America plays a role in the automotive aftermarket sector due to the increasing ownership of vehicles and a rise in road accidents leading to an older vehicle fleet. As of 2023 this market was worth $920 million and is projected to expand at a compound growth rate of 5.8%. Over next ten + years reaching $1.36 Billion by 2030 and $1.8 Billion by 2035. The steady growth of this market highlights its role in vehicle maintenance, appearance enhancement and performance rejuvenation, within the sector.
Automotive refinish coatings belong to the group of coatings known for their durability and ability to withstand factors while enhancing the visual appeal of vehicles.They play a role, in safeguarding vehicle surfaces from corrosion and UV rays and restoring the vehicles appearance after collisions or, during upkeep.
Market Key Insights
- The Automotive Refinish market is projected to grow from $920.0 million in 2023 to $1.62 billion in 2033. This represents a CAGR of 5.8%, reflecting rising demand across Collision Repair, Vehicle Customization and OEM and Aftermarket.
- BASF, PPG Industries, Axalta Coating Systems are among the leading players in this market, shaping its competitive landscape.
- Brazil and Mexico are the top markets within the Automotive Refinish market and are expected to observe the growth CAGR of 3.8% to 5.6% between 2023 and 2030.
- Emerging markets including Peru and Ecuador are expected to observe highest growth with CAGR ranging between 6.7% to 8.0%.
- Transition like Sustainability has greater influence in Brazil and Mexico market's value chain; and is expected to add $48 million of additional value to Automotive Refinish industry revenue by 2030.
- The Automotive Refinish market is set to add $697 million between 2023 and 2033, with manufacturer targeting Basecoat & Clearcoat Product Type projected to gain a larger market share.
- With Increasing vehicle ownership, and Aging vehicle fleet, Automotive Refinish market to expand 76% between 2023 and 2033.
Opportunities in the Automotive Refinish
The increasing popularity of customizing and personalizing vehicles in Latin America provides an opportunity for manufacturers to create refinishing products tailored to this expanding market segment
Growth Opportunities in Brazil and Mexico
In Brazil market landscape, dominated by players such as AkzoNobel and BASF, there is an emphasis on sustainability and cutting edge coating technologies. Friendly products command prices in urban settings due, to strict environmental regulations that push for the use of low VOC refinish coatings
In Mexico market where price matters, Nippon Paint and other smaller local manufacturers provide budget options to cater to the increasing need for vehicle refinish products in rural and semi rural regions.The competition here prioritizes affordability and product accessibility, over premium offerings
Market Dynamics and Supply Chain
01
Driver: Increasing Vehicle Ownership, and Growing Focus on Sustainability
The increasing number of people owning vehicles in Latin Americas' growing economies such, as Brazil and Mexico is also leading to a need, for refinish products In areas where environmental rules are also becoming more stringent, need for eco coatings that're low in volatile organic compounds (low VOC) and water based is also on the rise
The growing presence of cars, on the streets leads to frequent repairs and upkeep needs. This trend increases the need, for refinishing services
02
Restraint: Price Sensitivity
Affordability continues to be an obstacle, in markets like Mexico and certain regions of Argentina when it comes to embracing premium friendly coatings
03
Opportunity: Adoption of UV-Cured Coatings and Expansion of Vehicle Customization
UV cured coatings are becoming more popular due, to their drying times and eco friendly benefits. This trend offers manufacturers a chance to meet the increasing market demand
The increasing popularity of customizing and personalizing vehicles in Latin America presents an opportunity for manufacturers to create products tailored to meet the needs of this expanding market
04
Challenge: Supply Chain Disruptions
Manufacturers are facing difficulties, in keeping up with production due to supply chain problems, with raw material availability
Supply Chain Landscape
1
Coating Manufacturers
BASFAxalta Coating SystemsPPG Industries)
2
Distributors / Wholesalers
Super DistributorsArea Wholesaler
3
Automotive Repair Centers
Repair CentersBranded WorkshopsLocal facilities
4
End Customers
Vehicle OwnersOEMsAftermarket Players
1
Coating Manufacturers
BASFAxalta Coating SystemsPPG Industries)
2
Distributors / Wholesalers
Super DistributorsArea Wholesaler
3
Automotive Repair Centers
Repair CentersBranded WorkshopsLocal facilities
4
End Customers
Vehicle OwnersOEMsAftermarket Players
Use Cases of Automotive Refinish in Collision Repair & Vehicle Customization
Collision Repair : Automotive paint coatings play a role, in collision repair facilities by rejuvenating vehicle surfaces to their pristine state post damage repair work is complete. In particular BASFs Glasurit product line stands out for its top notch quality finish and lasting durability making it a popular option among repair shops, throughout Latin America
Vehicle Customization : In the world of car customization and upgrades auto paint coatings are used to craft finishes that elevate the look of vehicles. Sherwin Williams provides a selection of colors and finishes enabling customization shops to offer vehicle designs to their customers
OEM and Aftermarket : Car makers and aftermarket suppliers depend on coatings to safeguard vehicles during manufacturing and improve their attractiveness prior, to selling them off to customers. AkzoNobels Sikkens label is widely recognized for its top notch coatings that are utilized by leading OEM companies, in the area
Vintage and Luxury Vehicle Restoration : Restoration shops utilize refinishing paints to rejuvenate high end cars. DuPonts Cromax line is known for its finish and color matching capabilities that guarantee refurbished vehicles appear like new
Recent Developments
The automotive refinish market, in Latin America is experiencing growth due to an increase in vehicle ownership and a growing emphasis on sustainability and advancements in technologies have played a role in propelling this growth forward.By introducing innovations such, as the adoption of UV cured coatings and digital color matching systems the market is adapting to meet the needs of equipment manufacturers (OEMs) and the aftermarket sector alike. With industry advancements the manufacturers are poised to capitalize on prospects related to vehicle customization and environmentally friendly solutions
August 2023 : BASF introduced a digital color matching system for its Glasurit brand, to assist repair shops in achieving accurate color matching, for refinishing tasks.
April 2023 : PPG Industries introduced a lineup of water based refinishing coatings aimed at lowering VOC emissions to align with Brazils strict environmental laws.
January 2023 : Axalta Coating Systems expanded its UV-cured product line, offering faster drying times and greater durability, targeting premium repair centers in Mexico
Impact of Industry Transitions on the Automotive Refinish Market
As a core segment of the A&T Peripherals industry,
the Automotive Refinish market develops in line with broader industry shifts.
Over recent years, transitions such as Sustainability and Digitalization have redefined priorities
across the A&T Peripherals sector,
influencing how the Automotive Refinish market evolves in terms of demand, applications and competitive dynamics.
These transitions highlight the structural changes shaping long-term growth opportunities.
01
Sustainability
With several countries in the region implementing laws and regulations recently; manufacturers are feeling the push to create eco friendly products with low Volatile Organic Compounds (VOC) and water based formulations This industry transition is expected to add $48 million in the industry revenue between 2023 and 2030.
02
Digitalization
At the time as this environmental focus escalates; advancements, in technology are revolutionizing the way car paints are produced and applied. New smart coatings and automated painting systems are being introduced to streamline processes and lower expenses across the board