Looking at the automotive OEM paint market from Akzo Nobel and PPG

Intelligent coating systems for new technologies such as electric and automatic driving vehicles are promoting the development of automated OEM market. Recently, according to a report released by Allied market research, the automotive OEM paint market is expected to reach US $9.379 billion by 2022, with a CAGR growth rate of 5.6% from 2016 to 2022. From 2016 to 2022, the Asia Pacific region is expected to remain at the top with a compound annual growth rate of 4.7%, the report said. From 2016 to 2022, India is expected to grow at a compound annual growth rate of 6.7%. Akzo Nobel said that in 2018, we saw different growth rates around the world. Peter Tomlinson, head of AkzoNobel's automotive and specialty coatings business, said that although the development of regions such as Asia and Europe still needs to be accelerated, the main reason is the decline of automobile demand and production in these regions.

It is true that the development of the market is related to the actual car production in each region, because the production process of each car needs to use coating finally. Steven R. markovich, executive vice president and President of transportation coatings and greater China, said that the main driving force of the global automotive OEM coating market is the vehicle production at the end of 2018, which is about 1% lower than the level in 2017. Overall, the result was lower than expected, especially in China, where construction is expected to grow by more than 1%, but eventually by nearly 4%. Volatility is also a feature of 2018, with new wltp disrupting normal production cycles in Europe and weather affecting production at some North American plants. Rebecca Liebert, senior vice president of OEM coatings for PPG automobiles, said that overall, the market performance was flat due to the overall decline in automobile production, but there were also some strong regions such as South America and Russia.

For example, Asia, South America, Eastern Europe and Russia provide excellent growth opportunities, and coating suppliers understand and grasp the needs of customers in each region. North America, Europe and Asia all represent the healthy market of automotive OEM coatings. Mr Tomlinson said the North American market now has a better growth outlook, although once there is regional demand in Europe and Asia, it will eventually return to a positive growth cycle. In addition, different dynamics can be seen in each region, for example, from countries with recently increased production costs (such as Japan, South Korea, etc.) to countries with lower costs in Asia (such as Southeast Asia). In order to constantly look for opportunities to promote the development of automotive coatings industry, Akzo Nobel focuses on providing customers with additional tools and high-quality technical services to help customers develop their business. Markowich said that there is still a lot of room for growth in the Asia Pacific region, especially in China and India in the next few years. From 2018 to 2023, it is expected to generate nearly 70% construction growth.

In terms of the number of cars per 1000 people, China and India are currently below the level of maturity. Despite the recent slowdown, China's real GDP growth rate is more than twice the global average, which will continue to drive China's growing middle class. India's real GDP growth is expected to be even slightly higher than China's. This means that with the improvement of income level, especially in the second and third tier cities, the car ownership rate is expected to rise, so as to support the automobile industry in the next few years. Color style and trend Akzo Nobel is very active in the external and internal plastic parts of the car. Now, says Tomlinson, people are paying more attention to details and the overall atmosphere that can be created with specific materials and finishes. There is a trend for coatings in the automotive interior market to use more subtle and elegant combination of colors and materials to produce unexpected hidden effects.