South Africa Automotive OEM Coatings Market Size
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Forecast Data Period | 2024 - 2029 |
| Historical Data Period | 2019 - 2022 |
| CAGR | 6.00 % |
| Market Concentration | High |
Major Players
*Disclaimer: Major Players sorted in no particular order |
South Africa Automotive OEM Coatings Market Analysis
The South Africa Automotive OEM Coatings Market is expected to reach USD 64.116 Million by the end of this year and is projected to register a CAGR of over 6% during the forecast period.
The South Africa Automotive OEM coatings market has seen a slight increase in 2021 as there was an increase in the production of vehicles compared to 2020. The country maintained a 12% growth in 2021 compared to last year.
- The driving factors that tend to the market growth include an increase in the production of Auto OEM vehicles in 2021, and according to OICA, there was a total of 4,99,087 units of vehicles produced, including passenger cars, commercial vehicles, busses, and trucks.
- The stringent regulations regarding the VOC limits and other toxic substances in paints and coatings are creating hindrances in the market.
- There has been an increase in the R&D for developing various bio-based OEM coatings in the market in view of stringent VOC regulations set by the governing bodies.
South Africa Automotive OEM Coatings Market Trends
This section covers the major market trends shaping the South Africa Automotive OEM Coatings Market according to our research experts:
Growth in the production of Automotive vehicles
- The South African Automotive industry plays a vital role in increasing the country's overall GDP. The industry contributes around 4.9% to the country's GDP, of which 2.8% is from Automotive manufacturing and 2.1% from retail.
- The country's vehicle production is in 22nd position globally, with a 0.58% vehicle production market share.
- Most of the Automotive OEM coatings are consumed by passenger cars and light commercial vehicles in the country.
- Passenger car production amounts to around 47% of the overall automotive production in the country, while the light commercial vehicle is around 46% of the overall automotive production in 2021.
- The country's development plans concentrate on becoming well-integrated into the global automotive environment by increasing Foreign Direct Investments and Trade. South Africa aims to generate 1% of global car manufacturing, or 1.4 million automobiles annually, by 2035.
- In 2013, the export-focused Motor Industry Development Program was replaced by the Automotive Production Development Program (APDP). The goal of the APDP is to increase the production of automotive parts in the country while keeping incentives for original equipment manufacturers (OEMs) to make passenger cars and light commercial vehicles in the country for export and the local market.
Solvent Borne-Coatings To Dominate The Market
- Automotive OEM coatings are used in various types of vehicles such as passenger cars, light commercial vehicles, heavy commercial vehicles, and other vehicles where coatings are necessary.
- There are various technologies used in Automotive coatings. They are categorized as Water-Borne, Solvent Borne, Electrocoats, and Powdered Coatings. Most OEM manufacturers use coatings that are solvent-based owing to their low cost and advantagious properties
- Recently there has been a major shift in the change of technologies used in various auto OEM coatings.
- Due to various environmental regulations, such as the reduction of the VOC in the Auto OEM paints, coatings manufacturers are shifting towards more renewable sources for the production of OEM coatings.
- There is a rise in demand for the use of water-borne OEM coatings in recent times. The major reason for this shift is the mandate set by various governments for the reduction of VOC content in automotive OEM coatings.
- Most of the coatings used such as Epoxy, Polyurethane, Acrylic, and others are based on fossil fuels. As fossil fuels are decreasing the demand for alternatives has raised.
- In 2021 Ford Motor Company of South Africa has invested around USD 1.05 billion in the country to upgrade its manufacturing operations in Pretoria.
- As part of the Investment, PPG's Coatings Services business will manage the electrocoat lines crucial to the improved paint shop operations at the Ford Silverton Assembly Plant for the brand-new Ranger pickup vehicle.
- In this, PPG is planning to use low-VOC paints in Ford cars. With these new low-temperature chemicals, less energy will be used and fewer VOCs will be released.
- However the development of such new technologies takes time and hence the share of such environmental friendly coatings used in Auto OEM paints is still low.
South Africa Automotive OEM Coatings Industry Overview
The South Africa Automotive OEM coatings market is consolidated in nature. Some of the key players (not in any particular order) in the market include Akzo Nobel N.V.,Axalta Coating Systems, BASF SE, PPG Industries, and Kansai Paint Co.,Ltd
South Africa Automotive OEM Coatings Market Leaders
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Akzo Nobel N.V.
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Axalta Coating Systems
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BASF SE
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Kansai Plascon
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PPG Industries
*Disclaimer: Major Players sorted in no particular order
South Africa Automotive OEM Coatings Market News
- In 2022 BMW and BASF SE have entered into an agreement where BMW will be using the company's certified paints according to the biomass balance approach. The BMW Group has chosen to use BASF Coatings' CathoGuard 800 ReSource e-coat at its plants in South Africa. Through these products, BASF SE is making its products more sustainable and reduces 40% of the CO2 per coating layer. This will reduce the amount of CO2 emitted in the plants by more than 15,000 metric tons by 2030.
- In 2021, The Ford Motor Company of South Africa invested in upgrading its manufacturing operations at the Silverton Assembly Plant. The company's investments include utilizing PPG's Coatings Services division to operate and maintain the electrocoat lines that are instrumental in the company's plans to expand on-site production of the new Ranger pick-up truck.
South Africa Automotive OEM Coatings Market Report - Table of Contents
1. INTRODUCTION
- 1.1 Study Assumptions
- 1.2 Scope of Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMEREY
4. MARKET DNAMICS
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4.1 Drivers
- 4.1.1 Growth in the production of Automotive vehicles
- 4.1.2 Development of New Technologies in the Production of Electric Vehicles
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4.2 Restraints
- 4.2.1 Increasing costs of Raw material used in automotive coatings
- 4.2.2 Change in the trends of Resin Technologies used in Automotive coatings
- 4.2.3 Stringent VOC Regulations Set By The Governing Bodies
- 4.3 Industry Value Chain Analysis
5. MARKET SEGMENTATION
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5.1 Resin
- 5.1.1 Acrylic
- 5.1.2 Alkyd
- 5.1.3 Epoxy
- 5.1.4 Polyurethane
- 5.1.5 Polyester
- 5.1.6 Other
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5.2 Layer
- 5.2.1 E-Coat
- 5.2.2 Pirmer
- 5.2.3 Base Coat
- 5.2.4 Clear Coat
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5.3 Technology
- 5.3.1 Water-Borne
- 5.3.2 Solvent-Borne
- 5.3.3 Electrocoats
- 5.3.4 Powder Coatings
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5.4 Application
- 5.4.1 Passenger Vehicles
- 5.4.2 Commercial Vehicles
- 5.4.3 ACE
6. COMPETITIVE LANDSCAPE
- 6.1 Mergers and Acquisitions, Joint Ventures, Collaborations, and Agreements
- 6.2 Market share**/Ranking Analysis
- 6.3 Stratergies Adopted by Leading players
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6.4 Company Profiles
- 6.4.1 Akzo Nobel N.V.
- 6.4.2 Autoboys Holdings
- 6.4.3 Axalta Coating Systems
- 6.4.4 BASF SE
- 6.4.5 Beckers Group
- 6.4.6 Kansai Plascon
- 6.4.7 Mankiewicz Gebr. & Co
- 6.4.8 PaintMart
- 6.4.9 PPG Industries
- 6.4.10 The Shewrwin-Williams Company
- *List Not Exhaustive
7. MARKET OPPORTUITIES AND FUTURE TRENDS
- 7.1 Emerging Technologies for the Lower VOC Coatings used in various automotive vehicles.
South Africa Automotive OEM Coatings Industry Segmentation
Automotive OEM coatings are applied to the surface of vehicles for surface protection and to improve the vehicle's aesthetic look. The Market report has been segmented by Resin (Acrylic, Alkyd, Epoxy, Polyurethane, Polyester, Others), Layer (E-Coat, Primer, Base Coat, and Clear Coat), Technology (Water-Borne, Solvent Borne, Electrocoats and Powdered Coatings) and Application (Passenger Vehicles, Commercial Vehicles, ACE). The report offers market size and forecasts for South Africa Automotive OEM Coatings in revenue (USD million) for all the above segments.
| Resin | Acrylic |
| Alkyd | |
| Epoxy | |
| Polyurethane | |
| Polyester | |
| Other | |
| Layer | E-Coat |
| Pirmer | |
| Base Coat | |
| Clear Coat | |
| Technology | Water-Borne |
| Solvent-Borne | |
| Electrocoats | |
| Powder Coatings | |
| Application | Passenger Vehicles |
| Commercial Vehicles | |
| ACE |
South Africa Automotive OEM Coatings Market Research FAQs
What is the current South Africa Automotive OEM Coatings Market size?
The South Africa Automotive OEM Coatings Market is projected to register a CAGR of greater than 6% during the forecast period (2024-2029)
Who are the key players in South Africa Automotive OEM Coatings Market?
Akzo Nobel N.V., Axalta Coating Systems, BASF SE, Kansai Plascon and PPG Industries are the major companies operating in the South Africa Automotive OEM Coatings Market.
What years does this South Africa Automotive OEM Coatings Market cover?
The report covers the South Africa Automotive OEM Coatings Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the South Africa Automotive OEM Coatings Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
South Africa Automotive OEM Coatings Industry Report
Statistics for the 2024 South Africa Automotive OEM Coatings market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. South Africa Automotive OEM Coatings analysis includes a market forecast outlook to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
