Market Trends of Spain Automotive OEM Coatings Industry
This section covers the major market trends shaping the Spain Automotive OEM Coatings Market according to our research experts:
Increasing Demand for Electric and Hybrid Vehicles
- Automotive OEM coatings are used to manufacture automotive vehicles' body parts.
- Spain is one of the strongest Hybrid Electric Vehicle (HEV) markets in Europe in terms of total sales volumes and relative European market shares.
- In Spain, there has been an increase in the production of electric vehicles over the past five years, and it has been on rapid growth since 2020. According to the Spanish Association of Car and Truck Manufacturers (ANFAC), electric vehicle production increased by 73% in 2021 compared to 2017 and reached a total production of 203693 units in 2021. The total number of electric vehicles produced in 2020 was 145461 units.
- Additionally, Hybrid Vehicles have a substantial market share compared to other passenger vehicles, such as petrol and Diesel, Owing to the better fuel efficacy it offers. For Instance, In 2021, The production of plug-in hybrid cars (PHEV) increased in Spain 2021, reaching over 34 thousand units.
- Furthermore, Spain is currently implementing an 800 million euro initiative called Moves III. The initiative's major goal is to have at least a quarter-million electric vehicles on Spanish roads by the end of 2023.
- Hence, the aforementioned facts and factors will likely result in a higher growth rate for automotive OEM coating during the forecast period.
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Water-borne Coating Dominate the Market
- Although solvent-borne technology accounts for most of the market, it is predicted to grow slowly over the forecast period.
- Regulations governing VOC emissions from hazardous air pollutants contained in solvent-borne automotive OEM coatings such as toluene, xylene, ethylbenzene, and methyl ethyl ketone are one of the major factors limiting the expansion of solvent-borne automotive OEM coatings.
- Water-based automotive OEM coatings are becoming increasingly popular due to the continuously changing environmental regulations. Water-based coatings are constantly developing to provide the same performance as solvent-based coatings. For example, mild co-solvent reducers and additives are being developed to improve water-based coatings' performance and drying times.
- The increasing adoption of waterborne automotive coatings is due to their physical and chemical qualities, such as high chemical resistance, low processing temperature, and solvent-free formulations.
- Owing to above mentioned factor, waterborne technology is expected to grow significantly during the forecast period.
