Market Trends of United Kingdom Automotive OEM Coatings Industry
The Epoxy Resins Segment to Register Significant Market Growth During the Forecast Period
- Epoxy resins are one of the most commonly used resins in paints and coatings formulations. Epoxy resin and polyurethane hardener are two major components of epoxy coating formulations. When mixed, the resin and hardener engage in a chemical reaction that creates cross-linking of the elements as it cures.
- Epoxy coatings can be one-component or two-component. Single-component epoxy paints are commonly oil-based. Two-component epoxy coatings are mixed in situ in the proportions specified by their manufacturers and are well-suited for industrial coating applications.
- Epoxy resins offer chemical properties, including adhesion to metals, mechanical strength, and heat resistance. These properties facilitate the protection of car bodywork from corrosion and other damages and, in some instances, double the lifetime of a car.
- Epoxy resin is used as the first of five organic layers coating the metallic body of a car. Usually, approximately 20μm thick, it has been estimated that two to eight kg of epoxy is needed per car to act as a primer for further layers to be placed on top of the epoxy coating.
- In Europe, according to the International Energy Agency (IEA), electric car sales increased by nearly 70% in 2021 to 2.3 million, about half of which were plug-in hybrids. The surge in EV sales in Europe last year was partially driven by new CO2 emissions standards. Moreover, purchase subsidies for EVs were increased and expanded in most major European markets.
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The Passenger Cars Application Segment to Dominate the Market
- Passenger cars are vehicles designed for the carriage of passengers and comprising no more than eight seats in addition to the driver's seat. The passenger car can carry a maximum mass of 3.5 tons.
- The automotive coatings are used for coating various interiors and exteriors of cars, such as center clusters, instrument panels, armrests, meter clusters, speaker grills, armrest bezels, steering wheels, door trim, and handles, and to coat the surface of automobiles for both protection of the vehicle's surface as well as to enhance its aesthetic appearance.
- In 2021, the United Kingdom produced a total of 859,575 units of passenger vehicles at a 7% production decline rate as compared to 920,928 units produced in 2020. The fallout due to Brexit and the tensions between the United States and China have also significantly affected vehicle production in the country.
- However, the electric vehicle production volumes in the United Kingdom have increased with the availability of new EV models, ongoing government support, and the continued expansion of the public charging infrastructure. The country's electric vehicles industry has registered growth for eight consecutive years.
- The United Kingdom is planning to phase out gasoline and diesel vehicles to promote the transition to more eco-friendly transportation by 2030. The country has also planned an investment of over USD 2.1 billion in infrastructure and grants to expand access to zero-emission vehicles and support a green economic recovery, thereby increasing the demand for passenger electric vehicles market in the country.
