Market Trends of United States Automotive OEM Coatings Industry
This section covers the major market trends shaping the US Automotive OEM Coatings Market according to our research experts:
Public & Private Investments to Support Automotive Industry
- The automobile sector is rapidly changing, and supply chains across the United States have a significant impact. While microchip shortages are gradually improving, they are still expected to continue until at least the second quarter of 2022. However, the industry is expected to recover by 2023.
- Automotive production in the United States declined by 16% in 2021 compared to 2020. To strengthen the industry, the government is taking several initiatives to support the recovery. Several investments have been made to support the automotive OEM sector in the United States.
- With a sustained focus on electric vehicles, a significant shift toward EV production is increasing. With a focus on automobile standards, the government is investing billions in an "all-electric" future.
- In order to replace fossil fuels with electricity by 2030, the government plans to provide USD 7.5 billion for a network of electric charging stations to be built nationwide.
- The American Automakers Automotive Policy Council aims to boost semiconductor production in the United States through the America COMPETES Act. A total investment of USD 52 billion is planned under the America COMPETES Act to address the semiconductor shortage. Out of which USD 2 billion are specified for semiconductor production specifically for the automotive industry.
- Therefore owing to the above-mentioned investments, the automotive OEM market in the United States is likely to grow in the coming years.
Understand The Key Trends Shaping This Market
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Water-borne Technology is Expected to Grow At The High Rate
- 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.
- Water-based solutions, such as 2K waterborne, light conductive primer, are commonly used to coat OEM body parts. One of the most notable developments is a thin-film primer based on waterborne technology that is widely employed in the automotive OEM business industry.
- In addition, acrylic PUD water-borne coats are surpassing acrylic MF and polyester MF solvent-borne coatings in the OEM market. They are growing at the highest pace among base coatings.
- Owing to the above-mentioned factors, waterborne technology is expected to grow significantly during the forecast period.
