Demand for automotive wheel coatings continues to drop, as the auto industry witnesses a slowdown in production. The global automotive wheel coating market is likely to witness a meagre CAGR of 2.8% between 2016 and 2026.
The ongoing economic stagnancy in several parts of the globe has hit the sales of various automotive components including wheel coatings. In addition, factors such as the recent instability in the Chinese wheel coating industry and the high price of raw materials are other major worries for the market players.
The global automotive wheel coatings market is currently valued at an around US$ 524.5 Million and the figure is unlikely to witness any substantial uptick in the medium term. Meanwhile, increasing preference for all weather automotive wheel coating from both individual customers and automakers is translating into higher production of the particular segment of late.
Opportunities in All-Weather Coating
Demand for all weather coating is quite strong, especially in industries such as construction and the automotive. Moreover, all weather coating is a popular item in regions where the air contains high salinity as well as in regions with harsh and snowy winters. Such extreme climate conditions are usually unforgiving on most metal surfaces, which is why it becomes more important to have all weather coatings.
It is projected that over 73 thousand tonnes of top/clear coating products will be sold worldwide by the end 2026. In terms of value, global demand for base coat and primer products is likely to suffer a minuscule decline in the near future. Owing to its efficiency and durability, acrylic enamel will remain as the most preferred coating chemical in 2017 and beyond. As a coating substrate, sales of steel will increase at a CAGR of 3.2% while aluminum will remain as the top selling coating substrate over 2026.