Automotive Underbody Coatings Market, by Product (Electrocoat, Primer, Clear coat, Basecoat), Application (Plastic and Metal), End-Users (Commercial OEM, Automotive Refinish, Light Vehicle OEM: Global Opportunity Analysis and Industry Forecast, 2020–2027

The global automotive underbody coatings market will witness significant growth due to the growing demand for commercial and passenger vehicles. The market is anticipated to benefit from the growing customer preference and perception about the automotive underbody coatings market, as they improve vehicle longevity and avoid corrosion.

Automotive Underbody Coatings Market, Analysis:

Underbody structural components are commonly coated to include the first layer of corrosion protection. Antirust coatings help to deter or prolong rusting of steel and iron artifacts or to offer lasting corrosion safety. The need to increase the automobile lifespan by reducing wear & tear and enhancing underbody coatings resistance is increasing the market growth.

Growing automotive production is expected to drive the global automotive underbody coatings market:

Automotive production across the globe is witnessing steady growth due to the increasing demand for passenger cars and commercial vehicles in recent times. Thus the increasing production of automobiles is expected to propel the market for automotive underbody coatings. In addition, the increasingly growing automobile fleet and car aging are projected to benefit the after-sales division of the automotive underbody coatings market.

Price fluctuation of raw materials is anticipated to restrain the growth of the global automotive underbody coatings market:

Raw materials play a much larger part in the coatings market owing to the industry's concentrated nature on the raw material. Even a slight fluctuation in the prices of raw materials has a major effect on the manufacturers' productivity and operations of handling underbody coatings. Fluctuating prices of raw materials, such as resins, pigments, and other active ingredients, are expected to restrict the global automotive underbody coatings market.

Increasing demand for powder coatings will create enormous opportunities for the global automotive underbody coatings market:

Rising environmental concerns and strict regulations are estimated to expand innovation in the global automotive underbody coatings market. Automotive underbody coating manufacturers emphasize more on the production of VOC-reduced coatings. Powder coatings are a solvent-free material layering process that doesn't emit volatile organic compounds. Growing demand for powder coatings because of their low VOC content and environmentally friendly attributes is anticipated to act as an opportunity for the global automotive underbody coatings market.

Automotive Underbody Coatings Market, by Product:

Electrocoat will be most lucrative till 2027

By product, the global automotive underbody coatings market is divided into an electrocoat, primer, the clear coat, and basecoat. Amongst these, an electrocoat is expected to dominate the market shares as it has better resistance to corrosion, greater efficiency, and it is eco-friendly. Moreover, electrocoat formulas have a lower amount of harmful atmospheric contaminants and volatile organic compounds, which may boost the market demands.
Automotive Underbody Coatings Market, by Application:

The metal application will register a significant growth till 2027

By applications, the global automotive underbody coatings market is classified into plastic and metal. Out of these, the metal application is estimated to lead the market shares as they have greater longevity, versatility, usability, and enhanced color accuracy. In addition, increasing usage of metal applications by luxury car manufacturers to achieve a higher gloss finish, scratch resistance, weather ability, and longer shelf life is anticipated to favor market growth.

Automotive Underbody Coatings Market, by End-User:

Light vehicle OEM is estimated to dominate the global automotive underbody coatings market

By end-users, the global automotive underbody coatings market is bifurcated into commercial OEM, automotive refinish, and light vehicle OEM. Amongst these, light vehicle OEM is estimated to dominate the market shares because of changing market attitude towards performance, improved longevity, and safety from environmental sensitivities such as temperature, acid rain, and UV radiation. In addition, increasing investment in the coatings market to diversify the portfolio of goods and growing ability to satisfy through demand is expected to stimulate growth in the market.

Automotive Underbody Coatings Market, by Region:

Asia-Pacific region will have lucrative opportunities for the market investors

The global automotive underbody coatings market is analyzed across North America, Europe, Asia-Pacific, and LAMEA regions. Asia-Pacific holds the largest market segment and is anticipated to lead the market till 2027 due to the rapidly growing automobile industry, especially in countries like China, India, and Australia. North America is anticipated to be the fastest-growing market due to rising investments in the automobile industry and stringent environmental regulations.

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Key Participants in the Global Automotive Underbody Coatings Market:

Merger & acquisition and advanced product development are the frequent strategies followed by the market players

Source: Research Dive Analysis

Some of the key market players of the global automotive underbody coatings market are the 3M Co., Akzo Nobel N.V., Henkel AG & Co., Sika AG, Mallard Creek Polymers Inc., Sherwin-Williams Co., Henry Company LLC, PPG Industries Inc., Covestro AG, Daubert Chemical Company, and others.

Market players tend to extend inorganic development approaches to the local markets. Major players of the global automotive underbody coatings market focus more on merger & acquisition and advanced product growth. Those are the regular approaches that existing players adopt. To emphasize more on the competitor analysis of market players, Porter's five forces model is explained in the report.