Automotive Refinish Market

CW: How did the market for auto refinish coatings perform in 2025? 2024?

AkzoNobel: In early Q2 2024, we saw the market starting to decline in conjunction with the collision repair industry sales decline, and we believe there are a few reasons for this:

• Our industry cycled through the large backlogs of work coming out of COVID through 2023, and things started to regulate in 2024.

• ADAS (Advanced Driver Assistance Systems) is absolutely working and doing exactly what it needs to do. All the new cars coming out have ADAS components to them, such as sensors and emergency braking systems, and that causes a reduction in collisions. So – ADAS works. 

• Additionally, because of the complexity and expense of these new cars, they’re more apt to be totaled by insurance companies than before because it is much more expensive to repair them now, which drove claim frequency down (repairable claims under $2,000). Total losses are now in the
high 20s%. 

• Insurance premiums have risen considerably nationwide; also, claim severity continues to rise.

• All of these things combined to make the perfect storm for our industry. What’s more, the general consumer is hesitant to turn in that small nick or scratch on their car because of fear that their insurance premium will rise, further reducing work for collision repair shops. Alternately, some consumers are opting to cash out the insurance check to help pay the bills rather than repair their vehicles.

BASF: The automotive refinish coatings market faced significant headwinds in 2025, yet once again demonstrated its resilience amid a volatile economic environment. Economic uncertainty, high inflation, and weak consumer sentiment led to notable regional declines in repair volumes. According to industry reports, insurance claims fell by 13.8% in the US, repair orders were down by 6.7% in China, and body shop revenues were down by 9.6% in France in Q1 — markets that together represent around 40% of the global refinish market. 

While the overall market is expected to be down for 2025, we are seeing early signs of recovery. Our digital cloud solutions show rising body shop activity in Q2 and Q3, and we expect a broader rebound in 2026. 

At the same time, the market saw a strong push toward more eco-friendly and efficient technologies. Waterborne systems in particular gained further traction, and solutions including our Glasurit 100 Line and R-M AGILIS paint systems helped us lead in sustainability while enhancing body shop efficiency. These innovations are also a response to increasingly strict environmental regulations, reflecting how sustainability and efficiency are shaping customer expectations and market dynamics worldwide.

PPG: We continued to see the long-term shifts that have been underway for several years. Advanced driver-assistance systems are reducing accident frequency, and more customers are choosing to self-pay for minor repairs rather than filing insurance claims. So, while overall repairable claim volume remains lower than pre-pandemic levels, demand for high-quality coatings and efficient repair solutions remains strong. Shops prioritize systems that help them do more with less, reduce waste, cut cycle times and improve profitability.

CW: What challenges does the market face moving forward in the years to come? 

AkzoNobel: I believe that some of the primary challenges facing our market are artificial intelligence (AI), vehicle technology/complexity, and we continue to see a skilled technician shortage. 

These challenges are creating opportunities for those that adapt to change and are evolving quickly. 

BASF: Looking ahead, the market will continue to face challenges related to sustainability requirements, rising energy costs, and the ongoing shortage of skilled labor in body shops. At the same time, customer expectations are evolving — there is a clear trend toward faster, more efficient and environmentally responsible repair solutions. 

Another key aspect is digitalization, which is transforming how body shops operate and how they interact with their partners. For the industry, this means balancing cost pressures with innovation, operational efficiency and digital transformation, while supporting customers through the ongoing changes
in mobility. 

To help address the skills gap, we are also actively involved in initiatives such as WorldSkills, which promote vocational education and training on a global scale. These initiatives help to strengthen the community’s mindset to collaborate for a more sustainable future and raise the bar for developing young talent in the industry.

PPG: Lower accident frequency is here to stay, driven in part by the increased effectiveness of Advanced Driver Assistance Systems (ADAS), among other contributing factors. Shops can’t count on volume rebounds to recover margin. Instead, they need to run leaner, smarter operations, where every job counts. Shops that invest early in automation, digital tools and high-efficiency paint systems will be in the strongest position moving forward.

 CW: What are the key issues facing your auto refinish customers, and how is your company addressing those needs? 

AkzoNobel: The rising cost of materials, like some of the specialty toners in OEM paint formulas, is definitely an issue; plus insurance companies cap the amount that they will pay for paint and materials. 

What is AkzoNobel doing to address this? 

• For one, ongoing investments in digital color, digital tools, product innovation, technician training, productivity, and continuous process improvement through our Acoat Selected Business services program to improve cycle times. 

• We also bring our most forward-thinking customers together bi-annually for regional and national performance group meetings to ensure they are up-to-date on the latest issues impacting our market; that they have access to the most current tools and technology available to them; and providing access to new products and strategies to improve cycle time and efficiencies – all of which are aimed at helping our customers improve their profitability and become the repairer of choice within their respective markets. 

• We are the market leader in continuing to deliver collision industry education in local and national markets.

BASF: Body shops are under increasing pressure to improve efficiency and profitability while reducing energy consumption and their environmental footprint. At the same time, they need to maintain a consistently high quality of work, even with limited resources and time. 

To support them, we provide innovative product systems designed to save energy and time, along with a comprehensive suite of digital business solutions through our Refinity platform. Refinity enables body shops worldwide to embrace sustainable digitalization, giving them access to the latest digital color tools and the most advanced digital color experience, as well as integrated business and training solutions. Among these is Body Shop Boost, our dedicated cloud-based program that helps body shops evaluate, plan and optimize their operations holistically – improving processes, transparency, and
ultimately profitability. 

Refinity provides data-driven insights and connected services that make daily processes more transparent and efficient. In addition, we work closely with our distribution and body shop partners to deliver tailored services and technical expertise that help them run their operations more efficiently and sustainably.

PPG: Body shops face increasing pressure to deliver consistent results with fewer technicians and tighter margins. At PPG, we offer more than paint – we’re constantly innovating both the technology inside the can and outside of the can. We deliver practical innovations that help body shops optimize performance. For example:

• PPG MOONWALK^® automated mixing reduces manual errors, minimizes waste and frees up technicians for repair work.

• PPG LINQ™ digital platform gives body shops visibility into operations and completely transforms the refinish customer experience. It connects digital hardware, software and services to modernize the entire refinish process for faster, more predictable outcomes.

CW: What are the newest products that your company’s refinish group has launched, and what do they deliver to the marketplace?

AkzoNobel:

• Product:

o New this year is our Sikkens Autowave^® Optimabasecoat, which requires no flash off between coats, saving up to 50% process time; high pigmentation for full coverage in 1.5 coats, reducing material consumption by up to 15%; and a more sustainable repair by reducing energy consumption and CO₂ emissions up to 60%.

o We also recently launched Sikkens Autoclear^® 2.0 for use over all Sikkens waterborne basecoats, providing exceptional gloss and superior hardness out of bake. One of the most innovative clears on the market. 

o Combining the products above into a system with our existing Sikkens UV Primer and Sikkens ColorBuild Plus undercoats can dramatically improve throughput, leading to greater shop efficiency and profitability. 

• Digital:

o Carbeat 2.0

o Refinish Plus

o MIXIT Invoicing

o Digital Color

o Digital Apps 

BASF: Recently, we introduced several next-generation filler and clearcoat solutions that significantly reduce process times and energy consumption while maintaining the high-quality finish our customers expect. These new systems offer shorter flash-off times, simplified mixing ratios and strong hiding power, allowing body shops to speed up their workflows without compromising on quality. 

In addition, we have launched new mixing clears based on the Biomass Balance (BMB) approach, which replace a share of fossil resources with renewable feedstock at the start of the production process. 

With the introduction of these mixing clears, we now offer a full-layer BMB solution — enabling our customers to reduce their carbon footprint across the entire coating system without changing their existing processes or product performance. 

We see these launches as an important step towards more sustainable and profitable body shop operations, and the positive feedback from our customers confirms that we are on the right track.

PPG: We’ve recently introduced two technologies tailored to today’s challenges:

• PPG VELOCITY^® Refinish System is a new cost-effective solventborne system designed for high-production US collision centers. It balances speed, quality and affordability. The system includes 70+ toners, five advanced clearcoats (including PPG ONEVISIT™ technology for faster booth cycles), and gray-shaded undercoats.

• PPG MAGICMIX™ Software is part of the PPG LINQ™ ecosystem and works alongside our MAGICBOX™ tool and MagicSensor. It uses real-time environmental data from the spray booth (think temperature and humidity) to recommend the ideal hardener and reducer combinations. This helps technicians avoid trial and error, reduce defects and ensure a long-lasting, quality finish.

Both technologies are built to help shops make faster, more informed decisions with less environmental impact and material waste.

CW: Are there any new developments worth noting (expansion, consolidation, new facility, acquisition)? 

AkzoNobel: While other suppliers in the market are pulling back on customer and industry training, education, and enhancement, we’re doubling down on it. We have a dedicated group of business services consultants through our Acoat Selected program to whom our customers have access. Our focus is to provide continuous improvement initiatives to our partners, and help them work on their business, not in it. We’re looking to expand our already robust industry-related education programs like performance group meetings, in-market classes, collision industry expert events, and our online training. 

These are part of what we do best here at AkzoNobel, and we are committed to not just maintaining what we currently do but expanding upon it. We are far and away the market leader in this area, and we still consistently strive to improve our
customer experience.

BASF: We are continuously investing in our global refinish network and capabilities to ensure we remain a trusted partner to our customers. 

This includes modernizing selected facilities, expanded training capacities and strengthening our technical service networks worldwide. While we do not disclose specific plans, our focus remains on driving innovation, supporting our customers’ growth and ensuring supply reliability in all key markets.

PPG: Adoption of automation continues to accelerate. In fact, Wren’s Collision Group became our 3,000th US installation of the PPG MoonWalk system, which is a milestone for both us and the industry. Wren’s Collision Group sees it as a “no-brainer” for increasing accuracy, minimizing waste and enhancing throughput. 

PPG continues to expand our support network across the Americas through training programs, technical support and stronger distributor partnerships. These investments ensure our customers have not just the products, but also the knowledge and tools they need to succeed in a rapidly
evolving market.