Anthony Locicero, Associate Editor03.19.18
According to Persistence Market Research, the global automotive paint market is estimated to reach $11.96 million by the end of 2022, with a compound annual growth rate (CAGR) of 5.7 percent (from 2017-2022).
“Since the [2008 financial] crisis, the automotive coatings industry has been steadily increasing,” said Dirk Bremm, president of BASF’s Coatings division. “In 2017, the automotive industry increased globally by 2.5 percent, which was mostly driven by growing production output in Asia and Europe. After several years of downturn, the South American OEM market is finally growing again.
“On the other hand, the production numbers in North America decreased more than expected.”
That sentiment was echoed by Gary Danowski, PPG’s vice president of automotive OEM coatings.
“We have seen steady growth in all regions over the past few years, with some leveling off in North America,” he said, adding, “Asia Pacific growth has cooled off and reached a new normal level of growth, especially in China.”
However, CHEMARK Consulting Group President Phil Phillips said he’s observed a different trend in North America.
“Over the past five years, the OEM portion of the auto market for all topcoat coatings has grown steadily at an average of 3.2 percent,” he said.
Worldwide automotive paint sales are increasing as a result of rising vehicle production as well as the “robust” growth of the automotive sector in countries like South Korea, India, Mexico, China and Brazil, per Persistence Market Research.
“We have seen a continued push for efficient and sustainable products in the OEM coatings market,” said Steven Markevich, Axalta’s executive vice president and president, Transportation Coatings and Greater China. “OEMs are looking to employ durable, quality finishes fast and at the same time reduce environmental impacts.”
2018 Outlook
Phillips believes the 2018 market will slow to an AGR of a little over GDP growth of around 2.7 percent “due to the mix of smaller sedans, but offset by ‘family four-door’ truck popularity.”
PPG expects about a one to two percent growth globally, Danowski noted.
“A focus on autonomous and battery-powered vehicle development will likely spur excitement and additional focus on the industry,” he said.
Bremm predicts a “stable environment” driven by grown in Asia and Europe.
“The automotive volume rebound from the worldwide 2008-09 great recession has been substantial,” Markevich said. “I don’t think anyone would have predicted the jump in volume from about 48 million units in 2009 to more than 90 million in 2017.
“Now, we are seeing some global markets stay flat bas part of the industry’s natural cycle,” he continued. However, fueled by GDP growth in areas such as the Middle East, Russia, Brazil and South and East Asia, we expect worldwide sales in 2018 to be about the same overall as in 2017.”
The Latest Trends
As technology improves, so does innovation.
PPG believes that there are two industry trends that will dramatically shift the automotive OEM market over the next few years: autonomous vehicles and battery powered vehicles.
“With continued focus in this area, automotive OEMs will look to manufacturers like PPG to deliver high-performing coatings that enable and enhance autonomous technologies,” Danowski said.
“The coatings will go beyond beauty and corrosion resistance, but instead will ensure that autonomous vehicles and non-autonomous vehicles interact with one another in a safe and effective way.”PPG recently formed a dedicated mobility team, led by Senior Business Director Ranju Arya, who will lead the company’s efforts in developing and commercializing paint and coatings technologies for autonomous vehicles and electric vehicle batteries.
According to Danowski, mobility promises to not only change how PPG delivers its products to customers, “but also what our customers will do with those products.”
A few examples include:
Light absorption and sensor detection: Coatings will be crucial to the variety of sensors that will allow vehicles to communicate with each other, to see each other, and to detect obstacles and the path of roadways. In a test, a black car reflected back just six percent of the near infrared signal that a white car did, making it dramatically less “visible” on the road. PPG has designed coatings that will have enhanced dark color vehicle detection that allow the light to penetrate down toward a reflective under-layer. The signal “bounces off” this layer and returns to the sensor instead of being absorbed. This coating leverages commercially-proven technology from PPG’s aerospace business that functions in the same light- and heat-reflective manner. PPG could utilize these paints not only for cars, but also for infrastructure, so that standing structures like bridges can be clearly identified and precisely measured by a car’s sensors.
While PPG already has one coating technology that lets its users better manage the reflectivity of specific wavelengths, PPG expects to market improved coatings that will absorb less infrared light and still provide excellent color and appearance. PPG will also produce improved coatings that enhance the radar reflectivity and transmission properties of plastic and composite substrates;
Easy-clean composite coatings: PPG is creating an easy-to-clean coating technology that allows dirt and water to quickly and easily wash away from sensor lenses, eliminating obstructions that could be caused by snow, ice or mud. In addition, PPG offers anti-fingerprint coatings that are utilized on touch screen technology, to ensure a cleanly and pleasant experience for users, whether through ride sharing or their personal vehicle;
Radio frequency: Another area where coatings will prove important in mobility is in minimizing radio frequency leakage. Electromagnetic signals can drift and bleed into one another, creating cross talk that can degrade equipment functionality. Technology from PPG’s aerospace business will ensure that signals do not impair performance.
Bremm noted that e-mobility and autonomous driving will bring additional requirements in the future.
“One example of this is energy management. We developed a functional coating with a passive temperature management technology which boosts energy efficiency (known as ‘cool colors’),” the Coatings division president said. “The specific paint system is based on a basecoat that is permeable for high-energy near-infrared radiation (NIR) and a primer that is NIR-reflecting. In this combination, the paint reduces the temperature on hot summer days on the vehicle surface by up to 20°C which results in less heating of the interior. The need to run the air conditioner to minimize the heat in the car is thus reduced. This both enhances comfort and at the same time, reduces fuel consumption or extends the range of electric vehicles.
“Another example of future requirements are paint systems on radar and lidar, as the importance of sensor technologies is increasing,” Bremm continued. BASF is working on this topic to ensure that sensor technologies, e.g. for distance and range detection, are compatible with the whole spectrum of color palettes.”
A demand for sustainable and environmentally friendly solutions is significantly increasing, Bremm added.
“Therefore, we do not only focus on our products, but also on the processes. In close collaboration with our customers, we optimize the relationship between our products and their paint lines,” he said. “The main aspect here is energy saving and with our integrated process, we are able to eliminate a complete process step. We also see a stronger tendency to low bake processes which is also driven by a change in the car body substrates – especially for light weight solutions for electric cars.”
“Autonomy is such a big issue in the automobile world but we cannot overlook the role coatings will play in making the autonomous vehicle market a widespread reality. In fact, we believe that coatings are one of the key enablers to making this happen,” Markevich said. “Coatings on autonomous vehicles must be formulated to allow laser light through the coating and to allow sensors to receive light back through the coating. If this can be achieved, automobile manufacturers will have many more options for where to place the sensors on or in the car, and will have many fewer limitations on the design of future vehicles.
“Therefore, the coatings industry must continue to evolve and innovate new products that will not block transmissions, while protecting the car from dirt, debris and damage, and continuing to beautify,” he continued. “Axalta is working across its supply base to help deliver the next-generation coatings that meet the needs of this emerging market.”
Per Phillips, trends center around “tougher, damage resistant systems, especially scratch resistance and ‘scratch-healing’ systems.”
Show-room glamour improvements in deep-of-image in all colors is another trend Phillips predicts the industry will see.
Persistence Market Research noted a rising trend of automotive refurbishing and restorations.
Fast implementation of thermal spray technologies and highly developed powder coating are anticipated to increase the sales of the worldwide automotive paint market, according to PMR’s research.
Colors and Special Effects
Then there are trends in these categories, as well.
White will continue to dominate, according to Phillips, though deep blues and greens with refined metal reflectance will gain share.
“White is the number one most popular color globally for the seventh year in a row. More than 60 percent of new car sales in the world’s largest automobile market, China, are white,” Markevich said.
“That’s a tough stat to ignore.
“Worldwide, plain white shades have decreased in favor to pearlescent shades, which are up more than 30 percent year over year. While white is popular, buyers still want individuality so watch for colors to come back as shades in the more neutral zones,” he continued. “Axalta’s 2018 Automotive Color of the Year, StarLite, builds on the popularity of pearlescent whites. Starlite is a light hue that uses Axalta’s tri-coat process that is formulated with reflective synthetic pearl flakes to create an eye catching pearlescent effect. The reflectivity of the flakes and the color allow vehicles coated in StarLite to be more easily detected by LIDAR.”
Danowski observed several dominant colors at the North American International Auto Show.
He agrees that white – along with other neutrals – will remain popular.
“Notable colors included varying blue tones; copper hues that mimic the rose gold trend in home décor and electronics; fiery, glowing red prominently displayed on sports cars and SUVs; and deep, hunter green on display on luxury SUVs and sports cars [are on the rise],” the VP of Automotive OEM Coatings said.
PPG automotive color data by region for 2017 includes:
North America: White (25 percent) remained steady as the top color preference, while black (21 percent) and gray (17 percent) rose 2 percent and 5 percent, respectively. Silver (13 percent) dropped 6 percent, followed closely by red and blue (both 10 percent);
South America: White (38 percent) continued to dominate in this region, while silver (31 percent) was close behind, rising 2 percent over prior year. Black (10 percent), gray (9 percent) and red (8 percent) remained other popular choices;
Europe: White (32 percent), gray (18 percent), black (17 percent) and silver (9 percent) remained almost consistent with 2016, while blue (9 percent) saw an increase in consumer preference;
Asia Pacific: White (44 percent) remained the most popular in this region. Black (15 percent) trailed, as well as silver (10 percent) and natural (10 percent), which includes gold, beige, orange and brown hues.
According to Bremm, BASF sees two major trends in this category.
“The first one is an increasing number of consumers looking to express individuality via the look and feel of colors,” Bremm said. “This results in greater demand for individualized colors. In addition, a continued strong interest in achromatic colors drives the use of innovative effect pigments that can add a smoother appearance or strong dimensional aspects.
“The other trend we see is OEM brands redefining themselves so colors are becoming more functional,” he continued. “As an example, BASF has already been recognized for its award-winning infrared-reflecting paint colors. In the future, colors will support e-mobility, autonomous driving and sustainability.”
Environmentally Conscience Products Go Toward Customer Satisfaction
Manufacturers are shifting towards non-toxic and eco-friendly products, according to Persistence Market Research.
“The demand for sustainable and environmentally friendly solutions and products increases and this is also an important part of our R&D activities,” BASF’s Bremm said. “We continuously develop new products and processes to ensure highest the quality for our customers.”
PPG’s Danowski believes there are many challenges facing the auto industry, but PPG is creating solutions: From environmentally preferable pre-treatments, refinishes, and e-coats, to advanced coatings that make vehicles lighter, to silicas that help reduce the rolling resistance of tires, we offer solutions to meet any OEM challenge.
“Automotive OEMs are looking for improved performance to meet increasing VOC and other environmental regulations,” he said. “These regulations are driving the business toward waterborne coatings solutions. PPG is well positioned in this area, with the leading waterborne refinish technology and OEM technologies.”
Danowski also mentioned other obstacles and his company’s response to them.
“A common theme in recent years, many automotive OEM customers continue to look for ways to lightweight cars for improved fuel efficiency and handling while being as cost effective as possible,” he said. “PPG offers its ZIRCOBOND thin film pretreatment to assist in light weighting. The coating is environmentally mindful and reduces sludge up to 90 percent when compared to zinc phosphate.
“Going hand in hand with efficiencies, PPG offers its Premium Compact Process Primer that allows OEMs to lower cost, emissions and complexity in their painting operations. While 70 percent of the energy consumed in automotive OEM assembly plants is traditionally attributed to painting operations, the PPG Premium Compact Process Primer allows the wet-on-wet-on-wet application of a primer, base coat and clearcoat, without any heated flash-off zones in between,” Danowski continued. “This high-solids, specially engineered primer expands the compact paint process to a wider range of vehicles than previously possible by meeting stringent appearance, performance and throughput requirements while increasing efficiency, reducing cost and reducing complexity.”
Style is also key.
“In addition to the way a car operates and moves, PPG knows that color sells cars and is a way for owners to capture their individual style. Many OEMS and their customers are looking for chromatic colors to help them stand out amongst the normal whites, blacks and other neutrals on the road,” Danowski said. “PPG’s ANDARO Tint Dispersion Technology enables designers to create new color spaces. This technology offers higher color saturation (chroma) normally obtained only by using organic dyes, which have typically been limited to use on concept and aftermarket show cars. PPG’s Andaro product provides the high chroma and color saturation associated with organic dyes, but in a durable pigment that passes OEM specifications, making it suitable for use in traditional automotive paint shops.”
Improved scratch, chip and mar resistance is “always on the list,” according to CHEMARK’s Phillips, who also mentioned resistance to dirt and grime; water spot resistance; and cleanability as items customers are looking for in terms of performance.
“Paint must beautify as well as protect. In addition to the durability and quality they have come to expect from us, we know customers want to save money, reduce waste, and increase productivity,” Markevich said. “That’s what Axalta works to deliver to customers every day, with new innovations that increase efficiency, new technology and systems that reduce waste and on-site support to ensure the job is done right first time.
“We also understand that a vehicle’s color is the first thing buyers fall in love with. OEMs count on us to point out the trends that are coming so they can stay ahead of customer demands,” he continued. “Axalta has produced the most comprehensive Global Color Popularity report for the last 65 years to help OEMs do just that.”
Emerging Markets
Asia Pacific is the largest market for automotive OEM coatings.
While there is room for growth elsewhere, no country or region will surpass Asia Pacific, Phillips said.
Both Bremm and Danowski see China as an emerging market.
“China has been the biggest growth story for many years in the automotive OEM marketplace,” Danowski said.
“China is still a market with high growth and we are growing above the market there,” Bremm added. “We support this growth by having large investments and a complete set-up, including manufacturing, R&D and technical services.”
Danowski said PPG sees opportunities in India, Russia, South America and parts of Africa (specifically Morocco).
“These up-and-coming areas, while important, will likely not be as big of a growth driver as China continues to be,” Danowski noted. “India, Africa and South America show strong growth with excellent opportunities for automotive coatings.
“Russia has rebounded and is also showing strong progress,” he continued. “Last year, PPG marked the completion of €45 million ($49 million) paint and coatings facility in Lipetsk, Russia, which supports our automotive coatings business and is well positioned for growth. “For BASF, the Association of Southeast Asian Nations (ASEAN), is a place to keep an eye on.”
The company recently opened a plant in Bangpoo, Thailand, which Bremm said was to cater to the local demand.
“In addition to these big players, markets such as Mexico – where we also invested in our production – are also interesting,” he continued. “Latin America is recovering. We are further expanding our footprint there.”
“As a key emerging market, India continues to be a focal point in Axalta’s growth plans in the Asia-Pacific region,” Markevich said. “In fact, in 2017, Axalta proudly opened a new headquarters office for India located in Gurugram within the National Capital Region along with a new OEM laboratory and manufacturing site.
“The new location also houses an Axalta Global Business Resource Center which provides a variety of services to the company’s operations in the region and around the world,” he continued. “According to the World Bank, India’s auto industry has started to show strong growth with a CAGR of approximately seven percent over the next four years.”
The current North American value for automotive topcoats is $3.5 billion, according to Phillips. That includes all topcoat coating layers applied at the assembly plant level, such as e-coat; sandable primers; base color coats and clear coats, he said.
However, that doesn’t include trim parts “that are produced and finished at or by Tier 1 and 2 suppliers, then shipped to the assembly plants for attachment.”
PPG Kansai Automotive Finishes (PKAF), PPG’s joint venture with Kansai Paint, has received the Nissan 2017 Regional Monozukuri Spirit Award from the Nissan Group of North America for the second consecutive year.
PPG Kansai Automotive Finishes (PKAF), PPG’s joint venture with Kansai Paint, has received the Nissan 2017 Regional Monozukuri Spirit Award from the Nissan Group of North America for the second consecutive year.
The award recognizes suppliers for their exceptional use of philosophies and processes related to “Monozukuri” – the spirit of striving for manufacturing excellence associated with Nissan’s collaborative strategy of working closely with suppliers to increase quality and reduce cost through continuous improvement. PKAF was one of four suppliers, and the only coatings company, to earn the honor based on 2016 fiscal-year performance during the regional carmaker’s annual supplier conference in Nashville, Tenn.
“PKAF is proud to be recognized with the Monozukuri Spirit Award for the second consecutive year, which is a testament to our ability to identify ways to continuously improve quality, reduce costs and ultimately, benefit customers,” said Tom Greenwood, president, PPG Kansai Automotive Finishes. “We’re excited to see what future innovations develop from this strong partnership.”
PPG Kansai Automotive Finishes is a joint venture of PPG and Kansai Paint that sells automotive coatings, adhesives and sealants to global original equipment manufacturers, primarily Japanese automakers with manufacturing operations in North America and Europe.
“Since the [2008 financial] crisis, the automotive coatings industry has been steadily increasing,” said Dirk Bremm, president of BASF’s Coatings division. “In 2017, the automotive industry increased globally by 2.5 percent, which was mostly driven by growing production output in Asia and Europe. After several years of downturn, the South American OEM market is finally growing again.
“On the other hand, the production numbers in North America decreased more than expected.”
That sentiment was echoed by Gary Danowski, PPG’s vice president of automotive OEM coatings.
“We have seen steady growth in all regions over the past few years, with some leveling off in North America,” he said, adding, “Asia Pacific growth has cooled off and reached a new normal level of growth, especially in China.”
However, CHEMARK Consulting Group President Phil Phillips said he’s observed a different trend in North America.
“Over the past five years, the OEM portion of the auto market for all topcoat coatings has grown steadily at an average of 3.2 percent,” he said.
Worldwide automotive paint sales are increasing as a result of rising vehicle production as well as the “robust” growth of the automotive sector in countries like South Korea, India, Mexico, China and Brazil, per Persistence Market Research.
“We have seen a continued push for efficient and sustainable products in the OEM coatings market,” said Steven Markevich, Axalta’s executive vice president and president, Transportation Coatings and Greater China. “OEMs are looking to employ durable, quality finishes fast and at the same time reduce environmental impacts.”
2018 Outlook
Phillips believes the 2018 market will slow to an AGR of a little over GDP growth of around 2.7 percent “due to the mix of smaller sedans, but offset by ‘family four-door’ truck popularity.”
PPG expects about a one to two percent growth globally, Danowski noted.
“A focus on autonomous and battery-powered vehicle development will likely spur excitement and additional focus on the industry,” he said.
Bremm predicts a “stable environment” driven by grown in Asia and Europe.
“The automotive volume rebound from the worldwide 2008-09 great recession has been substantial,” Markevich said. “I don’t think anyone would have predicted the jump in volume from about 48 million units in 2009 to more than 90 million in 2017.
“Now, we are seeing some global markets stay flat bas part of the industry’s natural cycle,” he continued. However, fueled by GDP growth in areas such as the Middle East, Russia, Brazil and South and East Asia, we expect worldwide sales in 2018 to be about the same overall as in 2017.”
The Latest Trends
As technology improves, so does innovation.
PPG believes that there are two industry trends that will dramatically shift the automotive OEM market over the next few years: autonomous vehicles and battery powered vehicles.
“With continued focus in this area, automotive OEMs will look to manufacturers like PPG to deliver high-performing coatings that enable and enhance autonomous technologies,” Danowski said.
“The coatings will go beyond beauty and corrosion resistance, but instead will ensure that autonomous vehicles and non-autonomous vehicles interact with one another in a safe and effective way.”PPG recently formed a dedicated mobility team, led by Senior Business Director Ranju Arya, who will lead the company’s efforts in developing and commercializing paint and coatings technologies for autonomous vehicles and electric vehicle batteries.
According to Danowski, mobility promises to not only change how PPG delivers its products to customers, “but also what our customers will do with those products.”
A few examples include:
Light absorption and sensor detection: Coatings will be crucial to the variety of sensors that will allow vehicles to communicate with each other, to see each other, and to detect obstacles and the path of roadways. In a test, a black car reflected back just six percent of the near infrared signal that a white car did, making it dramatically less “visible” on the road. PPG has designed coatings that will have enhanced dark color vehicle detection that allow the light to penetrate down toward a reflective under-layer. The signal “bounces off” this layer and returns to the sensor instead of being absorbed. This coating leverages commercially-proven technology from PPG’s aerospace business that functions in the same light- and heat-reflective manner. PPG could utilize these paints not only for cars, but also for infrastructure, so that standing structures like bridges can be clearly identified and precisely measured by a car’s sensors.
While PPG already has one coating technology that lets its users better manage the reflectivity of specific wavelengths, PPG expects to market improved coatings that will absorb less infrared light and still provide excellent color and appearance. PPG will also produce improved coatings that enhance the radar reflectivity and transmission properties of plastic and composite substrates;
Easy-clean composite coatings: PPG is creating an easy-to-clean coating technology that allows dirt and water to quickly and easily wash away from sensor lenses, eliminating obstructions that could be caused by snow, ice or mud. In addition, PPG offers anti-fingerprint coatings that are utilized on touch screen technology, to ensure a cleanly and pleasant experience for users, whether through ride sharing or their personal vehicle;
Radio frequency: Another area where coatings will prove important in mobility is in minimizing radio frequency leakage. Electromagnetic signals can drift and bleed into one another, creating cross talk that can degrade equipment functionality. Technology from PPG’s aerospace business will ensure that signals do not impair performance.
Bremm noted that e-mobility and autonomous driving will bring additional requirements in the future.
“One example of this is energy management. We developed a functional coating with a passive temperature management technology which boosts energy efficiency (known as ‘cool colors’),” the Coatings division president said. “The specific paint system is based on a basecoat that is permeable for high-energy near-infrared radiation (NIR) and a primer that is NIR-reflecting. In this combination, the paint reduces the temperature on hot summer days on the vehicle surface by up to 20°C which results in less heating of the interior. The need to run the air conditioner to minimize the heat in the car is thus reduced. This both enhances comfort and at the same time, reduces fuel consumption or extends the range of electric vehicles.
“Another example of future requirements are paint systems on radar and lidar, as the importance of sensor technologies is increasing,” Bremm continued. BASF is working on this topic to ensure that sensor technologies, e.g. for distance and range detection, are compatible with the whole spectrum of color palettes.”
A demand for sustainable and environmentally friendly solutions is significantly increasing, Bremm added.
“Therefore, we do not only focus on our products, but also on the processes. In close collaboration with our customers, we optimize the relationship between our products and their paint lines,” he said. “The main aspect here is energy saving and with our integrated process, we are able to eliminate a complete process step. We also see a stronger tendency to low bake processes which is also driven by a change in the car body substrates – especially for light weight solutions for electric cars.”
“Autonomy is such a big issue in the automobile world but we cannot overlook the role coatings will play in making the autonomous vehicle market a widespread reality. In fact, we believe that coatings are one of the key enablers to making this happen,” Markevich said. “Coatings on autonomous vehicles must be formulated to allow laser light through the coating and to allow sensors to receive light back through the coating. If this can be achieved, automobile manufacturers will have many more options for where to place the sensors on or in the car, and will have many fewer limitations on the design of future vehicles.
“Therefore, the coatings industry must continue to evolve and innovate new products that will not block transmissions, while protecting the car from dirt, debris and damage, and continuing to beautify,” he continued. “Axalta is working across its supply base to help deliver the next-generation coatings that meet the needs of this emerging market.”
Per Phillips, trends center around “tougher, damage resistant systems, especially scratch resistance and ‘scratch-healing’ systems.”
Show-room glamour improvements in deep-of-image in all colors is another trend Phillips predicts the industry will see.
Persistence Market Research noted a rising trend of automotive refurbishing and restorations.
Fast implementation of thermal spray technologies and highly developed powder coating are anticipated to increase the sales of the worldwide automotive paint market, according to PMR’s research.
Colors and Special Effects
Then there are trends in these categories, as well.
White will continue to dominate, according to Phillips, though deep blues and greens with refined metal reflectance will gain share.
“White is the number one most popular color globally for the seventh year in a row. More than 60 percent of new car sales in the world’s largest automobile market, China, are white,” Markevich said.
“That’s a tough stat to ignore.
“Worldwide, plain white shades have decreased in favor to pearlescent shades, which are up more than 30 percent year over year. While white is popular, buyers still want individuality so watch for colors to come back as shades in the more neutral zones,” he continued. “Axalta’s 2018 Automotive Color of the Year, StarLite, builds on the popularity of pearlescent whites. Starlite is a light hue that uses Axalta’s tri-coat process that is formulated with reflective synthetic pearl flakes to create an eye catching pearlescent effect. The reflectivity of the flakes and the color allow vehicles coated in StarLite to be more easily detected by LIDAR.”
Danowski observed several dominant colors at the North American International Auto Show.
He agrees that white – along with other neutrals – will remain popular.
“Notable colors included varying blue tones; copper hues that mimic the rose gold trend in home décor and electronics; fiery, glowing red prominently displayed on sports cars and SUVs; and deep, hunter green on display on luxury SUVs and sports cars [are on the rise],” the VP of Automotive OEM Coatings said.
PPG automotive color data by region for 2017 includes:
North America: White (25 percent) remained steady as the top color preference, while black (21 percent) and gray (17 percent) rose 2 percent and 5 percent, respectively. Silver (13 percent) dropped 6 percent, followed closely by red and blue (both 10 percent);
South America: White (38 percent) continued to dominate in this region, while silver (31 percent) was close behind, rising 2 percent over prior year. Black (10 percent), gray (9 percent) and red (8 percent) remained other popular choices;
Europe: White (32 percent), gray (18 percent), black (17 percent) and silver (9 percent) remained almost consistent with 2016, while blue (9 percent) saw an increase in consumer preference;
Asia Pacific: White (44 percent) remained the most popular in this region. Black (15 percent) trailed, as well as silver (10 percent) and natural (10 percent), which includes gold, beige, orange and brown hues.
According to Bremm, BASF sees two major trends in this category.
“The first one is an increasing number of consumers looking to express individuality via the look and feel of colors,” Bremm said. “This results in greater demand for individualized colors. In addition, a continued strong interest in achromatic colors drives the use of innovative effect pigments that can add a smoother appearance or strong dimensional aspects.
“The other trend we see is OEM brands redefining themselves so colors are becoming more functional,” he continued. “As an example, BASF has already been recognized for its award-winning infrared-reflecting paint colors. In the future, colors will support e-mobility, autonomous driving and sustainability.”
Environmentally Conscience Products Go Toward Customer Satisfaction
Manufacturers are shifting towards non-toxic and eco-friendly products, according to Persistence Market Research.
“The demand for sustainable and environmentally friendly solutions and products increases and this is also an important part of our R&D activities,” BASF’s Bremm said. “We continuously develop new products and processes to ensure highest the quality for our customers.”
PPG’s Danowski believes there are many challenges facing the auto industry, but PPG is creating solutions: From environmentally preferable pre-treatments, refinishes, and e-coats, to advanced coatings that make vehicles lighter, to silicas that help reduce the rolling resistance of tires, we offer solutions to meet any OEM challenge.
“Automotive OEMs are looking for improved performance to meet increasing VOC and other environmental regulations,” he said. “These regulations are driving the business toward waterborne coatings solutions. PPG is well positioned in this area, with the leading waterborne refinish technology and OEM technologies.”
Danowski also mentioned other obstacles and his company’s response to them.
“A common theme in recent years, many automotive OEM customers continue to look for ways to lightweight cars for improved fuel efficiency and handling while being as cost effective as possible,” he said. “PPG offers its ZIRCOBOND thin film pretreatment to assist in light weighting. The coating is environmentally mindful and reduces sludge up to 90 percent when compared to zinc phosphate.
“Going hand in hand with efficiencies, PPG offers its Premium Compact Process Primer that allows OEMs to lower cost, emissions and complexity in their painting operations. While 70 percent of the energy consumed in automotive OEM assembly plants is traditionally attributed to painting operations, the PPG Premium Compact Process Primer allows the wet-on-wet-on-wet application of a primer, base coat and clearcoat, without any heated flash-off zones in between,” Danowski continued. “This high-solids, specially engineered primer expands the compact paint process to a wider range of vehicles than previously possible by meeting stringent appearance, performance and throughput requirements while increasing efficiency, reducing cost and reducing complexity.”
Style is also key.
“In addition to the way a car operates and moves, PPG knows that color sells cars and is a way for owners to capture their individual style. Many OEMS and their customers are looking for chromatic colors to help them stand out amongst the normal whites, blacks and other neutrals on the road,” Danowski said. “PPG’s ANDARO Tint Dispersion Technology enables designers to create new color spaces. This technology offers higher color saturation (chroma) normally obtained only by using organic dyes, which have typically been limited to use on concept and aftermarket show cars. PPG’s Andaro product provides the high chroma and color saturation associated with organic dyes, but in a durable pigment that passes OEM specifications, making it suitable for use in traditional automotive paint shops.”
Improved scratch, chip and mar resistance is “always on the list,” according to CHEMARK’s Phillips, who also mentioned resistance to dirt and grime; water spot resistance; and cleanability as items customers are looking for in terms of performance.
“Paint must beautify as well as protect. In addition to the durability and quality they have come to expect from us, we know customers want to save money, reduce waste, and increase productivity,” Markevich said. “That’s what Axalta works to deliver to customers every day, with new innovations that increase efficiency, new technology and systems that reduce waste and on-site support to ensure the job is done right first time.
“We also understand that a vehicle’s color is the first thing buyers fall in love with. OEMs count on us to point out the trends that are coming so they can stay ahead of customer demands,” he continued. “Axalta has produced the most comprehensive Global Color Popularity report for the last 65 years to help OEMs do just that.”
Emerging Markets
Asia Pacific is the largest market for automotive OEM coatings.
While there is room for growth elsewhere, no country or region will surpass Asia Pacific, Phillips said.
Both Bremm and Danowski see China as an emerging market.
“China has been the biggest growth story for many years in the automotive OEM marketplace,” Danowski said.
“China is still a market with high growth and we are growing above the market there,” Bremm added. “We support this growth by having large investments and a complete set-up, including manufacturing, R&D and technical services.”
Danowski said PPG sees opportunities in India, Russia, South America and parts of Africa (specifically Morocco).
“These up-and-coming areas, while important, will likely not be as big of a growth driver as China continues to be,” Danowski noted. “India, Africa and South America show strong growth with excellent opportunities for automotive coatings.
“Russia has rebounded and is also showing strong progress,” he continued. “Last year, PPG marked the completion of €45 million ($49 million) paint and coatings facility in Lipetsk, Russia, which supports our automotive coatings business and is well positioned for growth. “For BASF, the Association of Southeast Asian Nations (ASEAN), is a place to keep an eye on.”
The company recently opened a plant in Bangpoo, Thailand, which Bremm said was to cater to the local demand.
“In addition to these big players, markets such as Mexico – where we also invested in our production – are also interesting,” he continued. “Latin America is recovering. We are further expanding our footprint there.”
“As a key emerging market, India continues to be a focal point in Axalta’s growth plans in the Asia-Pacific region,” Markevich said. “In fact, in 2017, Axalta proudly opened a new headquarters office for India located in Gurugram within the National Capital Region along with a new OEM laboratory and manufacturing site.
“The new location also houses an Axalta Global Business Resource Center which provides a variety of services to the company’s operations in the region and around the world,” he continued. “According to the World Bank, India’s auto industry has started to show strong growth with a CAGR of approximately seven percent over the next four years.”
The current North American value for automotive topcoats is $3.5 billion, according to Phillips. That includes all topcoat coating layers applied at the assembly plant level, such as e-coat; sandable primers; base color coats and clear coats, he said.
However, that doesn’t include trim parts “that are produced and finished at or by Tier 1 and 2 suppliers, then shipped to the assembly plants for attachment.”
PPG Kansai Automotive Finishes (PKAF), PPG’s joint venture with Kansai Paint, has received the Nissan 2017 Regional Monozukuri Spirit Award from the Nissan Group of North America for the second consecutive year.
PPG Kansai Automotive Finishes (PKAF), PPG’s joint venture with Kansai Paint, has received the Nissan 2017 Regional Monozukuri Spirit Award from the Nissan Group of North America for the second consecutive year.
The award recognizes suppliers for their exceptional use of philosophies and processes related to “Monozukuri” – the spirit of striving for manufacturing excellence associated with Nissan’s collaborative strategy of working closely with suppliers to increase quality and reduce cost through continuous improvement. PKAF was one of four suppliers, and the only coatings company, to earn the honor based on 2016 fiscal-year performance during the regional carmaker’s annual supplier conference in Nashville, Tenn.
“PKAF is proud to be recognized with the Monozukuri Spirit Award for the second consecutive year, which is a testament to our ability to identify ways to continuously improve quality, reduce costs and ultimately, benefit customers,” said Tom Greenwood, president, PPG Kansai Automotive Finishes. “We’re excited to see what future innovations develop from this strong partnership.”
PPG Kansai Automotive Finishes is a joint venture of PPG and Kansai Paint that sells automotive coatings, adhesives and sealants to global original equipment manufacturers, primarily Japanese automakers with manufacturing operations in North America and Europe.