Brazil Automotive OEM Coatings Market Size
| Study Period | 2019-2029 |
| Base Year For Estimation | 2023 |
| Market Size (2024) | USD 353.59 Million |
| Market Size (2029) | USD 448.49 Million |
| CAGR (2024 - 2029) | < 5.00 % |
| Market Concentration | High |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Brazil Automotive OEM Coatings Market Analysis
The Brazil Automotive OEM Coatings Market size is estimated at USD 353.59 million in 2024, and is expected to reach USD 448.49 million by 2029, growing at a CAGR of less than 5% during the forecast period (2024-2029).
The COVID-19 pandemic had negatively affected the market for automotive OEM coatings. The implementation of a nationwide lockdown in the country mainly affected the automotive manufacturing industry, thereby affecting the market for automotive OEM coatings. However, post-COVID pandemic, the automotive industries resumed their operations, thereby creating a positive impact on the demand for automotive OEM coatings in the country.
The increase in the production of automotive vehicles and the development of new technologies in the production of electric vehicles are expected to drive the market.
On the flip side, the fluctuations in the prices of raw materials and the stringent VOC regulations set by the governing bodies are expected to restrain the market for OEM coatings.
The emerging technologies to lower VOC coatings used in various automotive vehicles are expected to create opportunities for the market during the forecast period.
Brazil Automotive OEM Coatings Market Trends
Acrylic Resin Segment to Dominate The Market
- Acrylic resins are polymeric materials containing acrylic monomers in the form of dispersion, solids, and solution. These monomers are usually esters of methacrylic acids, acrylics, and other derivatives.
- Acrylic resins are used for stoving enamels for industrial appliances (machines and equipment) and primarily for automotive OEM finishes, mainly topcoats, base coats, and clear coats. They have major performance advantages regarding gloss, exterior durability, corrosion resistance, chemical resistance, solvent resistance, and hardness.
- Acrylic resins develop properties such as transparency, high color ability, and UV resistance in coating solutions. They are often used in water-borne systems, which results in low VOC emissions.
- In Brazil, the demand for water-borne acrylic resins is increasing since they are environmentally friendly products that can reduce odors and solvents used in paint. Similarly, solvent-borne acrylic resins have a homogeneous film with excellent workability and fast-drying properties. Therefore, they are used for automotive OEM applications.
- The demand for acrylic-based water-borne coatings is increasing in the electric vehicle sector due to their sustainable properties.
- According to the Brazilian Association of Electric Vehicles (ABVE), in 2022, the sales of light electric vehicles (EVs) were registered at 49,200 units, at a growth rate of 41% compared to the previous year. Thus, the increase in the sales of electric vehicles is expected to drive the automotive OEM coatings market in the country.
- As per OICA, the production of automobiles in the country amounted to 23,69,769 units in 2022, registering a growth of around 5% compared to the previous year. As per OICA, the total sales of vehicles in the country amounted to 18,30,992 units in Brazil in 2022, as compared to 18,66,073 units in 2021, registering a decline of around 1.9%.
- Thus, the acrylic resin segment is expected to dominate the market during the forecast period.
Passenger Vehicles Applications Segment to Dominate The Market
- The demand for automotive OEM coatings is higher in passenger vehicles. In passenger cars, solvent-borne and water-borne coatings are used to coat polystyrene and ABS materials used in car interiors.
- The OEM coatings are used to coat various interiors, such as center clusters, meter clusters, instrument panels, speaker grills, armrests and armrest bezels, steering wheels, door trims, and handles. The important characteristics of these coatings are high gloss and a smooth finish.
- The passenger vehicles segment occupies the majority of the share of the automotive market in the country. In Brazil, around 77% of the vehicles produced are passenger vehicles. According to the International Organization of Motor Vehicle Manufacturers (OICA), the production volume of automotive vehicles reached 1.82 million passenger vehicles in 2022, as compared to 1.71 million units manufactured in the previous year.
- Similarly, the production volume of electric vehicles is increasing in Brazil with the implementation of various initiatives. In 2023, the electric vehicle sector in the country received an investment of USD 8 billion. The investment will help kick off the production of new EV models and their components on Brazilian soil in 2024.
- Furthermore, global automotive brands such as Audi, BMW, Chevrolet (Bolt), Fiat (500e Abarth), Mercedes Benz, and Renault announced their plans to start the manufacturing of electric vehicles in Brazil in 2024. Thus, the increasing production of electric vehicles is expected to drive the market for automotive OEM coatings.
- Moreover, the Brazilian Government has approved a law that states that electric, hybrid, and hydrogen fuel cell cars registered in the city can get back 50% of the Motor Vehicle Ownership Tax (IPVA) paid. These factors are further expected to drive the country's market for OEM coatings.
- Thus, the passenger vehicle application segment is expected to dominate the market during the forecast period.
Brazil Automotive OEM Coatings Industry Overview
The Brazil Automotive OEM Coatings market is consolidated in nature. Some of the major players in the market (not in any particular order) include Akzo Nobel NV, Axalta Coating Systems, BASF SE, PPG Industries Inc., and RPM International Inc.
Brazil Automotive OEM Coatings Market Leaders
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Akzo Nobel N.V.
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Axalta Coating Systems
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BASF SE
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RPM International Inc.
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PPG Industries, Inc
*Disclaimer: Major Players sorted in no particular order
Brazil Automotive OEM Coatings Market News
The recent developments pertaining to the major players in the market are being covered in the complete study.
Brazil Automotive OEM Coatings Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
4.1 Drivers
4.1.1 Increase in the production of automotive vehicles
4.1.2 Development of New Technologies in the Production of Electric Vehicles
4.1.3 Other Drivers
4.2 Restraints
4.2.1 Fluctuations in the Prices of Raw materials
4.2.2 Stringent VOC Regulations Set By The Governing Bodies
4.3 Industry Value Chain Analysis
4.4 Porter's Five Forces Analysis
4.4.1 Bargaining Power of Suppliers
4.4.2 Bargaining Power of Buyers
4.4.3 Threat of New Entrants
4.4.4 Threat of Substitute Products and Services
4.4.5 Degree of Competition
5. MARKET SEGMENTATION (Market Size in Value)
5.1 Resin
5.1.1 Acrylic
5.1.2 Alkyd
5.1.3 Epoxy
5.1.4 Polyurethane
5.1.5 Polyester
5.1.6 Other Resins (Phenolic, Polyvinyl Acetate, etc.)
5.2 Layer
5.2.1 E-Coat
5.2.2 Pirmer
5.2.3 Base Coat
5.2.4 Clear Coat
5.3 Technology
5.3.1 Water-Borne
5.3.2 Solvent-Borne
5.3.3 Electrocoats
5.3.4 Powder Coatings
5.4 Application
5.4.1 Passenger Vehicles
5.4.2 Commercial Vehicles
5.4.3 ACE
6. COMPETITIVE LANDSCAPE
6.1 Mergers and Acquisitions, Joint Ventures, Collaborations, and Agreements
6.2 Market Share (%)**/Ranking Analysis
6.3 Strategies Adopted by Leading Players
6.4 Company Profiles
6.4.1 Akzo Nobel NV
6.4.2 Axalta Coating Systems
6.4.3 BASF SE
6.4.4 Lanco Paints
6.4.5 Mankiewicz Gebr. & Co.
6.4.6 Nippon Paint Holdings Co. Ltd
6.4.7 PPG Industries
6.4.8 RPM International Inc.
6.4.9 The Shewrwin-Williams Company
6.4.10 Renner Herrmann SA
- *List Not Exhaustive
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
7.1 Emerging Technologies for the Lower VOC Coatings Used in Various Automotive Vehicles
7.2 Other Opportunities
Brazil Automotive OEM Coatings Industry Segmentation
Automotive OEM coatings are used to protect the vehicle body from corrosion. The coating applications include the steps of electro-coat, primer, basecoat, and clear coat. Automotive OEM coatings will help to improve the appearance and performance of vehicles.
The Brazil Automotive OEM coatings market is segmented by resin type, layer, technology, and end-user industry. By Resin type, the market is segmented into acrylic, alkyd, polyurethane, epoxy, polyester, and other resin types (phenolic, polyvinyl acetate, etc.). By layer, the market is segmented into E-Coat, primer, base coat, and clear coat. By technology, the market is segmented into water-borne, solvent-borne, electrocoats, and powder coatings. The end-user industry segments the market into passenger cars, commercial vehicles, and ACE. For each segment, the market sizing and forecasts were made based on value (USD).
| Resin | |
| Acrylic | |
| Alkyd | |
| Epoxy | |
| Polyurethane | |
| Polyester | |
| Other Resins (Phenolic, Polyvinyl Acetate, etc.) |
| Layer | |
| E-Coat | |
| Pirmer | |
| Base Coat | |
| Clear Coat |
| Technology | |
| Water-Borne | |
| Solvent-Borne | |
| Electrocoats | |
| Powder Coatings |
| Application | |
| Passenger Vehicles | |
| Commercial Vehicles | |
| ACE |
Brazil Automotive OEM Coatings Market Research FAQs
How big is the Brazil Automotive OEM Coatings Market?
The Brazil Automotive OEM Coatings Market size is expected to reach USD 353.59 million in 2024 and grow at a CAGR of less than 5% to reach USD 448.49 million by 2029.
What is the current Brazil Automotive OEM Coatings Market size?
In 2024, the Brazil Automotive OEM Coatings Market size is expected to reach USD 353.59 million.
Who are the key players in Brazil Automotive OEM Coatings Market?
Akzo Nobel N.V., Axalta Coating Systems, BASF SE, RPM International Inc. and PPG Industries, Inc are the major companies operating in the Brazil Automotive OEM Coatings Market.
What years does this Brazil Automotive OEM Coatings Market cover, and what was the market size in 2023?
In 2023, the Brazil Automotive OEM Coatings Market size was estimated at USD 335.91 million. The report covers the Brazil Automotive OEM Coatings Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Brazil Automotive OEM Coatings Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Brazil Automotive OEM Coatings Industry Report
Statistics for the 2024 Brazil Automotive OEM Coatings market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Brazil Automotive OEM Coatings analysis includes a market forecast outlook to for 2024 to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
