The East Africa Automotive Coatings market (henceforth referred to as the market studied) is expected to reach 52.79 USD million by revenue, in 2018. It is estimated to reach USD 73.43 million by revenue, by 2023, at an estimated CAGR of 6.82% over the forecast period of 2018-2023 (henceforth referred to as the forecast period).
The OEM production in East Africa is relatively lower as compared to the refinish activities. Majority of the vehicles being used in the region are pre-used cars thus boosting the demand for refinish coatings. East Africa being a developing region and most of the population unable to afford for new vehicles primarily passenger cars, there is a huge demand for used cars in the region. For instance, Tanzania depends hugely on car imports. Low import duties is one of the boosting factors for automotive imports in the country. Japan is the major exporting country for cars in Tanzania primarily, owing to the low cost of the used cars coupled with the relative prime performance of the aforementioned vehicles in comparison to those imported from countries other than Japan. Despite a huge demand for cars, there is also a high demand for used trucks, buses, accessories etc., from Japan. The scenario is similar in Zimbabwe but demand for commercial vehicles exhibited a growth in 2017. The demand for second hand vehicles in the country ranges between 35% to 50% of the total automotive demand in the country. The difference in price range between pre-used vehicles and new vehicles is one of the major factor boosting the pre-used vehicles market. The average price of second-hand vehicles ranges between USD 3,000- USD 7,000 whereas the price for new vehicles ranged between USD 10,000- USD 20,000. Such factors are boosting the demand for refinishing coatings in the region.
Priming layer Clear coat is the final layer of coating for any vehicle and the main aim of this coat is to protect the body from the environment, chemicals, scratches, corrosion, UV resistance etc. The thickness of these coatings broadly ranges between 30-50µm. The coats are available as 1K, 2K, and powder (not common) systems and are primarily acrylics or polyurethane based coatings. The increasing consumption of pre-used vehicles in East Africa is a major factor driving the demand for clear coats for refinishing purposes. This coupled with increasing heavy vehicle production in these nations is also likely to propel the demand for clear coats in the next few years.
The economy of Kenya is the largest, in terms of GDP, in East Africa and is estimated to witness a GDP growth of 5.5% (according to the IMF) in 2018. Political turmoil, and slow private sector credit growth have impacted the growth of the economy in 2017-18. Used cars account for over 80% of the total motor vehicles used in the country, as of 2017. However, the sales of new motor vehicles is expected to rise in the next 10 years owing to the rising economy and increasing local assembly of motor vehicles in Kenya. General Motors East Africa (GMEA), Associated Vehicle Assemblers (AVA) in Mombasa and Kenya Vehicle Manufacturers (KVM) are the major vehicle assembly companies in the country. Other players such as Volkswagen, and Peugeot are expanding their production operations in the country to meet the increasing demand. Isuzu motors, being the largest player in the Kenya automotive sector, has acquired General Motors East Africa in order to increase the commercial vehicle production and sales in Eastern African region. Volkswagen is in plans to double the production of motor vehicles in Kenya to cater to the consumers in the East and Central Africa region. Another global player, Peugeot has also started the local assembly for the assembly of its 508 and 3008 passenger car models in the country.
The automotive sector in Kenya is expected to expand at a consistent rate with around 5 million vehicles forecasted to be on the roads by 2030. The government of Kenya is in plans to boost the domestic assembly of motor vehicles by providing tax exemptions. Completely Knocked down vehicle kits are exempted from the 25% import duty and 20% excise tax that are applicable to completely built import vehicles. This in turn is expected to boost the local vehicle assembly operations in Kenya in the coming years. Such factors are expected to augment the consumption of automotive coatings for new and used cars in the country at a significant rate during the forecast period.
The major players include – Axalta Coating Systems, Basco Paints, CROWN PAINTS KENYA PLC, Goldstar Paints Tanzania Limited, Hempel, Kansai Plascon (Pty) Ltd, and Kiboko Paints Ltd., among others.
East Africa Automotive Coatings Market
(2016 – 2023)
Tanzania, Kenya, Madagascar, Malawi, Reunion, Uganda, Zimbabwe, Rest of East Africa
Axalta Coating Systems, Basco Paints, CROWN PAINTS KENYA PLC, Goldstar Paints Tanzania Limited, Hempel, Kansai Plascon (Pty) Ltd, and Kiboko Paints Ltd., among others.
Report offers latest trends, growth prospects, industry competitiveness, major players, value chain, country market analysis, market sizing and forecast to 2023
1.1 Scope of the Report
1.2 Study Assumptions
1.3 Study Deliverables
1.4 Research Phases
2. Executive Summary
3. Market Insights
3.1 Industry Value Chain Analysis
3.2 Industry Attractiveness – Porter’s Five Forces Analysis
3.2.1 Bargaining Power of Suppliers
3.2.2 Bargaining Power of Buyers
3.2.3 Threat of New Entrants
3.2.4 Threat of Substitute Products and Services
3.2.5 Intensity of Competitive Rivalry
4. Market Dynamics
4.1.1 Increasing Demand For Pre-used Cars
4.2.1 Increasing Raw Material Costs
4.2.2 Other Restraints
4.3.1 Increasing Investments For Production/Assembling Operations
5. Market Segmentation and Analysis (Market Size, Growth, and Forecast)
5.1 By Technology
5.1.3 Powder Coating
5.2 By Market
5.2.1 OEM Type
184.108.40.206 Light Vehicles
220.127.116.11 Heavy-Duty Trucks
18.104.22.168 Specialty OEMs
5.3 By Coat Type
5.3.1 Primer & Filler
5.3.2 Base Coat
5.3.3 Clear Coat
6. Country Analysis (Market Size, Growth, and Forecast)
6.8 Rest of East Africa
7. Competitive Landscape
7.1 Mergers and Acquisitions, Joint Ventures, Collaborations and Agreements
7.2 Market Share Analysis**
7.3 Strategies Adopted by Leading Players
8. Company Profiles (Overview, Financials**, Products & Services, and Recent Developments)
8.1 AkzoNobel (Dreamcoat Automotive Refinishing Products)
8.2 Axalta Coating Systems
8.3 Basco Paints
8.4 CROWN PAINTS KENYA PLC
8.5 Goldstar Paints Tanzania Limited
8.7 Kansai Plascon (Pty) Ltd
8.8 Kiboko Paints Ltd.
8.9 Motisung Group Ltd.
8.10 Trust Paints LTD.
8.11 Nasib Industrial Products Ltd
**Subject to availability on public domain