Automotive Appearance Chemicals Market – Key Research Findings
By the end of 2022, the global automotive appearance chemicals market is estimated to be pegged at around US$ XX Bn.
Estimated to CAGR of the Automotive Appearance Chemicals Market over 2022 - 2030 – Nearly 5%
In terms of demand, South Asia & Pacific and East Asia are expected to register high growth in the automotive appearance chemicals market.
Increasing automotive production coupled with rising per capita income and spending in China, India, and ASEAN countries are the key factors that are driving the demand for automotive appearance chemicals.
Moreover, low labor cost, low cost of production, and lenient regulations in Asia Pacific are encouraging manufacturers to expand their production facilities in China and India, which, in turn, is expected to drive the demand for automotive appearance chemicals.
The market for automotive appearance chemicals in North America and Europe is projected to register steady growth in the automotive appearance chemicals market.
Growth in per capita disposable income in developing economies such as India, China, Brazil, and Saudi Arabia has led to the growing inclination of consumers towards the use of automotive services more often.
Per capita spending on automotive services and repairs in these countries is also high, which is expected to surge the demand for car wash detergents and soaps in the aftermarket.
As per the report of OICA, China, with around 15% share of the global vehicle fleet, is expected to witness 13.1% Y-o-Y growth in its fleet of vehicles. This increasing vehicle fleet in China is also related to the increasing population in the country. Owing to these factors, the sales of automotive appearance chemicals are expected to surge in China during the forecast period.
Top 3 Factors Shaping the Automotive Appearance Chemicals Market
Increase in the Automotive Production
The production of automotive vehicles has significantly increased in recent years. Automotive manufacturers are focused on enhancing the gloss and finish of automotive exteriors, for which they use automotive appearance chemicals. The growth in automotive production is thus estimated to increase the demand for automotive appearance chemicals in the coming period.
Expanding Automotive Fleet Size
Economic growth in Asia Pacific, Latin America, and MEA countries/regions such as India, China, Turkey, Northern Africa, and Brazil is expected to accelerate in the coming period, which will mainly result into an increase in industrialization and manufacturing activities in the region.
This scenario will lead to a surge in the demand for automobiles, which is estimated to escalate the demand for automotive appearance chemicals. Increasing per capita disposable income is reported to be one of the key drivers for the increasing per capita spending on automotive repairs and maintenance.
Demand for Windshield Washer Fluid Remains High
The windshield washer fluid segment is expected to hold a lion’s share in terms of volume-wise consumption. Windshield washer fluid is an inseparable part of the automotive sector and is estimated to be a prominent segment in the automotive appearance chemicals market in terms of volumetric consumption. However, owing to the associated low price point, the windshield washer fluid segment is expected hold a relatively low value share in the market.
The global automotive appearance chemicals market is a significantly consolidated market. A significant share of the automotive appearance chemicals market is held by tier-2 players.
Moreover, local players play an important role, as they are estimated to hold over 50% share in the global automotive appearance chemicals market. Acquisitions, expansion, and product innovation are some of the important strategies being employed by key participants to sustain and expand in the global automotive appearance chemicals market.
Prominent automotive appearance chemicals market players are primarily located in the U.S. and Europe. Numerous key players are maintaining strategic focus on East and South Asia markets