Automotive Paints Market to Reach USD 16.8 Billion by 2035, Driven by Sustainable Coatings and EV Boom

According to the MarketGenics report, the global automotive paints market is likely to grow from USD 10.2 Billion in 2025 to USD 16.8 Billion in 2035 at a highest CAGR of 5.1% during the time period. Globalization of automotive paints market is enhanced by increased vehicle manufacturing, increasing consumerism on customization and emerging sustainable coating technologies. Growing passenger cars and commercial automobile demand especially in the emerging economies like India and China is creating the necessity of high-quality paints with durability, resistance to corrosion and excellent finish.products can be innovated.

The market is also being transformed with the trend of smart coatings which have self-healing and anti-scratch properties which appeal to the premium vehicle market segments. Moreover, the partnerships between automotive OEMs and the providers of different kinds of coating technologies in order to improve robotic and digital processes of paint application are cost-effective, material wasting is minimized, and energy sustainability is ensured, which contribute to the development of the industry in the long-term perspective all over the world.

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Key Driver, Restraint, and Growth Opportunity Shaping the Global Automotive Paints Market

The automotive paints market is increasing owing to rising demand in lightweight vehicle coatings because most automakers are moving towards using thin-film coating and multi-layer coating to ensure that the weight of vehicles is minimized without affecting durability and looks. Such a trend promotes the increase of the fuel efficiency and EV range, and OEMs are motivated to use new advanced paints in new models.

The cost of applying advanced finishes such as coating of the product with UV-cured and smart finishes is high and prevents its wide use, especially in small-scale manufacturing companies and developing markets. The high cost of specialized equipment and skilled workers raise the cost of operation, sluggish performance in the non-premium segments.

Expansion of aftermarket customization business represents a great opportunity as consumers are soliciting more and more personalized finishes, colors, and protective finishes. Firms can use this trend to provide new and easy-to-implement solutions and increase their income streams through more than sales targeted to OEMs.

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Expansion of Global Automotive Paints Market

"Eco-Friendly and Low-VOC Coatings, Demand for Premium and Customized Vehicle Finishes, and Advancements in Automation and Digital Painting Technologies Driving Global Automotive Paints Market Expansion"

The world automotive paints market is growing as more people are adopting environmentally friendly/low-VOC coating. The governments of the world such as the United States, and the European Union have imposed stringent regulations to limit the emission and the automakers have shifted to the use of the traditional solvent-based paints, to water based and UV cured paints. As an example, Axalta stated that waterborne coating adoption had increased by 25% in Asia-Pacific in 2024 as a result of the increased interest on the environment.
The increased demand of customized and high-quality vehicle finishes. Metallic finishes, pearlescent finishes and matte finishes are also demanded by consumers more therefore OEMs are forced to use new paint technologies. The introduction of NEV color palette in Tianjin in 2024 by PPG allowed adapting quickly to the trends in the region and addressing a consumer preference to a unique car image.

The improvement in automation and digital painting technology is enhancing growth on the automotive paints market through increasing precision and minimizing waste on the material. The integration of robotics in order to develop overspray-free digital painting as conducted between Axalta and Durr in 2025 is a testament of how robotics can be used to maximize efficiency, lower costs, and maintain consistency in quality and thus can be applied on a large-scale basis in automotive manufacture all over the world.

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Recent Development and Strategic Overview:

In January 2025, Axalta Coating Systems and Dürr Systems AG formed a strategic alliance to deploy Axalta's NextJet digital paint and Dürr robotics integration for overspray‐free vehicle painting at scale for OEMs.

In March 2025, PPG inaugurated a state‐of‐the‐art automotive coatings color innovation studio in Tianjin, enhancing its NEV color creation capabilities and enabling rapid response to regional color trends and OEM demand.

Prominent players operating in the global automotive paints market are Akzo Nobel N.V., Axalta Coating Systems Ltd., BASF Coatings GmbH, Beckers Group, Berger Paints India Limited, Diamond Vogel Paints, DuPont de Nemours, Inc., Hempel A/S, Jotun Group, Kansai Paint Co., Ltd., KCC Corporation, Nippon Paint Holdings Co., Ltd., NOROO Paint & Coatings Co., Ltd., PPG Industries, Inc., RPM International Inc., Shalimar Paints Ltd., Sherwin-Williams Company, Tikkurila Oyj, Yatu Advanced Materials Co., Ltd., Zhanchen Coating Co., Ltd., and Other Key Players.

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Key Trend: Integration of Sustainable and Bio-Based Paint Technologies

Sustainability has become a market trend dominating the automotive paints market with OEMs and paint manufacturing companies switching to eco-friendly low-VOC and bio-based formulations. The customers and governments are demanding low environmental footprints in the manufacture of automobiles. This has seen the increased use of waterborne, powder-based and high content of solid paints as opposed to the conventional heavy solvent-based paints.

In 2024, AkzoNobel introduced a bio-based automotive paint line based on renewable feedstock which was demonstrated to lead to a reduction in carbon emission by up to 25 percent compared to conventional paints. The new line is a part of the AkzoNobel series, Sikkens Autowave 2.0 Bio and is in compliance with the strict EU environmental standards in addition to offering durability and vibrancy of colors. The innovation emphasizes a change in the direction of balancing environmental responsibility and performance expectations by automotive OEMs and body shops.

Product development is being redefined through the adoption of sustainable and bio-based technologies, which places manufacturers in competitive positions in the environmentally-concerned markets.

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