South Korea Automotive OEM Coatings Market

South Korea Automotive OEM Coatings Market Analysis

The South Korea Automotive OEM Coatings Market is expected to register a CAGR of greater than 5% during the forecast period.

In South Korea, the market for automotive coatings has been going down over the past few years.During the COVID-19 pandemic, there was a big drop in the production of OEM coatings for cars.The country has yet to reach pre-pandemic levels of production.

• A big change in demand from traditional passenger vehicles to electric ones is one thing that is making the market grow. With more electric cars being made, the demand for automotive OEM coatings is expected to go up during the forecast period.
• Tough rules about how much VOC and other toxic chemicals can be in paints and coatings are slowing down the market.
• In response to the strict VOC rules set by the government, there has been more research and development (R&D) into making bio-based OEM coatings for sale. During the forecast period, the market that was looked at is expected to grow because bio-based coating technologies are getting better.

South Korea Automotive OEM Coatings Market Trends

Passenger Cars Are Expected To Drive The Automotive OEM Coatings Market

• Exterior coatings occupy the majority of the automotive OEM coatings market. The exterior coatings of vehicles include the body, bonnets, trims, and other exterior parts.
• Despite the various setbacks in the automotive industry, such as the semi-conductor shortage, high cost of raw materials, the coronavirus pandemic, energy and transport costs, and other such issues, automotive interiors are becoming the key to innovation in a vehicle.
• Passenger cars have the largest share of OEM coatings. The passenger car represents more than 90% of the automotive OEM production in the country.
• According to OICA, the overall passenger car production in the country was around 31,62,727 units in 2021 and has reached almost pre-pandemic levels. In 2020, total car production is expected to be around 32,11,706 units.
• South Korea's government has taken steps to boost the production of OEM coatings in the near future by putting more money into research and development and investing more in the automotive industry.

Solvent Borne Coatings to Dominate the South Korea Automotive OEM coatings market

• The solvent-borne automotive OEM coating is a liquid protective layer that is primarily composed of organic compounds and applied to a material's surface to prevent corrosion, chemical effects, and other external factors.
• Solvent-borne coatings are typically more resilient than water-borne coatings during the curing of the coating.
• Solvent-borne coatings are widely used in the automotive OEM coatings market owing to their properties such as high viscosity, low cost, and excellent performance.
• The solvent-borne coating is a two-component system that comprises solvent and paint. The major advantage of using this type of coating is that it can be applied by simply spreading it on the surface with no need for any equipment or machinery.
• However, in view of reducing the VOC content in OEM paints and coatings, many stringent laws have been passed by the regulatory bodies in order to protect the environment.
• Advances in water-borne coatings, usage of bio based raw materials etc. are some of the technologies which are being studied inorder to reduce the VOC content and also to get the desired results for coatings used in various automotive vehicles.
• Due to the stringent laws passed by the governing bodies in the country, water-borne OEM coatings are growing at a faster rate.

South Korea Automotive OEM Coatings Industry Overview

The South Korea Automotive OEM coatings market is consolidated in nature. Some of the key players (not in any particular order) in the market include Akzo Nobel N.V., Axalta Coating Systems, BASF SE, PPG Industries, and Kansai Paint Co., Ltd.

South Korea Automotive OEM Coatings Market Leaders

South Korea Automotive OEM Coatings Market News

The recent developments pertaining to the major players in the market are being covered in the complete study.