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European Auto Paint Additives Market to Reach €159.8 Mn in 2017, Predicts Frost & Sullivan

Published on 2012-10-05. Author : SpecialChem

LONDON -- The mature European automotive paint additives market is being driven mainly by new technology and product innovation. Sizeable R&D investments are aimed at developing competitively priced, high performance additives that meet legislative requirements.

New analysis from Frost & Sullivan, Strategic Analysis of the European Automotive Paint Additives Market, finds that the market earned revenues of €104.2 million in 2011 and estimates this to reach €159.8 million in 2017. Rheology modifiers, surfactants, foam-control agents, driers and catalysts and preservatives are the product segments covered in the research.

Limits on volatile organic chemicals (VOC) content and Registration, Evaluation, Authorisation and Restriction of Chemical substances (REACH) have provided opportunities for innovation and ushered new technology trends in the additives industry. Such trends have resulted in the development of novel products like zero-VOC additives, multifunctional additives and self-healing additives.

"The implementation of laws and regulations on VOC limits has triggered the shift from solvent-based to water-based coatings, promoting market prospects," noted Frost & Sullivan Research Analyst Elamuhil Pari. "Although water-based coatings are generally low in VOC, they require a greater quantity of additives to achieve the properties of good quality paint, thereby boosting the demand for additives."

Amidst overall optimism, pricing pressures remain an area of concern. Paints account for only 2-3 per cent of the total investments in automotive manufacture. Car manufacturers are, consequently, willing to pay only a very low price for automotive paints.

"Paint manufacturers are under constant pressure to reduce their prices," explained Pari. "This pressure, in turn, is passed onto additive manufacturers, as additives are added only in very small quantities, resulting in low revenue generation."

Vendors are expected to sell additives along with resins, pigments and topcoats as an integrated package to facilitate paint chemistry for automobile OEMs. Innovative products that offer a balance between quality, cost, optimal usage and environment-friendliness are also anticipated to increase the chances of price rise in this market.

"Paint additive manufacturers have to innovate and adapt quickly to changing technologies like nano-technology and smart-coating formulations to stay ahead of the competition," concluded Pari.

Strategic Analysis of the European Automotive Paint Additives Market is part of the Chemicals & Materials Growth Partnership Service programme, which also includes research in the following markets: Strategic Analysis of European Automotive Lubricants Additives Market. All research included in subscriptions provide detailed market opportunities and industry trends that have been evaluated following extensive interviews with market participants.

About Frost & Sullivan

Frost & Sullivan, the Growth Partnership Company, works in collaboration with clients to leverage visionary innovation that addresses the global challenges and related growth opportunities that will make or break today's market participants. Their "Growth Partnership" supports clients by addressing these opportunities and incorporating two key elements driving visionary innovation: The Integrated Value Proposition and The Partnership Infrastructure. The Integrated Value Proposition provides support to their clients throughout all phases of their journey to visionary innovation including: research, analysis, strategy, vision, innovation and implementation. The Partnership Infrastructure is entirely unique as it constructs the foundation upon which visionary innovation becomes possible. This includes their 360 degree research, comprehensive industry coverage, career best practices as well as their global footprint of more than 40 offices. For more than 50 years, they have been developing growth strategies for the global 1000, emerging businesses, the public sector and the investment community.

Source: Frost & Sullivan

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