OEM coatings are advanced technology coatings by producers of durable goods. These coatings function as protective coatings and offer decorative finish to the coated product. In terms of value, OEM coatings accounted for nearly 30% share of the global coatings market in 2016. The OEM coatings market has been expanding since the last few years. Products are shipped directly by the manufacturer to the customer without going through the typical distribution channels. Special purpose coatings are manufactured to meet the demand in niche end-uses such as automobile refinish coatings and marine coatings.
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OEM Coatings Market: Drivers and Restraints
A thin layer of OEM coating offers decorative finish, which augments the value of the coated product. The finished coating is considered one of the principal selling features of products such as wood furniture, automobiles, and electronic appliances. Protection from product deterioration and value addition characteristics are anticipated to drive the OEM coatings market during the forecast period. However, the additional functionality and decorative quality requirements are obligatory to meet environmental regulations. The principal regulations are associated with the discharge of VOC which are frequently supervised and constrained at plant sites. Additional criteria such as waste reduction, low fire hazards, and better effectiveness of coatings are also expected to be met. Hence, strict government regulations are anticipated to restrain the OEM coatings market during the next few years. The GDP of the economy and sales of vehicles are directly related; sales of vehicles increase with the improvement in GDP. Automotive OEM coatings have suffered from environmental pressures and has been improved from outdated low solids solvent systems.
OEM Coatings Market: Segmentation
Based on type, the OEM coatings market can be segmented into:
- Architectural Coatings
- Industrial OEM Coatings
- Powder Coatings
Architectural coatings are used in residential and commercial buildings. Industrial OEM coatings are particularly formulated for application during the manufacturing process. Products coated can be made of metal, wood, or plastic. OEM coatings are primarily used in order to offer protection of the substrate against other elements. These coatings also provide an enhanced finish to the final product. Substrates such as iron, steel, or wood are susceptible to depreciate if they are not sufficiently protected. A thin layer of OEM coating forms a barrier that protects it from deterioration.
OEM Coatings Market: Segmentation
Based on application, the OEM coatings market can be divided into:
- Wood/Non-wood Furniture
- Metal Building Finishes
- Paper & Paperboard
- Electrical Insulation
Automotive was the key application segment of the global OEM coatings market in terms of value and volume in 2016. Resins employed in the automotive application primarily include alkyds, urethanes, and epoxies.
OEM Coatings Market: Region-wise Outlook
Asia Pacific held the major share of the global OEM coatings market in 2016 due to the increase in demand from the automotive industry in the region. China and India are projected to contribute significantly to the development of the OEM coatings market in Asia Pacific. China also accounts for a large share of the global OEM coatings market in terms of production. North America is losing its share to Asia Pacific in the OEM coatings market, owing to the emergence of China as a low cost manufacturer of OEM coatings since the last few years.
OEM Coatings Market: Key Players
Key players operating in the OEM coatings market include:
- Akzo Nobel