Automotive Paint Market Report 2026

The automotive paint market size has grown strongly in recent years. It will grow from $16.34 billion in 2025 to $17.17 billion in 2026 at a compound annual growth rate (CAGR) of 5.1%. The growth in the historic period can be attributed to growth in global vehicle production, demand for aesthetic vehicle finishes, corrosion protection requirements, expansion of automotive oem facilities, rise in aftermarket repainting.

The automotive paint market size is expected to see steady growth in the next few years. It will grow to $20.24 billion in 2030 at a compound annual growth rate (CAGR) of 4.2%. The growth in the forecast period can be attributed to electric vehicle production growth, stricter environmental coating regulations, demand for durable lightweight coatings, smart factory adoption, increasing vehicle customization. Major trends in the forecast period include rising adoption of waterborne automotive coatings, increasing demand for lightweight vehicle coatings, growing use of advanced clear coat technologies, expansion of powder coatings in vehicle manufacturing, focus on enhanced corrosion and uv protection.

The increasing vehicle production is expected to propel the automotive paint market going forward. Vehicle production involves the manufacturing of automobiles, from initial design and engineering to the final assembly of components into finished vehicles ready for distribution. This growth is driven by rising global demand for automobiles, expanding transportation infrastructure, and increasing urbanization. Automotive paint plays a vital role in vehicle manufacturing, offering aesthetic appeal, corrosion protection, brand differentiation, and manufacturing efficiency, all of which contribute to the overall quality and market success of automobiles. For example, in April 2024, the Serbian Association of Vehicle and Parts Importers reported that global vehicle production reached 93,546,599 units in 2023 - including 67,133,570 passenger vehicles - up from 84,830,376 units in 2022. Therefore, increasing vehicle production is driving the growth of the automotive paint market.

Major companies operating in the automotive paint market are developing technologically advanced solutions, such as integrated injection molding, to improve coating efficiency and support sustainability goals. Integrated injection molding combines the injection of thermoplastic resin and the application of a surface coating within the same mold cavity. For instance, in March 2025, Nippon Paint Automotive Coatings (NPAC) Co. Ltd., a Japan-based automotive coatings manufacturer, partnered with Uchihamakasei Corp., a Japan-based manufacturing company, to introduce next-generation in-mold coating (IMC) technology for automotive exterior components. This solvent-free coating system is integrated with thermoplastic injection molding to produce uniform, high-quality finishes directly within the mold. The IMC process delivers more than a 99% reduction in volatile organic compound (VOC) emissions, approximately 60% lower CO₂ emissions compared to traditional spray-painting processes, curing in under one minute, and precise replication of complex textures and patterns - making it ideal for sustainable automotive manufacturing and advanced exterior styling.

In July 2024, Axalta Coating Systems Ltd., a U.S.-based coatings company, acquired The CoverFlexx Group for an undisclosed amount. This acquisition supports Axalta’s strategy to expand its specialty coatings portfolio and strengthen its position in high-performance protective coating solutions. The CoverFlexx Group is a U.S.-based company known for advanced coating technologies for industrial and automotive applications, providing innovative products that enhance durability and performance in both protective and decorative coatings.

Major companies operating in the automotive paint market are BASF SE, Dow Chemical Company, 3M Company, Henkel AG And Co. KGaA, Sherwin-Williams Company, Covestro AG, PPG Industries, Akzo Nobel N.V., Eastman Chemical Company, Nippon Paint Holdings Co. Ltd., RPM International Inc., Clariant AG, KCC Corporation, Axalta Coating Systems Ltd., Cabot Corporation, Asian Paints Limited, Kansai Paint Co. Ltd., Hempel A/S, Berger Paints India Limited, Teknos Group, SK Kaken Co. Ltd., Yip's Chemical Holdings Limited, Matrix System Automotive Finishes, Cresta Paint Industries Ltd.

Asia-Pacific was the largest region in the automotive paint market in 2025. The regions covered in the automotive paint market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the automotive paint market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The automotive paint market consists of sales of touch-up paints, activators and catalysts, specialty coatings, and additives to facilitate color matching, curing, customization, and performance enhancement of vehicle coatings. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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