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Aligned with the pace of eased COVID-19 restrictions, there is an expected ongoing demand improvement in auto refinish coatings market.
October 11, 2021
By: KERRY PIANOFORTE
Editor, Coatings World
As people start to resume normal work and travel activity, the automotive refinish market has witnessed growth compared to last year’s performance. One effect of the COVID-19 pandemic was a serious decrease in the amount of vehicles on the road. As the world begins to open back up there are more vehicles on the road and unfortunately, more traffic accidents. The increasing number of automotive accidents and collisions will stimulate the refinish market. This month’s feature article examines the state of the global automotive refinish market. Key players from AkzoNobel, Axalta, BASF and PPG offer their expert insight on the state of this important market and what the future has in store. More Traffic, More Accidents According to Patricia Morschel, vice president, marketing and commercial operations, Global Refinish for Axalta, the auto refinish business experienced solid sequential recovery in the first half of the year as a result of the continued global traffic recovery. “While net sales within our refinish business are increasing, volumes remain below pre-pandemic levels due to variability in miles driven. We continue to expect ongoing demand improvement in refinish for the remainder of 2021 aligned with the pace of eased restrictions, as well as vaccinations and post-lockdown travel recovery globally.” “While rush hour traffic remains down, this is the first time the market has seen an increase in gas consumption and miles driven since the pandemic began,” said Joel Johnson, vice president, Automotive Refinish Coatings for BASF. “This increase in miles driven is also what continues to drive the number of claims. The pandemic required shops to digitalize business processes in order to keep customers and employees safe. Those efforts have helped carry them through this difficult time and shown even greater performance while supporting the market’s continued recovery. Growth Predicted for Refinish Market Researchandmarkets.com reported that the global automotive refinish coatings market reached a value of $9.4 billion in 2020. Looking forward analysts predict the market to grow at a CAGR of approximatley 4% during 2021-2026. Analysts caution that the uncertainties of COVID-19 could continue to impact this market.
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