|
|
 |
|
Viewing report
|
|
|
|
Brazilian Automotive Paints and Coatings Market
Frost & Sullivan, Aug 2011, Pages: 85
Higher Incomes Spikes Car Sales in the Brazilian Automotive Paints and Coatings Market
New OEM Colors Induce Refinish Sales
Although the Brazilian automotive paints and coatings market is well established, it remains in the growth stage, with a medium-growth market age. Steady economic growth in the country has enabled rising income levels as well as increased credit availability, which will boost car sales in the next few years. Higher car sales have stimulated the automotive paints and coatings market for OEM as well as refinish paints. The total automotive paints and coatings market generated $505.7 million in revenue, in 2010. The market is poised to grow at a compound annual growth rate (CAGR) of 6.5 percent, from 2010 to 2017. This growth will be higher than the expected GDP growth (4.0-5.0 percent), in the country for the same period, according to official sources, such as the Brazilian Institute of Statistics. “As OEM paints and coatings producers launch new colors for car models, refinish paints and coatings producers, in turn, create corresponding refinish paints,” notes the analyst of this research service. “Therefore, new OEM colors have helped participants in the refinish paints and coatings market to expand their product portfolios.”
The automotive paints and coatings market, particularly the refinish paints and coatings segment is large and extremely fragmented. This fragmented market hinders producers from contacting end users and body shops for after-sale service, which consumers value. The fragmented market and the lack of regulation encourage informality in the industry. Informal participants flood the market because the process of producing paints does not require major capital investment and expertise. These small participants offer extremely low-quality, inexpensive paints that do not match regulatory standards. The existence of low-quality products further intensifies competition and dents revenue. In the OEM paints and coatings segment, four major multinationals hold sway over the market, leaving no room for smaller paint producers. In this segment, the sale of new cars is the main driver. As the end users are the automakers, this segment has become extremely concentrated. Other issues restraining market progression are low supply of raw materials, low production capacity, and the lack of a qualified workforce.
Improving product quality, performance, and productivity is vital for strong business traction. For example, investing in fast-drying paints would prove beneficial as fast-drying paints expedite productivity in body shops. “To ensure successful business outcomes in this landscape, participants must ramp up investments in R&D and roll out innovative products to meet evolving end-user requirements,” says the analyst. “Apart from product innovations, market participants should research new types of renewable, environment-friendly raw materials.”
Market Sectors
Expert Frost & Sullivan analysts thoroughly examine the following market sectors in this research:
- Refinish paints and coatings
- OEM paints and coatings
This Frost & Sullivan research service titled Brazilian Automotive Paints and Coatings Market provides an in-depth analysis of the market drivers and restraints, industry trends, and the competitive environment, in addition to the challenges faced by market participants. In this research, Frost & Sullivan’s expert analysts thoroughly examine the refinish paints and coatings and OEM paints and coatings segments.
Product samples
A sample for this product is available. Please Login/Register to download this sample.
|
|
|
|
