Eco-Friendly Automotive Paint Global Market Report 2025

The eco-friendly automotive paint market size has grown steadily in recent years. It will grow from $2.57 billion in 2024 to $2.68 billion in 2025 at a compound annual growth rate (CAGR) of 4.3%. The growth in the historic period can be attributed to increasing environmental awareness, increasing investments in research and development, increasing urbanization, rising automotive production, and growing integration of bio-based polymers.

The eco-friendly automotive paint market size is expected to see strong growth in the next few years. It will grow to $3.3 billion in 2029 at a compound annual growth rate (CAGR) of 5.4%. The growth in the forecast period can be attributed to rise in government initiatives, rise in consumer preference for eco-friendly products, grow in sustainable raw material usage, an increasing focus on carbon neutrality, and increasing use of smart coatings. Major trends in the forecast period include technological innovations, decarbonization initiatives, emission-free paint booths, self-healing paints, and enhanced adhesion technology.

The forecast of 5.4% growth over the next five years reflects a modest reduction of 0.4% from the previous estimate for this market.This reduction is primarily due to the impact of tariffs between the US and other countries. This is likely to directly affect the US through tariffs on waterborne binders, sustainable pigments, and low-VOC additives imported from Europe and South Korea, increasing formulation costs for environmentally compliant coatings.The effect will also be felt more widely due to reciprocal tariffs and the negative effect on the global economy and trade due to increased trade tensions and restrictions.

The growing production of new vehicles is expected to drive the growth of the eco-friendly automotive paint market. As automakers increase manufacturing capacity to meet rising demand, improve efficiency, and integrate advanced technologies for enhanced performance and sustainability, the need for eco-friendly automotive paint becomes more critical. These paints help reduce harmful emissions, ensuring compliance with environmental regulations. Additionally, they contribute to manufacturing efficiency by offering faster drying times and more durable coatings, supporting sustainable automotive development. For example, in March 2025, the European Automobile Manufacturers' Association reported that global car sales reached 74.6 million units in 2024, a 2.5% increase from 2023. Consequently, the rise in vehicle production is driving the growth of the eco-friendly automotive paint market.

Companies in the eco-friendly automotive paint market are focusing on innovative solutions, including paint repair services, to maintain their competitive edge. These services utilize sustainable materials and low-VOC formulations, which help minimize waste and emissions. For instance, in April 2024, Nippon Paint Holdings Co. Ltd., a Japan-based paint manufacturer, introduced Mastercraft, an automotive body and paint repair service brand in India. Mastercraft incorporates sustainability by using eco-friendly materials, energy-efficient systems, and advanced technologies. It has earned recognition as the world’s first carbon-neutral body shop, setting a new standard for environmental, social, and governance (ESG) leadership in the automotive refinish industry. This initiative aims to provide high-performance automotive repair services while maintaining a strong commitment to environmental responsibility.

In July 2023, Dürr Group, a Germany-based engineering and technology company, collaborated with Mercedes-Benz to advance sustainable vehicle painting. This partnership focuses on implementing CO₂-free technology in vehicle painting, reducing energy consumption per painted car body to less than 400 kWh, and eliminating fossil fuel usage. Instead, the process relies entirely on green electricity to promote sustainability and decarbonization in automotive production. Mercedes-Benz, a leading German luxury vehicle manufacturer, specializes in high-end vehicles and advanced mobility solutions.

Eco-friendly automotive paint is a sustainable coating solution designed to reduce environmental impact by minimizing volatile organic compounds (VOCs), hazardous air pollutants (HAPs), and carbon emissions during the vehicle painting process. These coatings help reduce emissions, hazardous chemicals, and waste while maintaining durability, efficiency, and compliance with environmental regulations.

The primary resin types used in eco-friendly automotive paint include acrylic, epoxy, and polyurethane. Acrylic is a resin known for its excellent ultraviolet (UV) resistance, quick drying times, and durability. These paints offer a glossy finish, enhanced weather resistance, and low VOC emissions, making them ideal for sustainable vehicle coatings. These paints are applied using methods such as brush and roller coatings, dip coatings, and spray coatings, and are used by automotive original equipment manufacturers (OEMs) and automotive refinishers.

Note that the outlook for this market is being affected by rapid changes in trade relations and tariffs globally. The report will be updated prior to delivery to reflect the latest status, including revised forecasts and quantified impact analysis. The report’s Recommendations and Conclusions sections will be updated to give strategies for entities dealing with the fast-moving international environment.

The sharp rise in U.S. tariffs and ensuing trade tensions in spring 2025 are placing significant strain on the transport sector, especially in areas such as fleet maintenance and logistics. Increased duties on imported commercial vehicles, tires, and engine parts have driven up operating costs for trucking and freight firms, forcing them to either raise shipping rates or accept lower profit margins. Airlines and maritime operators are also under pressure, as tariffs on aircraft components and shipbuilding materials have pushed capital expenditures higher. Meanwhile, retaliatory tariffs in key export markets have weakened demand for U.S.-manufactured transportation equipment, further squeezing revenues. To cope, the industry is turning to fuel efficiency measures, alternative supply sources, and greater automation to manage rising costs while maintaining dependable service.

The eco-friendly automotive paint market research report is one of a series of new reports that provides eco-friendly automotive paint market statistics, including eco-friendly automotive paint industry global market size, regional shares, competitors with a eco-friendly automotive paint market share, detailed eco-friendly automotive paint market segments, market trends and opportunities, and any further data you may need to thrive in the eco-friendly automotive paint industry. This eco-friendly automotive paint market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

Major players in the eco-friendly automotive paint market are Toyota Motor Corporation, Bayerische Motoren Werke GmbH, BASF SE, Nissan Motor Co. Ltd., 3M Company, Sherwin-Williams Company, Pittsburgh Plate Glass Company, Solvay S.A., Akzo Nobel N.V., Nippon Paint Holdings Co. Ltd, Kumkang Korea Chemicals Co. Ltd., Axalta Coating Systems Ltd., Dürr Group, Kansai Paint, Valspar Corporation, Jotun, PPG Asian Paints Pvt Ltd, Tikkurilan Väritehtaat Oy, Sybon, and The Eastwood Company.

North America was the largest region in the eco-friendly automotive paint market in 2024. The regions covered in eco-friendly automotive paint report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa.

The countries covered in the eco-friendly automotive paint market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The eco-friendly automotive paint market consists of sales of water-based automotive paints, powder coatings, self-healing paints, recyclable automotive coatings, and electrocoating (e-coat) primers. 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 and 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.

This product will be delivered within 1-3 business days.