Automotive Appearance Chemicals Market Share & Trends [2032]

Report Description

Automotive Appearance Chemicals Market Outlook 2031

The global automotive appearance chemicals market size was USD 30.97 Bn in 2023 and is likely to reach USD 45.9 Bn by 2032, expanding at a CAGR of 4.7% during 2024–2032. The growth of the market is attributed to the rising demand for appearance-enhancement products for passenger and commercial vehicles.

The rapidly growing automotive industry drives the demand for automotive appearance chemical chemicals. For instance, In 2022, global car sales were around USD 67.2 Mn and are expected to increase during the projected period.

Get Free Sample Report

The rising trend of automotive owners maintaining their vehicles independently boosted the demand for appearance chemicals, such as polishes, waxes, and soaps. Polishes and waxes provide a long-lasting shine to the vehicle’s exterior. The regular use of automotive appearance chemicals, significantly impact a vehicle’s resale value. Moreover, interior cleansers and protectants are essential for preserving the interior components of a vehicle. They help maintain the quality of materials, prevent fading, and protect against stains.

Increasing usage of high-quality appearance chemicals during the manufacturing process enhances the overall look and feel of the vehicles. Automotive manufacturers are using high-end appearance chemicals to differentiate their products in a competitive market. Unique formulations that offer superior protection, durability, and shine can become a selling point and attract customers.

The COVID-19 pandemic hindered the global automotive appearance chemicals market due to reduced demand for appearance chemicals. The COVID-19 pandemic disrupted the automotive industry and the demand for products and services associated with automobiles. During the pandemic, the manufacturing of automotive appearance chemicals was either on hold or postponed due to strict government lockdowns imposed by governments across the globe to reduce the spread of the virus. Strict regulations on imports and exports across the globe majorly affected the market.

Automotive Appearance Chemicals Market Dynamics

Get Free Sample Report

Drivers

Increasing popularity of appearance chemicals is driving the market. Automotive appearance chemicals are crucial to maintaining the vehicles. These chemicals not only improve surface attributes, such as beauty but also increase the resistance to scratches and corrosion. Car owners are adopting various appearance products, such as waxes and soaps.

Restraints

High health risks associated with the process of applying automotive appearance chemicals hampers the market. Some chemicals used in automotive appearance products pose health risks, especially if users are directly exposed to them frequently in high concentrations. Without any safety guidelines and protective measures, one can get skin diseases and allergies while applying these chemicals.

Opportunities

Rising R&D activities by leading automotive manufacturing companies to manufacture advanced appearance chemical products are expected to create lucrative opportunities in the market in the coming years. Major automotive companies in the market are heavily investing in research to develop products to improve the performance of the vehicles. For instance,

• In March 2023, Turtle Wax, a leader in the overall car care category, announced the launch of its new innovative product line – Streak-Free Mist, which is comprised of five interior and exterior products that give consumers a quick, effective, and easy solution to auto detailing.

Scope of the Automotive Appearance Chemicals Market Report

The market report includes an assessment of the market, trends, segments, and regional markets. Overview and dynamics have also been included in the report.

Market Segment Insights

Product Type Segment Analysis

Based on product type, the automotive appearance chemicals market is divided into windshield washer fluids, coatings, car wax, polishes, and soaps. The car wax segment is expected to expand at a significant pace during the projection period, owing to increasing demand for high-end automotive waxes for a premium look for an automotive.

Passenger vehicle owners are increasingly preferring premium automotive waxes, as they provide a protective layer that shields the car’s paints from environmental elements, such as UV rays. It helps to maintain the vehicle’s aesthetic appeal, resale value, and shine of the car. Moreover, manufacturers are promoting the use of car waxes as a protective layer for the longevity of the vehicle. This is expected to boost the segment.

Get Free Sample Report

Vehicle Type Segment Analysis

On the basis of vehicle type, the global market is segregated into passenger cars, light commercial vehicles, and heavy commercial vehicles. The passenger vehicles segment holds a major share of the market, as the demand for appearance chemicals is increasing awareness among passenger vehicle owners to maintain their vehicles.

The need for maintenance for passenger cars is comparatively higher than the light and heavy commercial vehicles and appearance chemical products such as coatings, wax, and polishes are some of the products that help in the maintenance. Moreover, the growing trend of personalized and customized products and passenger vehicle owners are inclined toward maintaining vehicles on their own. This is expected to boost the sales of appearance chemicals in the coming years.

Get Free Sample Report

Sales Channel Segment Analysis

Based on sales channel, the automotive appearance chemicals market is segmented into OEMs and aftermarkets. The OEM segment is expected to register a robust growth during the forecast period, owing to increasing consumer preference for OEM products as they offer premium quality and have better lifespan than other products. OEM products have manufacturer warranty and durability, which makes them ideal to use for longer duration. Vehicle owners are increasingly adopting OEMs for guaranteed quality products at competent prices. Moreover, these products are licensed and per the industry standards.

The aftermarket segment is projected to register a considerable CAGR during the forecast period. The segment growth is attributed to the increasing demand for aftermarket automotive parts, as these are cost-effective and widely available. Aftermarket companies competing in the market are offering extended warranties on automotive appearance chemical products. The rapidly growing aftermarket automotive market is another factor for the segment growth.

• According to a recent data, the automotive aftermarket industry is projected to grow by around 3% annually and is expected to reach EUR 1200 billion by 2030.

Growing preference for aftermarket automotive products by heavy commercial vehicle owners over OMEs creates favorable opportunities for the segment. Automotive products necessary to maintain heavy commercial vehicles are usually expensive, especially the OEM ones. This is one of the major factors heavy commercial vehicle owners prefer aftermarket products, as these are cost-effective and have the same durability as OEM ones. Aftermarket products are customizable as well, which is ideal for vehicle owners who have very specific needs for their vehicles.

Regional Analysis

In terms of region, the global automotive appearance chemicals market is classified as Asia Pacific, North America, Latin America, Europe, and Middle East & Africa. Asia Pacific dominates the market owing to the rapidly growing automotive industry in the region, especially in China. For instance,

• According to the International Trade Administration, China continues to be the world’s largest vehicle market by annual sales and manufacturing output, as domestic production is expected to reach 35 million vehicles by 2025.
• Based on data from the Ministry of Industry and Information Technology, over 26 million vehicles were sold in China during 2021, including 21.48 million passenger vehicles, an increase of 7.1% from 2020. Commercial vehicle sales reached 4.79 million units, down 6.6% from 2020.

The rapidly growing automotive aftermarket in the region is driving the demand for automotive appearance chemicals. Vehicle owners in the region are inclined to purchase automotive products from aftermarkets rather than OEMs due to the wide availability and cost-effectiveness. This is creating a new market trend and lucrative opportunities for the market players to capture major market share during the projected period.

Get Free Sample Report