Automotive Gelcoat Market Size (2024 – 2030)

The Automotive Gelcoat Market was valued at USD 1,005.5 million in 2023 and is projected to reach a market size of USD 2,167.86 million by the end of 2030. Over the forecast period of 2024-2030, the market is estimated to grow at a CAGR of 11.6%. 

Gelcoat is a material that offers a high-quality finish on the surface of a fibre-reinforced composite. The most used gel coats are thermosetting polymers based on unsaturated polyester or epoxy resin. Gelcoats are advanced resins that are coated on molds in the liquid state.  Gelcoat provides unique features and properties such as resistance against water absorption, corrosion, U.V. degradation, blister, and crack. Gelcoat can be used in spray and brush form so that proper thickness can be laminated on the composite material to avoid damage. The Automotive Gelcoat Market is a thriving sector of the Global Coating Industry. The excess use of composites in industries such as Marine, Automotive and Construction is influencing the demand for Gelcoat as a protective and decorative coating.

Key Market Insights:

• The rising utilization of composites in industries such as Marine, Automotive and Construction is driving the demand for Gelcoat as a protective and Decorative Coating.

• The aesthetic appeal of Gelcoats, with their high-gloss and customizable finishes, is gaining traction in industries where visual appeal is a key consideration.

• Ongoing research and development efforts are leading to the development of Gelcoats with improved performance attributes, such as enhanced weatherability, reduced VOC emissions and quicker curing times.

Automotive Gelcoat Market Drivers:

• Rising demand for gelcoat in the Automotive and Transportation sector is fueling market growth: Rising demand for gelcoat from the Transportation and Automotive industry will probably drive the market's growth rate. The Automotive and Transportation sector holds the major share in the Gelcoat market. To follow with government guidelines and increase vehicle fuel efficiency, automakers are highlighting on manufacturing lightweight vehicles with composites to minimize carbon dioxide (co2) emissions, which adversely affect the global climate. Gelcoats are applied to enhance and maintain the aesthetic appeal of these composite components.

• Excess usage of Polyester Gelcoat propelling the growth for automotive gelcoats: Polyester Gelcoats have extensive usage across several sectors owing to the higher demand in Transportation and Marine industries. Polyester resin gelcoats have widespread usage in the Automotive industry because of their unique attributes and properties, such as water absorption, U.V. degradation and corrosion resistance. Therefore, growing demand for polyester gelcoats eventually influences the market's growth rate.

Automotive Gelcoat Market Restraints and Challenges:

Styrene is the commonly used monomer of polyester resin-based gelcoats, the excessive usage of styrene has been a major reason for worry for workers' protection and health. This makes the development of the market very difficult. Numerous countries' governments have imposed stringent rules and regulations to minimize styrene emissions from gelcoats and resins. This is ultimately lowering the market growth of the gelcoat during the predicted period.

Fluctuations in the cost of key raw materials utilised in Gelcoat production, such as resins and pigments, can pose challenges or hurdles for manufacturers in terms of cost control and profit margins.

Traditional Gelcoats often constitute volatile organic compounds and hazardous substances, resulting in environmental and health issues. This has led to higher regulations and a change towards eco-friendly Gelcoat formulations.

Automotive Gelcoat Market Opportunities:

Numerous Aerospace and Wind energy retailers are progressively using Gelcoats for better resistance to U.V. rays and fire. These are the key elements that determine the quality and life of the product. Resultantly, manufacturers are investing majorly in the development of the Gelcoats market. Gelcoat efficiently reduces the chances of damage to the coated component to prevent U.V. radiation and accidental fires and provides better durability to the product. With the remarkable growth of these end-use sectors worldwide, the market for Gelcoats is estimated to perform exceptionally well in the upcoming period.

The demand for customized Gelcoat solutions and specialized applications, like anti-slip coatings, fire-resistant coatings and antimicrobial coatings offers avenues for market growth and differentiation.

AUTOMOTIVE GELCOAT MARKET REPORT COVERAGE:

Automotive Gelcoat Market Segmentation: By Resin

• Polyester

• Vinyl Ester

• Epoxy

• Others

The polyester segment accounted for largest revenue share in the global gelcoat market due to the increasing use of polyester in the textile industry. High-end polyester fibres with good strength and fast and easy cleaning capabilities will have opportunities due to the rapidly shifting fashion trends and current living standards.

Fashion trends have been fuelled by growing economic levels and urbanization in a number of emerging countries. Additionally, rapid growth of the e-commerce sector is also assumed to drive revenue growth of this segment during the forecast period. Polyester provides a wide range of affordable products, speedy delivery options, easy free returns, and quality assurances.

The epoxy segment is estimated to register moderately fast revenue growth rate in the global gelcoat market during the forecast period. This is owing to rising demand from the paints and coatings sector and escalated construction investment, particularly in Western Europe and North America's residential buildings. Epoxy resin-based paints and coatings are utilised to cover the interior and external surfaces of commercial, residential, institutional, and industrial structures. The application of these paints and coatings improves aesthetic appeal of surfaces while also shielding them from UV radiation and high temperatures so these do not peel, fade, or break.

Automotive Gelcoat Market Segmentation: By Application Method

• Spray

• Brush

• Roller

The brush & roller segment is predicted to register steadily fast revenue growth rate in the global gelcoat market during the forecast period. This is owing to increasing use of Gelcoat serving as a protective and beautiful outer coating for hulls and frames of fiberglass and composite boats, playing a crucial role in the maritime industry. Gelcoat is a specialized coating substance that is significant for the production of fiberglass and composite materials. Furthermore, gelcoat is intended to create a smooth, long-lasting, and attractive surface finish on various composite constructions, including boats, recreational vehicles, and even some architectural components. The brush and roller technique enables superb control and accuracy. A brush enables careful detailing and guarantees that the gelcoat is coated uniformly and firmly clings to the contours of substrate.

Automotive Gelcoat Market Segmentation: By Region

• North America

• Asia-Pacific

• Europe

• South America

• Middle East and Africa

The Asia Pacific market is expected to account for largest revenue share in the Global Automotive Gelcoat market during the estimated period. This is due to increasing number of initiatives and developments in the shipbuilding industry. In addition, rising demand for Gelcoat in the building industry due to rapid expansion in the Automotive industry, particularly in China, is also expected to drive market revenue growth in this region during the expected period.

The North America market is predicted to register fastest revenue growth rate in the global gelcoat market over the forecast period due to rapid growth in Maritime and Transportation sectors. North America's robust economic base is growing demand for transportation services and is directly affected by economic growth. In addition, rising demand for movement of goods leading to rapid development in the Transportation sector, which includes shipping, trucking, and logistics is also expected to drive Automotive Gelcoat market revenue growth of this region during the estimated period.

COVID-19 Impact Analysis on the Automotive Gelcoat Market:

COVID-19 has adversely affected the demand for composites across various end-use industries such as Marine, Transportation, Automotive, Wind energy and construction, which intern reduced the consumption of Gelcoats. The disturbance in the supply chain resulting in delays or non-arrival of raw materials, disrupted financial flows and increasing absenteeism among production line workers have compelled Automobile makers to operate at zero or partial capacities. This is resulting in reduced demand for Gelocats.

Latest Trends:

• It is observed in Automotive Gelcoat market that there has been a shift towards environmentally friendly formulations. There is an upcoming trend towards eco-friendly gelcoats that have been minimized VOC emissions and comply with stringent environmental regulations.
•  Escalating customer demand for unique and tailor-made producs that are driving the trend of customized Gelcoat solutions, permitting manufacturers to differentiate themselves in the market.
• The industry is experiencing advancements in Gelcoat technology, including faster curing times, improved weatherability and enhanced application methods.

Key Players:

1. Akzo Nobel N.V. (Netherlands)

2. Ashland Inc. (U.S.)

3.  LyondellBasell Industries Holdings B.V (Netherlands)

4. 3M (U.S.)

5. Sika AG (Switzerland)

6. Bang & Bonsomer (Finland)

7. Sino Polymer Co. Ltd. (China)

8. Eastman Chemical Company (U.S.)

9. Hexion (U.S.)

10. Huntsman International LLC (U.S.)

11. BASF SE(Germany)

Recent Developments

• In June 2022, Scott Bader Australia Pty Ltd purchased the assets of Summit Composites Pty Ltd, distributing gelcoats, high-performance resins, and adhesives to the Australian market. This assists the company to maintain its long-term presence in the Australian composites market.

• In February 2022, The Polynt Group made it public that it would launch its fully-owned subsidiary, Polynt Composites Turkey. This expansion will assist the Company in increasing its gelcoat business in Turkey.