Global Automotive Chemicals Market by Product Type (Material Plastics, Lubricants, Coatings, Adhesives and Maintenance Chemicals), End-Use (Two-Wheelers, Passenger Cars, Light Commercial Vehicles and Heavy Commercial Vehicles), and Distribution Channel (Aftermarket and Original Equipment Manufacturers (OEMs), and by Region - Global and Regional Industry Overview, Market Intelligence, Comprehensive Analysis, Historical Data, and Forecasts 2022-2030

Industry Prospective

The global Automotive Chemicals market size was worth around USD 2.12 Billion in 2021 and is predicted to grow around USD 3.97 Billion by 2030 with a compound annual growth rate of roughly 8.1% between 2022 and 2030. The report analyzes the global automotive chemicals market's drivers, restraints/challenges, and the effect they have on the demands during the projection period. In addition, the report explores emerging opportunities in the automotive chemicals market.

Global Automotive Chemicals Market: Overview

Automotive chemicals are utilized in numerous car parts and components. Chemicals used in the automotive industry include lubricants, coatings, adhesives, and maintenance chemicals. Global automobile manufacturing has a significant impact on these chemicals. Chemicals for the automotive industry improve vehicle economy and diminish the layer of wear and tear. These compounds are used to produce motor oils and transmission fluids.

Lubricants are an alternative term for automotive chemicals. Lubricants are typically used in transmission components, braking systems and engine components. Several vehicles' fuels, airbags, films, batteries, coolants, and insulation are enhanced by automotive chemicals. The plastic components play an important role in the manufacturing of vehicles.

The expanding automotive industry in the developing nations and the rising demand for aesthetic enhancement products used in automobiles are anticipated to drive product demand over the forecast period. Additionally, the primary end-users of enhancement goods are luxury cars and sport utility vehicles.

Chemicals such as waxes and polishes are used to give these automobiles a brand-new appearance and increase their luster. Protectants and cleansers are used to keep automobiles in good condition. The market is mostly driven by the desire for classic and luxury vehicles, which require significant upkeep.

Utilization of the items for car maintenance and repair is growing widespread. Several kinds of products manufactured by industry leaders are valuable to various end-use sectors. This has contributed to an increase in product demand during the past few years.

The increased demand for the product is a result of the expanding automobile sector. Also, these aesthetic compounds are essential to the maintenance of cars and the products enhance the gloss and brightness, as well as the durability of automobiles. In addition, they preserve and preserve aesthetic attractiveness. Consequently, their demand is anticipated to rise during the predicted period.

The market for automotive chemicals is expected to be driven by an increase in the production of passenger cars such as hatchbacks, electric vehicles, and SUVs during the forecast period. Demand for passenger automobiles is primarily driven by the expansion of the automotive sector, which is a result of rising consumer disposable income.

This is likely to stimulate the market for automotive chemicals throughout the forecast period. In the coming years, the market for eco-friendly automotive chemicals is anticipated to be fueled by an increase in the demand for low-cost vehicles as a result of a greater awareness of carbon footprint reduction.

Key Insights

• As per the analysis shared by our analyst team, the global automotive chemicals market is estimated to grow annually at a CAGR of around 8.1% over the forecast period (2022-2030).
• In terms of revenue, the global automotive chemicals market size was valued at around USD 2.12 Billion in 2021 and is projected to reach USD 3.97 Billion, by 2030. Due to a variety of driving factors, the market is predicted to rise at a significant rate
• Based on product type segmentation, the lubricants were predicted to show maximum market share in the year 2021
• Based on end-use segmentation, the light commercial vehicles segment was the leading revenue-generating product type in 2021
• Based on distribution channel segmentation, the aftermarket was projected to show largest share in the year 2021
• On the basis of region, North America was the leading revenue generator in 2021 

COVID-19 Impact

The emergence of the COVID-19 pandemic has a significant influence on the worldwide automotive chemicals market. The global COVID-19 pandemic epidemic has had a substantial influence on the market for automobile appearance compounds. Given the widespread travel restrictions and stay-at-home (lockdown) scenarios, road traffic and automobile usage were substantially restricted throughout the majority of 2020.

This resulted in subdued end-user demand and pushed the global year-over-year growth of automotive aesthetic chemicals into negative territory. A significant decline in the volume of automobile production also contributed to the demand side crisis.

Nonetheless, as a result of government measures and immunization campaigns performed on a war footing in numerous nations, the situation improved in the second half of 2021, with demand climbing steadily. The market is anticipated to fully recover by the end of 2022.

Growing Automotive Industry in Developing Countries Propelling the Market Growth

The global demand for automotive chemicals has been heavily influenced by the trends and growth patterns of the automotive industry, which serves as a barometer for a country's economy through influencing consumer earnings and expenditure on vehicles. The rapid speed of economic activities in rising economies such as China, India, and Brazil has contributed to the expansion of the automotive chemicals market in these regions by increasing the demand for automobiles.

Increasing Consumer Awareness Regarding Vehicle Maintenance & Repair Augmenting the Market Growth

Demand for eco-friendly alternatives is on the rise due to a greater understanding of the harmful impacts of toxic products on the environment and human health. As consumers become more aware of their health and environmental protection duties, manufacturers are compelled to develop sustainable and environmentally friendly automobile appearance chemicals.

Recent Development

October 2022- BASF and Hannong Chemicals have planned to establish a joint venture in Asia Pacific for the commercial manufacture of non-ionic surfactants.

June 2022- LIQUI MOLY launched gear oil for Tesla and fuel cell coolant for electric vehicles.

Regional Landscape

Europe is Dominating the Market Share of Automotive Chemicals Market

Europe is dominating the market share of global automotive chemicals market owing to the increased purchasing power and the presence of major players such as Audi, BMW, and Mercedes Benz. Several policies favoring on the regional manufacturing of chemicals for the automotive industry. During the projected period, the market for automotive chemicals in Europe is anticipated to be bolstered by the prominence of premium automakers who utilize automotive chemicals extensively, has resulted in substantial development in the region. 

Competitive Landscape

PPG Industries, 3M, BASF SE, LIQUI MOLY GmbH, ITW Global Brands, Tetrosyl Ltd., Valvoline Inc., Energizer Holdings Inc., Chevron Corporation, Kao Corporation, Jax Wax Inc, SONAX GmbH, Malco Products Inc, Koch-Chemie GmbH, Exxon Mobil Corporation, The Darent Wax Company Ltd., Mothers Polishes Wax Cleaners, CRC Industries, Shell, British Petroleum, Turtle Wax, Inc., amongst others.

The global Automotive Chemicals market is segmented as follows:

By Product Type

• Material Plastics
• Lubricants
• Coatings
• Adhesives
• Maintenance Chemicals

By End-Use

• Two-Wheelers
• Passenger Cars
• Light Commercial Vehicles
• Heavy Commercial Vehicles
• By Distribution Channel
• Aftermarket
• Original Equipment Manufacturers (OEMs)

By Region

• North America
  • The U.S.
  • Canada
  • Mexico
  • Rest of North America
• Europe
  • France
  • The UK
  • Spain
  • Germany
  • Italy
  • Nordic countries
    • Denmark
    • Finland
    • Iceland
    • Sweden
    • Norway
  • Benelux Reunion
    • Belgium
    • The Netherlands
    • Luxembourg
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • New Zealand
  • Australia
  • South Korea
  • Southeast Asia
    • Indonesia
    • Thailand
    • Malaysia
    • Singapore
    • Rest of Southeast Asia
  • Rest of Southeast Asia
• The Middle East & Africa
  • Saudi Arabia
  • UAE
  • Egypt
  • Kuwait
  • South Africa
  • Rest of the Middle East & Africa
• Latin America
• Brazil
• Argentina
• Rest of Latin America