The global car scratch remover market is estimated to be valued at US$ 19.14 Bn in 2023 and is expected to exhibit a CAGR of 6.7% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Opportunity:
Growing Automotive Aftermarket
The market opportunity lies in the growing automotive aftermarket industry. The automotive aftermarket industry involves repair, replacement, and maintenance of existing vehicles. As vehicles age, the likelihood of minor scratches and abrasions increases. The expanding vehicle parc across regions is driving the need for repair and appearance enhancement products like car scratch removers. According to various industry estimates, the global automotive aftermarket was valued at over US$ 375 Bn in 2020 and is projected to reach US$ 500 Bn by 2025, growing at a CAGR of over 5%. This increasing size of the aftermarket industry presents a major opportunity for car scratch remover manufacturers to target independent garages and car owners with cost-effective DIY scratch and swirl removal solutions.
Porter's Analysis
Threat of new entrants: The threat of new entrants in the car scratch remover market is moderate as there is significant capital requirement to manufacture scratch removal products and established distribution channels. However, new players can enter by offering specialized and innovative products.
Bargaining power of buyers: The bargaining power of buyers is high in the car scratch remover market. Buyers can easily switch between different brands depending on price and quality.
Bargaining power of suppliers: The bargaining power of suppliers is moderate. Being a fragmented market, there are numerous suppliers of raw materials for car scratch removers like compounds and polymers.
Threat of new substitutes: The threat of new substitutes is low. There are limited substitute products for car scratch removers that can restore damaged car paint effectively.
Competitive rivalry: The competitive rivalry is high among existing players to increase their market share through competitive pricing and differentiated product offerings.
SWOT Analysis
Strengths: Strong distribution network of major players. Growing automotive industry boosting product demand.
Weaknesses: Dependency on raw material price volatility. Intense competition leads to pricing pressures.
Opportunities: Potential in emerging markets. Innovation in organic and eco-friendly products.
Threats: Strong bargaining power of buyers. Rising preference for used cars impacting new car sales.
Key Takeaways
Global Car Scratch Remover Market Growth is expected to witness high growth on account of rising vehicle ownership and increasing repair and maintenance expenditure.
Regional Analysis: The Asia Pacific region is expected to grow at the fastest pace during the forecast period backed by surging vehicle production in China and India. Additionally, improving economic conditions and expanding middle-class population in developing Asian countries will augment the demand for car scratch removers in the coming years.
Key players operating in the car scratch remover market are GrainPro Inc., PackFreshUSA, ShieldPro Flexible Packaging, SorbentSystems, IMPAK Corporation, Green Storage Ltd., LPS Industries LLC, Seal King Europe B.V., TPB Plastech Limited, Integra Packaging. These companies are focusing on new product launches and enhancing their distribution channels to strengthen market position.
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