Waterborne Coatings Market Size And Segment By Type (Acrylic, Polyurethane, Epoxy, Alkyd, Polyester, PTFE, PVDC, PVDF, Others), By Application (Architectural, General Industrial, Automotive OEM, Metal Packaging, Protective Coatings, Automotive Refinish, Industrial Wood, Marine, Coil, Others), And By Regions | Global Market Forecast 2024-2031

Waterborne Coatings Market Report Scope & Overview:

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The Waterborne Coatings Market Size was valued at USD 61.05 billion in 2023 and is expected to reach USD 93.65 billion by 2031 and grow at a CAGR of 5.5% over the forecast period 2024-2031.

Waterborne coatings, with their significantly lower VOC content, offer a compliant and eco-friendly alternative. This factor is particularly important in regions with stricter environmental regulations, such as Europe and North America. Waterborne coatings are increasingly recognized for their performance capabilities. Advancements in waterborne coating technology have narrowed the gap between them and solvent-borne alternatives. Modern waterborne coatings can achieve excellent durability, adhesion, and resistance properties, making them suitable for a wider range of applications.

Furthermore, ongoing research and development in this field are leading to the creation of next-generation waterborne coatings with even better performance characteristics. This focus on innovation ensures waterborne coatings remain competitive and attractive to a broader market. Sherwin-Williams' SHER-WOOD EA Hydroplus waterborne coating serves as a example of the advancements and benefits driving the waterborne coatings market. This high-quality, self-sealing acrylic system boasts performance characteristics rivaling solvent-borne solutions, according to the company. It offers outstanding film hardness and chemical resistance, meeting the demanding requirements of professional finishers. Available in both clear and pigmented finishes, SHER-WOOD EA Hydroplus provides exceptional versatility for manufacturers in the kitchen cabinet, furniture, and building products sectors.

Market Dynamics:

KEY DRIVERS:  

• New technologies are enhanced performance with environmental responsibility.

Advancements in technology are transforming these coatings into performance champions. Gone are the days of waterborne options being seen as the lesser choice. Today, cutting-edge formulas boast impressive features like extended pot life (usable time after mixing), remarkable flexibility, and the ever-critical low VOC content. This focus on performance, coupled with a growing awareness of these benefits in emerging economies, is propelling the market forward. Manufacturers are playing a crucial role by actively educating these new markets about the environmental advantages and impressive capabilities of waterborne coatings. This perfect storm of technological breakthroughs and heightened awareness is creating a dynamic landscape for the waterborne coatings industry.

RESTRAIN:

• High costs due to raw materials, complex systems, and R&D limit wider adoption of waterborne coatings despite their environmental benefits.

A cost cloud hangs over the waterborne coatings market. While these coatings boast environmental benefits, their price tag can be a barrier to wider adoption. Compared to traditional alternatives like epoxy and polyurethane, waterborne options often cost more due to several factors. the raw materials themselves tend to be pricier. The waterborne coating systems require additional investments in setup and maintenance compared to their solvent-borne counterparts. The manufacturers need to dedicate significant resources to research and development to create high-performance waterborne coatings. The need for a skilled workforce during application can further inflate costs.

OPPORTUNITY: 

• Infrastructure Investment Propels Waterborne Coatings in Emerging Economies.

These economies are experiencing significant investments in infrastructure development and other long-term projects, fueling a surge in demand for construction materials. The construction spending in emerging markets is projected to grow at a rate exceeding that of North America and Western Europe. This rapid expansion presents a significant opportunity for resin and waterborne coating manufacturers. The Asia Pacific region, particularly China and India, is at the forefront of this growth, with these markets creating substantial demand for these products. This confluence of factors positions emerging economies as a key driver for the future of the waterborne coatings market

CHALLENGES:

• Regulatory Compliance in the Waterborne Coatings Market.

IMPACT OF RUSSIA UKRAINE WAR

The impact of Russia-Ukraine has majorly affected the waterborne coatings market. Raw material shortages, spiking energy prices, and disrupted distribution channels due to the war can all lead to higher production costs and potential price hikes. Consumer confidence and spending might also dip, impacting demand. The Manufacturers might diversify suppliers, innovate with formulations, or leverage the environmental benefits of waterborne coatings to navigate these challenges and ensure long-term market resilience.

KEY MARKET SEGMENTS

By Type

• Acrylic

• Polyurethane

• Epoxy

• Alkyd

• Polyester

• PTFE

• PVDC

• PVDF

• Others

The acrylic sub-segment dominated the industry with the highest revenue share of 84% in 2023 by type. Growing demand from infrastructure and automotive industries regarding glossy color retention in outdoor exposure is anticipated to propel the demand for acrylic waterborne coatings. The demand for acrylic resin-based coatings will likely grow substantially over the foreseeable future owing to increasing applications in radiation curing and electrodeposition. Growing demand in the transportation industry for aircraft, autos, ships, railroads, and truck refinishes is expected to drive the demand for Polyurethane (PU) coatings. They are widely used owing to properties, such as abrasion resistance, toughness, and chemical & weather resistance. Stringent government regulations regarding reducing VOC emissions and consistent odors along with shifting consumer preference towards waterborne coatings over their solvent-borne counterparts is expected to remain a major factor driving product demand.

By Application

• Architectural

• General Industrial

• Automotive OEM

• Metal Packaging

• Protective Coatings

• Automotive Refinish

• Industrial Wood

• Marine

• Coil

• Others  

The architectural sub-segment dominates the  waterborne coatings market in 2023, capturing a staggering 88% share. Increase in stringent VOC regulations and a construction boom in developing economies fueled by rising disposable incomes. However, the market landscape extends beyond the walls of buildings. The growing adoption of acrylic-based coatings in industrial applications signifies a promising diversification trend. Furthermore, innovative new offerings like insulation and sound-damping coatings hint at exciting growth prospects across the entire waterborne coatings market, underscoring its potential to cater to a wider range of applications

Regional Analysis:

Europe region is dominant in the waterborne coatings market, holding over 40% of the global revenue pie in 2023. This dominance can be attributed to two key factors, a strong presence of major automobile manufacturers and a growing consumer preference for luxury goods. These factors translate to a surge in demand for waterborne coatings used in both original equipment manufacturing (OEM) and refinishing work for cars. However, Asia Pacific region the highest growth in construction spending, particularly in emerging economies like China, India, and Indonesia. This construction boom will propel the waterborne coatings market in Asia Pacific. Residential and commercial buildings are a major focus area, creating a vast canvas for waterborne coatings across the region.

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REGIONAL COVERAGE:

North America

• US

• Canada

• Mexico

Europe

• Eastern Europe

  • Poland

  • Romania

  • Hungary

  • Turkey

  • Rest of Eastern Europe

• Western Europe

  • Germany

  • France

  • UK

  • Italy

  • Spain

  • Netherlands

  • Switzerland

  • Austria

  • Rest of Western Europe

Asia Pacific

• China

• India

• Japan

• South Korea

• Vietnam

• Singapore

• Australia

• Rest of Asia Pacific

Middle East & Africa

• Middle East

  • UAE

  • Egypt

  • Saudi Arabia

  • Qatar

  • Rest of Middle East

• Africa

  • Nigeria

  • South Africa

  • Rest of Africa

Latin America

• Brazil

• Argentina

• Colombia

• Rest of Latin America   

Key Players:

Some of the major players in the Waterborne Coatings Market are AkzoNobel NV,  BASF SE, Axalta Coating Systems LLC, Berger Paints India Ltd., Kansai Paint Co., Nippon Paint Holdings Co. Ltd, PPG Industries Inc., RPM International Inc., Sherwin-Williams Company, The Valspar Corp.,  Tikkurila Oyj, and other players.

RECENT DEVELOPMENTS

• In May 2023: AkzoNobel NV company's Coatings business is making waves with its new AccelstyleTM line. These coatings, designed for the outside of aluminum beverage cans, are the first to be free of bisphenols, styrene, and PFAS. This eco-friendly launch follows their success with AccelshieldTM 700, the first BPA-free internal coating for can ends, compliant with both US and EU regulations.

• In May 2024: Axalta, a major coatings company, has joined forces with Solera, a leader in vehicle lifecycle management. This partnership integrates Axalta's paint systems with Solera's platform, allowing body shops to estimate their carbon footprint per repair. This considers factors like chosen repair methods, paint application, and drying conditions.