Water Based Coating Market Expected to Reach $110.9 Billion by 2032—Allied Market Research

According to a new report published by Allied Market Research, titled, “Water Based Coating Market," The water based coating market was valued at $68.7 billion in 2022, and is estimated to reach $110.9 billion by 2032, growing at a CAGR of 5.1% from 2023 to 2032.

Waterborne coatings utilize water as a solvent to disperse a resin, consequently making these coatings eco-friendly and easy to be applied. In most cases, waterborne coatings contain up to 80% water with small quantities of other solvents, such as glycol ethers. These coatings are also distinguished to be environment-friendly as the U.S. and European regulations require waterborne coatings to have a VOC content of fewer than 3.5 pounds per gallon of water. Several types of waterborne coatings that are available in the market include water-soluble paints, water-dispersible paints or colloidal, and emulsions/latex.

Water-based coatings are ideal primers due to their excellent resistance to heat and abrasion, rendering exceptional adhesion. Moreover, they have low toxicity and flammability as they contain low levels of VOCs (Volatile Organic Compounds) and HAP (Hazardous Air Pollutants) emissions. Moreover, it assists in reducing air emissions. In most cases, these coatings cost less than solvent-borne coatings and require no additives, thinners, or hardeners. As compared to solvent-borne coatings, less coating is required to cover the same surface area and much more.

Waterborne coatings are available for various application such as in copiers, fax machines, printers, typewriters, computers, and the automotive sector. It is applicable as a quick-release coating for interiors of coal cars, fly ash hoppers, plastic pellet hoppers, refuse containers, and trucks, filled with PE or Teflon extenders. It is also used to coat porous materials such as paper or leather. Emulsion waterborne paints are widely used in the architectural market sector and as printing inks.

The water-based coatings are used primarily in construction activities for waterproofing, damp proofing, crack filling, plaster additive, screed compound, and others. Rise in demand for better physical infrastructures and increasing need for housing along with the higher rate of population growth are expected to drive the growth of the market. The booming construction industry and high adoption of water-based coating in commercial, as well as industrial infrastructure, are the leading reasons that have boosted the growth of the water-based coating market. In the automotive industry, water-based coatings provide high-quality finishing and durability. Waterborne coatings for vehicle coatings have been suggested by the California Air Resources

Board (ARB) as a way to reduce VOC emissions. Along with its non-toxic nature, government rules favoring eco-friendly items should improve product demand. Surge in automobile manufacturing in the North America market offers ample opportunities for expansion.

An inconsistent VOC regulation regarding water-based coatings might further hinder the growth of the market. The majority of laws aim to reduce VOC emissions from coatings. REACH and LEED GreenSeal GC-03 2nd Ed. regulations specify the VOC concentration of coatings in grams per liter (g/L). As a result of these requirements, marine coatings manufacturers are under pressure to reduce the VOC levels while still seeking to improve or maintain coating quality and performance.

The water-based coatings market growth in Asia-Pacific is driven by foreign investments and a booming manufacturing sector due to low labor costs and easily accessible raw materials. Architectural coatings demand is expected to rise as the region’s middle-class population grows and living conditions improve. The rise in environmental friendliness, as well as government investment initiatives in infrastructure and industrial sectors in India and China, is expected to be the primary driver of the Asia-Pacific water-based coatings market.

Furthermore, in rapidly developing countries like India and China, the fast-growing population helps to boost the residential building industry, which influences the market. Increased foreign direct investment is expected to boost the market growth as well. All of these reasons drive the growth of the water-borne coatings market.

The water-based coating market is segmented on the basis of resin type, end-user industry, and region. On the basis of resin type, the market is classified into acrylic, epoxy, polyurethane, polyester, alkyd, and other. On the basis of end-user industry, the market is divided into building and construction, automotive, industrial, wood, and other. On the basis of region, the market is analyzed across North America, Europe, Asia-Pacific, and LAMEA.

The key players operating in the water-based coating market are AkzoNobel N.V., Arkema, Asian Paints, BASF SE, Benjamin Moore & Co., Hempel A/S, Jotun, PPG Industries, Inc., Sika AG, and Teknos Group. These players have adopted various key strategies including expansion, agreement, and acquisition to increase their market share. These players have adopted various key strategies including agreement, collaboration, expansion, and partnership to increase their market shares.

Key Findings Of The Study:

• Asia-Pacific is projected to grow at the highest CAGR, in terms of revenue, during the forecast period.
• By resin type, the acrylic segment is anticipated to grow with CAGR 5.3%, in terms of revenue, during the forecast period.
• By application, the buildings and construction segment is anticipated to grow with CAGR 5.2%, in terms of revenue, during the forecast period.