Deutsch (Germany) 
Polski (PL) The waterborne coatings industry is focused on producing coatings, and finishes that primarily utilize water as a solvent instead of traditional petroleum-based chemicals. These coatings find extensive use across architectural, automotive, industrial, and packaging applications. Waterborne coatings offer several advantages over solvent-based alternatives.
They emit fewer volatile organic compounds (VOCs), making them environmentally friendly and safer for workers. Additionally, they typically have faster drying times, reduced odor, and easier cleanup, making them more convenient to use. In recent years, there has been a growing emphasis on sustainability and environmental responsibility, leading to increased demand for waterborne coatings. This trend is further supported by regulatory initiatives aimed at reducing VOC emissions and promoting eco-friendly alternatives. The waterborne coatings industry continues to innovate, developing new formulations and technologies to enhance performance, durability, and application efficiency. As sustainability becomes increasingly important in consumer preferences and regulatory requirements, the market for waterborne coatings is expected to expand further. ASIA PACIFIC IS THE LARGEST AND FASTEST-GROWING MARKET IN THE WATER-BORNE COATINGS The market for waterborne coatings is projected to grow from USD 103.0 billion in 2022 to USD 140.0 billion by 2030, at a CAGR of 3.9%, during the forecast period.
There is high demand for water borne coatings in the emerging markets of Asia Pacific due to different levels of economic development and multiple industries. Economic development is mainly attributed to the high growth rate and significant investments across automotive, consumer goods & appliances, building & construction, and furniture industries. It is one of the fastest-growing regions based on the production and demand for waterborne coatings. While the selection of polymer technology may differ based on the end-use market segment and, to some degree, the country of application, it's evident that the Asia-Pacific (APAC) region is increasingly moving away from traditional solvent-based coatings towards high solids, waterborne, powder coatings, and energy-cure systems.
Environment-friendly characteristics, durability, and better aesthetic appearance drive consumption in various applications. New construction activities, repainting, and growing investment in emerging markets are the key factors providing market players with growth opportunities. However, the adoption of new technologies and volatility in titanium dioxide prices are the major challenges for market players.
Figure: Global Waterborne Coatings Market, By Region, 2021-2030
ACRYLIC RESIN IS AMONG THE LARGEST SEGMENT OF RESINS USED IN WATER-BORNE COATINGS
Acrylic resin (AR) coatings stand out as among the most prevalent choices in today's coating landscape. These coatings are single-component substances, specifically pre-formed acrylic polymers dissolved in solvents for surface application. Waterborne acrylic resins represent eco-friendly alternatives that diminish both odor and solvent usage in painting. While waterborne resins are commonly employed in decorative coatings, manufacturers have also engineered emulsion and dispersion-type waterborne resins, primarily for industrial sectors such as consumer electronics, automotive, and construction machinery. Acrylic is the most widely used resin due to its strength, stiffness, excellent solvent resistance, flexibility, impact resistance, and hardness. It improves surface properties such as appearance, adhesion, and wetting and provides resistance to corrosion and scratching. Leveraging its proficiency in monomer integration, acrylic resins has applied its expertise to craft waterborne acrylic binders tailored for both interior and exterior applications. These binders are founded on diverse technologies including dispersion polymers, solution polymers, and post-emulsified polymers.
With increase in the environmental laws and regulations waterborne acrylic resin has become a product with rapid development and mature application in all waterborne coatings due to its excellent performance. In order enhance the overall properties of acrylic resin and expand its range of applications, diverse polymerization methods and advanced processes are employed to modify acrylate. These modifications aim to address specific challenges, foster the growth of waterborne acrylic resin products, and imbue them with superior characteristics. Moving forward, there is a continued need for the advancement of waterborne acrylic resin towards achieving high performance, multifunctionality, and environmentally friendly attributes.
Table: Acrylic Resins segment accounts for larger share in the Waterborne Coatings Market globally
|
CHINA AND INDIA ARE LEADING THE GROWTH OF WATER BASED COATINGS MARKETS GLOBALLY.
The Asia Pacific coatings market is witnessing high growth and is expected to continue because of the growth of residential, non-residential and industrial sectors. The Asia Pacific encompasses a diverse range of economies with different levels of economic development and multiple industries. Development is mainly attributed to the high economic growth rate. The key leading players are expanding their waterborne coatings production in Asia, especially in China and India.
For instance, global companies are shifting their production bases to Asian countries due to high demand and lower production costs positively influencing the market growth. The leading producers control a major share of the global market. International brands such as BASF, Axalta, and AkzoNobel currently hold significant share over China's waterborne coating market. Furthermore, these prominent global entities are actively expanding their waterborne coating capacities in China to bolster their competitive edge further. In June 2022, AkzoNobel has invested in a new production line in China to boost the capacity for supplying sustainable products. The coating industry in China is expected to expand due to increased focus on low-VOC products, energy conservation and emission reduction.
The Government of India has undertaken the "Make in India" initiative to help its industries grow. This initiative focuses on 25 sectors, including automobiles, aerospace, railway, chemical, defense, manufacturing, and packaging. The growth in the automotive industry is supported by rapid urbanization & industrialization, an increase in the spending capacity of individuals and low labor costs. The expansion of major automakers in the nation, as well as increased building and construction activity, including a few very cash-intensive projects, have resulted in rapid economic growth in recent years. The government is investing in infrastructure projects through Foreign Direct Investment (FDI), which is projected to expand the industrial waterborne coatings industry.
Figure: Asia Pacific, the most prominent waterborne coatings market in 2022
|
Table: Asia Pacific Waterborne Coatings Market, By Resin Type, 2022-2027 (USD Million)
Table: Asia Pacific Waterborne Coatings Market, By Resin Type, 2028-2030 (USD Million)
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
ENVIRONMENTAL REGULATIONS AND THE SHIFT TOWARD WATERBORNE TECHNOLOGY ARE DRIVING THE MARKET
The market continues to demonstrate high demand for environmental sustainable coatings based on ecological raw ingredients. Waterborne coatings have grown more popular due to a growing focus on sustainability and stricter VOC regulations. The introduction of new rules and rigorous regulations, including initiatives like the Eco-product Certification Scheme (ECS) by the European Commission and other governmental bodies, underscores a commitment to fostering a green and sustainable environment with minimal or zero harmful VOC emissions. Government regulations in the US and Western Europe, particularly those targeting air pollution, are expected to drive continued adoption of new, low-polluting coating technologies. In response to these trends, waterborne coatings have gained popularity as VOC-free and lead-free solutions, particularly in mature economies like Western Europe and the US.
The increasing awareness of the benefits of these eco-friendly paints is driving their demand across industrial, residential, and nonresidential construction sectors. The need for improved waterborne coating performance and durability is driving advancements in resin and additive technologies. Waterborne coatings protect and enhance the substrate, contributing to sustainability goals. This reduces raw material consumption while maintaining the substrate and producing new coatings. Although waterborne coatings are widely utilized, there are still technological problems to address, such as improving durability.
CHALLENGES FOR WATERBORNE COATINGS
The waterborne coating market is a highly competitive and have certain strengths, several challenges and opportunities. Waterborne films encounter difficulty creating a strong barrier and repelling water due to the hydrophilic properties of the resins and dispersants utilized. Additives, surfactants, and pigments can influence hydrophilicity. To reduce blistering and decrease durability, it's crucial to control the hydrophilic qualities of waterborne coatings to prevent excessive water absorption by the "dry" film. At the other extreme, high heat and low humidity cause rapid removal of water, particularly in low-VOC formulations, affecting the coating's workability and application quality. Improper substrate preparation can cause "flash rust" or "flash corrosion" in waterborne coatings. If a surface is wet for a long time before painting, a waterborne system may cause "flash rust" on the metal substrate.
Microbes like mold and mildew can grow in watery environments. Antimicrobial chemicals are commonly used to extend the shelf life and lifespan of dry films. Maintaining the stability and quality of waterborne coatings requires appropriate handling, storage, and application of fungicides and biocides in formulations.
