ID: MRFR/CnM/9315-HCR | February 2023 | Region: Global | 100 Pages
The Waterborne Coatings Market is expected to reach USD 83.37 billion by the end of 2028, registering a CAGR of 6.7% during the forecast period (2021–2028). The market was valued at USD 3.89 billion in 2020.
$83.37 Billion
6.7%
Asia-Pacific
2021-2028
The waterborne coatings market is expected to reach USD 83.37 billion by the end of 2028, registering a CAGR of 6.7% during the forecast period (2021–2028). The market was valued at USD 3.89 billion in 2020.
Waterborne coatings contain up to 80 percent of water to dissolve additives, resin, pigments, and resin to apply this mixture on the body surface of the material to be painted. These coatings are environmentally friendly and are used for an extensive range of applications such as protective coatings, coils, marine, and industrial wood. The high demand for waterborne coating from the automotive sector is owing to its low toxicity level nature, and growing adoption in several applications, including metal packaging and architectural applications, will augment the industry growth during the foreseeable period.
The global waterborne coatings market is facing a cascading repercussion caused by the imposition of lockdowns across the globe to decrease the spread of COVID-19. The pandemic has created numerous challenges for the manufacturers and suppliers of waterborne coatings, including disruption in the supply chain, halt in the manufacturing process, and persistent problems with the transportation and shipment of both raw materials and finished products of waterborne coatings. Several testing laboratories had been closed due to prevent the spread of coronavirus.
However, many manufacturing sites are currently working on low production capacities by enhancing various protocols of COVID-19 and adapting the ongoing challenges with innovation in product and process. Henceforth, the market is expected to overcome this situation by the end of 2022.
The key factor driving the growth of the global waterborne coatings market is the upsurge in demand for waterborne coatings in the automotive and marine industries. The growing demand for waterborne coatings in the automotive & transportation, and marine industry, is due to their excellent performance properties such as anti-sealing effects and non-yellowing film, high gloss, and rub resistance, which is expected to boost the global performance coating market over the forecast period.
Rising production and sales of automobiles across the globe on account of improving economic development are expected to fuel the demand for waterborne coatings during the review period. In recent years, automotive coatings have been considered one of the most important markets and play a crucial role in the automotive industry. Polyurethane coating is widely used as a high-performance overcoat binder for automotive applications. In the same line, epoxy coatings are also used as a primer on the layer beneath the overcoat due to their good adhesion and good corrosion resistance properties. Â
Furthermore, extensive use of acrylic coatings in the automotive, construction, medical and general industrial for a wide range of applications are expected to dominate the global waterborne coatings market.
The increasing prices of waterborne coatings and a weaker performance than solvent coatings are significant factors expected to restrain the global market growth during the assessment period. This is due to fluctuation in prices of raw materials used to manufacture waterborne coatings. Moreover, another factor hampering the growth of the global market is the formation of foam during the manufacturing process of waterborne technology, and this residual foam can be harmful to the environment.
Waterborne coating technology is allergic to humidity and dew points. Humidity and dew play a crucial role throughout the curing method of waterborne coatings. The growing relative humidity rate led to slow or can even stop the drying process of a waterborne coating. Exposure of the waterborne coating to high humidity or moisture before the coating has dried completely can also damage the paint film. Henceforth, this factor can act as a challenging factor for market growth during the forecast period.
The supply chain analysis is the process of comprehending the steps taken by the stakeholders involved in the manufacturing and distribution of waterborne coatings throughout the international market. The supply chain includes suppliers, producers, distributors, and end-use industries.
The key raw material used in the production of waterborne coatings is waterborne resin, synthetic resins, pigments, surfactants, additives, and fluoropolymers. The other raw materials include petrochemical products, and as a result, raw material prices vary.
The distribution channel in this market comprises distributors, wholesalers, and e-commerce merchants. Generally, the distributors are engaged in long-term sales agreements with producers and end-users. Ellsworth Adhesives, Imagineering Finishing Technologies, The Dowell Co., Inc., Aremco Products, Inc., Warren Paint & Color Co., and Key Resin Co. are some of the key distributors of waterborne coatings.
The introduction of e-commerce is the latest ongoing trend in the global market that offers on-door delivery and an inexpensive pricing edge. Third-party online platforms, such as Alibaba, India MART, and others, are involved in e-commerce.
By Application
The North American region is expected to boost the global waterborne coating market growth during the forecast period due to an upsurge in demand for lightweight components in the automotive and aerospace industries.
The competitive landscape offers an analysis of the key developments by the companies operating in the global market in the last three years. The global market for waterborne coatings is expected to witness the highest growth rate during the forecast period, owing to the increasing demand from the automotive industry. The global market represents strong numbers in terms of consumption. Leading players in this market are BASF SE (Germany), Sherwin-Williams Company (US), AkzoNobel N.V. (The Netherlands), PPG Industries Inc. (US), RPM International Inc. (US), Asian Paints Limited (India), Axalta Coating Systems LLC (US), Nippon Paint Holdings Co. Ltd (Japan), Kansai Paint Co. Ltd (Japan), Tikkurila OYJ (Finland), and Jotun Group (Norway).
Recent Developments
Report Attribute/Metric | Details |
---|---|
Market Size | 2028: USD 83.37 Billion |
CAGR | 6.7% CAGR (2021–2028) |
Base Year | 2020 |
Forecast Period | 2021-2028 |
Historical Data | 2019 |
Forecast Units | Value (USD Billion) |
Report Coverage | Revenue Forecast, Competitive Landscape, Growth Factors, and Trends |
Segments Covered | Type, Application, and Region |
Geographies Covered | North America, Europe, Asia-Pacific, and Rest of the World (RoW) |
Key Vendors | BASF SE (Germany), Sherwin-Williams Company (US), AkzoNobel N.V. (The Netherlands), PPG Industries Inc. (US), RPM International Inc. (US), Asian Paints Limited (India), Axalta Coating Systems LLC (US), Nippon Paint Holdings Co. Ltd (Japan), Kansai Paint Co. Ltd (Japan) Tikkurila OYJ (Finland), Jotun Group (Norway) |
Key Market Opportunities | Rising OEM manufacturer in Asia-Pacific region |
Key Market Drivers | Increasing Demand for waterborne coating in architectural application |
The global waterborne coatings market is estimated to be USD 83.37 billion by 2028.
The major factors contributing to the growth of the market are the increasing demand for waterborne coatings in the wood furniture industry and the growing adoption of waterborne coating in the marine industry.
Asia-Pacific holds the largest share in the global waterborne coatings market, followed by North America and Europe.
BASF SE, Sherwin-Williams Company, AkzoNobel N.V., PPG Industries Inc., RPM International Inc. are some of the key players in the waterborne coatings market.
Strategic initiatives such as mergers & acquisitions, collaborations, and technology/product launches are some of the strategies adopted by the players in the global waterborne coatings market to gain a larger competitive advantage.