Waterborne Coatings Market Summary
As per MRFR Analysis, the global waterborne coatings market was valued at USD 54.3 Billion in 2023 and is projected to reach USD 91.24 Billion by 2032, growing at a CAGR of 4.71% from 2024 to 2032. Key drivers include the rising demand for eco-friendly coatings, government support due to VOC emissions, and increased vehicle production in emerging economies. The market is witnessing significant technological advancements, particularly in formulation and application, which enhance performance and reduce VOC content. The architectural segment leads in revenue generation, while the industrial segment is the fastest-growing due to increased demand in harsh environments. North America holds the largest market share, driven by reconstruction activities and regulatory support for low-VOC products.
Key Market Trends & Highlights
The waterborne coatings market is experiencing notable trends driven by technology and regulatory changes.
- Market size in 2023: USD 54.3 Billion.
- Projected market size by 2032: USD 91.24 Billion.
- Architectural applications account for 70.4% of market revenue.
- Acrylic segment dominates with 35% market share.
Market Size & Forecast
2023 Market Size: USD 54.3 Billion
2024 Market Size: USD 63.13 Billion
2032 Market Size: USD 91.24 Billion
CAGR (2024-2032): 4.71%
Largest Regional Market Share in 2024: North America.
Major Players
Key players include BASF SE, Sherwin-Williams Company, AkzoNobel N.V., PPG Industries Inc., and RPM International Inc.
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Waterborne Coatings Market Trends
The development of new technologies is driving the market growth
Market CAGR for waterborne coatings is being driven by the development of new technologies. As waterborne coating technology continues to develop. The growing awareness in emerging countries about the benefits and performance features of waterborne coatings contributes to market growth. The advancement includes longer pot life, flexibility, and low VOC content. Technological developments in the formulation of these products have also occurred over a continuous period. Some crucial technologies in this aspect include emulsion & suspension polymerization, polyurethane dispersions, insoluble aqueous polymer dispersions, alkyd emulsions, and soluble & partially soluble polymers.
Moreover, increased enforcement of personal health & safety and environmental regulations and rising sustainability practices would increase demand for waterborne coatings in the transportation and automotive sector. Stringent regulations by the EPA regarding the usage of VOCs are shifting the preferences of automotive manufacturers from solvent-based coatings to waterborne coatings, as a typical waterborne base coat is composed of about 70% water (and 20% solids) and 10% solvent. Waterborne coatings reduce emissions of VOCs and improve air quality, which further helps reduce the health risks of factory workers.
Additionally, there is an increase in demand from automobile applications, owing to which the coating manufacturers are investing in research & development to decrease manufacturing costs and, thus, the price of their coatings. Operators working in automobile OEM & refinishing firms are anticipated to follow compliance to switch from solvent-borne to waterborne coatings systems. Conventional solvent-borne coatings contain around 84% VOC content and 16% solids. Typical waterborne coatings contain around 70% water, 20% solids, and 10% solvent. Waterborne coatings for automobile applications contain fewer VOCs, which decreases health-related risks. The product is utilized for multiple hues & stripping has an advantage as they utilize a less clear coat to even out the surface for different layers.
The rising demand for better physical infrastructures, the increasing need for housing, and the higher population growth rate likely drive the market's growth. The booming construction industry and high adoption of water-based coating in commercial and industrial infrastructure are the leading reasons that have boosted the waterborne coating market revenue growth. The construction sector is anticipated to grow significantly in the coming years. 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. Increased automobile manufacturing in the North American market provides plenty of room for expansion.
Waterborne Coatings Market Segment Insights
Waterborne Coatings Type Insights
The waterborne coatings market segmentation, based on type, includes acrylic, polyester, alkyd, epoxy, polyurethane, PTFE, PVDC, and others. The acrylic segment dominated the market, accounting for 35% of market revenue (19.00 Billion). In developing economies, category growth is driven by growing demand from infrastructure and automotive industries due to glossy color retention in outdoor exposure. However, epoxy is the fastest-growing category due to increasing demand for low-odor epoxy resin-based coatings in the transportation industry and DIY flooring applications.
Waterborne Coatings Applications Insights
The waterborne coatings market segmentation, based on applications, includes architectural {residential [new construction, and remodel & repaint], and non-residential}, and industrial {automotive, general industrial, protective, wood, marine, packaging, coil, and others}. The architectural category generated the most income (70.4%) due to increased reconstruction and building activities in developing countries is projected to drive demand for waterborne coatings. These are increasingly utilized as decorative coatings in architectural applications such as window frames, doors, wood varnishes, trims, and interior & exterior walls. However, industrial is the fastest-growing category as coatings are applied to big industrial buildings exposed to harsh environmental conditions, such as those utilized in oil and gas, chemical, textile, and other industries. Corrosion can be slowed down by applying a performance coating to different oil and gas sector components.
Figure 1: Waterborne Coatings Market, by Applications, 2022 & 2032 (USD Billion)
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Waterborne Coatings Regional Insights
By region, the study provides market insights into North America, Europe, Asia-Pacific and the Rest of the World. The North American waterborne coatings market area will dominate, owing to increased reconstruction and building activities in developing countries. Waterborne coatings are increasingly being applied as decorative coatings in buildings on wood flooring, furniture, sculptures, and wall paintings will boost the market growth in this region. Further, the US waterborne coatings market held the largest market share, and the Canada waterborne coatings market was the fastest growing market in the North American region.
Further, the major countries studied in the market report are The US, Canada, German, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.
Figure 2: WATERBORNE COATINGS MARKET SHARE BY REGION 2022 (USD Billion)
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Europe's waterborne coatings market accounts for the second-largest market share due to the presence of stringent government regulations regarding the emission of VOCs is projected to increase the application of waterborne coatings across various end-use industries. Further, the German waterborne coatings market held the largest market share, and the UK waterborne coatings market was the fastest-growing market in the European region.
The Asia-Pacific waterborne coatings market is expected to grow at the fastest CAGR from 2023 to 2032. This is due to increasing construction spending for developing residential and commercial buildings. Moreover, China’s waterborne coatings market held the largest market share, and the Indian waterborne coatings market was the fastest-growing market in the Asia-Pacific region.
Waterborne Coatings Key Market Players & Competitive Insights
Leading market players are investing heavily in research and development to expand their product lines, which will help the waterborne coatings market grow even more. Market participants are also undertaking numerous strategic activities to expand their footprint, with important market developments including new product launches, contractual agreements, higher investments, mergers and acquisitions, and collaboration with other organizations. To expand and survive in a more competitive and rising market climate, the waterborne coatings industry must offer cost-effective items.
Manufacturing locally to minimize operational costs is one of the key business tactics manufacturers use in the waterborne coatings industry to benefit clients and increase the market sector. Major players in the waterborne coatings market, including BASF SE (Germany), Sherwin-Williams Company (US), AkzoNobel N.V. (The Netherlands), PPG Industries Inc. (US), RPM International Inc. (US), and others, are attempting to increase market demand by investing in research and development operations.
BASF SE is a chemical company. It produces, markets, and sells chemicals, plastics, crop protection products, and performance products. Its product line comprises solvents, adhesives, surfactants, fuel additives, electronic chemicals, pigments, paints, food additives, fungicides, and herbicides. The company serves various industries, including construction, furniture and wood, agriculture, electronics and electrical, paints and coatings, automotive, home care, nutrition, chemicals, etc. BASF carries out R&D in alliance with customers, scientists and partners. The firm operates through a network of manufacturing facilities across the world. In March 2022, BASF enhanced its Automotive Coatings application center at Coatings Technology Center in India. This enhancement covers 400 square meters of floor area, equipped with various types of equipment, including electrostatic rotary bell applicators and others. This expansion would assist the company in designing and developing innovative solutions for automotive coatings.
Sherwin-Williams Co manufactures, and markets paints, coatings and associated products. It supplies stains, equipment and floor covering products, architectural paints, coatings, and varnishes. The company sells its products to professional, industrial, retail and commercial customers. Sherwin-Williams markets its products under various brands, including Sherwin-Williams, Dutch Boy, Krylon, Minwax, and Thompson's Water Seal. It markets and distributes the products through its stores, facilities, merchandisers, independent paint dealers, hardware stores, home centers, automotive retailers, and industrial distributors. In February 2022, The Sherwin-Williams firm signed an agreement with the state of North Carolina and the city of Statesville to enhance its architectural paint and coatings manufacturing capacity. This includes the 36,000-square- foot extension, the addition of four recent rail spurs, and the construction of an 800,000-square-foot allotment and fleet transportation center.
Key Companies in the Waterborne Coatings market include
- AkzoNobel N.V. (The Netherlands)
- Sherwin-Williams Company (US)
- RPM International Inc. (US)
- Nippon Paint Holdings Co. Ltd (Japan)
- Kansai Paint Co. Ltd (Japan)
Waterborne Coatings Industry Developments
May 2022: DIC Corporation's fully owned subsidiary Ideal Chemi Plast produced a new coating resins facility, which is situated in the Indian state of Maharashtra. The plant is being built in the state's Supa industrial region.
August 2019: AkzoNobel N.V., a paints and coatings provider, acquired Mapaero, a U.S.-based paints provider. This acquisition is expected to strengthen AkzoNobel's aerospace coatings business.
May 2019: PPG Industries, a supplier of paints and coatings, launched the 'PPG MACHINECOAT WB' (waterborne) weathering stain, indicated for new commercial cedar shingles.
Waterborne Coatings Market Segmentation
Waterborne Coatings Type Outlook
Waterborne Coatings Application Outlook
Waterborne Coatings Regional Outlook
| Report Attribute/Metric |
Details |
| Market Size 2023 |
USD 54.3 Billion |
| Market Size 2024 |
USD 63.13 Billion |
| Market Size 2032 |
USD 91.24 Billion |
| Compound Annual Growth Rate (CAGR) |
4.71% (2024-2032) |
| Base Year |
2023 |
| Market Forecast Period |
2024-2032 |
| Historical Data |
2018- 2022 |
| Market Forecast Units |
Value (USD Billion) |
| Report Coverage |
Revenue Forecast, Market Competitive Landscape, Growth Factors, and Trends |
| Segments Covered |
Type, Application, and Region |
| Geographies Covered |
North America, Europe, Asia Pacific, and the Rest of the World |
| Countries Covered |
The US, Canada, German, France, UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil |
| Key Companies Profiled |
BASF SE (Germany), Sherwin-Williams Company (US), AkzoNobel N.V. (The Netherlands), Asian Paints Limited (India), PPG Industries Inc. (US), RPM International Inc. (US), Axalta Coating Systems LLC (US), Nippon Paint Holdings Co. Ltd (Japan), Kansai Paint Co. Ltd (Japan), Tikkurila OYJ (Finland), and Jotun Group (Norway). |
| Key Market Opportunities |
Rise in the environmental guidelines thriving the need for VOC-free coatings. |
| Key Market Dynamics |
The increase in the demand for waterborne coatings by replacing solvent-borne coatings used in construction activities |
Waterborne Coatings Market Highlights:
Frequently Asked Questions (FAQ) :
The waterborne coatings market size was valued at USD 54.3 Billion in 2023.
The waterborne coatings market is projected to grow at a CAGR of 4.71% during the forecast period, 2024-2032.
North America had the largest share in the waterborne coatings market.
The key players in the waterborne coatings market are BASF SE (Germany), Sherwin-Williams Company (US), AkzoNobel N.V. (The Netherlands), PPG Industries Inc. (US), Asian Paints Limited (India), RPM International Inc. (US), Axalta Coating Systems LLC (US), Nippon Paint Holdings Co. Ltd (Japan).
The acrylic category dominated the waterborne coatings market in 2023.
The architectural had the largest share in the waterborne coatings market.
