The global water based coating market was valued at $68.7 billion in 2022, and is projected to reach $110.9 billion by 2032, growing at a CAGR of 5.1% from 2023 to 2032.
The term water-based coating refers to any surface coating or finish that uses water as a solvent to distribute the resin provided to it to form the coating. These are made of water, pigments, resins, additives, and occasionally a small amount of co-solvents. The water evaporates when the water-based coating is applied to a surface, leaving a film of pigments and resins that adheres to the substrate. Water-based coatings are frequently utilized in interior and exterior applications, such as painting for residential and commercial buildings, refinishing for cars, finishing for furniture, and for industrial applications.
Water-based coatings are employed more often across a range of industries due to their enhanced performance, lower volatile organic compound (VOC) content, and ecological sustainability leading to the growth of the market. These are becoming increasingly common in the packaging sector as it surpasses traditional solvent-based coatings in many crucial areas, making them the choice for many packaging applications. Water-based coatings can be applied to various materials for packaging, including paper, cardboard, corrugated board, and flexible films. Gravure coating, flexographic printing, and roller coating are just a few of the techniques that can be used to apply them. Many manufacturers are providing water-based coating products that are used in the packaging sector. For instance, H.B. Fuller Company offers water-based functional barrier coatings that are a novel solution for improved recyclability of a wide range of paper-based packaging. These water-based barrier coatings on packaging produce more fiber during the repulping process than PE coatings generate. As a result, the paper recycling stream is more usable, superior fibers. In addition, water-based coatings are less harmful to the environment than solvent-based coatings since they contain fewer VOCs and no chemicals at all. This reduces air pollution and its negative effects on the ozone layer.
Water-based coatings enhance the visual appeal of packaging materials by adding vibrant colors and precise designs due to their great printability. They also produce excellent print results by adhering well to a range of surfaces. These coatings can be designed to have a variety of specialized properties, including resistance to abrasion, scratching, and water. This ensures the longevity and durability of the packaging by protecting the contents while being stored and transported. Some of the major players are promoting their water-based coatings for the packaging industry. For instance, in August 2022, BASF SE and Nippon Paint China, a leading coatings manufacturer, jointly launched an eco-friendly industrial packaging. The innovative packaging material is commercialized for Nippon Paint's construction dry mortar products using BASF's water-based acrylic dispersion Joncryl High-Performance Barrier (HPB) as the barrier material. It is the first time BASF’s water-based barrier coatings will be used in industrial packaging in China. Owing to these factors, the wide usage of water-based coatings in the packaging sector boosted the market’s growth.
The surge in infrastructural development drives the growth of the water-based coating market. More than 2,500 global infrastructure projects were announced in 2020, up 5.5 percent from the previous year. Water-based coatings have gained popularity for many interior and architectural applications in both residential and commercial projects because of several advantages. It is frequently used in residential applications to paint walls, ceilings, and wooden surfaces. As a result of their low VOC content, the indoor air quality is improved, lowering health risks for residents, and promoting a more beneficial living environment. These coatings also offer a wide range of colors and finishes, enhancing the aesthetics of living spaces. Some of the manufacturers offer water-based coating solutions that are used in the construction sector. For instance, ICA SpA offers the Iridea range of water-based interior coatings, which are ideally comparable to solvent-based polyurethane coatings in terms of their chemical/physical characteristics and aesthetic appearance.
Water-based coatings are also employed for interior and exterior applications in commercial structures. They are used to paint furniture, walls, and partitions in interior areas to give them a pleasant shiny appearance. Commercial places are more welcoming when there are pleasant smells to put employees and customers in. Due to their compatibility with green building standards like LEED (Leadership in Energy and Environmental Design), water-based coatings also support sustainability and green building projects.
A significant increase in the need for coatings that offer protection, durability, and aesthetic enhancement is being led on by government expenditures on the construction and renovation of buildings, roads, bridges, and other infrastructure. The construction or renovation of pipelines, reservoirs, and water and wastewater treatment facilities are also included in infrastructure development. These buildings require water-based coatings that prevent corrosion, control leaks, and maintain the purity of the water. The coatings protect water infrastructure against microbial growth, pollutants, and moisture by acting as a barrier. These factors contributed to the rapid growth of the infrastructure, which increased demand for the water-based coating market.
Water-based coating production often costs more than solvent-based coating production which hinders the markets’ growth. The costly raw ingredients are often needed for water-based coatings. Water-based coatings require specific resins and additives that are compatible with water, which might be more expensive than the usual solvent-based alternatives. In addition, water-based coating production is more labor- and resource-intensive. These formulations need to be carefully emulsified and mixed, which could take more time and demand for specialized tools. The production facilities must comply with rigorous quality control standards to preserve uniformity and stability in the finished product. Furthermore, the requirement for additional safety precautions is another factor driving up production costs. Due to the decreased or zero VOC content of water-based coatings, production facilities must invest in advanced ventilation systems and waste treatment techniques to maintain environmental compliance and a secure working environment for staff. These factors prevent the market for water-based coatings from expanding.
The performance, sustainability, and adaptability of water-based coatings have increased due to recent technological developments. Advanced water-based resin system development is one remarkable development. Novel resins with improved characteristics, such as greater adhesion, increased durability, and improved chemical resistance, have been developed by manufacturers. These developments have increased the number of industries where water-based coatings can be used, giving them an opportunity to compete with solvent-based coatings. In addition, improvements in emulsification and dispersion technology have made it possible to create water-based coatings with greater consistency and stability. As a result, the coatings are ensured to have homogeneous qualities, resulting in dependable application and use. Furthermore, water-based coatings have also incorporated digitalization and smart coatings. Some coatings have self-healing capabilities or adaptive features that react to temperature, humidity, or light to adapt to changing environmental conditions. The market for water-based coatings is boosted by advancements in technology due to these factors.
The water-based coating market is segmented into resin type, end-use industry, and region. Depending on resin type, the market is divided into acrylic, epoxy, polyurethane, polyester, alkyd, polyvinylidene chloride (PVDC), and other resin types. On the basis of end-use industry, it is categorized into building and construction, automotive, industrial, wood, and other end-user industries. Region wise, the market is studied across North America, Europe, Asia-Pacific, and LAMEA.
The key players operating in the global 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, acquisition, and product launch to increase their market share.
The term water-based coating refers to any surface coating or finish that uses water as a solvent to distribute the resin provided to it to form the coating. These are made of water, pigments, resins, additives, and occasionally a small amount of co-solvents. The water evaporates when the water-based coating is applied to a surface, leaving a film of pigments and resins that adheres to the substrate. Water-based coatings are frequently utilized in interior and exterior applications, such as painting for residential and commercial buildings, refinishing for cars, finishing for furniture, and for industrial applications.
Water-based coatings are employed more often across a range of industries due to their enhanced performance, lower volatile organic compound (VOC) content, and ecological sustainability leading to the growth of the market. These are becoming increasingly common in the packaging sector as it surpasses traditional solvent-based coatings in many crucial areas, making them the choice for many packaging applications. Water-based coatings can be applied to various materials for packaging, including paper, cardboard, corrugated board, and flexible films. Gravure coating, flexographic printing, and roller coating are just a few of the techniques that can be used to apply them. Many manufacturers are providing water-based coating products that are used in the packaging sector. For instance, H.B. Fuller Company offers water-based functional barrier coatings that are a novel solution for improved recyclability of a wide range of paper-based packaging. These water-based barrier coatings on packaging produce more fiber during the repulping process than PE coatings generate. As a result, the paper recycling stream is more usable, superior fibers. In addition, water-based coatings are less harmful to the environment than solvent-based coatings since they contain fewer VOCs and no chemicals at all. This reduces air pollution and its negative effects on the ozone layer.
Water-based coatings enhance the visual appeal of packaging materials by adding vibrant colors and precise designs due to their great printability. They also produce excellent print results by adhering well to a range of surfaces. These coatings can be designed to have a variety of specialized properties, including resistance to abrasion, scratching, and water. This ensures the longevity and durability of the packaging by protecting the contents while being stored and transported. Some of the major players are promoting their water-based coatings for the packaging industry. For instance, in August 2022, BASF SE and Nippon Paint China, a leading coatings manufacturer, jointly launched an eco-friendly industrial packaging. The innovative packaging material is commercialized for Nippon Paint's construction dry mortar products using BASF's water-based acrylic dispersion Joncryl High-Performance Barrier (HPB) as the barrier material. It is the first time BASF’s water-based barrier coatings will be used in industrial packaging in China. Owing to these factors, the wide usage of water-based coatings in the packaging sector boosted the market’s growth.
The surge in infrastructural development drives the growth of the water-based coating market. More than 2,500 global infrastructure projects were announced in 2020, up 5.5 percent from the previous year. Water-based coatings have gained popularity for many interior and architectural applications in both residential and commercial projects because of several advantages. It is frequently used in residential applications to paint walls, ceilings, and wooden surfaces. As a result of their low VOC content, the indoor air quality is improved, lowering health risks for residents, and promoting a more beneficial living environment. These coatings also offer a wide range of colors and finishes, enhancing the aesthetics of living spaces. Some of the manufacturers offer water-based coating solutions that are used in the construction sector. For instance, ICA SpA offers the Iridea range of water-based interior coatings, which are ideally comparable to solvent-based polyurethane coatings in terms of their chemical/physical characteristics and aesthetic appearance.
Water-based coatings are also employed for interior and exterior applications in commercial structures. They are used to paint furniture, walls, and partitions in interior areas to give them a pleasant shiny appearance. Commercial places are more welcoming when there are pleasant smells to put employees and customers in. Due to their compatibility with green building standards like LEED (Leadership in Energy and Environmental Design), water-based coatings also support sustainability and green building projects.
A significant increase in the need for coatings that offer protection, durability, and aesthetic enhancement is being led on by government expenditures on the construction and renovation of buildings, roads, bridges, and other infrastructure. The construction or renovation of pipelines, reservoirs, and water and wastewater treatment facilities are also included in infrastructure development. These buildings require water-based coatings that prevent corrosion, control leaks, and maintain the purity of the water. The coatings protect water infrastructure against microbial growth, pollutants, and moisture by acting as a barrier. These factors contributed to the rapid growth of the infrastructure, which increased demand for the water-based coating market.
Water-based coating production often costs more than solvent-based coating production which hinders the markets’ growth. The costly raw ingredients are often needed for water-based coatings. Water-based coatings require specific resins and additives that are compatible with water, which might be more expensive than the usual solvent-based alternatives. In addition, water-based coating production is more labor- and resource-intensive. These formulations need to be carefully emulsified and mixed, which could take more time and demand for specialized tools. The production facilities must comply with rigorous quality control standards to preserve uniformity and stability in the finished product. Furthermore, the requirement for additional safety precautions is another factor driving up production costs. Due to the decreased or zero VOC content of water-based coatings, production facilities must invest in advanced ventilation systems and waste treatment techniques to maintain environmental compliance and a secure working environment for staff. These factors prevent the market for water-based coatings from expanding.
The performance, sustainability, and adaptability of water-based coatings have increased due to recent technological developments. Advanced water-based resin system development is one remarkable development. Novel resins with improved characteristics, such as greater adhesion, increased durability, and improved chemical resistance, have been developed by manufacturers. These developments have increased the number of industries where water-based coatings can be used, giving them an opportunity to compete with solvent-based coatings. In addition, improvements in emulsification and dispersion technology have made it possible to create water-based coatings with greater consistency and stability. As a result, the coatings are ensured to have homogeneous qualities, resulting in dependable application and use. Furthermore, water-based coatings have also incorporated digitalization and smart coatings. Some coatings have self-healing capabilities or adaptive features that react to temperature, humidity, or light to adapt to changing environmental conditions. The market for water-based coatings is boosted by advancements in technology due to these factors.
The water-based coating market is segmented into resin type, end-use industry, and region. Depending on resin type, the market is divided into acrylic, epoxy, polyurethane, polyester, alkyd, polyvinylidene chloride (PVDC), and other resin types. On the basis of end-use industry, it is categorized into building and construction, automotive, industrial, wood, and other end-user industries. Region wise, the market is studied across North America, Europe, Asia-Pacific, and LAMEA.
The key players operating in the global 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, acquisition, and product launch to increase their market share.
Key Benefits For Stakeholders
- This report provides a quantitative analysis of the market segments, current trends, estimations, and dynamics of the water based coating market analysis from 2022 to 2032 to identify the prevailing water based coating market opportunities.
- The market research is offered along with information related to key drivers, restraints, and opportunities.
- Porter's five forces analysis highlights the potency of buyers and suppliers to enable stakeholders make profit-oriented business decisions and strengthen their supplier-buyer network.
- In-depth analysis of the water based coating market segmentation assists to determine the prevailing market opportunities.
- Major countries in each region are mapped according to their revenue contribution to the global market.
- Market player positioning facilitates benchmarking and provides a clear understanding of the present position of the market players.
- The report includes the analysis of the regional as well as global water based coating market trends, key players, market segments, application areas, and market growth strategies.
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Key Market Segments
By Resin Type
- Acrylic
- Epoxy
- Polyurethane
- Polyester
- Alkyd
- Others
By Application
- Building and Construction
- Automotive
- Industrial
- Wood
- Others
By Region
- North America
- U.S.
- Canada
- Mexico
- Europe
- Germany
- UK
- France
- Spain
- Italy
- Rest of Europe
- Asia-Pacific
- China
- India
- Japan
- South Korea
- Australia
- Rest of Asia-Pacific
- LAMEA
- Brazil
- Saudi Arabia
- South Africa
- Rest of LAMEA
Key Market Players
- Jotun
- Hempel A/S
- Benjamin Moore & Co.
- Sika AG
- Arkema
- AkzoNobel N.V.
- Teknos Group
- PPG Industries, Inc.
- Asian Paints
- BASF SE
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Table of Contents
CHAPTER 1: INTRODUCTION
CHAPTER 2: EXECUTIVE SUMMARY
CHAPTER 3: MARKET OVERVIEW
CHAPTER 4: WATER BASED COATING MARKET, BY RESIN TYPE
CHAPTER 5: WATER BASED COATING MARKET, BY APPLICATION
CHAPTER 6: WATER BASED COATING MARKET, BY REGION
CHAPTER 7: COMPETITIVE LANDSCAPE
CHAPTER 8: COMPANY PROFILES
List of Tables
List of Figures
Executive Summary
According to this report, 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.Water-based coatings or waterborne coatings are paints, varnishes, or finishes that use water as the primary solvent or carrier medium rather than traditional organic solvents. The coating offers protection, improves the surface's appearance, and has many beneficial characteristics like weather resistance, durability, and adhesion. Water-based coatings are considered as an environmentally friendly alternative because they produce less toxic and volatile organic compound (VOC) emissions than typical solvent-based coatings. This helps in lowering air pollution and any potential hazards associated with exposure to VOCs.
The wide utilization of water-based coatings in various end-use industries drives the growth of the market. Water-based coatings have gained a lot of momentum in the automotive industry because of their benefits for the environment, improved performance, and compliance with strict emissions regulations. These coatings are extensively used in various automotive applications, including interior surfaces, trim, and body painting. One of the main elements influencing their desirability is their low VOC content, which helps automakers to reduce emissions and create more environmentally friendly automobiles. Water-based coatings are applied to the outside surfaces of the car during the automobile body painting process. The metal surfaces are shielded from abrasive external elements including UV radiation, moisture, and road salts due to the exceptional adhesion, durability, and corrosion resistance of these coatings. In addition, the availability of a large variety of colors and finishes enables manufacturers to produce vehicles that are aesthetically pleasing and cater to client preferences. Many manufacturers are providing their water-based coating solutions. For instance, Allnex GMBH offers a wide range of waterborne coatings and resins for commercial vehicles and motorcycles. One such example is DAOTAN TW 1225/40WANEP, a waterborne resin that is used in automotive OEM. It has shear stability, good compatibility, and great pigment wetting properties.
Water-based coatings are applied to a variety of surfaces, including plastic trims and fabrics, in interior applications. These finishes are smooth and seamless, improving the interior design of the car while offering durability against wear, scratches, and fading. Furthermore, customers will have a more comfortable driving environment because of the absence of unpleasant odors in water-based coatings. The automotive industry's transition to water-based coatings is consistent with the sector's rising commitment to sustainability and environmental responsibility. Water-based coatings help automotive producers in meeting regulatory standards and assist in lowering the overall carbon footprint of vehicles as governments and consumers demand greener automotive solutions. Owing to these advantages of water-based coatings in the automotive sector, the market will expand tremendously during the forecast period.
The demand for environmentally friendly coatings has grown in response to rising environmental awareness and a shift towards sustainable practices across several industries. Due to increased concerns about climate change, pollution, and resource depletion, customers and companies are looking for products and solutions that have a smaller impact on the environment. Water-based coatings are believed to be more environmentally friendly as they use less resources, have fewer VOCs and HAPs (Hazardous air pollutants), are easier to clean up after and dispose of, and use eco-friendly substances. The amount of volatile organic compounds (VOCs) is significantly reduced in coatings that are water-based. VOCs are dangerous substances that can harm human health and contribute to air pollution. These coatings produce fewer VOCs during application because water serves as the principal solvent, lowering their impact on the environment and enhancing indoor air quality.
The reduction of non-renewable resource consumption is an additional aspect of sustainability. Compared to petroleum-derived solvents used in solvent-based coatings, water is more sustainable because it is readily available and a renewable resource. Further lowering their dependency on fossil fuels and promoting the use of sustainable resources, many water-based coatings are also made from bio-based and renewable raw materials. In addition, since they work with recycling procedures, water-based coatings support a circular economy. The easier recycling of coated materials results in less waste and encourages the use of materials in a more sustainable way. The water-based coatings market expanded due to the increase in demand for environmentally friendly coating solutions.
The market's expansion is hindered by the high production costs of water-based coatings. Water-based coating development requires specialized equipment and methods. The production facilities must be equipped with specialized machinery for the ingredients to be properly combined, emulsified, and dispersed. Furthermore, the production of water-based coatings requires additional workforce and resources. To create stable emulsions and to attain the required uniformity and quality, careful formulation and mixing processes are required, which might increase manufacturing costs and durations. Moreover, new resin systems and additives based on nanotechnology are being developed for advanced water-based coating technologies, although this can involve time-consuming and expensive research and development. These innovations are essential for improving the performance and marketability of water-based coatings. Water-based coating production needs stringent quality control processes. The water used in the formulations must be pure to prevent contamination and assure product uniformity. It becomes necessary to use more elaborate purification techniques or specialized water treatment equipment, which raises the cost of production. Owing to these factors, the growth of the water-based coating market is hindered.
Advancements in technology have enhanced the performance, application, and environmental impact of water-based coatings. These advancements have increased the value and potential of water-based coatings in many industries. The developments in additive and resin technologies have made it possible to create high solids water-based coatings. Due to the larger number of solids in these formulations, there is reduced water content and improved film formation. High solids coatings increase productivity by needing fewer coating layers and enhancing tensile strength, chemical resistance, and penetration. Moreover, nano coatings, which are water-based coatings with nanoparticles, are a result of the integration of nanotechnology. Improved properties such increased hardness, scratch resistance, and barrier performance are provided by these nanoparticles.
Nano coatings are highly desired for applications requiring advanced functionality since they also provide increased UV resistance, anti-microbial properties, and self-cleaning capabilities. For instance, Nanova Care Coat is a technology-driven nanotechnology company that creates practical smart coatings based on the latest advances in technology, such as nanotechnology. It is the first nanotechnology manufacturer in India to develop and sell nanotechnology-based coating products designed and manufactured indigenously. Owing to these factors, technological advancements stimulated the demand for water-based coating market.
The water-based coating market is classified into resin type, end-use industry, and region. On the basis of resin type, the market is categorized into acrylic, epoxy, polyurethane, polyester, alkyd, polyvinylidene chloride (PVDC), and other resin types. Depending on end-use industry, it is segmented into building and construction, automotive, industrial, wood, and other end-user industries. Region wise, the market is studied across North America, Europe, Asia-Pacific, and LAMEA.
The key players operating in the global 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, acquisition, and product launch to increase their market share.
Companies Mentioned
- Jotun
- Hempel A/S
- Benjamin Moore & Co.
- Sika AG
- Arkema
- AkzoNobel N.V.
- Teknos Group
- PPG Industries, Inc.
- Asian Paints
- BASF SE
Methodology
The analyst offers exhaustive research and analysis based on a wide variety of factual inputs, which largely include interviews with industry participants, reliable statistics, and regional intelligence. The in-house industry experts play an instrumental role in designing analytic tools and models, tailored to the requirements of a particular industry segment. The primary research efforts include reaching out participants through mail, tele-conversations, referrals, professional networks, and face-to-face interactions.
They are also in professional corporate relations with various companies that allow them greater flexibility for reaching out to industry participants and commentators for interviews and discussions.
They also refer to a broad array of industry sources for their secondary research, which typically include; however, not limited to:
- Company SEC filings, annual reports, company websites, broker & financial reports, and investor presentations for competitive scenario and shape of the industry
- Scientific and technical writings for product information and related preemptions
- Regional government and statistical databases for macro analysis
- Authentic news articles and other related releases for market evaluation
- Internal and external proprietary databases, key market indicators, and relevant press releases for market estimates and forecast
Furthermore, the accuracy of the data will be analyzed and validated by conducting additional primaries with various industry experts and KOLs. They also provide robust post-sales support to clients.
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