Water Borne Coatings Market Report 2026

The water borne coatings market size has grown steadily in recent years. It will grow from $124.79 billion in 2025 to $130.54 billion in 2026 at a compound annual growth rate (CAGR) of 4.6%. The growth in the historic period can be attributed to environmental regulations on VOCs, construction sector growth, availability of acrylic binders, early adoption in architectural coatings, industrial safety requirements.

The water borne coatings market size is expected to see strong growth in the next few years. It will grow to $162.27 billion in 2030 at a compound annual growth rate (CAGR) of 5.6%. The growth in the forecast period can be attributed to green building initiatives, electric vehicle production growth, innovation in waterborne resins, stricter emission standards, expansion of industrial coating applications. Major trends in the forecast period include increasing shift from solvent based coatings, rising adoption in architectural applications, growing use in automotive finishing, expansion of low VOC industrial coatings, improved durability and performance formulations.

The waterborne coatings market is expected to experience growth, driven by the expanding automotive industry. The automotive sector encompasses the activities related to designing, manufacturing, marketing, and selling motor vehicles. To reduce emissions, enhance durability, and improve the visual appeal of vehicles, the automotive industry has increasingly adopted waterborne coatings. Waterborne coatings also meet the stringent quality and performance standards demanded by the automotive sector. For example, in June 2023, Cox Automotive reported that car sales volumes are anticipated to increase by 11.6% annually to reach 7.65 million units in the first half of 2023. This growth is attributed to factors like new work and repair and maintenance activities. The number of units sold is projected to rise from 1.1 million to 1.3 million in June. Consequently, the burgeoning automotive industry is a driving force behind the waterborne coatings market's expansion.

Companies are adopting smart coatings and high-performance coating technologies to enhance coating efficiency. Nanocoatings, a type of smart coating, consist of extremely small particles and offer unique characteristics like flexibility, resistance to corrosion, and inhibition of micro-bacterial growth. Fluoropolymer coatings are known for their high-performance properties, including durability and cost-efficiency.

The development of new products, such as water-based industrial wood coatings, is a significant trend in the waterborne coatings market. These coatings offer a more environmentally friendly alternative to traditional solvent-based products, catering to the growing demand for sustainable solutions. For example, in August 2024, Axalta Coating Systems, a US-based company, launched Cerulean, its latest generation of waterborne industrial wood coatings. Cerulean provides enhanced durability, quicker drying times, and improved environmental sustainability, making it ideal for wood applications like furniture and cabinetry. The product meets stringent environmental regulations, reducing volatile organic compounds (VOCs) while delivering high performance. This development reflects the industry’s broader commitment to meeting the needs of larger customer bases, boosting sales, and increasing revenue while addressing environmental concerns.

Major companies operating in the water borne coatings market are AkzoNobel NV, BASF SE, Axalta Coating Systems Ltd., Berger Paints Ltd., Kansai Paint Co. Ltd., Nippon Paint Holdings Company Ltd., PPG Industries Inc., RPM International Inc., Sherwin-Williams Company, The Valspar Corporation, Tikkurila Oyj, Asian Paints Ltd., Benjamin Moore & Co., Jotun A/S, Chenyang Waterborne Paint, Hempel A/S, Shalimar Paints Limited, S K Kaken Co. Ltd., Beckers Group, Dunn-Edwards Corporation, Diamond Vogel Paint Company, Kelly-Moore Paints, Vista Paint Corporation, Indigo Paints Pvt. Ltd., Arkema Group, Carboline Company, Chugoku Marine Paints Ltd., Cloverdale Paint Inc., Masco Corporation, Rust-Oleum Corporation, Sakata Inx Corporation, Tnemec Company Inc.

Asia-Pacific was the largest region in the water-borne coatings market in 2025. Western Europe was the second-largest region in the global water-borne coatings market analysis. The regions covered in the water borne coatings market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the water borne coatings market report are China, India, Japan, Australia, Indonesia, South Korea, Bangladesh, Thailand, Vietnam, Malaysia, Singapore, Philippines, Hong Kong, Taiwan, New Zealand, UK, Germany, France, Italy, Spain, Austria, Belgium, Denmark, Finland, Ireland, Netherlands, Norway, Portugal, Sweden, Switzerland, Russia, Czech Republic, Poland, Romania, Ukraine, USA, Canada, Mexico, Brazil, Chile, Argentina, Colombia, Peru, Saudi Arabia, Israel, Iran, Turkey, UAE, Egypt, Nigeria, South Africa.

The waterborne coatings market consists of the sales of waterborne powder, urethane, and fluoropolymer waterborne coatings. Values in this market are factory gate values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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