WATERBORNE COATING INDUSTRY INSIGHTS
The global waterborne coatings market size was valued at USD 78 billion in 2021 and is expected to reach USD 105 billion in 2026, growing at a CAGR of 5% during 2021-2026. The Asia Pacific region is expected to witness the highest incremental growth of 37% from 2020–2026.
The market is expected to witness traction in 2021 after the decline in 2020 due to the COVID-19 pandemic. The market has been highly affected by the coronavirus breakout due to variations in construction businesses and raw material pricing, production of raw materials, and implementation of lockdowns. Increasing pricing pressures and shortage of labor in many countries impacted construction and infrastructure development activities. However, the effects are expected to short-term in nature. The APAC market is likely to observe the highest growth due to increasing construction and infrastructure activities during the forecast period. In terms of value, China expects to be the largest contributor due to increased investment in construction, marine, and oil & gas industries, rapid industrialization, and foreign investments. The industry is shifting toward environmental friendliness with water-borne paint and industrial coating products containing water as the solvent to dissolve resins, making them sustainable and easy-to-apply solutions. Moreover, advances in coating technology and stringent regulations toward VOCs have fueled the adoption of water-borne coatings products.
- The global waterborne coatings market share expects to grow because of the growth in the construction sector, infrastructure development, automotive industry, packaging industries.
- Acrylic resins are likely to reach a market share of over USD 24 billion by 2026 as they have excellent UV-resistant and weather-resistant properties.
- Architectural waterborne solutions are likely to observe an incremental growth of over approx. USD 20 billion by 2026.
- The global packaging waterborne coatings market is likely to reach over USD 3 billion by 2026 due to increased metal packaging application in food preservation.
- The APAC waterborne coatings market is projected to observe an incremental growth of over USD 11 billion by 2026 due to increased foreign direct investments in commercial infrastructure development.
GLOBAL WATERBORNE COATINGS MARKET SEGMENTATION
This research report includes a detailed segmentation by
- Resin Type
INSIGHTS BY RESIN TYPE
The global acrylic waterborne coatings market is likely to grow at a CAGR of approx. 6% during 2020–2026. Stringency in government regulations and environment protection laws expect to increase demand for waterborne acrylic resins. As these resins offer excellent performance and environmental protection, the demand is likely to grow in residential and non-residential applications worldwide. Moreover, recent developments in acrylic resins are likely to boost the application of acrylic water-borne coatings solutions.
The global epoxy-based water-borne coating market is expected to reach over USD 18 billion in 2026. The demand for epoxy-based coatings is likely to come from the industrial and automotive sectors during the forecast period. Epoxy resins witness high application in end-users such as aerospace, race cars, and marine. They provide excellent strength with weight reduction, durability, and chemical resistance. The growth of epoxy coating solutions in the APAC region is likely to boost as several manufacturers are shifting their operations to the region due to cheap labor and easy raw material availability.
The global polyester-based coatings market is expected to reach approx. USD 21 billion by 2026, growing at a CAGR of over 4% during the forecast period. The demand for polyester water-borne coatings is likely to grow from packaging and industrial sectors. Polyester resins are transparent, high-density polymers and have excellent strength and water resistance, which increase their application in end-user industries such as textile and packaging. They have excellent chemical and mechanical stability with high filling capacity, resistance to removal and shrinkage.
INSIGHTS BY END-USER
The architectural coatings segment accounts for over 55% of the global water-borne coatings market. Increased investments in infrastructure projects and construction and renovation of residential and commercial buildings are the significant factors driving the demand for architectural coating solutions. Developing countries are expected to lead the growth, with the APAC region expecting to witness the highest investment during the forecast period. Due to the growing population and rapid urbanization, the demand for new houses is growing, driving the market for waterborne coatings. The global automotive water-borne coating solutions market is expected to reach over USD 9 billion by 2026. The demand for water-borne protective coating solutions from the automotive sector is growing due to their ability to protect vehicles against acid rains, severe weather, and UV radiation. The global wood-based water-borne coatings market expects to reach over USD 4 billion by 2026. The increased production of wooden artifacts and decorative items triggers the demand for wood coatings. Water-borne wood coatings have several advantages such as robustness, stain resistance, corrosion resistance, and flexibility.
INSIGHTS BY GEOGRAPHY
APAC dominated the global waterborne coatings market and accounted for approx. USD 31 billion in 2020. China, India, and Japan are the largest contributors in the region. The APAC region's growth is driven by foreign investments and a booming manufacturing sector due to low labor costs and easily accessible raw materials. The growing middle-class population and improving living standards in the region expect to increase the demand for architectural coatings. The rise in environmental friendliness and government investment initiatives toward infrastructure and industrial sectors in India and China are likely to act as the major drivers for the market’s growth. In emerging economies such as India and China, the rapidly growing population also boosts the residential construction sector, influencing the market. Increased foreign direct investments are also anticipated to enhance market growth. All these factors are driving the growth of the APAC water-borne coatings market.
INSIGHTS BY VENDORS
AkzoNobel, PPG Industries, Sherwin- Williams, Axalta, RPM International, and Nippon Paints are major global players. The market is fragmented and characterized by the presence of a significant number of global and domestic players across geographies. Most prominent players are trying to expand their businesses through a profitable partnership or acquiring small or mid-sized active vendors in that particular region, whereas domestic vendors are capitalizing with product portfolios based on the requirement of that specific region. There have been mergers and acquisitions among many companies over the past decade. Mergers and acquisitions benefit companies in purchasing raw materials and developing the distribution network.
The global waterborne coatings market research report includes in-depth coverage of the industry analysis with revenue and forecast insights for the following segments:
- General Industrial
- Wood Industry
- North America
- South Korea
- Latin America
- Middle East & Africa
- Saudi Arabia
- South Africa