Water Based Coating Market By Resin Type (Acrylic, Epoxy, Polyurethane, Polyester, Alkyd, Others), By Application (Building and Construction, Automotive, Industrial, Wood, Others): Global Opportunity Analysis and Industry Forecast, 2023-2032

Water Based Coating Market By Resin Type (Acrylic, Epoxy, Polyurethane, Polyester, Alkyd, Others), By Application (Building and Construction, Automotive, Industrial, Wood, Others): Global Opportunity Analysis and Industry Forecast, 2023-2032

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.

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.

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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