Water-based coatings Market

• Growing Automobile & Aerospace Sector to boost market growth

Automotive and aerospace components are painted and coated with waterborne coatings in order to shield them from debris, corrosion, and other hazards. The International Organization of Motor Vehicle Manufacturers (OICA) estimates that there were 57,054,295 passenger cars produced worldwide in 2021 compared to 55,834,456 in 2020. In 2021, South American automobile manufacturing increased by 11%, while US car production increased by 3.1%, according to the European Automobile Manufacturer Association. As a result, the demand for Waterborne Coatings would increase due to rising automotive and aerospace production, which would fuel the market for Waterborne Coatings during the forecast period.

Buildings frequently use waterborne coatings on things like windows, walls, doors, floors, and more. Governments are taking steps to boost building and construction activities. To rebuild the larger terminal, for instance, Kansai International Airport in Japan would spend roughly 100 billion yen ($911 million) by 2025. The nation's No. 2 hub would have more room for overseas planes as a result. The Indian Union Budget of February 2020 sought to construct 100 new airports by 2024 as part of the Udan program, which was created by the Center to help with the expanding aviation traffic.

The South African national health insurance indirect grant's renovation of health facilities has been given a medium-term budget of R4.6 billion. 50,000 crore (US$6.8 billion) has been allocated to India's Ministry of Housing and Urban Development (MoHUA), and a fund of 25,300 crore (US$3.5 billion) has been established to aid in the completion of housing projects that have stagnated.

During the forecast period, these government initiatives are expected to boost the demand for coatings in the construction industry and propel the expansion of the waterborne coatings market.Therefore, such condition has enhanced the Water-based coatings market CAGR across the globe in the recent years.

However, the growing demand for water-based coatings in automotive and electrical and electronics applications is another factor driving the growth of the Water-based coatings market revenue.March 2023: AkzoNobel announced that it has acquired the water-based coatings business of RPM International for $1.2 billion. This acquisition will strengthen AkzoNobel's position in the water-based coatings market and expand its reach into new applications.April 2023: PPG Industries announced that it has launched a new line of water-based coatings for the architectural market. These coatings are designed to be more environmentally friendly and have a lower VOC content than traditional solvent-based coatings.

Consumer awareness regarding health and environmental impacts is a significant driver for the Global Water-based Coatings Market Industry. As individuals become more informed about the harmful effects of traditional solvent-based coatings, there is a marked shift towards safer alternatives. This trend is particularly evident in residential applications, where homeowners prioritize low-VOC and non-toxic products. Consequently, manufacturers are adapting their offerings to meet this demand, further propelling market growth. The increasing preference for eco-friendly solutions is likely to sustain momentum in the industry, fostering innovation and expansion.

The Global Water-based Coatings Market Industry is witnessing expansion in emerging markets, where rapid urbanization and industrialization are driving demand. Countries in Asia-Pacific, Latin America, and Africa are experiencing significant growth in construction and manufacturing sectors, leading to increased consumption of water-based coatings. This trend is further supported by government initiatives promoting sustainable practices. As these regions invest in infrastructure development, the market is expected to benefit from heightened demand for environmentally friendly coatings. This expansion presents opportunities for manufacturers to tap into new markets and enhance their global footprint.

The Global Water-based Coatings Market Industry experiences a notable push due to increasing environmental regulations. Governments worldwide are implementing stringent policies aimed at reducing volatile organic compounds (VOCs) in coatings. This regulatory landscape encourages manufacturers to shift towards water-based formulations, which are generally more eco-friendly. As a result, the market is projected to reach 82.1 USD Billion in 2024, reflecting a growing preference for sustainable products. The compliance with these regulations not only enhances product appeal but also opens new avenues for innovation within the industry.

The construction sector significantly drives the Global Water-based Coatings Market Industry, as the demand for sustainable building materials continues to rise. Water-based coatings are increasingly favored for their low toxicity and environmental benefits, making them suitable for residential and commercial applications. The market is expected to grow substantially, with projections indicating a value of 146.7 USD Billion by 2035. This growth is supported by the ongoing trend towards green building practices, where water-based coatings play a crucial role in meeting sustainability goals and enhancing indoor air quality.

Technological advancements are reshaping the Global Water-based Coatings Market Industry, leading to the development of high-performance products. Innovations in polymer chemistry and formulation techniques have resulted in water-based coatings that offer superior durability, adhesion, and resistance to environmental factors. These advancements not only improve product performance but also expand the application range, catering to diverse industries such as automotive, aerospace, and furniture. As manufacturers continue to invest in research and development, the market is poised for growth, with a projected CAGR of 5.42% from 2025 to 2035.

By Region, the study provides the market insights into North America, Europe, Asia-Pacific and Rest of the World. Asia-Pacific Water-based coatings market accounted for USD 30.54 billion in 2021 and is expected to exhibit a significant CAGR growth during the study period. due to the region's thriving building and construction industry's growing demand for waterborne coatings. The International Trade Administration (ITA) forecasts that the Chinese construction industry would expand by an average of 5% per year in real terms between 2019 and 2023.

The Building and Construction Authority (BCA) projects that Singapore's construction demand would be between S$27 billion and S$34 billion in 2021 and 2022, and between S$28 billion and S$35 billion in 2023 and 2024. Moreover, China Water-based coatings market held the largest market share, and the India Water-based coatings market was the fastest growing market in the Asia-Pacific region.

Further, the major countries studied in the market report are: The U.S, Canada, Germany, France, UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.

Figure 3: Water-based Coatings MARKET SHARE BY REGION 2021 (%) Source: Secondary Research, Primary Research, Market Research Future Database and Analyst Review

Europe Water-based coatings market accounts for the second-largest market share. This is explained by the fact that numerous significant automakers are located in the area. Additionally, European consumers are becoming more interested in luxury goods. The need for waterborne coatings in automotive OEM and refinishing operations is anticipated to rise as a result of these causes. Further, the Germany Water-based coatings market held the largest market share, and the UK Water-based coatings market was the fastest growing market in the European region.

The North America Water-based coatings Market is expected to grow at the fastest CAGR from 2022 to 2030. This is due to the increasing use of polyurethane-based water-based coatings in the automotive and aerospace industries. Moreover, US Water-based coatings market held the largest market share, and the Canada Water-based coatings market was the fastest growing market in the Asia-Pacific region.

In order to expand their product portfolios, major market players are investing heavily in R&D, which will fuel further growth for the water-based coatings market. Participants in the market are also undertaking a variety of key development to expand their footprint, with significant market developments including new product launches, contractual agreements, mergers and acquisitions, increased investments, and collaboration with other organizations. To grow and survive in a market climate that is becoming more competitive and growing, competitors in the water-based coatings industry must offer products that are affordable.

Manufacturing locally to cut operational costs is one of the main business tactics used by manufacturers in the Water-based coatings industry to benefit customers and increase the market sector. The water-based coatings industry has recently offered some of the greatest advantages. The Water-based coatings market major player such as PPG Industries, Inc, Sherwin-Williams Company, and others are working to expand the market demand by investing in research and development activities.

PPG Industries, Inc. is an American Fortune 500 company and supplier of paints, coatings, and specialty materials. With headquarters in Pittsburgh, Pennsylvania, PPG operates in more than 70 countries around the globe. In June 2021, PPG announced an increase in its coatings production capacity for packaging purposes in Europe. The investment is anticipated to meet the region's growing demand from consumers for the newest coatings for steel and aluminum cans used to package beverages, food and personal care products.

Also, Sherwin-Williams Company is an American Cleveland, Ohio–based company in the paint and coating manufacturing industry. In October 2020, Pro Industrial Pre-catalyzed Water-based Urethane, a single-component product with performance characteristics similar to those of a two-part coating, was introduced by Sherwin-Williams to assist professionals in meeting the functional and aesthetic of light commercial or industrial environments..