Waterborne Coatings Market

The development of new technologies is driving the market growth

Market CAGR for waterborne coatings is being driven by the development of new technologies. As waterborne coating technology continues to develop. The growing awareness in emerging countries about the benefits and performance features of waterborne coatings contributes to market growth. The advancement includes longer pot life, flexibility, and low VOC content. Technological developments in the formulation of these products have also occurred over a continuous period. Some crucial technologies in this aspect include emulsion & suspension polymerization, polyurethane dispersions, insoluble aqueous polymer dispersions, alkyd emulsions, and soluble & partially soluble polymers.

Moreover, increased enforcement of personal health & safety and environmental regulations and rising sustainability practices would increase demand for waterborne coatings in the transportation and automotive sector. Stringent regulations by the EPA regarding the usage of VOCs are shifting the preferences of automotive manufacturers from solvent-based coatings to waterborne coatings, as a typical waterborne base coat is composed of about 70% water (and 20% solids) and 10% solvent. Waterborne coatings reduce emissions of VOCs and improve air quality, which further helps reduce the health risks of factory workers.

Additionally, there is an increase in demand from automobile applications, owing to which the coating manufacturers are investing in research & development to decrease manufacturing costs and, thus, the price of their coatings. Operators working in automobile OEM & refinishing firms are anticipated to follow compliance to switch from solvent-borne to waterborne coatings systems. Conventional solvent-borne coatings contain around 84% VOC content and 16% solids. Typical waterborne coatings contain around 70% water, 20% solids, and 10% solvent. Waterborne coatings for automobile applications contain fewer VOCs, which decreases health-related risks.

The product is utilized for multiple hues & stripping has an advantage as they utilize a less clear coat to even out the surface for different layers.

Along with its non-toxic nature, government rules favoring eco-friendly items should improve product demand. Increased automobile manufacturing in the North American market provides plenty of room for expansion.

Regulatory compliance is a crucial factor influencing the Global Waterborne Coatings Market Industry. Governments are enacting stringent regulations to limit the use of harmful chemicals in coatings, which drives manufacturers to adopt waterborne technologies. Compliance with these regulations not only ensures market access but also enhances brand reputation among environmentally conscious consumers. For instance, the implementation of VOC limits in various regions has accelerated the transition to waterborne coatings. This regulatory landscape is expected to foster growth in the market, with a projected value of 63.1 USD Billion in 2024, indicating a strong alignment with global sustainability goals.

The Global Waterborne Coatings Market Industry is poised for substantial growth, with projections indicating a market value of 63.1 USD Billion in 2024 and an anticipated increase to 104.7 USD Billion by 2035. This growth trajectory reflects the increasing adoption of waterborne coatings across various sectors, driven by factors such as sustainability, technological advancements, and consumer preferences. The market is expected to experience a CAGR of 4.71% from 2025 to 2035, highlighting the industry's resilience and adaptability in meeting evolving market demands.

The Global Waterborne Coatings Market Industry is increasingly driven by sustainability initiatives. Governments worldwide are implementing stringent regulations to reduce volatile organic compounds (VOCs) in coatings, pushing manufacturers towards waterborne solutions. For instance, the European Union's REACH regulations have prompted a shift towards eco-friendly products. This trend is reflected in the projected market value of 63.1 USD Billion in 2024, as consumers and industries alike prioritize environmentally responsible options. The demand for sustainable coatings is expected to grow, potentially leading to a market value of 104.7 USD Billion by 2035, indicating a robust shift towards greener alternatives.

Technological advancements play a pivotal role in the Global Waterborne Coatings Market Industry. Innovations in formulation and application techniques enhance the performance and durability of waterborne coatings. For example, the development of advanced polymer technologies has improved adhesion and resistance to environmental factors. These advancements not only meet consumer demands for high-quality finishes but also align with regulatory requirements for lower emissions. As a result, the market is anticipated to grow at a CAGR of 4.71% from 2025 to 2035, reflecting the industry's commitment to continuous improvement and adaptation to market needs.

The expansion of the construction sector significantly influences the Global Waterborne Coatings Market Industry. With urbanization and infrastructure development on the rise, there is an increasing demand for coatings that offer durability and aesthetic appeal. Waterborne coatings are favored for their low environmental impact and compliance with regulations. In regions like Asia-Pacific, rapid urbanization is driving the construction of residential and commercial buildings, thereby boosting the demand for waterborne coatings. This trend is expected to contribute to the market's growth, with projections indicating a market value of 63.1 USD Billion in 2024 and a potential increase to 104.7 USD Billion by 2035.

Consumer preferences are shifting towards low odor and low toxicity products, which is a significant driver for the Global Waterborne Coatings Market Industry. As awareness of health and environmental issues increases, consumers are opting for waterborne coatings that emit fewer harmful substances. This trend is particularly evident in residential applications, where homeowners seek safer alternatives for indoor use. Manufacturers are responding by developing formulations that meet these preferences, thereby expanding their market reach. The growing demand for low odor coatings is likely to support the market's growth trajectory, contributing to the anticipated CAGR of 4.71% from 2025 to 2035.

By region, the study provides market insights into North America, Europe, Asia-Pacific and the Rest of the World. The North American waterborne coatings market area will dominate, owing to increased reconstruction and building activities in developing countries. Waterborne coatings are increasingly being applied as decorative coatings in buildings on wood flooring, furniture, sculptures, and wall paintings will boost the market growth in this region. Further, the US waterborne coatings market held the largest market share, and the Canada waterborne coatings market was the fastest growing market in the North American region.

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

Figure 2: WATERBORNE COATINGS MARKET SHARE BY REGION 2022 (USD Billion)

Source: Primary Research, Secondary Research, Market Research Future Database and Analyst Review

Europe's waterborne coatings market accounts for the second-largest market share due to the presence of stringent government regulations regarding the emission of VOCs is projected to increase the application of waterborne coatings across various end-use industries. Further, the German waterborne coatings market held the largest market share, and the UK waterborne coatings market was the fastest-growing market in the European region.

The Asia-Pacific waterborne coatings market is expected to grow at the fastest CAGR from 2023 to 2032. This is due to increasing construction spending for developing residential and commercial buildings. Moreover, China’s waterborne coatings market held the largest market share, and the Indian waterborne coatings market was the fastest-growing market in the Asia-Pacific region.

Leading market players are investing heavily in research and development to expand their product lines, which will help the waterborne coatings market grow even more. Market participants are also undertaking numerous strategic activities to expand their footprint, with important market developments including new product launches, contractual agreements, higher investments, mergers and acquisitions, and collaboration with other organizations. To expand and survive in a more competitive and rising market climate, the waterborne coatings industry must offer cost-effective items.

Manufacturing locally to minimize operational costs is one of the key business tactics manufacturers use in the waterborne coatings industry to benefit clients and increase the market sector. Major players in the waterborne coatings market, including BASF SE (Germany), Sherwin-Williams Company (US), AkzoNobel N.V. (The Netherlands), PPG Industries Inc. (US), RPM International Inc. (US), and others, are attempting to increase market demand by investing in research and development operations.

BASF SE is a chemical company. It produces, markets, and sells chemicals, plastics, crop protection products, and performance products. Its product line comprises solvents, adhesives, surfactants, fuel additives, electronic chemicals, pigments, paints, food additives, fungicides, and herbicides. The company serves various industries, including construction, furniture and wood, agriculture, electronics and electrical, paints and coatings, automotive, home care, nutrition, chemicals, etc. BASF carries out R&D in alliance with customers, scientists and partners. The firm operates through a network of manufacturing facilities across the world. In March 2022, BASF enhanced its Automotive Coatings application center at Coatings Technology Center in India.

This enhancement covers 400 square meters of floor area, equipped with various types of equipment, including electrostatic rotary bell applicators and others. This expansion would assist the company in designing and developing innovative solutions for automotive coatings.

Sherwin-Williams Co manufactures, and markets paints, coatings and associated products. It supplies stains, equipment and floor covering products, architectural paints, coatings, and varnishes. The company sells its products to professional, industrial, retail and commercial customers. Sherwin-Williams markets its products under various brands, including Sherwin-Williams, Dutch Boy, Krylon, Minwax, and Thompson's Water Seal. It markets and distributes the products through its stores, facilities, merchandisers, independent paint dealers, hardware stores, home centers, automotive retailers, and industrial distributors.

In February 2022, The Sherwin-Williams firm signed an agreement with the state of North Carolina and the city of Statesville to enhance its architectural paint and coatings manufacturing capacity. This includes the 36,000-square- foot extension, the addition of four recent rail spurs, and the construction of an 800,000-square-foot allotment and fleet transportation center.