Waterborne Coating Market Trends
Growth Drivers
- Escalating Demand for Environment-friendly Coatings - Water-based paints are considered more environmentally friendly as compared to solvent-based paints due to their lower volatile organic compound (VOC) content. Consumers and businesses are increasingly focused on sustainability and reducing environmental impact. A survey by the American Coatings Association found that 74% of consumers are willing to pay more for green coatings and 64% of consumers are actively looking for green products.
- High Profitability in Emerging Markets – Developing countries invest mainly in infrastructure and long-term projects. In addition, the market in the region is experiencing strong growth due to heavy investment by large companies in projects in the region. Especially in China and India, there are significant growth opportunities for manufacturers of coating resins and waterborne coatings.
- Establishing New Technologies to Improve Coating Performance – Waterborne technology continues to evolve, and it is estimated that there is an increasing awareness and education about the benefits and merits of water-based paints
- Increasing Preference for Water-Based Coatings in Various End-Use Industries – Water-based coatings are becoming increasingly popular in various end-use industries such as construction, automotive, packaging, and furniture.
Challenges
- High Production Cost - Water-based paints are generally more expensive to manufacture than traditional solvent-based paints. This is due to the complex manufacturing processes involved, including the need for specialized equipment and raw materials. High production costs may make water-based coatings less competitive in some markets.
- Strict Regulation Associated
- Stability of Waterborne Coatings is Affected by Low Temperatures and High Humidity
Global Waterborne Coating Market: Key Insights
The chemical industry is a major component of the economy. According to the U.S. Bureau of Economic Analysis, in 2020, for the U.S., the value added by chemical products as a percentage of GDP was around 1.9%. Additionally, according to the World Bank, Chemical industry in the U.S. accounted for 16.43% to manufacturing value-added in 2018. With the growing demand from end-users, the market for chemical products is expected to grow in future. According to UNEP (United Nations Environment Program), the sales of chemicals are projected to almost double from 2017 to 2030. In the current scenario, Asia Pacific is the largest chemical producing and consuming region. China has the world’s largest chemical industry, that accounted for annual sales of approximately more than USD 1.5 trillion, or about more than one-third of global sales, in recent years. Additionally, a vast consumer base and favorable government policies have boosted investment in China’s chemical industry. Easy availability of low-cost raw material & labor as well as government subsidies and relaxed environmental norms have served as a production base for key vendors globally. On the other hand, according to the FICCI (Federation of Indian Chambers of Commerce & Industry), the chemical industry in India was valued at 163 billion in 2019 and it contributed 3.4% to the global chemical industry. It ranks 6th in global chemical production. This statistic shows the lucrative opportunity for the investment in businesses in Asia Pacific countries in the upcoming years.
|
Base Year |
2024 |
|
Forecast Year |
2025-2037 |
|
CAGR |
6.2% |
|
Base Year Market Size (2024) |
USD 114.17 billion |
|
Forecast Year Market Size (2037) |
USD 245.74 billion |
|
Regional Synopsis |
|
