The global waterborne coatings market was valued at USD 57.67 billion in 2022 and is projected to experience significant growth, with an anticipated compound annual growth rate (CAGR) of 5.6% from 2023 to 2030. This growth is primarily driven by the expansion of construction activities worldwide. The rapid industrialization and urbanization taking place across various regions are expected to spur a higher demand for waterborne coatings over the forecast period. Additionally, a shift in the coatings industry towards environmentally friendly alternatives, such as solvent-free coatings with lower emissions, is further boosting the demand for waterborne coatings. These coatings are particularly preferred for both residential and commercial applications, where they are commonly used in interior and exterior wall paint formulations.

Waterborne coatings used in these applications are typically based on acrylate/styrene dispersions. Manufacturers in the market are also working on reducing the binder content in formulations by 8–12% without compromising the overall properties of the coatings, further improving their cost-effectiveness and performance. Alkyd-based waterborne coatings are also gaining popularity, especially among interior decorators, due to their ease of application, glossy finish, and superior ability to adapt to varying climatic conditions during both application and drying.

In the automotive sector, an increase in production capacities, alongside innovations in vehicle design and aesthetics, is expected to continue driving market growth. The rising demand for automobiles, particularly in emerging economies in the Asia Pacific and Latin America regions, fueled by population growth and increasing disposable income, will also contribute to the rising adoption of waterborne coatings in vehicle manufacturing.

Gather more insights about the market drivers, restrains and growth of the Waterborne Coatings Market

Regional Insights

Europe

In 2022, Europe led the global waterborne coatings market, accounting for the largest share of over 38.1% of the total revenue. This dominance can largely be attributed to the presence of several major automobile manufacturers in the region, which contribute significantly to the demand for waterborne coatings in both OEM (original equipment manufacturer) and refinishing applications. Moreover, Europe's increasing consumer preference for luxury goods, including high-end automobiles and residential properties, is expected to further drive the need for high-quality waterborne coatings in the automotive and construction sectors.

Asia Pacific

In the Asia Pacific region, the highest growth in construction spending is anticipated, especially in emerging economies such as China, India, and Indonesia. These countries are seeing significant investments in infrastructure and urban development, which is expected to directly impact the demand for waterborne coatings. As construction activity increases, waterborne coatings are anticipated to capture a larger share of the market, especially in the residential and commercial building sectors, which constitute a major part of the construction market in this region. Countries like Indonesia, Malaysia, Thailand, and Vietnam are also expected to see growing demand for waterborne coatings due to rising construction budgets focused on residential and commercial projects.

Thus, the Asia Pacific region is poised for strong growth, driven by expanding construction activities and an increasing adoption of waterborne coatings in both new builds and renovations.

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Key Companies & Market Share Insights

As the market continues to grow, competition among global companies in the waterborne coatings sector is expected to intensify. This is largely due to rapid innovations from both established players and emerging companies entering the industry. Manufacturers are actively working on expanding and enhancing their product portfolios by innovating and launching new formulations and products. This drive for product development is likely to stimulate further competition, pushing companies to improve their offerings in order to capture a larger share of the growing market.

Some of the prominent players in the global waterborne coatings market include:

• AkzoNobel NV

• BASF SE

• Axalta Coating Systems LLC

• Berger Paints India Ltd.

• Kansai Paint Co.,

• Nippon Paint Holdings Company Ltd.

• PPG Industries Inc.

• RPM International Inc.

• The Sherwin-Williams Company

• The Valspar Corp.

• Tikkurila Oyj

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