Waterborne Coating Additives Market Size, Share & Trend Analysis Report, By Product (Wetting & Dispersion Agents, Defoaming, Rheology Modifier, Flow Additives), By Application, By Region and Segment Forecasts 2022

Industry Insights

The global waterborne coating additives market size was valued at USD 2,754.1 million in 2015 and is expected to register a CAGR of 5.9% over the forecast period. Growing infrastructure spending in the industrial and residential sectors, particularly in South East Asia and the Middle East and Africa, is expected to drive product demand in the architectural and industrial wood segments. VOC emissions in the construction and manufacturing industry have steered revisions in regulatory standards.

Recent advances in waterborne technology can be attributed to stringent regulatory restrictions and consumer expectations. Construction and manufacturing industries in mature economies of the U.S. and Europe have witnessed growing consumer preference towards eco-friendly products. Regulatory bodies in Europe have made several revisions to industry standards to incorporate low VOC levels as a mandatory step for the paints and coatings industry.

Stringent REACH and EPA regulations regarding VOC and toxic content in solvent-based additives have led to commercialization of water-soluble alternatives with improved performance. Associative thickeners such as HEUR, HMPE, HASE, and HMHEC have gained significant share over the last few years owing to improved stability and longevity as compared to conventional modifiers including bentonite, and pyrogenic silica.

Additives play a significant role as the major component of waterborne coating. They chemically enhance the formulation to provide stability and color retention over the long term. This is expected to impact positively global industry growth in the next seven years.

Despite moderate overall growth in the EU, aftermarket of the construction and automotive industries is expected to remain a key driver sustaining economic growth in these regions. Demand for high-quality coatings in home interior and automotive components can be attributed to growing consumer awareness about social lifestyle trends. Growing marine activities in the North Sea and the Mediterranean are expected to steer demand for durable and protective coatings in regions such as the U.K. and Norway.

The North America waterborne coating additives market accounted for 14.8% share in terms of revenue in 2015. Stringent government regulations to lower VOC content in paints & coatings are expected to raise North American waterborne coating demand. Increasing automobile demand, coupled with development of new industries being set up, is expected to propel North American waterborne coatings demand over the forecast period.

Factors such as rising employment rates and improvement in consumer confidence are expected to raise waterborne coatings demand in this region. Emergence of green building norms is another factor expected to drive demand in North America.

Growing demand for wetting and dispersion additives for preventing reflocculation of the dispersed particles in coatings is expected to drive demand in the coming seven years. These additives have three primary functions including wetting, dispersion, and stabilization of the waterborne coatings. The rheology modifiers segment is anticipated to witness substantial demand in the region during the forecast period. Rheology modifiers lower surface tension and improve film quality, color acceptance, and wet abrasion resistance. These modifiers improve rheological properties such as in-can stability, brushability, film building, and sagging.

Product Insights

The market has been segmented by product into wetting and dispersion agent, defoaming, rheology modifier, flow additives. Rheology modifier was the dominant product segment in the overall waterborne coating additives market in 2015. Growing demand for wetting and dispersion additives for preventing reflocculation of the dispersed particles in coatings is expected to drive demand over the forecast period. These additives have three primary functions including wetting, dispersion, and stabilization of the waterborne coatings. Major wetting and dispersion additives include polyacrylate salts, fatty acid and fatty alcohol derivatives, acrylic copolymers, maleic anhydride copolymers, and alkylphenol ethoxylates. Rising product demand in architectural, wood, and furniture coatings is anticipated to drive the market during the forecast period.

Rising waterborne coatings demand in the European region owing to growing construction industry is anticipated to drive the market over the forecast period. Germany’s regulatory body, which includes Technische Anleitung (TA) Luft coupled U.K.’s Environmental Protection Act provides the guideline for lowering VOC content in paints and coatings. This factor is expected to increase waterborne coatings demand by replacing solvent-borne coatings used in construction activities.

Major causes of foam formation in waterborne coatings include mechanical introduction of air by mixing or application processes, air displacement during wetting or dispersion and generation of gas by chemical reactions and rapid drying causing bubbles. Defoamers are used to prevent foam formation during processing and to destroy the existing foam. Rising waterborne coatings demand particularly in Europe is anticipated to drive the additives market over the next seven years.

Regional Insights

Europe was the largest regional market and accounted for 40.0% of the total market volume share in 2015. Large production base of waterborne coatings, along with early commercialization of the finished products in economies of the U.K., Germany, France, and Italy, may be attributed to high demand. Stringent REACH and government regulations regarding VOC and toxic content in conventional synthetic coatings have led to high demand for the waterborne counterparts. Waterborne coatings have penetrated approximately 90% in the architectural segment in mature markets of North America and Europe as a drop-in substitute to petroleum-derived solvent borne coatings.

Waterborne coating additives Market Share Insights

The global waterborne coating additives market is highly fragmented in nature. The presence of local manufacturers, particularly in China and India, has facilitated in minimizing procurement costs as compared to the imported brands from Europe, and the U.S. This has facilitated industry participants to invest in R&D initiatives for new product development to enhance their market presence globally.

Various companies have adopted different strategies for minimizing overall production cost. Companies such as AkzoNobel, Evonik, and BASF have integrated their additive and coating production and have established effective distribution network globally. Other operating in the industry include Byk, Harmony Additive, Dow Coating Belami Fine Chemical, Allnex, Huber Engineered Materials, Falcon Technologies, Shah Patil and Co., Troy Corp, KaMin LLC, Lubrizol Advanced Materials, and Taminco.

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