GVR Report cover Waterborne Coatings Market Size, Share & Trends Report

Waterborne Coatings Market Size, Share & Trends Analysis Report, By Resin (Acrylic, Polyurethane, Epoxy, Alkyd, Polyester, PTFE, PVDC, PVDF, Others), By Application, By Region, And Segment Forecasts, 2020 - 2025

  • Report ID: 978-1-68038-472-7
  • Number of Pages: 100
  • Format: Electronic (PDF)

Report Overview

The global waterborne coatings market size was valued at USD 59.44 billion in 2019 and is anticipated to progress at a compound annual growth rate (CAGR) of 5.7% from 2020 to 2025. The market is anticipated to be driven by the increasing construction spending and restoration activities in emerging economies of Latin America and Asia Pacific.

Waterborne coatings have gained a significant space and recognition globally predominantly due to the improving economic conditions and low environmental impact of these coatings. Waterborne formulations hold a major share of the overall market accounting for over 50% of the total volume consumed globally.

U.S. waterborne coatings market

The overall market is expected to grow significantly over the forecast period owing to increasing demand from end-use industries such as infrastructure, automotive, and general industrial. These coatings are widely preferred owing to properties such as 80% water content as a solvent and low VOC emissions.

Synthetic resins, pigments, surfactants, and additives are the key raw materials used in the manufacturing of waterborne coatings. These raw materials are used to manufacture various types of waterborne coatings that are further used in various applications including architectural, general industrial, automotive OEM, metal packaging, protective coatings, automotive refinish, industrial wood, marine, wood, coil, and a few others.

The regulatory framework for waterborne coatings is governed by the Environment Protection Act; U.S. Environment Protection Agency (EPA); and Registration, Evaluation, Authorization, and Restriction of Chemicals (REACH) among others. These regulatory bodies specify the chemical and physical risks associated with the use of the raw materials in the manufacturing of waterborne coatings, and the general requirements for labeling, storage, and the use of these raw materials.

The transport, usage, and storage of the product and related raw materials is permitted, provided the safety regulations are stringently followed. In addition, government initiatives being taken in order to increase water content as a solvent is expected to benefit the market.

Growth of automobile production in China, Mexico, Indonesia, Malaysia, and Germany is expected to augment the use of waterborne coatings. In addition, growing construction activities in emerging economies of the Middle East and Asia Pacific are anticipated to drive the demand for these coatings. Buyers are looking for application-specific, high-performance pigments, and additives so as to impart high corrosion resistance and aesthetic properties, this is expected to impact product growth.

The booming construction industry is expected to have a positive influence on the growth of the product market over the forecast period. A recent shift in trend from coatings with low or high volatility organic solvents to solvent-free coatings that have lesser emissions is expected to drive the demand for the product in residential and commercial coating applications

Waterborne Coatings Market Trends

Throughout the forecast period, the waterborne coatings market is likely to be driven by increased construction investment and the demand for improved infrastructure, particularly in Asia Pacific. Construction spending is predicted to migrate away from developed nations in North America and Europe and toward developing regions in Asia and the Pacific.

The developing economies of Asia Pacific, particularly China, are predicted to have the largest increase in terms of construction spending, followed by India and Indonesia. This is likely to boost waterborne coatings' market share, especially in Asia Pacific. The Asia Pacific construction market is dominated by residential and commercial structures. This factor gives the waterborne coatings market in Asia Pacific further opportunity to develop throughout the forecast period.

Regulating flow and viscosity in waterborne ambient cure and baked coatings is difficult and complicated. These difficulties can have a significant impact on the appearance of coatings both during and after application. If a waterborne coating is applied to a surface that is above the dew point temperature, complications can occur since the same quantity of water that enters the film is evaporating. This can cause excessive flow and, as a result, significant sagging.

The rising use of waterborne coatings in the furniture industry is likely to drive up demand for them in the industrial wood application market. Waterborne coatings are predicted to become more popular as furniture manufacturing becomes more automated. Other end-use industries that use waterborne coatings include electronic components and textiles, and the market is predicted to increase moderately over the next seven years.

Resin Insights

Acrylic coatings held the largest share of the market and is expected to continue its dominance over the forecast period. Growing demand from the automotive and infrastructure industries owing to superior color and gloss retention in outdoor exposure is expected to drive the demand for acrylic coatings. Acrylic modified polyurethane coatings are widely used in automotive refinishes owing to excellent exterior durability.

Alkyd held a significant share of the market and is expected to be the fastest-growing segment. Increasing demand in various end-use industries including industrial wood and metal packaging is anticipated to drive demand over the forecast period. Alkyd based coatings are used in caulks, fillers, and sealers for wood finishing due to their formulating flexibility.

Applications Insights

The architectural application segment held the largest share of the market in 2017. Increasing infrastructure spending in Asia Pacific and Middle East is expected to drive demand for this application segment. Waterborne coatings are used as decorative coatings in architectural applications such as in doors, trims, window frames, interior & exterior walls, and wood varnishes.

Automotive OEM is expected to be the fastest-growing application segment over the forecast period. The shift of automotive production facilities to emerging economies of Asia Pacific such as China, Japan, India, and Thailand is expected to be the key driving factor for impacting the demand in the automotive industry.

Global waterborne coatings market

Stringent government regulations regarding VOC emissions and solvent content specifically in Europe and North America is projected to augment market growth. The rising trend in the automotive industry to use waterborne coatings in all repair work as well is expected to further increase demand

Regional Insights

Europe represented the largest market for waterborne coatings in 2017. Growth in the construction market led by the recovery post-recession is expected to drive the market in Europe. Germany’s regulatory body which includes Technische Anleitung (TA) Luft coupled UK’s Environmental Protection Act provides the guideline for lowering VOC content in paints & coatings. This factor is expected to increase the demand for the product by replacing solvent-borne coatings used in construction activities in the region

Asia Pacific held the second-largest share of the market in 2017. The shift of major automobile manufactures in Asia Pacific countries such as China, India and Indonesia is also expected to increase the demand. This factor is expected to drive demand from Asia Pacific. The emergence of new industries in Asia Pacific owing to low labor cost and government tax incentives is expected to drive the growth in the region.

Waterborne Coatings Market Trends by Region

Government rules requiring lower VOC content in paints and coatings are projected to drive the aqueous coatings market in North America. Following the global economic recession in 2009-10, countries in this area such as the United States, Canada, and Mexico have seen a surge in government stimulus packages. Waterborne coatings demand in North America is predicted to be driven by factors such as increased employment rates and improved consumer confidence throughout the forecast period.

Government rules requiring lower VOC content in paints and coatings are projected to drive the aqueous coatings market in North America. Countries in this region, such as the United States, Canada, and Mexico, saw a spike in government stimulus packages during the global economic recession of 2009-10. Factors such as improving job rates and increased consumer confidence are predicted to stimulate demand for waterborne coatings in North America throughout the projection period.

Waterborne Coatings Market Share Insights

The global market is fragmented in nature with the presence of many key players, such as AkzoNobel N.V., BASF SE, and Axalta Coating Systems LLC among a few others, as well as a few medium and small regional players operating in various parts of the globe.

The competition is primarily driven by the application scope and use of the product in a variety of application industries. The rapid growth of construction and automotive industries, most notably in the emerging economies of Europe, Asia Pacific, and Central & South America, offers various growth opportunities for the manufacturers of these coatings and related raw materials to expand their product portfolios and market reach.

Report Scope

Report Attribute


Market size value in 2020

USD 62.81 billion

Revenue forecast in 2025

USD 82.9 billion

Growth rate

CAGR of 5.7% from 2020 to 2025

Base year for estimation


Historical data

2014 - 2018

Forecast period

2020 - 2025

Quantitative units

Revenue in USD million/billion and CAGR from 2020 to 2027

Report coverage

Revenue forecast, company share, competitive landscape, growth factors and trends

Segments covered

resin, application, region

Regional scope

North America; Europe; Asia Pacific; Central & South America; Middle East & Africa

Country scope

U.S.; Canada; Mexico; Germany; France; UK; China; India; Japan

Key companies profiled

AkzoNobel NV; BASF SE; Axalta Coating Systems LLC; Berger Paints India Ltd; Kansai Paint Co., Ltd.; Nippon Paint Holdings Company Ltd; PPG Industries Inc.; RPM International Inc.; The Sherwin-Williams Company; The Valspar Corporation; Tikkurila Oyj

Customization scope

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Global Waterborne Coatings Market Segmentation

This report forecasts revenue growth at a country level and provides an analysis of the industry trends in each of the sub-segments from 2014 to 2025. For the purpose of this study, Grand View Research has segmented the market report on the basis of resin, application, and region:

Global Waterborne Coatings Market Segmentation

  • Resin Outlook (Volume, Kilo Tons; Revenue, USD Million; 2014 - 2025)

    • Acrylic

    • Polyurethane

    • Epoxy

    • Alkyd

    • Polyester

    • PTFE

    • PVDC

    • PVDF

    • Others

  • Application Outlook (Volume, Kilo Tons; Revenue, USD Million; 2014 - 2025)

    • Architectural

    • General Industrial

    • Automotive OEM

    • Metal Packaging

    • Protective Coatings

    • Automotive Refinish

    • Industrial Wood

    • Marine

    • Coil

    • Others

  • Regional Outlook (Volume, Kilo Tons; Revenue, USD Million; 2014 - 2025)

    • North America

      • The U.S

      • Canada

      • Mexico

    • Europe

      • Germany

      • France

      • UK

    • Asia Pacific

      • China

      • India

      • Japan

    • Central & South America

    • Middle East & Africa




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