Global Paints & Coatings Market: Waterborne Technology’s Lucrative Foothold
                     Global Paints & Coatings Market: 
Waterborne Technology’s Lucrative 
Foothold
Paints  &  coatings  comprise  a  mixture  of  components,  such  as  a  carrier  (water,
solvent,  or  both),  a  film-forming  element  in  the  coating,  such  as  polyurethanes,
alkyds, and oils, as well as pigments or dyes that add color. Although their primary
purpose is protecting the surface to which they are applied, paints & coatings also
add  aesthetic  value  to  interiors  and  exteriors.  According  to  Inkwood  Research,
the global paints & coatings market is set to record a CAGR of 4.97% during the
forecast period of 2023 to 2032, capturing a revenue share of $241.624 billion by
2032.
Waterborne Paints & Coatings: What’s the Appeal?
While some wooden houses, bridges, signs, and stores were painted as early as the
18th century, it wasn’t until recently that mass manufacturing rendered a broad variety
of paints universally indispensable. Today, paints & coatings are utilized in interior
and exterior house painting, planes, appliances, boats, automobiles, furniture, and
other surfaces where aesthetics and protection are essential.
In  this  regard,  waterborne  coatings  constitute  a  major  percentage  as  solvents,
binders,  pigments,  and  performance  additives,  based  on  the  applications’
requirements. Also, waterborne is the dominant type of paints & coatings technology
utilized  globally  and  is  expected  to  capture  the  highest  share  of 43.23%  by
2032. (Source: Inkwood Research)
The market share of waterborne paints & coatings has grown rapidly over the years,
given their favorable properties such as increased availability, fast-drying nature, and
lower VOC levels. Moreover, they entail a wide variety of resin types, like acrylic,
urethane, polyester, alkyd, fluoropolymer, epoxy, and waterborne powders. As per
Inkwood Research, the acrylic segment, under the resin type category, is expected
to grow with the fastest CAGR of 5.11% by 2032, capturing the highest revenue
share of 31.35% in 2022.
Waterborne Technology: Market Observations –
 Waterborne  coatings  in  the  architectural  (interior/exterior)
segment [expected CAGR by 2023: 5.29%] are projected to show healthy
growth in the next five years. The growth is mainly driven by the following:
 Significant investments in infrastructure developments
 Rise in housing projects
 Renovation  of  existing  residential  and  commercial  buildings
 The increasingly  eco-friendly  nature  of  waterborne  coatings,  along  with
their  versatile  properties,  are  boosting  their  demand  across  developing
economies, primarily in the Asia-Pacific.
 Accordingly, Asia-Pacific is set to lead and dominate the global
paints & coatings market over the forecast period, capturing a
revenue share of 38% by 2022 and a CAGR of 5.85% by 2032.
 Waterborne  coatings  are  commonly  required  in automotive  paints.
Aligning with this, there has been a steady shift toward waterborne acrylics,
particularly in automotive basecoats, owing to environmental challenges.
 This factor,  in turn, plays a vital  role in positioning automotive
(OEM) as one of the fastest-growing applications, with a CAGR
of 5.15% by 2032.
Painting a Strategic Landscape with Waterborne Technology
The  growing  focus  on  environmental  sustainability,  in  addition  to  stringent
government regulations to minimize the use of harmful substances, is anticipated to
promote the demand for water-based paints during the forecast period. This has also
encouraged companies to  increase their  investments and advance their  strategic
ventures in waterborne paints, predominantly given the advantages and subsequent
profits they yield.
For example –
 In January  2022, PPG  Industries (United  States) announced  that  it
would invest  over  $10  million to  expand  the  production  capacity  of
automotive original equipment manufacturer (OEM) coatings at its site in
Weingarten,  Germany.  The  expansion  was  completed  in  Q2 2022,  in
addition  to  its  existing  facility  with  a  capacity  to  produce  more
than 5,000 metric tons of waterborne basecoats annually.
 In October  2022, The Sherwin-Williams  Company (United
States) announced  an  agreement to  acquire  an  Italian  designer,
distributor,  and  manufacturer  of  industrial  wood  coatings, Industria
Chimica Adriatica SpA (ICA). The latter’s focus on innovative waterborne
as  well  as  solvent  liquid  coatings  technology,  including  an  expanding
portfolio of BIO water-based coatings, is set to provide the company with
numerous  opportunities  to  accelerate  profitable  growth,  globally.
 LANXESS (Germany),  a  Specialty  chemicals  company, established  a
new manufacturing line for the production of water-based compounds in
Nantong, China, in 2021. Typical application areas for these products entail
flat  materials for automotive interiors,  i.e.,  instrument panels,  as well  as
door  and  sear  panels.
 Michael  Timm  (Head  of  Marketing  &  Development  Cast  Elastomers  at
URE) states, “As the automotive industry will continue to switch from solvent-based
to environment-friendly water-based coatings, we see strong potential with attractive
growth rates.” (Source)
 In May  2020, Foseco (India) developed  a new  fast-drying  waterborne
coating, SEMCO  FD.  It  enables  foundries  to  utilize  coatings  with
significantly higher solids content, thus offering greater protection against
casting defects. Subsequently, SEMCO FD yields advantages such as an
accelerated drying process, a tremendous improvement in the quality of the
working  environment,  lower  energy consumption,  and improved foundry
profitability.
 BASF (Germany) and Nippon  Paint  China,  a  leading  coatings
manufacturer, collaboratively  launched  an  eco-friendly  industrial
packaging in August  2022.  With Joncryl®  High-Performance
Barrier, the  water-based  acrylic  dispersion  by  BASF  as  the  barrier
material, the novel packaging material is commercialized for constructing
Nippon  Paint’s  dry  mortar  products.
 Arkema (France),  a  global  chemical  company, acquired Polimeros
Especiales,  a  Mexico-based  producer  of  waterborne  acrylic  resins,
in September 2022. Polimeros Especiales manufactures high-performance
waterborne resins for diverse markets, such as construction, architectural
and  decorative  paints,  pressure-sensitive  adhesives,  and  textiles.  The
move is set to strengthen the company’s position in Mexico, a fast-growing
region,  as  well  as  its  key  offering  in  solvent-free  solutions.
Over the years, the driving force for the development of waterborne technology has
been environmental, with water-based paints & coatings offering a holistic approach
to  sustainability.  They  also  provide  high  color  retention  over  time,  in  addition  to
generating limited odors.
Consequently, these characteristics increase the demand for waterborne solutions
across myriad applications, thus contributing to the growth of the global paints &
coatings market during the forecast period.
FAQs:
1. What is UV-curable technology for waterborne coatings?
A: UV-curable technology for waterborne coatings is a surface 
treatment that is either cured by UV radiation or shields the underlying 
material from the radiation’s adverse effects. The technology has also 
received significant traction in industrial research.
2. What are some of the challenges faced by the global paints & 
coatings market?
A: Uncertainties associated with raw material prices, geopolitical 
tensions, and regulatory issues are among the key challenges faced by
the global paints & coatings market.