Increasing environmental awareness has led to scrutiny of almost every segment and industry of the economy. The paint and coating industry, too, has been subject to this scrutiny, which has triggered a major shift in the manufacturing processes and sale of different types of coatings. Among various other things, the increasing demand for water-based coatings is one major trend in the industry. Water-based coatings are paint and coating formulations that have water as the primary solvent.
Inherent advantages of water-based coatings
which have pushed their popularity
Water-based coatings have obviously benefited from rising global environmental awareness. But they have certain vital advantages that are expected to play a key role in helping them maintain their dominance. These eco-friendly coatings offer excellent resistance against heat and abrasion, along with providing high-quality adhesion. Another important advantage of waterborne coatings is that they are free from toxic chemicals and solvents such as ketones, esters, alcohols, etc. Also, unlike other solvent based coatings, water-based coatings require no thinners and hardeners. This ultimately results in a reduction of air emissions caused by harmful chemicals. Moreover, these low VOC coatings have longer pot life as compared to other solvent based coatings.
Product launches by leading companies in the industry
The shift towards environmentally sustainable coatings is apparent from the various products that have been launched by various companies in the market. In June 2023, for example, DIC Corporation, a major chemical company, announced the launch of the HYDRAN GP series of eco-friendly coatings with polyurethane resins. As per the companys statement, this product launch reflects DIC Corporations policy of releasing environmentally sustainable products on the market.
Similarly, in October 2023, Gerdau Graphene announced the launch of two additives for waterborne coatings viz., NanoDUR and NanoLAV. The company has claimed that these additives will reduce the coating production costs and will also achieve the aim of ecological sustainability in the long run. Such product launches are ultimately expected to expand the scope of the industry considerably in the coming period.
Potential growth drivers of the industry
The increasing application of low VOC coatings in different industries including manufacturing, architecture, packaging, etc., is anticipated to be the primary growth driver of the water-based coatings market. Furthermore, various governments across the globe have introduced strict regulations which limit VOC emissions. Such governmental regulations are expected to create favorable conditions for the growth of the market in the coming period.
Among the different types of water-based coatings, the epoxy sub-segment of the resin type segment is predicted to be the fastest growing with a CAGR of 5.5% in the 2023-2032 period. Additionally, when studied on the lines of application, the automotive sub-segment is estimated to record the highest CAGR of 5.4% in the same timeframe. Regional analysis, on the other hand, shows that the India water-based coating market is set to rise at a CAGR of 5.7% during the forecast period.
To sum it up, the global water-based coating market is anticipated to flourish due to the shift towards environmental sustainability and various eco-friendly products that are being launched by different companies.