Global Paints & Coatings Market - Waterborne Technology’s Lucrative Foothold

1. GlobalPaints&CoatingsMarket: WaterborneTechnology’sLucrative 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,theglobalpaints &coatings marketis settorecorda CAGR of4.97%duringthe forecast periodof2023to 2032,capturing arevenueshareof$241.624billionby2032. WaterbornePaints&Coatings:What’stheAppeal? While some wooden houses, bridges, signs, and stores were painted as early as the 18thcentury, it wasn’tuntilrecently thatmass manufacturing renderedabroadvariety ofpaintsuniversally indispensable. Today, paints & coatings are utilized in interior and exterior house painting, planes, appliances,boats,automobiles, furniture,andother surfaceswhereaesthetics and protection are essential. Inthis regard,waterbornecoatingsconstitute amajorpercentage 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 highestshareof43.23%by2032.(Source: InkwoodResearch)

2. The marketshare of waterbornepaints&coatings hasgrownrapidly over the years,given their favorablepropertiessuchasincreasedavailability,fast-dryingnature,andlower VOClevels. • Moreover, they entail a wide variety of resin types, like acrylic, urethane, polyester, alkyd, fluoropolymer, epoxy, and waterbornepowders.AsperInkwoodResearch, theacrylic segment, under the resintype category,isexpectedtogrow withthefastestCAGRof5.11%by2032,capturing thehighestrevenueshareof 31.35%in2022. • WaterborneTechnology:MarketObservations– • Waterbornecoatings in thearchitectural(interior/exterior)segment[expectedCAGR by 2023: 5.29%] are projected to show healthy growth in the next five years. The growth is mainlydrivenby thefollowing: • Significant investmentsininfrastructuredevelopments • Riseinhousingprojects • Renovationofexisting residentialand commercialbuildings • The increasingly eco-friendly nature of waterborne coatings, along with their versatile properties,areboostingtheir demand acrossdevelopingeconomies, primarily in theAsia- Pacific. • Accordingly, Asia-Pacific is set to lead and dominate the global paints & coatings market over the forecast period, capturing a revenue share of 49.38% by 2022 and a CAGRof5.85%by 2032. • Waterborne coatings are commonly required inautomotive paints. Aligning with this, there hasbeena steady shifttoward waterborne acrylics,particularlyinautomotivebasecoats, owing toenvironmental challenges. • This factor, in turn, plays a vital role in positioning automotive (OEM) as one of the fastest-growing applications,with aCAGRof5.15%by2032. • PaintingaStrategicLandscapewith Waterborne Technology • The growingfocusonenvironmentalsustainability,in additionto stringentgovernment regulations to minimize the use of harmful substances, is anticipated to promote the demand for water-based paintsduringtheforecastperiod.This has alsoencouraged companiesto increasetheir investments and advancetheir strategicventures in waterborne paints,predominantly giventhe advantagesand subsequentprofitsthey yield. • Forexample– • In January 2022,PPG Industries(United States) announced that it wouldinvest over $10 millionto expandtheproductioncapacityof automotive originalequipmentmanufacturer (OEM) coatings at its site in Weingarten, Germany. The expansion was completed in Q2 2022,in addition toits existingfacilitywitha capacity to producemorethan5,000metric tonsofwaterbornebasecoatsannually. • In October 2022, TheSherwin-Williams Company(United States)announced an agreement toacquire anItaliandesigner,distributor,and manufacturerofindustrialwoodcoatings, IndustriaChimicaAdriaticaSpA(ICA).Thelatter’s focus oninnovativewaterborneas wellas solvent liquid coatings technology, including an expanding portfolio of BIO water-based coatings,issettoprovidethecompanywithnumerousopportunitiestoaccelerate profitablegrowth,globally.

3. LANXESS(Germany),aSpecialtychemicalscompany,established a newmanufacturingline 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., instrumentpanels,aswell as doorandsear panels. • Michael Timm (Head of Marketing & Development Cast Elastomers at URE) states, “As the automotiveindustrywillcontinue to switch fromsolvent-basedtoenvironment-friendly water-basedcoatings,we see strong potentialwith attractivegrowth rates.”(Source) • InMay 2020,Foseco(India) developed anew fast-dryingwaterbornecoating,SEMCOFD.It enables foundriestoutilize coatings withsignificantlyhigher solidscontent,thusoffering 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,lowerenergyconsumption,andimproved foundry profitability. • BASF(Germany) andNippon Paint China, a leading coatings manufacturer,collaboratively launched an eco-friendly industrial packagingin August 2022. WithJoncryl® 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),aglobal chemicalcompany,acquired PolimerosEspeciales,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 asits keyofferinginsolvent-freesolutions. • 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 alsoprovide highcolor retentionover time,inadditiontogenerating limitedodors. • Consequently,thesecharacteristicsincreasethedemand forwaterbornesolutionsacrossmyriad applications,thuscontributingtothe growthoftheglobalpaints &coatingsmarketduring the forecastperiod. • FrequentlyAsked Questions(FAQs)– • What isUV-curabletechnology forwaterbornecoatings? • A:UV-curabletechnologyforwaterbornecoatingsis asurfacetreatment thatis eithercured byUVradiationor shields the underlying materialfromthe radiation’s adverse effects.The technology hasalsoreceivedsignificanttraction inindustrialresearch. • Whataresomeofthechallengesfaced bytheglobalpaints&coatingsmarket? • A:Uncertaintiesassociatedwith rawmaterialprices,geopoliticaltensions,and regulatory issuesare among the keychallengesfaced bythe global paints &coatingsmarket.