Global Market Size, Forecast, and Trend Highlights Over 2025-2037
Waterborne Coating Market size was valued at USD 79.2 billion in 2024 and is expected to reach USD 128.1 billion by the end of 2037, growing at a CAGR of 6.1% during the forecast period from, 2025-2037. In 2025, The industry size of waterborne coatings is estimated at USD 84.5 billion.
Regulations compelling manufacturers to shift from solvent-based to waterborne coating solutions are estimated to double the revenues of key players in the year ahead. The strict environmental regulations and zero emission goals are fueling the sales of green chemicals, including waterborne coatings. The Clean AIR Act and National Emission Standards for Hazardous Air Pollutants are anticipated to fuel the consumption of bio-based waterborne coatings in the coming years. The U.S. Department of Energy (DOE) projects that it invested USD 33.5 million in FY2024 for the production of low-impact industrial materials. Such public spending is likely to accelerate the sales of waterborne coatings during the study period. The stable supply chain of raw materials, particularly resins, influences the sales of waterborne coatings. The U.S. Bureau of Labor Statistics (BLS) states that the producer price index for chemical manufacturing grew by 3.5% and the consumer price index for paint and coating products increased by 4.4% YoY in 2024.
Waterborne Coating Sector: Growth Drivers and Challenges
Growth Drivers
-
Infrastructure and urban development: The increasing infrastructure development activities across the world are set to propel the sales of waterborne coatings in the coming years. The robust government investments in the infrastructure sector are encouraging waterborne coating manufacturers to expand their production operations. The U.S. Infrastructure Investment and Jobs Act (IIJA) is set to invest more than USD 1.7 trillion through 2030. This is further expected to drive the sales of architectural and protective coatings in the years ahead.
- Rise in green chemical adoption: The sustainability and green chemistry trends are set to fuel the demand for innovative waterborne coatings. The strict regulations are necessitating manufacturers to innovate their product offerings. As per the analysis by the U.S. Department of Energy, the green chemicals market is foreseen to reach USD 10.4 billion by 2027. This underscores that in the coming years, robust investments in the production of bio-based waterborne coatings are estimated to gain traction.
Waterborne Coating Market Volume and Growth Trends
The environmental compliance and end users’ increasing demand for innovative and green chemicals are fueling the sales of waterborne coatings. India and China lead the sales of waterborne coatings due to the rising industrial and construction activities. The U.S. and Germany are expected to register stable growth in the years ahead.
Global Waterborne Coating Market Dynamics
|
Country/Region |
2023 Shipment Value (USD) |
2022-2023 YoY Growth |
|
United States |
$8.7 billion |
+6.6% |
|
China |
$10.9 billion |
+7.9% |
|
Germany |
$5.4 billion |
+4.5% |
|
India |
$2.7 billion |
+8.7% |
|
Southeast Asia |
$2.1 billion |
+6.1% |
Top 10 Exporters (2023, by Export Value in USD Billion)
|
Country |
Export Value |
Global Share |
|
China |
$4.7B |
19.5% |
|
Germany |
$4.4B |
17.3% |
|
United States |
$3.9B |
15.5% |
|
Netherlands |
$2.4B |
8.9% |
|
South Korea |
$1.8B |
7.7% |
|
Japan |
$1.9B |
7.3% |
|
Belgium |
$1.5B |
5.8% |
|
Italy |
$1.3B |
5.1% |
|
France |
$1.4B |
4.8% |
|
India |
$955M |
4.1% |
Sensitivity Analysis: Key Risk Factors
|
Variable |
Impact Direction |
Volatility Level |
Implications |
|
Raw Material Prices (Acrylics) |
↑ |
High |
Affects resin cost, margin compression |
|
Geopolitical Tensions (EU/Asia) |
↑ |
Moderate |
Export/import barriers |
|
Energy Costs |
↑ |
High |
Drives PPI for chemical manufacturing |
|
Climate-Related Disruptions |
↑ |
Low to Moderate |
Regional supply chain shifts |
|
Regulatory Changes |
↑ |
Moderate |
Raises compliance and formulation costs |
Emerging Trade Dynamics and Future Market Prospects for Waterborne Coatings
The sales of waterborne coatings registered lower sales during the COVID-19 period. The trade that was declined to USD 2.5 trillion in 2020 recovered to USD 4.1 trillion in 2024. Asia Pacific is leading the trade of waterborne coatings. The specialty chemical trade in North America and Europe is estimated to gain traction in the years ahead. Evolving government policies and initiatives are also contributing to the overall sales growth.
Global Trade Data Table (2019-2024)
|
Year |
Global Trade Value (USD Trillion) |
Asia-Pacific Share (%) |
US to EU Specialty Chem. Exports (USD Billion) |
|
2019 |
3.6 |
38.3 |
8.6 |
|
2020 |
2.7 |
36.9 |
7.8 |
|
2021 |
3.5 |
40.7 |
8.4 |
|
2022 |
3.7 |
42.4 |
9.9 |
|
2023 |
3.9 |
43.8 |
10.8 |
|
2024 |
3.8 |
44.7 |
10.6 |
Breakdown of Key Global Trade Routes for Waterborne Coatings & Related Chemicals (2019-2024)
|
Trade Route |
Major Exporting Countries |
Major Importing Countries |
Avg. Annual Trade Value (USD Billion) |
Share of Global Chemical Trade (%) |
Notable Products |
|
Asia-Pacific → North America |
China, Japan, South Korea |
U.S., Canada |
71.7 |
19.5% |
Waterborne Coatings, automotive chemicals |
|
Europe → North America |
Germany, Netherlands, France |
U.S., Mexico |
65.8 |
17.4% |
Specialty & green chemicals |
|
Asia-Pacific → Europe |
China, South Korea, Japan |
Germany, France, Italy |
58.8 |
15.9% |
Industrial coatings, raw chemical bases |
|
North America → Europe |
U.S., Canada |
Germany, UK, France |
48.4 |
13.6% |
Specialty and waterborne polymers |
|
Intra-Asia |
China, Japan, India |
ASEAN nations, South Korea |
77.5 |
20.52% |
Electronics coatings, solvents |
Composition and Economic Dynamics of Japan Waterborne Coating Industry
The rising petrochemical trade is expected to propel the demand for waterborne coating solutions in the coming years. Automotive, electronics, and pharma companies are expected to drive the consumption of waterborne coatings. The presence of industry giants is also expected to fuel the production and commercialization of waterborne coatings during the foreseeable period. The sustainability and green chemistry trends are also encouraging companies to invest in the Japan waterborne coating market.
Composition of Waterborne Coating Chemical-Based Products Shipped - Japan (¥ Trillion, 2019-2023)
|
Year |
Petrochemicals (%) |
Petrochemicals |
Polymers (%) |
Polymers |
Specialty Chemicals (%) |
Specialty Chemicals |
|
2019 |
43.5 |
¥11.3 |
27.5 |
¥7.9 |
30.4 |
¥8.2 |
|
2020 |
41.3 |
¥10.6 |
29.9 |
¥7.6 |
30.3 |
¥7.7 |
|
2021 |
42.7 |
¥11.4 |
28.3 |
¥7.4 |
30.9 |
¥8.6 |
|
2022 |
45.4 |
¥12.5 |
27.5 |
¥7.5 |
28.5 |
¥7.8 |
|
2023 |
44.6 |
¥11.9 |
28.6 |
¥7.6 |
28.4 |
¥7.4 |
Waterborne Coating Shipments by Manufacturing Industry - Japan (¥ Trillion, 2018-2023)
|
Industry |
2018 |
2023 |
Annual Growth Rate (%) |
|
Automotive |
3.6 |
5.5 |
8.5 |
|
Electronics |
4.4 |
5.4 |
6.8 |
|
Pharmaceuticals |
2.5 |
2.8 |
5.9 |
R&D and Capital Investments by Top Chemical Firms - Japan, 2022
|
Company |
R&D (¥ Bn) |
Capital Investment (¥ Bn) |
Focus Area |
|
Mitsubishi Chemical |
150.6 |
200.5 |
Bioplastics |
|
Sumitomo Chemical |
110.3 |
180.3 |
Green solvents |
|
Toray Industries |
95.7 |
160.6 |
Smart materials |
|
Asahi Kasei |
88.5 |
145.2 |
Sustainable fibers |
Top Japanese Waterborne Coating Firms - Financial Performance (2023)
|
Company |
Sales (¥ Tn) |
Profit (¥ Tn) |
YoY Profit Growth (%) |
Profit Margin (%) |
|
Shin-Etsu Chemical |
4.6 |
1.25 |
12.4 |
26.6 |
|
Mitsui Chemicals |
2.8 |
0.65 |
9.3 |
20.8 |
|
Showa Denko |
2.5 |
0.47 |
7.6 |
19.9 |
|
Kuraray |
1.8 |
0.39 |
6.3 |
20.5 |
Challenges
- Underdeveloped infrastructure: The infrastructure gaps in the emerging economies are likely to limit the sales of waterborne coatings. Low budgets towards infrastructure growth are hindering he consumption of waterborne coating solutions. This also hampers the domestic production of waterborne coating solutions. Manufacturers of waterborne coatings witness significant losses in budget-constrained markets.
- Fragmented regulatory standards: The inconsistent regulations are challenging the production and commercialization of waterborne coatings. The complex and time-consuming approval processes lead to delays in new product launches. Due to this majority of manufacturers refrain from earning lucrative gains from trending opportunities. The numerous certification processes also add to the operational costs and hinder the sales of waterborne coating solutions.
Waterborne Coating Market: Key Insights
| Report Attribute | Details |
|---|---|
|
Base Year |
2024 |
|
Forecast Year |
2025-2037 |
|
CAGR |
6.1% |
|
Base Year Market Size (2024) |
USD 79.2 billion |
|
Forecast Year Market Size (2037) |
USD 128.1 billion |
|
Regional Scope |
|
Waterborne Coating Segmentation
Application (Architectural Coatings, Industrial Coatings, Automotive Coatings, Wood Coatings)
The architectural coatings segment is foreseen to account for 39.5% of the global waterborne coating market share by 2037. The regulation promoting low-VOC products is fueling the sales of architectural waterborne coatings. The booming urbanization and rising construction activities are propelling the sales of architectural coatings. The U.S. Environmental Protection Agency (EPA) encourages the use of waterborne formulations for residential and commercial buildings. This is set to accelerate the production and commercialization of waterborne architectural coatings in the coming years.
End user (Automotive, Construction & Infrastructure, Consumer Electronics, Marine & Aerospace, Packaging)
The automotive segment is projected to hold 36.9% of the global waterborne coating market share throughout the forecast period. The robust registrations of vehicles across the globe are poised to accelerate the demand for waterborne coatings. The regulatory pressure for eco-friendly vehicle production and the growing demand for lightweight materials are also contributing to the increasing sales of waterborne coatings. The National Highway Traffic Safety Administration (NHTSA) stringent emissions standards necessitate automakers to invest in waterborne paints with lower VOC content. This is expected to boost the revenue growth of the waterborne coating producers. Furthermore, the EV trend is set to drive the sales of waterborne coatings in the coming years. The study by the U.S. Department of Energy projects that the use of automotive waterborne coatings is expected to increase at a CAGR of 7.3% through 2030.
Our in-depth analysis of the waterborne coating market includes the following segments:
|
Resin Type |
|
|
Application |
|
|
End user |
|
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Customize this ReportWaterborne Coating Industry - Regional Scope
APAC Market Forecast
The Asia Pacific waterborne coating market is estimated to capture 39.1% of the global revenue share throughout 2037. The increasing investments in sustainable chemistry are projected to drive innovations in waterborne coatings. The strong presence of end users such as electronics, automotive, and construction is propelling the consumption of waterborne coatings. China and India are expected to lead the sales of waterborne coatings in the coming years. Owing to the know-how tactics, Japan and South Korea are anticipated to drive innovations in the waterborne coating market.
The China waterborne coating market is expected to surpass USD 12.5 billion by the end of 2037. The rapid industrial growth and booming construction activities are fueling the sales of waterborne coatings in the country. The strict regulation on VOC use is opening lucrative doors for bio-based waterborne coating manufacturers. According to the analysis by the China Petroleum and Chemical Industry Federation (CPCIF), investments in waterborne technologies grew by more than 22.5% between 2019 and 2023. This underscores that public spending increases the trade of waterborne coating solutions.
The sales of waterborne coating solutions in India are foreseen to increase at a CAGR of 10.1% from 2025 to 2037. The robust construction activities and infrastructure development projects are fueling the consumption of waterborne coatings. The smart city initiatives and rail, road works are drawing the attention of waterborne coating investors. The report by the Indian Chemical Council (ICC) reveals that in 2023, a nearly 26.5% YoY rise was registered in the local adoption of waterborne solutions. Make in India initiatives and the green trend are expected to accelerate the production of waterborne coating solutions in the coming years.
North America Market Statistics
The North America waterborne coating market is poised to increase at a CAGR of 6.1% from 2025 to 2037. The strict regulations targeting the mitigation of volatile organic compounds (VOC) use are accelerating the demand for bio-based waterborne coating solutions. The automotive and construction sectors are estimated to propel the sales of waterborne coatings in the coming years. The green chemical trend is also expected to increase the popularity of waterborne coatings in the coming years. Supportive government policies are attracting waterborne coating investors to the US. and Canada.
The sales of waterborne coatings in the U.S. are expected to rise at a high pace during the study period. The growing adoption of sustainable manufacturing practices is expected to fuel the demand for waterborne coatings. According to the study by the Department of Energy (DOE), the government invested nearly USD 4.6 billion in clean energy chemical production in 2022. This underscores that supportive funding is estimated to result in innovations in waterborne coating formulations. The rising construction activities are also projected to double the revenues of waterborne coating manufacturers in the coming years.
The green trend in Canada is poised to propel the sales of waterborne coating formulations in the coming years. The climatic commitments and zero emission goals are increasing the trade of green chemicals in the country. In 2023, the public spending on clean energy chemical initiatives reached USD 880.5 million. The favorable government schemes and funding are set to accelerate the production and commercialization of waterborne coatings during the foreseeable period.
Companies Dominating the Waterborne Coating Landscape
- Company Overview
- Business Strategy
- Key Product Offerings
- Financial Performance
- Key Performance Indicators
- Risk Analysis
- Recent Development
- Regional Presence
- SWOT Analysis
The key players in the waterborne coating market are employing strategies such as technological innovations, new product launches, mergers & acquisitions, partnerships & collaborations, and regional expansions to earn high revenues. They are investing in research and development activities to introduce innovative waterborne coatings. Leading companies are entering into strategic partnerships with other players to expand their market reach. By collaborating with raw material suppliers, waterborne coating manufacturers are expecting a steady supply chain. To earn fruitful gains, key players are also expanding their operations in the high-potential markets.
|
Company Name |
Country of Origin |
Revenue Share 2024 |
|
The Sherwin-Williams Company |
USA |
9.6% |
|
PPG Industries, Inc. |
USA |
8.9% |
|
Akzo Nobel N.V. |
Netherlands |
7.7% |
|
BASF Coatings GmbH |
Germany |
6.8% |
|
Axalta Coating Systems Ltd. |
USA |
6.6% |
|
Jotun A/S |
Norway |
xx% |
|
RPM International Inc. |
USA |
xx% |
|
Asian Paints Ltd. |
India |
xx% |
|
Hempel A/S |
Denmark |
xx% |
|
Tikkurila Oyj |
Finland |
xx% |
|
Berger Paints India Limited |
India |
xx% |
|
Noroo Paint & Coatings Co., Ltd. |
South Korea |
xx% |
|
Haymes Paint |
Australia |
xx% |
|
TOA Paint (Malaysia) Sdn. Bhd. |
Malaysia |
xx% |
Below are the areas covered for each company in the waterborne coating market:
In the News
- In May 2024, PPG Industries introduced Envirocron LUM, a low-temperature-cure waterborne powder coating. This product cuts energy use in automotive part production by up to 30.4%.
- In March 2024, Akzo Nobel N.V. announced the launch of its new waterborne exterior wood coating under the brand name Sikkens AquaGuard. The innovation led to a 12.3% growth in its decorative coatings segment in the first quarter of 2024.
Author Credits: Rajrani Baghel
- Report ID: 3887
- Published Date: Jun 04, 2025
- Report Format: PDF, PPT
