Market Size and Overview:

The worldwide market for water-based acrylics achieved a valuation of USD 19.83 Billion, with a projected expansion to reach USD 31.02 Billion by the conclusion of 2030. Throughout the forecast interval spanning 2024 to 2030, a compound annual growth rate (CAGR) of 6.6% is anticipated in the market.

Water-based acrylic coatings, renowned for their application across various material surfaces and utilization of water as the primary solvent, are recognized as non-toxic coatings. The development and application of these coatings involve the utilization of water-soluble polymers, with commonly employed water-soluble resins encompassing alkyds, acrylics, styrene-butadiene copolymers, among others. The inclination towards waterborne coatings, as opposed to solvent-borne alternatives, is attributed to the diminished release of Volatile Organic Compounds (VOCs) when utilizing water-based resins, aligning with environmental considerations.

Key characteristics of water-based acrylic coatings include heat and abrasion resistance, superior adherence, minimal flammability, and the capacity to cover extensive surface areas with reduced solution quantities. Aqueous acrylic coatings find widespread application in diverse sectors such as automotive, building, woodworking, construction, and packaging. A crucial aspect of market analysis in this domain involves a comprehensive assessment of the consumption of waterborne acrylic coatings. The promotion of water-based acrylic coatings, propelled by governmental initiatives favoring their superior performance compared to traditional coatings, contributes to the sector's expansion.

MARKET DRIVERS

The progression of the Water-based Acrylic Coating Market is fueled by the escalating demand for waterborne acrylic coatings in end-user industries, including automotive, construction, and infrastructure.

A notable trend in the coatings industry is the increasing preference for environmentally friendly attributes, influenced significantly by stringent EU regulations targeting the reduction of volatile organic compound (VOC) emissions from coatings. Measures such as the Eco-product Certification Scheme (ECS) introduced by the European Commission and other government bodies ensure environmentally sound practices with minimal toxic VOC emissions.

The coatings industry has undergone a transition from solvent-borne coatings to eco-friendly alternatives like waterborne coatings, driven by regulations in the US and Western Europe addressing air pollution concerns and heightened awareness of the adverse effects of VOC emissions. Governmental initiatives, particularly those regulating VOC emissions and addressing air pollution, play a pivotal role in driving the market.

The global concern regarding rising levels of VOCs and air pollution has prompted governments worldwide to enact stringent gas emission regulations.

In response, industries actively seek ways to minimize VOC emissions associated with acrylic coating production processes, fostering increased demand for water-based acrylic coatings. These factors collectively contribute to the anticipated growth of the market in the forecasted years.

MARKET RESTRAINTS

The hindrance to market growth lies in the extended drying time required by water-based acrylic coatings.

Water-based acrylic coatings exhibit prolonged drying periods compared to their solvent-borne counterparts. The distinctive flow characteristics of waterborne coatings are contingent upon humidity levels, influencing the application process. In environments with elevated humidity, water evaporation is sluggish, leading to suboptimal curing and reduced efficacy. Furthermore, susceptibility to cold temperatures renders the coating unusable after freezing.

COVID-19 Impact on the Global Water-based Acrylic Coatings Market:

The ongoing global COVID-19 pandemic has imposed detrimental effects on various industries due to precautionary measures to curb virus transmission. The pervasive fear and associated uncertainties have disrupted normalcy worldwide. Government-imposed lockdowns resulted in a cessation of operations in businesses and offices, inducing a period of standstill in daily life. To maintain operational continuity during these challenging times, governments implemented rules and restrictions that the workforce diligently adhered to.

The prevailing threat compelled several industries, including construction, automotive, white goods, and electronics, to decelerate, leading to diminished demand for paints and coatings in the market. Adherence to stringent laws and regulations imposed by governments became imperative for industries navigating through these unprecedented circumstances.

Latest Industry Developments:

In September 2020, Dow (NYSE: DOW) unveiled its innovative adhesive portfolio, INVISUTM Acrylic Adhesives, in the North American region. This strategic introduction represents a pivotal advancement for pressure-sensitive paper, providing producers and brand owners with enhanced capabilities to meet the evolving demands of the industry efficiently.

Water-based Acrylic Coating Market Segmentation - By Type of Acrylic Resin

• Pure Acrylic
• Styrene Acrylic
• Vinyl Acrylic
• Ethylene Acrylic
• Methyl Methacrylate Acrylic

In 2023, the segment with the highest revenue share was Methyl Methacrylate Acrylic, primarily propelled by the rapid growth of the healthcare industry. This resin is extensively employed in medical applications, such as filling gaps between implants and bone structures, due to its lightweight and biocompatible nature. The Styrene Acrylic segment is anticipated to experience the most substantial growth during the forecast period (2024-2030), attributed to its widespread use in the construction industry for applications like ceramic tile adhesives, elastomeric roof coatings, fillers, putties, among others.

Water-based Acrylic Coating Market Segmentation - By Product Form

• Emulsions
• Dispersions

The Emulsions segment is projected to hold the highest market share in 2023 and is forecasted to be the fastest-growing segment. This is attributed to the extensive applications of emulsions in coatings and paintings, appreciated for their user-friendly properties and durability. Emulsions, particularly favored for adhesive paints and coatings, find widespread use across various industry verticals.

Water-based Acrylic Coating Market Segmentation - By Application

• Architectural Coatings
  • Interior Wall Paints
  • Exterior Wall Paints
  • Trim Paints
  • Roof Coatings
• Industrial Coatings
  • Metal Coatings
  • Plastic Coatings
  • Wood Coatings
  • Masonry Coatings
  • Concrete & Floor Coatings
• Automotive Coatings
  • Wood Finishes
  • Furniture Coatings
  • Paper & Board Coatings
  • Others

Architectural coatings dominated the market in 2023, propelled by the expanding infrastructure industry. The preference for these coatings in construction projects is attributed to their water resistance, excellent finish, and uniform drying time. Although architectural coatings held the highest market share, the growing demand for new construction projects in the healthcare and medical sectors is expected to present new growth opportunities. The prominence of individual vehicles for private transportation is gradually fueling market expansion. Moreover, the pandemic has heightened the demand for construction work in the healthcare sector.

Water-based Acrylic Coating Market Segmentation - By Region

• North America
• Europe
• Asia-Pacific
• South America
• Middle East and Africa

Asia-Pacific led both in terms of value and volume in the global Water-based Acrylic Coating market in 2023. The region is poised for significant market growth, fueled by substantial infrastructure developments and increasing construction activities, particularly in countries like China, India, and Japan. The fast urbanization resulting from rural-to-urban migration has also contributed significantly to the market's growth in the Asia-Pacific region. North America, due to its relatively developed economies, is expected to witness the highest market growth, further accelerated by recent economic crises in these areas. Similar growth trends have been observed in other economically developing regions, including the Middle East, Africa, and Latin America.

Water-based Acrylic Coating Market Segmentation – By Company

• Cardolite Corporation (U.S.)
• BASF SE (Germany)
• Kukdo Chemical Co., Ltd., (South Korea)
• Evonik Industries AG (Germany)
• Aditya Birla Group Chemicals (India)
• Mitsubishi Chemical Corporation (Japan)
• Arkema (France)
• Hexion (U.S.)
• Huntsman International LLC (U.S.)