The regulations, use and trade of products is in compliance with the government bodies used in the global waterborne coatings market. This helps to increase the production value and thereby the overall growth in the industry, In addition, the industry is projected to benefit from government measures to raise water content as a solvent. The use of waterborne coatings is projected to increase the growth of automotive production in Indonesia, China, Malaysia, Germany and Mexico.

The legislative system for the products is regulated by the enactment of the Environment Protection Act; the Licensing, Evaluation, Permit, and Restriction of Chemicals (REACH) and the U.S. Environment Protection Agency (EPA). These regulatory bodies determine the chemical risks anad the physical harm from the consumption of the materials for the production. They also help to provide a storage criteria, naming and general storage for the products.

The highly growing construction industry is forecasted to provide a sigifivnat demand for the consumption of waterborne coatings in the market. A recent change from low-volatility or high-volatility organic solvent coatings to solvent-free, lower-emission coatings is expected to fuel product demand in residential and industrial coating applications.

Furthermore, in the emerging economies of the Asia Pacific and Middle East & Africa, the booming building activities are projected to fuel the market for waterborne coatings. Buyers are looking for high-performance additives and pigments for specific applications, which are anticipated to influence product development, in order to have cosmetic properties and high corrosion resistance.

Type Segment

Based on the type, the market is segmented into Acrylic, Polyester, Alkyd, Epoxy, Polyurethane, PTFE, PVDF, PVDC, and Others. The acrylic segment has the largest share in the market in 2019 and the market is forecasted to grow with the significant rate of above 4% CAGR over the forecast period. Owing to their chemical qualities and special aesthetic properties, acrylic waterborne coatings are used in a wide variety of applications. In the aerospace, medical, manufacturing, general industrial and construction sectors, the market for acrylic waterborne coatings is strong. Due to better living standards and the demand for high-quality paints, the use of acrylic resin in coatings is constantly increasing in developing economies , such as China and India.

Application Segment

In terms of the application segment, the market is segmented into architectural and industrial. In 2019, the architectural segment has the fastest growth in the market in 2019 and the market is forecasted to grow with the significant rate of above 5% CAGR over the forecast period. Architectural waterborne coatings often have safety characteristics, apart from having aesthetic qualities. Exterior architectural paints & coatings, for example, protect a building from rain, sunlight, and wind extremes. These coatings are also used in architectural interiors, such as furniture, wall paintings, wood flooring, and sculptures. Increased understanding of the climate by customers and producers has contributed to technical advances in the coating industry to produce quality performance.

The Asia Pacific region has the largest share in market with a CAGR of more than 35.2% in 2019 and is anticipated to continue with the same position during the forecast years 2018-2028. Growing demand for the products from industries such as the general manufacturing, remodeling, maritime, automotive, new construction, and repainting industries in countries such as India, Malaysia, China, Taiwan, Indonesia, Vietnam and South Korea is expected to fuel the growth of the region's water-borne coatings industry. China is forecasted to have a fastest growth for waterborne coatings in APAC region.

Europe region is anticipated to have a significant share with a CAGR of 4% during the forecast period. Construction demand growth, driven by the post-recession rebound, is anticipated to provide a high demand in the market in Europe. The regulatory body of Germany, which comprises Technische Anleitung (TA) Luft combined with the Environmental Protection Act of the United Kingdom, provides guidance for reducing VOC content in paints and coatings. This element is expected to improve commodity demand by replacing the solvent-borne coatings used in the region's construction activities.

The major players of the global waterborne coatings market are BASF SE, PPG Industries Inc., RPM International Inc., AkzoNobel N.V., The Sherwin-Williams Company, and Asian Paints Limited. Moreover, the market comprises several other prominent players in the waterborne coatings market as Axalta Coating Systems LLC, Kansai Paint Co. Ltd., Jotun Group, Nippon Paint Holdings Co. Ltd., and Tikkurila OYJ. The waterborne coatings market consists of top, medium level and a number of domestic players in the global market. In addition to this, the well-established players in the industry have made various strategies and research & developments to compete with other players in the regional and global market.