The majority of the water-based coatings market is concentrated in the decorative coatings segment. Of the estimated 24.4 billion liters of water-based coatings used globally, 88% (21.5 billion liters) are used in the decorative segment. Within the non-decorative industrial coatings market, water-based coatings are distributed across several segments. Key segments include the automotive and transport industries, woodworking, and road markings.
Regionally, Asia is the largest market for water-based coatings. This is not surprising, as Asia accounts for approximately 57% of the global coatings market. All major Asian markets, including China, India, Japan, South Korea, Southeast Asia, Australia and New Zealand, as well as Central Asia, have large decorative coatings markets and, consequently, large markets for water-based coatings.
The chemical composition of water-based coatings includes acrylic compounds (including 100% acrylate, styrene acrylate, and vinyl acrylate) and latex compounds such as polyvinyl acetate. Furthermore, the production of polyurethane dispersions (PUDs) has seen rapid growth in recent years. Although PUDs still account for a relatively small share of the water-based coatings market, estimated at approximately 1.5%, they are used in woodworking, flexible packaging, transportation, and other industries. Finally, water-based epoxy resins are another important component of the market. Water-based epoxy resins are primarily used in the automotive, transportation, and general industrial sectors.
Water-based coatings are popular due to their low volatile organic compound (VOC) content, making them popular among paint and coatings companies seeking to promote more environmentally friendly products. Demand for water-based products is growing as governments around the world introduce stricter VOC emission standards.
An interesting trend is emerging in the markets: while the grams per liter of paint and coatings remains important, some regulators are increasingly focusing on total site emissions—that is, the total volatile organic compound (VOC) emissions from factories or construction sites. This trend is particularly pronounced in urban areas, where concerns about the negative impacts of air pollution are particularly high.
While water-based coatings and paints offer many advantages, they also have some disadvantages. In some cases, water-based products are more expensive than their solvent-based counterparts. Furthermore, the performance of water-based products can sometimes be inferior to that of their solvent-based counterparts. Durability, adhesion, and drying time of water-based products can also be inferior.
Another concern is that some water-based products can have a larger carbon footprint. Drying or curing water-based products can require more energy than solvent-based products. As is well known, the issue of carbon footprint is becoming increasingly important in the paint and coatings industry.
Other disadvantages of water-based coatings include their curing time, which can be affected by humidity and temperature, moisture content (water-based products are more sensitive to rain, dew, and condensation before they are fully cured), and shelf life and storage issues (freezing can cause damage).
Most of the above-mentioned issues are being addressed by raw material suppliers and coatings manufacturers. In recent years, the development of water-based coatings has focused primarily on improving their environmental benefits and performance.
Furthermore, the use of biodegradable raw materials in some products further enhances the environmental benefits of water-based products. The paint industry must continue to develop these technological advances to ensure the sustainable development of water-based products and the continued benefits for manufacturers and end users.
Water-based coatings play a vital role in the global paint and coatings industry. While they are currently primarily used in decorative coatings, their popularity in non-decorative industrial coatings is growing. Cost, performance characteristics, and application characteristics have limited the use of water-based products in non-decorative industrial coatings. However, advances in chemical and formulation technologies are fueling their expansion. With continued technological advances, we expect water-based coatings to become more widely adopted due to their environmental benefits.
Post time: Feb-04-2026