Global Water-based Alkyd Coatings Market - Forecast(2024 - 2030)
Global Water-based Alkyd Coatings Market
Overview
Global Water-based Alkyd Coatings
Market size is forecast to reach US$10.1 billion by 2027, after growing at a
CAGR of 6.2% during the forecast period 2022-2027. Global water-based alkyd
coatings use water as a solvent to disperse a resin-like Acrylic,
Polyurethane,
Polytetrafluoroethylene (PTFE), Polyvinylidene Fluoride (PVDF), Polyvinylidene dichloride, and others,
thus making these coatings eco-friendly and easy to apply. In most cases,
water-based alkyd coatings contain up to 80% water with small quantities of other
solvents, such as glycol ethers. These coatings are also known to be
environment-friendly as US and European regulations require waterborne coatings
to have a VOC content of fewer than 3.5 pounds per gallon of water. Increasing
urbanization for leading a better life increases the number of housing
construction. Resulting in the development of affordable housing and
infrastructure by the construction industry. This is driving the demand for
various wood, industrial, and architectural coatings materials used in the
construction of residential as well as commercial complexes. For instance,
according to the National Federation of Beverages (FNB), France has aimed to
put 15-20% share of wood for new building construction projects by 2030 which
currently is 8%. Thus, significantly increasing the demand for global
water-based alkyd coatings in the building and construction sector.
COVID-19Impact
Report Coverage
The report: “Global
Water-based Alkyd Coatings”- Forecast (2022-2027)”, by Industry ARC, covers an
in-depth analysis of the following segments of the Global Water-based Alkyd Coatings Market Industry.
By Product: Water-Soluble Paints,
Emulsions Paints, Water-Based Alkyds, and Water-Dispersible Paints.
By Method: Salt Forming Method and
Nonionic Group Method.
By
Application: Architectural, Furniture
manufacturing, Home Appliances, Fax Machines, Printers, Typewriters, Computers,
Automotive OEM sector, Interior and Exterior (Coal Cars, Fly Ash Hoppers, Plastic
Pellet Hoppers, Containers and trunks, Teflon extenders), Paper, Leather,
Printing Inks, and Others.
By End-Use
Industry:
Building and Construction, Industrial,
Aerospace, Automotive, Electronics, Paper and Packaging, and Others.
By
Geography: North America (USA, Canada, and Mexico), Europe
(UK, France, Germany, Italy, Spain, Russia, Netherlands, Belgium, and Rest of
Europe), Asia Pacific (China, Japan, India, South Korea, Australia, and New
Zealand, Indonesia, Taiwan, Malaysia and Rest of APAC), South America (Brazil,
Argentina, Colombia, Chile, Rest of South America), and Rest of the world (the Middle East and Africa).
Key Takeaways
- The Asia Pacific dominates the global water-based alkyd coatings market owing to a rapid increase
in the building and construction sector.
- Rapid demand from furniture industry is one of the major
drivers for the global water-based alkyd coatings market
- Implementation of sustainability law for wood materials in
building & construction sector is boosting the market growth.
- The fluctuation in raw material prices is hampering the
market growth
Figure: Asia-Pacific Global Water-based Alkyd Coatings Market Revenue, By Geography 2021-2027 (US$ Billion)
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Global Water-based Alkyd Coatings Market Segment Analysis - By Product Type
Water-Soluble paints segment held the largest share in the global water-based alkyd coatings market and will grow at a CAGR of 4.5% during the forecast period 2022-2027. It contains small clusters of insoluble resin particles that are suspended in water using mechanical agitation. Small quantities of organic solvents are used as coalescing agents, which evaporate on drying. The resins used in these types of dispersion paints include vinyl propionate copolymers, vinyl acetate copolymers, acrylate-methacrylate copolymers, and styrene-butadiene copolymers and polymers. Colloidal dispersions are used mainly to coat porous materials. When solvent-borne is used for varnishing a can, it produces around 55% to 60% solvent content, with waterborne it brings it down to 14%, a major reduction. It is Low toxicity and flammability due to low VOC levels and HAP emissions and help reducing air emissions. The industries for instance, in 2020 Pittsburgh Plate Glass Company (PPG) launched Low-VOC water soluble paints system for China Refinish Market. On the other hand, in 2020 Axalta expands plant for water-borne coatings in Jiading, Shanghai, China. Such initiatives all over is highly enhancing the Global water-based alkyd coatings market
Global Water-based Alkyd Coatings Market Segment Analysis - By End-Use Industry
Automotive OEM sector segment held the largest share in
the global water-based alkyd coatings market and will grow at a CAGR of 4.7% during
the forecast period 2022-2027. The automotive industry is undergoing a
significant transformation. Water-based alkyd coatings have an important role
to play in making new technologies possible. Beyond their traditional jobs of
protecting automobile components from corrosion, abrasion, and ultraviolet (UV)
degradation and providing a unique and striking appearance, automotive coatings
are already providing additional functionality. This includes soft-touch and
sound-dampening interior surfaces and self-healing and easy-to-clean exterior
surfaces. Automotive OEM coatings possess advantages such as higher
reliability, longer equipment life cycle, maintenance cost reduction, and low
on toxic emissions. Moreover, the rise in the public transportation expenditure
and adaption of the automotive coating by end-users are some factors imposing
market growth. Automotive industry with a growing production of 77.5 million
production in 2020 according to Organisation Internationale des Constructeurs
d'Automobiles (OICA) potraying a very positive impact on the Global water-based
alkyd coatings market
Global Water-based Alkyd Coatings Market Segment Analysis - By Geography
Asia-Pacific region held the largest share in the global water-based alkyd coatings market and will grow at a CAGR of 3.7% during the forecast period 2022-2027. Asia-Pacific is one of the world’s largest regional economies, according to China’s government and will remain a powerful player in the global economy for the imminent future, especially for the development of new technologies and the anticipation of investment capital. The region offers distinct opportunities for different end-use industries including chemical, construction, and others. According to China’s Chemical Industry, China is the world’s largest producer of chemicals represents about 24% of the worldwide market, which is valued at US$1.3 trillion. Demand for construction chemicals like water-based alkyd coatings is driven by the rising trend of sustainable and green infrastructure and thus benefiting from the demand for such chemicals is likely to enhance the water-based alkyd coatings market.
Global Water-based Alkyd Coatings Market Drivers
Rapid Demand from Furniture Industry
With the increasing housing construction, population, and income levels, the demand for furniture, such as chairs, tables, beds, sofa, shelves, and cupboards, has been increasing significantly. In the furniture industry, water-based alkyd coatings are widely used. As a result, the escalating production volume of furniture is augmenting the growth of the water-based alkyd coatings market in the forecast period. Customers have the accessibility to order furniture both online and offline. The preferred online furniture business is growing to improve the digitalization and flexibility of home delivery. Online platforms are producing considerable revenue for corporations like Ikea and Poco. According to Verband der Deutschen Möbelindustrie (VDM), the turnover of the top 20 in the German furniture trade increased by 2.7% to US$26.1 billion in 2019-2020. Observing the past decade, the increase in turnover volumes to nearly 40%. Ikea excels the list of retailers with US$6.09 billion, followed by XXXLutz including Poco, Höffner, the Otto Group, and Tessner Group with US$4.8 billion, US$2.5 billion, US$1.84 billion, and US$1.74 billion respectively in 2019-2020. Therefore, with the increase in development in the furniture sector, the demand for water-based alkyd coatings is also anticipated to grow during 2022-2017. Besides, 468 German furniture companies generated sales of 19.8 billion euros. Furniture has been a fundamental piece of FraFrance’sfestyle for centuries. Currently, the furniture market in France is flourishing. France marked third place in Europe and seventh in the furniture market globally. Thus, it shows the high potential growth other f water-based alkyd coatings market
Implementation of Sustainability Law for Wood Materials in Building & Construction Sector
Water-based Alkyd coatings are widely used in wood-based products and with the increased focus on wood-based products and wood as a raw material in building houses due to the imposition of sustainability law especially in European countries by the European Government, which ensures that 50% of all the new buildings construction should be wood from 2022 in most of the European countries. The France government had already pledged the sustainable city plan where the use of natural materials such as wood, straw and hemp, and any buildings higher than eight-story built for the 2024 Paris Olympics must be made entirely of timber to showcase France's low-carbon ambitions in the lead-up to the 2024 Summer Olympics and Paralympics in Paris. According to Statistisches Bundesamt, in 2021, the total permits for building construction in Germany is 151,657, which is 3.5% growth compared to the previous year. Since wood would be highly used in the construction process of all the new buildings as per the law, it anticipates the growth of wood coatings market in the forecast period. Due to the rise in urbanization and increase in demand for wood in building new residence and furniture, the wood coating market has witnessed certain growth alongside as wood coatings are highly use in protecting the woods from moisture and UV damages and giving it an aesthetic look and also contains low volatile organic compound. The European government aim to invest US$1.15 trillion over the period of 2021-2030 for the European Green Deal sustainability law imposed in Germany and France and some other major European countries. The law ensures the use of wood in construction of new building or reconstruction of old buildings, accumulating the market growth of global water-based alkyd coatings in the forecast period.
Global Water-based Alkyd Coatings Market Challenges
Fluctuation in raw material prices
Manufacturers are functioning hard to maintain challenging market position along with the maintenance of customers by executing a low-cost strategy for water-based alkyd coatings, hence compromising on their profit margins. Besides, increased raw material prices have become a critical issue for manufacturers of wood coatings. Rising prices of flaxseed oil, dammar gum, and a highly pure nontoxic is aliphatic solvent, are hampering the enhancement of all the concerned businesses in the water-based alkyd coatings market. According to the Department of Commerce, prices of coating oils have risen from 2018 to 2021 from 2 to 4% higher than the average rates. Factors that will be watched critically in the months ahead are the domestic and export demand. According to the Centre for Sustainable Crop Management, the market price for flaxseed in the European region has ranged from US$0.09 to US$0.14 per pound. At $0.10 per pound, gross income would be a modest US$120 to US$140. Therefore, the volatility in the prices of raw materials might hinder the market growth of water-based alkyd coatings in the forecast period
Global Water-based Alkyd Coatings Industry Outlook
Technology
launches, acquisitions and R&D activities are key strategies adopted by
players in this market. Global water-based alkyd coatings top 10 companies include:
- BASF
- DowDuPont
- Yung Chi Paint & Varnish Mfg
- Akzo Nobel
- Berger Paints
- Benjamin Moore
- Sherwin Williams
- Diamond-Vogel
- Sika
- Valspar