Low VOC Paint Market is forecast to reach $12.79 billion by 2025, after growing at a CAGR of 6.92% during 2020-2025. The increase in health issues and rising public laws are boosting worldwide market demand for Powder Coatings. Strict regulation of VOC emissions and favorable government measures to promote the use of Low VOC Paint and accelerate the manufacturing of Architecture & Decorative in Asia-Pacific and Europe are key variables influencing the industry. On the other hand, rising expenses of raw materials are anticipated to increase the industry. These factors attribute to the market growth of Low VOC Paint.
- The automotive industry is prepared to witness a seismic shift with an increased production rate in the future, which will further flourish the market for Low VOC Paint, and the industry will witness a definite upsurge of demand that will increase revenue.
- A growing safety threat connected with exposure to paints, particularly those containing lead in them, resulted the World Health Organization to cooperate with the United Nations Environment Program to create a cooperative project called the Global Alliance to Eliminate Lead Paint. By 2050, the Alliance vowed to eliminate full use of lead paint in 70 countries and encouraged industries to actively use Low VOC Paint in their general metal finishing activities. This factor is expected to be a powerful driver of growth in the global market for Low VOC Paint.
- Factors such as technological advancement, convenience of use, product development and increased consumer spending are main drivers of the growth of the industry for Low VOC Paint.
- Strong perspective in manufacturing, house equipment and architecture applications will boost market demand for Low VOC Paint over the timeframe prediction.
Formulation Type- Segment Analysis
Water-Borne segment held the largest share in the Low VOC Paint Market
in 2018. Water borne coating is generally uses water as a solvent to disperse the resin which is added to create the coating. Its composition varies and may include as much as 80% water with small amounts of other solvents such as glycol ethers. High water content makes waterborne coatings both environmentally friendly and easy to apply. Waterborne coatings meet the U.S. and European regulations governing VOC (volatile organic compound) emissions, organic chemicals, producing VOC content pf less than 3.5 pounds per gallon. In addition to their low toxicity, their high water content also makes waterborne coatings less flammable and results in reduction or elimination of hazardous waste disposal.
Application – Segment Analysis
Architecture & Decorative sector has been the primary market for Low VOC Paint is growing at a CAGR of 7.12%. Decorative paints are the major application of Low VOC Paint, accounts to more than 30% consumption of global Low VOC Paint and the major formulation used is waterborne, which holds the share of around 70%. For the past few decades solvent borne coatings were employed for coating of buildings and this trend was shifted towards waterborne coatings due to the environmental regulations, lower VOC levels and cost, odorless factors. Decorative, protective coatings have been the preferred choice for interior wall coatings for over sixty years. Especially, in areas where children or the elderly are present such as schools and hospitals as interior wall coatings account for by far the largest part of usage in architectural application.
Geography – Segment Analysis
APAC dominated the Low VOC Paint Market with a share of more than 47.2%, followed by North America and Europe. According the International Monetary Funds, the economic growth in the APAC region is estimated to be around 5.5%-6% during the forecast period 2015-2020. India is likely to witness a USD 1.3 trillion investment in housing over the next seven years, where the country is likely to see 60 million new homes being built. It is anticipated that the supply of affordable housing in India will increase by about 70% by 2024. The’ Housing for All by 2022′ of the Indian government scheme is a major game change for the industry. The growing demand for infrastructure development provides continuous impetus to the construction and building industry in APAC, in turn, propelling the demand for Low VOC Paint in the Architecture industry.
Drivers – Low VOC Paint Market
- Stringent regulations by the government and environmental agencies
Emitting toxic VOCs has led to the production of alternative solutions such as low VOC paints and conventional oil and hydrocarbon-based chemicals. The release of toxic VOCs has increased the number of health problems such as asthma and allergies. It leads to low VOC paint requirements. Increased consumer awareness and ongoing technological developments have also created an increase in the demand for low VOC paints. Consequently, significant investments have been made in the research and development of low VOC paints.
Challenges – Low VOC Paint Market
- High Cost When Compared to Conventional Paint
The high cost associated with producing low VOC paints is the main challenge faced by the global low VOC paint market Compared to conventional hydrocarbon solvents, the advanced solvents used in low VOC paints are expensive. Manufacturers are struggling with three criteria of stable pricing, enhanced usability and green chemistry in low VOC layers, and the challenge was for market players on the low VOC paint market to maintain stable.
In 2018, the market of Low VOC Paint has been consolidated by the top five players accounting for xx% of the share. Major players in the Low VOC Paint Market are AkzoNobel NV, Asian Paints Ltd, BASF SE, Axalta Coating Systems LLC, and the Sherwin-Williams Company, among others.
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