Water-Based Resins Market size is forecast to reach $55 billion by 2026, after growing at a CAGR of 6.3% during 2021-2026, owing to the rising demand for water-based resins from various end-use industries such as construction, marine, automotive, aerospace, and more. Water-based resins are fast replacing traditional volatile organic compounds (VOCs) solvent-based resins as these resins produce eco-friendly and easy to apply coatings. The rapid growth of the automotive and construction industry has increased the demand for adhesives & sealants; thereby, fueling the water-based resins market growth. The demand for high-solid, solvent-less, and water-borne technologies that boost the growth of the water-based resin market is increasing with strict government regulations to control air pollution by improving air quality. Furthermore, the increasing demand for adhesives & sealants is also anticipated to drive the water-based resins industry substantially during the forecast period.
Water-Based Resins Market Segment Analysis – By Type
The acrylic segment held the largest share in the water-based resins market in 2020 and is growing at a CAGR of 5.6% during 2021-2026. Acrylic resins are extensively used in various end-use industries including automotive, construction, industrial, and more. The main benefits of acrylic resins are the ease of use, physical properties, and low costs. They are resistant to fungus, provide longer than average pot life, and have outstanding protection from moisture. World exports of acrylic resins were worth USD 13,490,819 thousand in 2016, and USD 15,291,934 thousand in 2017, which increased further to USD 17,152,076 thousand in 2018 according to the International Trade Centre (ITC). Their durability, coupled with their ability to decrease the monthly energy bill, is two of the main advantages that an acrylic resin provides. Thus, all these factors are boosting the demand for acrylic resins during the forecast period.
Water-Based Resins Market Segment Analysis – By Application
The paints & coatings segment held the largest share in the water-based resins market in 2020, owing to the increasing usage of water-based resins to manufacture paint & coatings. Many solvents evaporate into what is referred to as volatile organic compounds (VOCs). National, state, and local governments often regulate VOCs by limiting their emission. But since water-based coatings have either no, or considerably fewer solvents, they offer a great way to lower a business’s VOC output, which makes it possible to spend less on environmental compliance advising. Thus, the demand for water-based resins in paints & coatings application is high, due to the rising environmental regulations to reduce the use of solvent-based technology, owing to which the water-based resins market is flourishing during the forecast period.
Request for Sample Report @ https://www.industryarc.com/pdfdownload.php?id=500456
Report Price: $ 4500 (Single User License)
Water-Based Resins Market Segment Analysis – By End-Use Industry
The architectural segment held the largest share in the water-based resins market in 2020 and is growing at a CAGR of 6.4% during 2021-2026, owing to the rising demand for paints & coatings in the architectural industry. Paints & coatings are being applied on the interior and exterior walls of all kinds of residential, commercial, industrial, and institutional buildings as it possesses some protective features. Paints & coatings, for example, protect the building from rain, sunlight, and wind extremes. In architectural interiors, such as wall paintings, wood flooring, sculptures, and furniture, water-based paint & coatings are also used. Increased awareness of the environment has led to innovations in the coating industry to provide affordable quality products. Similarly, growing safety standards is boosting the demand for fireproof and waterproof paint & coatings on buildings. Thus, all these increasing applications of paints & coatings in the architectural industry are projected to substantially propel the water-based resins market during the forecast period.
Water-Based Resins Market Segment Analysis – By Geography
Asia-Pacific region held the largest share in the water-based resins market in 2020 up to 32%, owing to the flourishing architectural sector in the region. According to the International Trade Administration (ITA), the Chinese construction industry is anticipated to rise at an annual average of 5% in real terms between 2019 and 2023. In terms of value, the Indian construction industry is expected to record a CAGR of 15.7 percent to reach $ 738.5 billion by 2022, according to Invest India. Construction demand in Singapore is estimated to be between S$ 27 billion and S$ 34 billion for each year in 2021 and 2022, and between S$ 28 billion and S$ 35 billion for each year in 2023 and 2024, according to the Building and Construction Authority (BCA). With the increasing architectural sector, the demand for paint & coatings will also substantially rise. Thus, the rise in construction activities is expected to propel the water-based resins market growth in the Asia-Pacific during the forecast period.
Water-Based Resins Market Drivers
Increasing Automotive Production
Polymeric resins and elastomer water-based resins are extensively used in the automobile industry to paint & coat automotive components. They are also largely employed in the production of adhesives and sealants, which are then widely utilized in the automotive industry to keep the weight of the vehicle minimal. China is the world’s largest vehicle market, according to the International Trade Administration (ITA), and the Chinese government expects the production of automobiles to reach 35 million by 2025. And according to Stats SA, the total motor sale of South Africa in January 2018 was accounted to be 54,620 which increased to 55,156 in January 2019. According to Organisation Internationale des Constructeurs d’Automobiles (OICA), the production of light commercial vehicles has increased from 326,647 in 2017 to 358,981 in 2018, an increase of 10.2% in Brazil. Thus, the increasing automation production will require more adhesive & sealants, paint & coatings, which will act as a driver for the water-based resins market during the forecast period.
Increasing Aerospace Industries
Adhesives and sealants are widely used in the aerospace industry in components such as pipes, electronic assemblies, sensors, panels, fixtures, tools, and more to reduce the weight and increase the strength of the aerospace. According to the International Trade Administration (ITA), in 2019 China was the world’s second-largest civil aerospace and aviation services markets and one of the fastest-growing markets. China is anticipated to require around 6,810 new-fangled commercial aircraft, valued at USD 1 trillion, in 2016, according to Boeing, over the next two decades. According to Boeing, the demand for 2,300 airplanes worth US$320 billion is projected in India over the coming 20 years. Boeing’s current market outlook (BMO) forecasts demand for 2,520 new aircraft in the Middle East by 2030. Thus, with the increasing aerospace sector in various regions, the demand for adhesives and sealants will also substantially increase. And since adhesives and sealants are often manufactured using water-based resins, the increasing aerospace industry acts as a driver for the water-based resins market during the forecast period.
Download Sample Report @ https://www.industryarc.com/pdfdownload.php?id=500456
Water-Based Resins Market Challenges
High Cost and Low Performance of Water-based Resins Over Solvent-Based Resins
Solvent-based resins have one major advantage over water-based resins i.e. during the curing phase; they are less vulnerable to environmental conditions, such as temperature and humidity. Humidity can prevent the evaporation of water in a water-based coating, making it impractical in some climates. Hence, solvent-based resins are preferred for applications in humid environments that don’t allow water-based resins to cure properly. Also, solvent-based resins are typically more resilient than water-based resins during the curing of the coating. Besides, the capital cost and fixed cost associated with changing the technology from solvent-based to water-based is high. Hence, many small-scale manufacturers in emerging regions are still using solvent-based resins. All these factors are restraining the water-based resins market growth during the forecast period.
Water-Based Resins Market Landscape
Technology launches, acquisitions, and R&D activities are key strategies adopted by players in the water-based resins market. Major players in the water-based resins market are BASF SE, DowDuPont, Allnex Group, The Lubrizol Corporation, Royal DSM N.V., Hexion, Arkema, DIC Corporation, Covestro AG., and Celanese Corporation.
In January 2020, at its Castellbisbal site in Spain, BASF invested in the capacity expansion of its water-based polyurethane dispersions. The expansion allowed BASF to increase its manufacturing capacity by 30%.
In March 2019, Stahl launched Relca HY-288, a water-based hydrophobic hybrid dispersion designed to provide excellent resistance to stains such as coffee, red wine and mustard in 1 component systems.
Asia-Pacific dominates the water-based resins market, owing to the increasing manufacturing & construction activities in the region due to various government initiatives such as – “100 smart cities” and “Housing for all by 2022”.
As water-based resins offer better chemical and physical resistance, the demand for water-based resins is high, ensuring a longer life span of the material.
Also, because of the environmental regulations on volatile organic compounds (VOCs) emissions, water-based formaldehyde is expected to fully replace solvent-based formaldehyde resins soon.
Furthermore, increased demand for polymeric resins and elastomers across numerous end-use industries such as aerospace, paper, industrial, leather, and more is predicted to have a significant positive impact on the demand for water-based resins market in the upcoming years.
Due to the Covid-19 pandemic, most of the countries have gone under lockdown, due to which various projects and operations of various end-use industries such as automotive and construction are disruptively stopped, which is hampering the water-based resins market growth.
Related Reports :
A. Coating Resins Market
B. Epoxy Resin Market
For more Chemicals and Materials Market reports, Please click here
About IndustryARC: IndustryARC primarily focuses on Cutting Edge Technologies and Newer Applications market research. Our Custom Research Services are designed to provide insights on the constant flux in the global supply-demand gap of markets. Our strong team of analysts enables us to meet the client research needs at a rapid speed, with a variety of options for your business. Any other custom requirements can be discussed with our team, drop an e-mail to email@example.com to discuss more about our consulting services.