The waterborne epoxy resins market comprises water-based epoxy coatings and adhesives that provide numerous advantages over solvent-borne epoxy resins including lower VOC emissions and flammability. They find wide application in flooring, metal coatings, architectural coatings, and heavy-duty industrial uses where durability and chemical resistance are crucial. The emergence of green building concepts and stringent environmental regulations have boosted the demand for waterborne epoxy resins globally.
The Global waterborne epoxy resins market is estimated to be valued at US$ 3938.73 Bn in 2024 and is expected to exhibit a CAGR of 11% over the forecast period 2024 to 2031.
Key Takeaways
Key players operating in the waterborne epoxy resins are Novartis, Merck, Roche, Amgen, Pfizer, Sun Pharma, Bristol-Myers Squibb, AstraZeneca, Johnson & Johnson, Valeant, Daiichi Sankyo, Takeda, LEO Pharma, Mylan, Sanofi, Regeneron, Eli Lilly, Bayer, Gilead Sciences, Astellas Pharma.
The growing demand from the construction sector, especially in emerging economies of Asia Pacific and Central & South America is driving the market growth. Rapid infrastructure development and establishment of new residential & commercial buildings have augumented the uptake of waterborne epoxy coatings.
Globally, the Asia Pacific region dominates the waterborne epoxy resins market and is expected to witness the highest growth over the forecast period. Abundant availability of raw materials coupled with low production costs has attracted several global manufacturers to establish their production bases in the region.
Market drivers
The primary driver augmenting the demand for Waterborne Epoxy Resins Market Size is the growth of the construction sector. Reconstruction and rehabilitation activities in developed nations of North America and Europe along with new construction projects worldwide are largely dependent on advanced waterborne epoxy resins for their superior adhesive strength and corrosion resistance properties essential for infrastructure development. This in turn is expected to propel the market during the forecast period.
Current Geopolitical Impact on Waterborne Epoxy Resins Market Growth
The global waterborne epoxy resins market is facing difficulties in growth due to geopolitical tensions and economic downturn in some key regions. The ongoing Russia-Ukraine conflict has significantly disrupted supply chains and export of key raw materials from these regions. Rising inflationary pressures and uncertainties arising from this conflict are compelling major end-use industries like construction and automotive to cut down or delay capital expenditures. This is negatively impacting the demand for waterborne epoxy resins in the short-term.
To sustain growth in such a volatile external environment, companies should pursue viable alternatives and diversify supply sources. Building strategic partnerships with local players in new markets can help gain faster market access and offset export disruptions. Meanwhile, focusing on developing innovative and sustainable product technologies can boost demand from environment-conscious industries in the long run. It is also important to closely track changing trade policies and fiscal incentives announced by different governments to devise region-specific strategies. Overall, geopolitical risks underline the need for agility, resilience and collaborative efforts across the supply chain.
Geographical Regions with Highest Waterborne Epoxy Resins Market Value
The Asia Pacific region currently dominates the global waterborne epoxy resins market and accounts for over 45% of the total market value. China, Japan, and India are the key markets driving the region’s leadership. Abundant availability of raw materials, favorable business environment, and growing construction and infrastructure development activities have made Asia Pacific an attractive production and consumption base. North America and Western Europe are other major revenue contributors, primarily due to strong demand from end-use industries in the United States and Germany. Strong GDP growth and governmental investments in these regions support the growing uptake of waterborne epoxy resin coatings.
Fastest Growing Region for Waterborne Epoxy Resins Market
Central and Eastern Europe is expected to be the fastest growing regional market for waterborne epoxy resins during the forecast period. Higher infrastructure spending planned by governments to modernize their economies offers immense opportunities. Countries like Poland, Czech Republic, and Russia are witnessing a construction boom, aided by rising FDIs and population growth. This is propelling the coating industry and subsequent demand for waterborne epoxy resins in construction applications. Additionally, the developing automotive manufacturing industry fueled by global OEMs shifting their European production facilities to this region, is driving coatings consumption. Such favorable market dynamics place CEE amongst the most promising emerging markets.
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