Water-borne Epoxy Resins Market Size

Water-borne Epoxy Resins Market Size Snapshot

Note – Market size depicts the revenue generated over the financial year

XIV.—The water-borne epoxide resins. The water-borne epoxide resins market is estimated to be worth around $ 1,500,000,000 in 2023, and is projected to reach $ 2,500,000,000 by 2030, at a CAGR of 5.0%. The increase in demand for these products is due to their eco-friendliness and their versatility in various applications, such as coatings, adhesives, and composites. As industries become increasingly concerned with the environment, the shift from solvent-borne to water-borne systems is becoming more pronounced, and this is expected to boost the market considerably. The development of water-borne epoxide resins has been aided by the introduction of low-VOC products and the introduction of new resins with improved properties. The key players, such as BASF, The Dow Corning, and Hexion, are investing heavily in research and development, and are expanding their product offerings. Strategic initiatives, such as joint ventures and strategic alliances, to develop new formulations and applications, are also reshaping the market. Product launches, such as high-performance water-borne epoxide systems, are also a source of growth.

Regional Market Size

Regional Deep Dive

The water-based epoxy resins market is growing at a substantial rate across various regions, owing to the rising demand for sustainable materials. In North America, the market is characterized by strong demand from the automobile and construction industries. In Europe, stringent regulations promoting the use of eco-friendly products are the key trend. The Asia-Pacific region is characterized by rapid urbanization and industrialization, which is driving the demand for water-based epoxy resins in paints and adhesives. Middle East and Africa are driven by growth in the construction sector, while in Latin America, water-based epoxy resins are being increasingly used as part of green initiatives.

North America

• The American regulations on volatile organic compounds have reduced the reactivity of the epoxide resins and forced the manufacturers to replace them by water-based epoxide resins.
• It is the research and development that is the determining factor for the development of new water-borne epoxies that are more efficient and meet the highest standards of performance.
• The automobile industry is increasingly turning to water-borne epoxide resins for its coatings, in response to the demand for eco-friendly products from consumers and to the industry’s commitment to sustainable development.

Europe

• The European Union’s REACH regulations are forcing manufacturers to withdraw solvent-based products, which has led to a significant shift towards water-borne epoxide resins in a variety of applications.
• Companies like BASF and AkzoNobel are working on the development of water-based epoxies that offer better performance and a lower impact on the environment.
• In Germany and Sweden the trend towards green building has created a growing demand for water-based epoxy resins in construction and renovation.

Asia-Pacific

• In countries like China and India, the accelerated industrialization and urbanization are causing the demand for water-based epoxide resins to increase, mainly in the construction and automobile industries.
• In recent years, Asian manufacturers have increasingly teamed up with global companies to increase their product offerings.
• Government initiatives promoting sustainable construction are promoting the use of water-borne epoxides, particularly in the area of large-scale public works.

MEA

• During the conference, a number of new products were presented, such as epoxide resins based on water. The UAE Vision 2021 initiative aims to promote sustainable development, and this has led to increased investment in the production of eco-friendly materials, such as water-based epoxide resin
• The Norwegian companies Jotun and National Paints have extended their product range to include water-borne epoxides to meet the growing demand in the construction sector.
• The fluctuating price of oil has led to a diversification of industry in the region, with a notable shift to the use of sustainable materials in the building and manufacturing industries.

Latin America

• The National Plan for the Management of Municipal Waste encourages the use of sustainable materials, such as water-based epoxide resins, in many industries.
• It is not surprising that the local industry is beginning to adopt water-based epoxide resins, for the consumers' concern for the environment is becoming more and more acute.
• Latin America is gradually shifting to a greener construction style, and this is expected to increase the demand for waterborne epoxide resins.

Did You Know?

“Waterborne epoxies can reduce VOC emissions by up to 90 % compared to solvent-based epoxies, making them a preferred choice for manufacturers concerned about the environment.” — Environmental Protection Agency (EPA)

Segmental Market Size

The water-soluble epoxy resins segment is of major importance in the coatings and adhesives market, which is currently undergoing a steady expansion as a result of the stricter environmental regulations and the shift towards sustainable products. In the automotive, construction and consumer goods industries, in particular, where regulations on low volatile organic compound (VOC) emissions are increasingly driving demand for low-emission alternatives, the water-soluble epoxy resins segment is especially well positioned.

The principal drivers of the market are: stringent government regulations to reduce the impact on the environment, the growing preference for sustainable products, and the development of formulations that enhance the performance of products. The use of water-based epoxies is already widespread in North America and Europe. BASF and The Dow Chemical Company lead the way in the development and application of such products. The main areas of application are in the protection of industrial equipment and in floor systems. The trend towards greater sustainability, together with government regulations, is driving the market for water-based epoxies. Technological advances, such as the use of nano-materials and bio-based additives, are influencing the evolution of water-based epoxies.

Future Outlook

From 2023 to 2030, the Waterborne Epoxy Resins Market is expected to register a CAGR of 5.0%. The major growth drivers are the growing demand for low-VOC and water-based coatings from the construction, automobile, and electrical & electronics industries. Also, as the regulatory framework is getting stricter, manufacturers are adopting waterborne epoxies to meet the stringent regulations, which in turn is increasing the penetration of these resins. By 2030, it is expected that the share of waterborne epoxies in the total epoxide resins market will reach about 30%, up from about 20% in 2023. This will indicate the shift towards sustainable industrial applications.

The market is driven by technological innovations such as the development of high-performance water-borne epoxies. In the area of polymer chemistry, the production of resins with better adhesion, longer life and chemical resistance is possible. These resins are suitable for a wider range of applications. Also, the increasing trend towards green building and the increasing use of water-borne coatings in the construction sector are expected to drive demand. The trend towards greater energy efficiency and the use of water-borne epoxies is expected to continue until 2030.