The low-VOC coatings market is segmented into four technologies: waterborne coatings, powder coatings, high-solids coatings and radiation-cure coatings. Environmentally friendly coating technologies are based on reformulations of conventional organic coatings to reduce their VOC content or modifications to application or curing techniques that allow for reduced or, in some cases, zero VOC content. They also reduce the generation of paint waste by improving the coating transfer efficiency to the substrate.

The industry’s demand for environmentally friendly and healthier coating systems, as well as the rising need to improve performance, durability and aesthetics, are key factors contributing to the growth of the low-VOC coatings market. The increasing demand for renewable raw materials is expected to create growth opportunities for global market players, driving the demand for low-VOC coatings during the forecast period. However, developing synthetic technologies with little or no toxicity to human health and the environment is a significant challenge.

High Growth Opportunities in Waterborne and Powder-Based Coatings

Low-VOC coatings are developed using modern technologies that decrease solvent requirements or reduce harmful emissions. In recent years, the market has witnessed a shift toward low-VOC coatings. Waterborne coatings have been a trend in the coatings industry, mostly within the decorative coatings segment. Recent developments in EU legislation regarding environmental and health considerations have pushed for a wider application of low-VOC coatings in the industrial segment. The increasing demand for sustainable products has also created the need for sustainable raw materials for coatings, most notably waterborne resins. Alkyd coatings were widely used in several applications until the increasing regulatory VOC restrictions led to a sharp drop in demand for these traditionally solventborne resins. Advancements in waterborne alkyd technologies have enabled the production of virtually zero-VOC alkyd resins with the same performance as conventional alkyd resins.

Currently, powder coatings are used on a wider range of trim and accent parts. Polyester and acrylic powders are used in these coatings. For example, metallic-look powders deliver luster to aluminum wheels. However, there is potential for higher usage in the automotive industry; its use as a primer surface and anti-chip coating on body panels is becoming more common. The useful properties of powder coatings, such as low operating costs, high operating efficiencies, no VOCs, non-flammability and low spark hazards, make them more useful than other coatings. More than two-thirds of the total powder coatings market is represented by four industrial areas: metals finishing, appliances, lawns and gardens and architectural applications.

FIGURE 1 | Waterborne coatings to be the largest technology segment of the 2023 low-VOC coatings market globally, in USD billions.

Source: Secondary research, interviews with experts and MarketsandMarkets analysis.

Asia Pacific Leading the Growth of Low-VOC Coatings Markets Globally

In Asia, China and India are the most important economies, creating high-growth opportunities for the coatings industry. Asia Pacific encompasses a diverse range of economies with different levels of economic development and multiple industries. The development of the market is mainly attributed to the high economic growth rate followed by heavy investment across industries such as automotive, consumer goods and appliances, building and construction and furniture. Key players are expanding their coatings production in Asia Pacific, especially China and India. The advantages of shifting production to the region include low production costs and the ability to better cater to emerging local markets.

As the population in India and China continues to grow at a rate of approximately 0.8% and 0.1% per year, respectively, more residential and commercial construction is required to meet their needs. The Indian and Chinese building and construction industries are expected to witness high growth over the next few years due to favorable government policies and market promotion. Therefore, the demand for low-VOC coatings is expected to increase over the next five years.

FIGURE 2 | Asia Pacific, the most prominent low-VOC coatings market in 2023.

Source: Secondary research, interviews with experts and MarketsandMarkets analysis.

Environmental Regulations and the Shift Toward Greener Coatings Are Driving the Market

The increasing demand for environmentally friendly characteristics has been one of the most important trends observed in the coatings industry in the last ten years, influenced mainly by stringent European Union (EU) regulations regarding reducing volatile organic compound (VOC) emissions in the coating life cycle. This has shifted the demand from solventborne coatings to low-VOC products, such as waterborne and powder coatings.

New rules and regulations, such as the Eco-product Certification Scheme (ECS), are set by the European Commission and other federal government agencies. These regulations ensure a green and sustainable environment with minimum or zero harmful VOC emissions. Also, the regulations on lead control in households and coatings were implemented in 2016, after the Quality Council of India, Pollution Control Board authorities and the National Referral Centre for Lead Projects in India strongly recommended to the Government of India to fix lead content below 90 ppm for all decorative and household paints. These regulations encourage coating manufacturers to invest in green raw materials for their coatings. In addition, government regulations in the U.S. and Western Europe, especially concerning air pollution, are expected to continue to drive the adoption of new, low-polluting coating technologies.

With growing awareness regarding the harmful effects of VOC emissions and increasing global warming, supported by the aforementioned regulations, there has been a gradual shift in demand from solventborne coatings to environmentally friendly products, such as waterborne, powder, high-solids and UV-curable coatings, since these products contain fewer solvents that evaporate during the curing phase. Powder coating has gained substantial popularity since it releases negligible VOCs, if any, into the atmosphere and contains no solvents. This market is achieving rapid growth due to the _development of new products, new formulations and advancements in application processes. Over the forecast period, Asia Pacific is projected to be the largest and fastest-growing market for low-VOC coatings, attributed to the region’s rapidly growing automotive and construction industries.

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