1.1 Global Environmentally Friendly Coatings Market Size and Growth Forecast
The global environmentally friendly coatings market is in a period of rapid growth. According to the latest market research data, the global environmentally friendly coatings market size is expected to reach approximately US$138 billion in 2025, with a compound annual growth rate of 6.5% . Other studies indicate that the market size may be even higher, reaching US$20.92 billion, with a compound annual growth rate of 6.8%. The Asia-Pacific region continues to lead global demand, with the Chinese market performing particularly well, its market size expected to exceed US$52 billion, accounting for more than 37% of the global total .
In terms of technology distribution, water-based coatings dominate the market, accounting for more than 55% of the market share. However, the market growth rate of high-solids, powder, solvent-free, and radiation-cured technologies is accelerating, showing a diversified development trend in technology routes. The global environmentally friendly coatings market is projected to grow from US$98.6 billion in 2025 to US$152 billion by 2030, representing a CAGR of 9.1%. Water-based coatings are expected to account for over 65% of the market, while powder coatings, driven by technological advancements, are expected to reach a penetration rate of 38% in the automotive and home appliance sectors.
1.2 Key Regional Market Characteristics and Policy Environment
The global environmentally friendly coatings market exhibits significant regional differentiation. The Asia-Pacific region, with its rapid industrialization and stringent environmental policies, is the largest market, accounting for over 40% of the global market share. Europe and North America follow, accounting for 30% and 25% respectively .
The North American market shows steady expansion, with a projected market size of US$42 billion by 2025, primarily driven by industrial maintenance, automotive manufacturing, and the transformation of architectural coatings . In January 2025, the U.S. Environmental Protection Agency (EPA) released updated VOC emission standards for aerosol coatings, setting national standards based on VOC reactivity for various coating categories, including electrical/electronic/compliant coatings, flexible coatings, release coatings, and rust-converting coatings .
The European market shows a preference for low-carbon, low-emission coating solutions, with projected growth of approximately 7% in 2025 . The EU REACH regulation, as the core framework for chemical management, imposes stringent requirements on the restriction of hazardous substances in coatings. All chemicals entering the EU market (including finished coatings and their raw materials) must complete the registration, evaluation, and authorization process . After the 2025 revision, the registration validity period is shortened to 10 years, polymers must be notified annually (>1 tonne), and six new SVHCs (Substances of Very High Concern) are added.
The Asia-Pacific market (excluding China) is experiencing rapid growth, particularly in Southeast Asia, where demand for environmentally friendly coatings has increased dramatically due to economic development and heightened environmental awareness. The Chinese market is projected to exceed RMB 90 billion by 2025, with the building decoration and automotive industries accounting for 72% of downstream applications .