The Epoxy Resin Market is influenced by a myriad of dynamic factors that collectively shape its growth trajectory, trends, and competitive landscape. Here's an exploration of the key market dynamics shaping the Epoxy Resin Market, presented in a paragraph with a pointer format:
Booming Construction and Infrastructure Sector:
The global construction and infrastructure sector serves as a major driver for the Epoxy Resin Market. The versatility of epoxy resins in construction materials, adhesives, and coatings contributes to their widespread adoption in the development of buildings, bridges, and infrastructure projects.
Expanding Automotive and Aerospace Industries:
The automotive and aerospace industries significantly contribute to the demand for epoxy resins. Lightweight and high-strength epoxy-based composites find extensive applications in vehicle components, aircraft structures, and interior parts, fostering continuous market growth.
Advancements in Wind Energy Sector:
The growth of the wind energy sector drives the demand for epoxy resins in the manufacturing of lightweight and durable wind turbine components. Epoxy resins play a crucial role in the production of wind blades, contributing to the renewable energy landscape.
Technological Innovations and Product Development:
Continuous technological innovations in epoxy resin formulations fuel product development. Manufacturers focus on enhancing the performance, durability, and sustainability of epoxy resins to meet evolving industry requirements and comply with environmental standards.
Rising Trend of Green and Sustainable Solutions:
The market experiences a growing preference for green and sustainable solutions. Epoxy resin manufacturers respond to this trend by developing eco-friendly formulations, incorporating bio-based materials, and adopting sustainable production practices to align with environmental concerns.
Globalization and Market Expansion:
The globalization of industries and increased international trade contribute to the expansion of the Epoxy Resin Market. Companies seek opportunities in emerging markets, driving the demand for epoxy resins in regions experiencing industrial growth and infrastructure development.
Fluctuations in Raw Material Prices:
The Epoxy Resin Market is sensitive to fluctuations in raw material prices, especially those derived from petrochemical sources. Variations in the costs of key ingredients impact production costs, influencing product pricing and profitability within the epoxy resin industry.
Stringent Environmental Regulations:
Stringent environmental regulations regarding chemical usage and emissions influence the epoxy resin market. Compliance with regulations related to chemical safety, VOC emissions, and waste disposal becomes critical for manufacturers to maintain market access and credibility.
Increasing Application in Electronics and Electrical Industries:
Epoxy resins find increasing application in the electronics and electrical industries due to their excellent insulating properties. They are widely used in the encapsulation of electronic components, circuit boards, and electrical devices, contributing to the growth of the market.
Competitive Landscape and Market Consolidation:
Intense competition prevails among key players in the Epoxy Resin Market, leading to market consolidation through mergers and acquisitions, strategic partnerships, and expansions. These activities allow companies to enhance their product portfolios, geographical reach, and overall market presence.
Customization and Tailored Solutions:
Growing demand for customized and tailored epoxy resin solutions influences market dynamics. Manufacturers focus on offering formulations that meet specific industry requirements, allowing customers to benefit from epoxy resins designed for their unique applications.
Impact of COVID-19 Pandemic:
The Epoxy Resin Market, like many industries, faced disruptions due to the COVID-19 pandemic. Supply chain challenges, reduced industrial activities, and shifts in consumer behavior influenced the market dynamics, necessitating adaptability and resilience from industry players.
Versatility and Diverse Application Spectrum:
The versatility of epoxy resins contributes to their diverse application spectrum across various industries. Epoxy-based coatings, adhesives, composites, and sealants find use in construction, automotive, aerospace, electronics, and numerous other sectors, driving market growth.
Report Attribute/Metric | Details |
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Segment Outlook | Type, Technology, Application, End-Use Industry, and Region |
The epoxy resin market size was valued at USD 13.4 Billion in 2023. The epoxy resin industry is projected to grow from USD 15.2 billion in 2024 to USD 19.5 billion by 2032, exhibiting a compound annual growth rate (CAGR) of 3.2% during the forecast period (2024 - 2032). According to the market report, the growing demand for epoxy resin in a paint & coating application, along with the growing end-use industry, is driving the market growth.
Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review
Epoxy resin-based paints & coatings are widely utilized in architecture, automotive OEMs, automotive refinishing, marine coating, industrial coating, wood coating, coil coating, transportation coating, fiber optics coating, and more. The paint & coating helps are used to coat the interior and exterior surfaces of any object and protect from extreme temperature, UV radiation, cracks, stain, chemicals, and blistering. Epoxy resin-based paints & coatings have low Volatile Organic Compounds (VOCs) content and offer high anti-corrosion resistance and excellent adhesion.
Owing this these factors it is utilized in all most all sectors such as residential, commercial & infrastructure structure, healthcare, electronics devices, shipbuilding industries, automotive & transportation, industrial, and wastewater treatment plants among others. The rise in the growth of the end-use industry will eventually raise the demand for paint & coating. Thus, growing businesses will eventually expand the market size during the forecast period.
The American Coatings Show in 2024, to be hosted in Indianapolis, Indiana (USA), will see the introduction of multiple new decreased yellowing epoxy solutions by Westlake Epoxy, according to a 2024 announcement by Westlake Corporation. Epoxy Research Resin RSL-4710 in combination with Research Curing Agent RSC-4731 constitutes the Deep Pour Lower Yellowing Epoxy System. This two-component epoxy/amine solution is designed to have a lower exotherm temperature and a longer set time. Even in bright sunshine, the technology provides better color retention and superior air release.
Aditya Birla Chemicals announced in March 2022 that it would double its epoxy manufacturing capacity and go international to improve its competitive position in the global market.
Figure 1: Paint & Coating Market share by Region (Value share)Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review
According to epoxy resin market dynamics, the demand for consumer goods such as smartphones, wireless entertainment devices, gaming consoles, and others is increasing owing to advancements in technology and its need in day-to-day activity. For instance, as per Invest India, the global electronic devices market is valued at around USD 2.9 trillion in 2020 and is expected to grow in coming years owing to the rise in digitalization and the internet of things. Thus, rise in demand for electronic devices and consumer goods, the demand for paint & coatings, and the market will grow eventually during the forecast period.
Additionally, the rise in the aerospace and defense industry is accelerating market growth. For instance, according to the Aerospace Industry Association, the U.S. aerospace industry sales has been increased by 2.1% and the export market increased by 11.2% in 2021. The rise in the growth of the aerospace & defense industry will increase the demand for paint & coating during product development & maintenance of aircraft, fighter jets, and others. Thus, growing businesses will eventually expand the market size during the forecast period.
However, there have been significant advances in epoxy resin technology to cater to the demand. The advancement in epoxy resin technology along with increasing government spending, the rise in industrialization, and growing Foreign Direct Investments (FDI), especially in emerging economies are likely to anticipate the growth of epoxy resin market revenue during the forecast period.
The epoxy resin market segmentation, based on epoxy resin type, includes DGBEA, novolac, DGBEF, aliphatic, glycidylamine, and others. The DGBEA type of epoxy resin segment held the majority share in 2021, contributing to around ~35-40% concerning the global epoxy resin market revenue. This is primarily owing to the surge in demand for automotive and other end-use industries globally will eventually raise the demand for epoxy resin, thereby expanding the epoxy resin industry. For instance, as per the International Organization of Motor Vehicle Manufacturers, the automotive industry has grown by 3% in 2021 with an increased production capacity of 80,145,988 units. The growing adoption of electric vehicles and the rise in demand for vehicles is accelerating the growth of epoxy resins during the forecast period.
In November 2021, Solvay has launched an alkylphenol ethoxylates-free (APE) and non-ionic reactive water-based emulsifier Reactsurf 0092, for solid epoxy resins mainly for use in industrial coatings and paints or binders.
The market, based on technology, is segmented into solvent-cut epoxy, liquid epoxy, waterborne epoxy, and others. The liquid epoxy segment dominated the epoxy resin industry in 2021 and is projected to be the faster-growing segment during the forecast period, 2022-2030. This is due to the rapid industrialization and rise in demand for consumer electronics, flourishing the market during the forecast period. The liquid epoxy resin has been used for years as it possesses superior quality and has strong resistance power to corrosion, chemical, heat, and others. Hence, the growing application of liquid epoxy technology in various end-use industries will positively impact the market.
In June 2022, Swancor, Taiwan based company, introduced two new products, CleaVER and EzCiclo, to provide a new solution to wind turbine blades using recycle and reuse process. EzCiclo is a recyclable and reusable thermosetting epoxy resin that can be recycled and degraded via the CleaVER technology using carbon or glass fiber reinforcement.
The market, based on application, is segmented into composites, paints & coatings, grouts & mortars, adhesives, electronic encapsulation, and others. The paint & coatings segment dominated the epoxy resin industry in 2021 and is projected to be the faster-growing segment during the forecast period, 2022-2030. This is due to the high demand for environment-friendly coating products along with the rising end-use industry flourishing the market during the forecast period.
Figure 1: Epoxy Resin Market, by Application, 2021 & 2030 (USD Billion)Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review
In May 2022, Hexcel has introduced a new product HexPly Nature Range to provide a sustainable solution for industrial, automotive, winter sports, marine, and wind energy applications. The product is formed in combination with bio-derived epoxy resin content with natural fiber reinforcements to create material solutions.
Based on End-Use Industry, the global epoxy resin industry has been segmented as aerospace, automotive & transportation, building & construction, electrical & electronics, marine, and others. According to the market research, the electrical & electronics segment held the largest segment share in 2021, owing to the rapid adoption of advanced epoxy resin in electronics products such as smart home appliances, smartphones, gaming devices, laptops, and other demands are increasing with the growing economy & population.
The fastest-growing segment in the epoxy resin industry is aerospace owing to the rapid adoption of advanced epoxy resin products and the surge in the production of aircraft, jets, and others. According to the market forecast, there will be a surge in demand for epoxy resin due to these factors eventually boosting the market.
In March 2020, Sicomin, a Bio-based epoxy resins supplier launched a series of epoxy resin products SGi 128 suited for Gelcoat application in the automotive, wind energy, civil engineering, and marine sectors.
By region, the study provides market insights into North America, Europe, Asia-Pacific, and the Rest of the World. According to market statistics, the Asia-Pacific epoxy resin market accounted for USD 3,62 billion in 2021 and is expected to exhibit a 7% CAGR during the study period. As per market data, this growth is attributed to the rising demand for consumer goods, along with the rising population and growing industrialization across the region.
For instance, China's epoxy resin market is the fastest growing market as China is one of the largest consumer electronics markets in the Asia-Pacific region. The rise in technology transitions, such as the rollout of 5G networks and IoT accelerating the growth of electronic products and others. For instance, as per American Coating Association, china holds 28% of the market share in terms of revenue in the global paints & coating market in 2021. Hence, Asia-Pacific is anticipated to register the highest growth rate over the forecast period from 2022–2030.
Furthermore, the major countries studied are The U.S., Canada, Germany, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.
Figure 2: Epoxy Resin Market Share By Region 2021 (%)Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review
The North American epoxy resin market is expected to register a CAGR of 6.1% from 2022 to 2030. This is due to the rise in automotive, growing industrialization, and rapid demand for electronic goods. Moreover, the U.S epoxy resin market held the largest share, and the Canadian epoxy resin market was the fastest-growing market in the North American region
Europe epoxy resin market accounts for the significant share due to the availability of highly configured electronic devices, developed industries, and rising demand for electric vehicles. Further, the Germany epoxy resin market held the largest market share, and the UK epoxy resin market was the fastest-growing market in the European region.
Major market players are spending a lot of money on R&D to increase their product lines, which will help the epoxy resin market grow even more. Market major players are also taking various strategic initiatives to grow their worldwide footprint, including new product launches, contractual agreements, mergers & acquisitions, increased investments, and collaboration with other organizations. According to the market competitive landscape, players in the epoxy resin industry must offer cost-effective items to expand and survive in an increasingly competitive and rising market environment.
One of the primary business strategies manufacturers adopt in the global epoxy resin industry to benefit clients and expand the epoxy resin market sector is manufacturing locally to reduce operating costs. In February 2022, Westlake Chemical Corporation has entered into a definitive agreement with Hexion Inc. to acquire Hexion’s global epoxy business for approximately $1.2 billion. The acquisition is expected to support the company to achieve the business’s long-term market development.
Induron Protective Coatings announced the release of Novasafe, their newest product, in 2023. Novasafe is a thick-film, ceramic-filled, furfuryl modified novolac epoxy that is resistant to the worst conditions seen in treatment facilities. In comparison to typical epoxies, Novasafe's formulation chemistry is unique in the market and allows it to perform what treatment plant operators need in the most harsh settings with one fewer layer and a thinner film than polyurethane/polyurea. Novasafe's special resin and filler package allows it to achieve this.
Swancor introduced two new products in 2022 called "EzCiclo" and "CleaVER," which provide cutting-edge solutions for the eventual recycling and reuse of wind turbine blades. "EzCiclo," Swancor's most recent invention, is an epoxy resin that is recyclable and reusable. Glass or carbon fiber composites could be recycled and broken down using "CleaVER" technology with "EzCiclo." By closing the loop, it recycles trash into repurposed glass/carbon fibers and oligomers, so reusing both reinforcement and resin.
DIC Corporation acquired Guangdong TOD New Materials Co., Ltd. - a coating resin manufacturer based in China, in July 2022. This acquisition will help DIC increase their capacity for coating resins and other products throughout Asia especially within the Chinese market region. DIC’s medium- to long-term plan envisages paints resins attaining dominance in Asia through a broad supply of resin products that can deliver additional functions while reducing environmental burdens as well as utilizing expansion of new production facilities at Ideal Chemi Plast India.
China Petrochemical & Chemical Corp. (SINOPEC)
Aditya Birla Chemicals (India)
Kolon Industries Inc (South Korea)
Atul Ltd (India)
Ciech S.A. (Poland)
Huntsman International Llc (U.S.)
Nan Ya plastics corporation (Taiwan)
Chang Chun Group (Taiwan)
Spolchemie (Czech Republic)
Olin Corporation (U.S.)
Macro Polymers (India)
Dow (U.S.) among others
An example is when Safic-Alcan expanded its business by collaborating with BB Resins Srl in March 2024. Epoxy resin hardeners are manufactured by BB Resins Srl, which has a wide range of products that have been designed specifically for the coatings, construction and adhesives sectors. This partnership will allow Safic-Alcan to extend its operations in Poland.
DCM Shriram announced plans to invest over $10bn in advanced material products manufacturing by establishing a greenfield plant over the next few years in February 2024. For instance, a complete line of more than hundreds of different types of materials, including liquid epoxy resins, solvent cuts, hardeners, formulated resins and reactive diluents for electronics, wind turbines, electric vehicles (EVs), fireproofing and lightweight etc.
Westlake Chemical Corporation purchased Hexion Holdings Corporation’s epoxy-based coatings and composite businesses during February 2022; these included base epoxy resins intermediates product lines under around USD1.2bn worth deal.
In November 2021, Solvay introduced Reactsurf 0092 — a reactive waterborne emulsifier for solid epoxy resin used mainly in industrial coatings and paints. The company has continuously produced goods that comply with the requirements of sustainable development and legislation for cleaner, healthier paints and coating formulations.
DGBEA
Novolac
DGBEF
Aliphatic
Glycidylamine
Others
Solvent Cut Epoxy
Liquid Epoxy
Waterborne Epoxy
Others
Composites
Paints & Coatings
Grouts & Mortars
Adhesives
Electronic Encapsulation
Others
Aerospace
Automotive & Transportation
Building & Construction
Electrical & Electronics
Marine
Others
North America
US
Canada
Europe
Germany
France
UK
Italy
Russia
Spain
Rest of Europe
Asia-Pacific
China
Japan
India
South Korea
Australia & New Zealand
Rest of Asia-Pacific
Latin America
Mexico
Brazil
Argentina
Rest of Latin America
Middle East & Africa
Turkey
GCC Countries
South Africa
Rest of the Middle East & Africa
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