Market analysis forecasts epoxy resins

Market analysis and forecasts for epoxy resins

6:14 AM, 5th October 2016
Market analysis and forecasts for epoxy resins
Favourable properties such as high thermal stability, mechanical strength, moisture resistivity, and adhesion, electrical, mechanical and heat resistance make epoxy resins suitable for various end-use applications.

Increasing paints & coatings demand due to a positive construction and automotive industries outlook has developed global epoxy resins industry.

Industry Insights

The global epoxy resins market size was estimated at $6.63 billion in 2014. Increasing paints & coatings demand on account of a positive outlook on construction and automotive industries has developed global epoxy resins industry.

This trend is expected to continue over the forecast period. Growing end-use industries including transportation, marine coatings, aerospace, electrical & electronic laminates, composites and decorative powder coatings particularly in Asia Pacific is also expected to impact the global market positively.

Favourable properties such as high thermal stability, mechanical strength, moisture resistivity, and adhesion, electrical, mechanical and heat resistance make epoxy resins suitable for various end-use applications such as laminates, jewelry, insulators and industrial applications. Increasing R&D initiatives by key participants coupled with technology innovation in the field of modified resins is expected to create new avenues for industrial applications. Global demand is fueled by rapidly expanding wind energy capacity installation on account of a shift towards the development of renewable energy.

Availability of polyurethane and phenolic resins as alternatives in various applications coupled with volatility in raw material (bisphenol-A & epichlorohydrin) prices are expected to restrict market growth over the forecast period.

Application Insights

Paints & coatings were the largest application segment, accounting for $335.4 million of the US epoxy resins market in 2014. It is extensively used in paints & coatings as it dries quickly and provides protective, tough coating with excellent hardness.

Growing construction and automotive industries on account of increasing disposable income coupled with changing lifestyle have been a major driving factor for the segment. Increasing use of resin-based coatings as primers in automotive & marine paints and for corrosion resistance in metal cans and containers is expected to fuel the demand.

Automobile and industrial applications are expected to grow on account of superior heat resistance as compared to latex based or alkyd based paints. Growing demand for waterborne coatings, powder coatings, electrical & electronic laminates, flooring and paving applications is expected to fuel further the growth.

Epoxy resin demand from the composite material application is expected to be the fastest growing application segment growing at an estimated CAGR of 7.3 percent globally, from 2015 to 2022. Increasing demand for light-weight material with superior performance from automotive and aviation industry is expected to promote the growth.

Regional Insights

Asia-Pacific was the largest market owing to the growth of paints & coatings and composites industry in the region. Asia Pacific accounted for over 60 percent of the global epoxy resin consumption in 2014 and is also expected to witness the fastest growth among other regions over the forecast period. Rapid infrastructure development coupled with increasing automobile production is expected to fuel the regional industry.

The North American market was valued at over $1,003.6 million in 2014. Increasing automotive and marine coating industries are expected to drive the region. The increasing use of wind turbines for power generation on account of increasing concern towards conventional energy sources depletion is expected to affect positively the product growth. European industry is mainly influenced by composites and coatings demand from aircraft manufacturers in the region. Increasing demand for automobiles is also expected to influence the growth in the region.

Competitive Insights

Nan Ya Plastic Corporation, Dow Chemical, Sanmu Group, Hexion Speciality Chemicals Inc and Kukdo Chemical held the maximum epoxy resins market share, with Nan Ya Plastic Corporation being the largest player at over 16 percent of the total production. The Chinese domestic market is characterized by a large number of small players with a concentrated area of distribution. Other key companies include DuPont, 3M, BASF SE, Momentive, Huntsman, Sika AG, Cytec, Aditya Birla Chemicals, Atul Ltd, Baling Petrochemical and Spol Chemie.

In 2013, Nan Ya Plastic Corporation completed its 186.3-kilo  tonnes epoxy resin plant at Kunshan thus becoming world’s largest producer. In 2010, Momentive Performance Materials Holdings Inc. merged with Hexion LLC to increase its product portfolio and gain competitive advantage.

© Chemical Today Magazine

Source: Grand View Research Inc.


See the Story Coverage in Chemical Today magazine (Pg 44)



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