"Innovative Market Solutions to Help Businesses Make Informed Decisions"
The global epoxy resin market size was USD 8.70 billion in 2020 and is expected to grow from USD 11.59 billion in 2021 to USD 17.10 billion by 2028 at a CAGR of 5.7% during the 2021-2028 period. The global impact of COVID-19 has been unprecedented and staggering, with epoxy resin witnessing a negative demand shock across all regions amid the pandemic. Based on our analysis, the global market exhibited a decline of 1.8% in 2020 as compared to the average year-on-year growth during 2017-2019. The sudden drop in CAGR is attributable to this market’s demand and growth, returning to pre-pandemic levels once the pandemic is over.
On the basis of excellent physical, chemical and mechanical properties, epoxy resins have gained immense popularity among end-use industries, from coatings to composites. These resins offer very good adhesion to a wide range of materials, making them an ideal choice for adhesive and sealant manufacturing. Higher heat resistance and durability provided by special epoxies play a crucial role in high end-applications, such as wind turbines or composites manufacturing.
Leading companies are actively investing in the fastest-growing regional epoxy market, such as the Middle East and Africa. For instance, Sika AG commissioned the epoxy plant in Qatar and started the production in April 2021. With this investment, the company is looking to tap potential demand for epoxy-based adhesives and flooring in construction & infrastructure development projects in Qatar. Such activities by leading players are expected to further strengthen the distribution network and paving the way for the growth of the market during the forecast period.
Raw Material Shortage & Halts in End-Use Industries Restrained the Market Growth amid COVID-19
The majority of the epoxies are manufactured with the reaction of Bisphenol-A with epichlorohydrin (ECH). Post declaration of COVID-19 as a pandemic, almost all manufacturing industries halted their production as a precaution to avoid the spread of novel coronavirus. Strict lockdown led to limited access to the working sites and a shortage of working people. These factors negatively affected the production and supply of Bisphenol-A (BPA) and epichlorohydrin (ECH). In line with the interrupted supply of basic chemicals, the downstream epoxy production was declined. In addition to this, the stoppage in end-use industries, such as the construction, automotive, aerospace, electrical & electronics and others resulted in declined demand. Multiple factors, such as production shifts, restricted trades, delays in shipments & orders challenged the growth of the market in many ways. Amid supply shortage and increased raw material prices, leading players in the global market such as Huntsman, Kukdo, DIC significantly increased the prices in 2021. The epoxy business is projected to follow the trend of global economic recovery and the overall market is expected to indicate the recovery in the upcoming years.
Request a Free sample to learn more about this report.
Growing Demand for Bio-based Polyepoxides to Boost the Market Growth
Bio-based epoxies have been developed to reduce petroleum-based resins' environmental impact. A certain portion of the petrochemicals, ranging from 20-50%, is replaced with biomaterials, such as lignin, vegetable oils, rosins, tannins etc. These materials lessen the need for BPA, which is toxic and needs to be handled carefully. The bio-based resins can be effectively used in similar applications, including coatings, adhesives, composites and others. Manufacturers such as Entropy Resins, Greenpoxy, and Resin Research Bio Epoxy have commercially developed bio-based resins, which contain bio-based materials in the range of 20-50%, depending on the epoxy system. With an increasing need for sustainability in epoxy end-use industries, the demand for bio-based products is projected to increase during the forecast period.
Steadily Growing End-Use Industries to Drive the Market
The versatile nature of epoxy compounds backed by their properties led to higher adoption in downstream industries, such as construction, automotive, aerospace, electrical, electronics, energy and others. Thus, with the steady growth of these industries, the global market is projected to grow during the forecast period. The increasing need for advanced & long lasting powder coatings has raised demand across metal coating applications. The gaining popularity of lightweight materials in aerospace, automotive, & power industries has fueled the adoption of epoxies in structural composite parts. High investments in the construction sector are creating a highly conducive environment for epoxy flooring, epoxy adhesives & epoxy composites used in buildings. Production of next-gen vehicles and research activities associated with the same are also driving the growth of the epoxy industry. Rapid industrialization & changing government policies in major developing countries are favoring the development of all epoxy end-use industries and consecutively enhancing demand for polyepoxides. In developed economies, the technological advancement in epoxy chemistry is paving the way for further towards market growth.
Raw Material Pricing Volatility to Restrict the Market Growth
Epoxies are manufactured from petroleum-based raw materials, such as BPA & ECH. Thus, fluctuation in crude oil prices significantly affects the prices of these raw materials and further the costs of epoxy resins. The fluctuating prices affect the profit margin and it negatively impacts the small scaled manufacturers. Moreover, the stringent regulations on volatile organic compounds led manufacturers to keep product quality up to a certain level. This, in turn, additionally costs the manufacturers in terms of skilled manpower & updated technologies. During COVID-19, the changed supply-demand scenario followed by lesser production has led to increased raw material prices in 2021. As a result, leading manufacturers announced a significant increase in epoxy prices in 2021.
To know how our report can help streamline your business, Speak to Analyst
Paint & Coatings Segment Accounts for the Largest Epoxy Resin Market Share in the Global Market
Based on application, the global market is segmented as paints & coatings, electrical & electronics, wind turbine & composites, construction, adhesive & sealants, and others. Among these, the paint & coatings segment dominated the market in 2020 and is projected to lead the industry in the near future. Epoxy coatings are extremely durable, offer higher corrosion protection mechanical strength, and are easy to apply & maintain. Thus, these resins are widely used in metal coatings, floor coatings, white good coatings, marine & automotive part coatings and other protective coating applications. High performance insulating properties are boosting the adoption in the insulation of electric & electronics parts. Also, the epoxy compounds protect electronics parts from dust & moisture and improve the shelf life. The trend for reducing carbon footprint is driving demand for low-weight composites, which in turn creates a positive environment for epoxy based composites. In wind turbines, polyepoxides are used along with glass & carbon fiber to improve the overall durability & performance of blades. The wind turbine & composites segment is projected to show the fastest growth in this market, backed by rapid adoption and increasing investment in wind energy projects all over the world. In civil engineering, polyepoxides are used in repair & maintenance applications such as grouting cracks, repairing eroded concrete structures, aqueduct maintenance etc. Excellent adhesion to diversified substrates, including metals, plastics, wood, and others makes it an ideal choice for adhesive & sealant production. Other applications include textile processing, decorative arts & furniture, tooling etc.
Asia Pacific Epoxy Resin Market Size, 2020 (USD Billion)
To get more information on the regional analysis of this market, Request a Free sample
Owing to the presence of large scale manufacturers backed by bulk availability of raw material, Asia Pacific accounted for the largest volume and revenue share in the global market in 2020. The market size of Asia Pacific was USD 5.97 billion in 2020. With favorable growth of end-use industries in China, India, South East Asian countries, the region is anticipated to lead this market even during the forecast period. China is the world leader in the consumption of epoxies. The paint & coatings industry in the country is well established and consumes a majority of epoxy based coatings for their excellent characteristics.
Moreover, the continuously expanding composites market, construction & automotive industries are further boosting the demand for durable & sustainable epoxies. India is projected to show prominent growth in the near future due to the rapid industrialization. Also, owing to the well-established epoxy supply chains & manufacturers, countries such as South Korea & Japan hold a significant portion of the regional market.
Europe occupied the second largest share in the global market followed by North America. In Europe, automotive, wind energy and composites are driving the growth of low & high cured epoxy resins. Germany is the leading contributor to the growth of the market. Innovations in automotive parts manufacturing, increasing demand for sustainable chemicals in construction activities, and a flourishing renewable energy industry are some of the key factors that are pushing demand for epoxies in the region.
In North America, increasing digitization is fueling demand for electrical & electronic systems. Epoxy-based long lasting & reliable components are used in these systems to reduce the cost and improve performance. Moreover, increasing investment in public & private infrastructure projects in the U.S. is creating immense opportunities for the growth of this market. The favorable growth of the food & beverage industry is paving way for applications such as metal can coatings.
To know how our report can help streamline your business, Speak to Analyst
Though Latin America, Middle East & Africa holds a smaller share, these regions are anticipated to indicate faster growth in the global market. Technological innovations, rapid industrial development, changing government policies, and rising disposable income in these regions are aiding the growth of epoxy-based end-use industries. In Latin America, Brazil led the market in 2020 on the back of the growth of construction, electronics and transportation sector in the country. Due to limited manufacturers, Middle East & Africa is considerably dependent on import from Asia Pacific, Europe & North America. However, to reduce the delivery span and cost structure, leading manufacturers are focusing on investing in these regions, which is further expected to create a positive environment for future growth.
Securing Production Capacities & Acquisition to be the Key Strategies to Augment Market Presence
With the growing competition in the epoxy industry, the bigger players, such as Kukdo, Huntsman, Aditya Birla Chemicals and others are strategically focusing on securing maximum production capacities to better serve the existing consumers. These players are investing significantly into the establishment of new production sites, training & research centers, distribution centers and the acquisition of small players with similar expertise. The progression of COVID-19 challenged the manufacturers in terms of production shifts and resilient supply chains. Thus, these companies are focusing on securing maximum production capacities to gain a competitive edge in this market.
An Infographic Representation of Epoxy Resin Market
To get information on various segments, share your queries with us
This market research report provides both qualitative & quantitative insights on epoxy resins across the world. Quantitative insights include market sizing in terms of value (USD Billion) & volume (Kilo Tons) across each segment, sub-segment and region profiled in the scope of the study. Also, it provides market analysis and growth rates of segment, sub-segment and key counties across each region. Qualitative insight covers an elaborative epoxy resin market analysis of key market drivers, restraints, growth opportunities, industry trends related to the market. The competitive landscape section covers detailed company profiling of the key players operating in the industry.
Volume (Kilo Tons); Value (USD Billion)
By Application, and By Geography
Fortune Business Insights says that the global market size was USD 8.70 billion in 2020 and is projected to reach USD 17.10 billion by 2028.
Growing at a CAGR of 5.7%, the market will exhibit steady growth in the forecast period.
Paint & coatings is expected to be the leading segment in this market during the forecast period.
Increasing demand for epoxy resins in wind energy, composite, and coating applications is the key driver for the market.
Kukdo Chemicals Co. Ltd. is the leading player in the global market.
Asia Pacific dominated the market share in 2020.
“This report is really well done and we really appreciate it! Again, I may have questions as we dig in deeper. Thanks again for some really good work.”- U.S.-based biotechnology company focussing on treatment of chronic pain.
“Kudos to your team. Thank you very much for your support and agility to answer our questions.”- Europe-based provider of solutions to automate data centre operations.
“We appreciate you and your team taking out time to share the report and data file with us, and we are grateful for the flexibility provided to modify the document as per request. This does help us in our business decision making. We would be pleased to work with you again, and hope to continue our business relationship long into the future.”- India-based manufacturer of industrial and specialty intermediates with a strong global presence.
“I want to first congratulate you on the great work done on the Medical Platforms project. Thank you so much for all your efforts.”- One of the largest cosmetics company in the world.
“Thank you very much. I really appreciate the work your team has done. I feel very comfortable recommending your services to some of the other startups that I’m working with, and will likely establish a good long partnership with you.”- U.S. based startup operating in the cultivated meat market.
“We received the below report on the U.S. market from you. We were very satisfied with the report.”- UGlobal hearing aids manufacturer.
“I just finished my first pass-through of the report. Great work! Thank you!”- U.S. based solar racking solutions provider.
“Thanks again for the great work on our last partnership. We are ramping up a new project to understand the imaging and imaging service and distribution market in the U.S.”- World’s leading advisory firm.
“We feel positive about the results. Based on the presented results, we will do strategic review of this new information and might commission a detailed study on some of the modules included in the report after end of the year. Overall we are very satisfied and please pass on the praise to the team. Thank you for the co-operation!”- Germany based machine construction company.
“Thank you very much for the very good report. I have another requirement on cutting tools, paper crafts and decorative items.”- Japanese manufacturing company of stationery products.
“We are happy with the professionalism of your in-house research team as well as the quality of your research reports. Looking forward to work together on similar projects”- One of the Leading Food Companies in Germany
“We appreciate the teamwork and efficiency for such an exhaustive and comprehensive report. The data offered to us was exactly what we were looking for. Thank you!”- Intuitive Surgical
“I recommend Fortune Business Insights for their honesty and flexibility. Not only that they were very responsive and dealt with all my questions very quickly but they also responded honestly and flexibly to the detailed requests from us in preparing the research report. We value them as a research company worthy of building long-term relationships.”- Major Food Company in Japan
“Well done Fortune Business Insights! The report covered all the points and was very detailed. Looking forward to work together in the future”- Ziering Medical
“It has been a delightful experience working with you guys. Thank you Fortune Business Insights for your efforts and prompt response”- Major Manufacturer of Precision Machine Parts in India
“I had a great experience working with Fortune Business Insights. The report was very accurate and as per my requirements. Very satisfied with the overall report as it has helped me to build strategies for my business”- Hewlett-Packard
“This is regarding the recent report I bought from Fortune Business insights. Remarkable job and great efforts by your research team. I would also like to thank the back end team for offering a continuous support and stitching together a report that is so comprehensive and exhaustive”- Global Management Consulting Firm
“Please pass on our sincere thanks to the whole team at Fortune Business Insights. This is a very good piece of work and will be very helpful to us going forward. We know where we will be getting business intelligence from in the future.”- UK-based Start-up in the Medical Devices Sector
“Thank you for sending the market report and data. It looks quite comprehensive and the data is exactly what I was looking for. I appreciate the timeliness and responsiveness of you and your team.”- One of the Largest Companies in the Defence Industry