Global C5 Resins Market Ascends at a Healthy CAGR of 4.9%

Introduction

C5 resins are fully compatible with natural rubber, numerous olefins (LDPE), and low-polarity synthetic elastomers. These resins are offered in a variety of molecular weights and softening points and provide superior tack. In addition, they have excellent thermal stability. Increasing demand for adhesives and sealants from the packaging industry and the expansion of the construction industry are anticipated to drive the expansion of the studied market. Increasing application in hot-melt adhesives, rising usage for wallpapers in the construction industry, and growing popularity of EVs are likely to present opportunities for the studied market over the forecast period.

Market Dynamics

Expansion of the Construction Industry to Drive the Global C5 Resins Market

C5 resins are increasingly utilised in the production of adhesives and coatings utilised in the construction sector. Additionally, the product has enhanced adhesion, superior peel strength, and excellent shear strength. In addition, C5 resins offer superior pigment wetting, gloss, film hardness, and adhesion when used in paints. Additionally, it improves the flow and leveling, reduces VOCs, and offers enhanced water and mildew resistance. C5 resins are utilised throughout the construction industry for the production of coatings, adhesives, and paints, among other products, as a result of their aforementioned properties.

Due to the increasing demand for residential and commercial construction worldwide, it is anticipated that the construction industry will experience robust growth over the forecast period. Increasing residential, commercial, and industrial construction projects in developing economies, such as China, India, South Korea, and others, have contributed to the expansion of the construction industry. Additionally, expanding construction and refurbishment projects in the North American region have fueled the adhesives, paints, coatings, and others, thereby fueling the region's construction industry.

Extensive Use of Rubber Products in the Tire and Automobile Components to Provide Opportunities for the Global C5 Resins Market

Various automotive components and parts are manufactured from rubber. The automotive industry is the largest consumer of rubber products. Rubber is used to produce tires, automotive air bags that provide cushioning in the event of a collision, dust covers and bumpers that protect vehicles from external damage, belts, hoses, gaskets and covers, and mats. Consequently, the extensive use of rubber products in tyres and automobile components is driving up demand for rubber compounding, which is boosting the C5 resins market over the forecast period.

Key Highlights

• The global C5 resin market was valued USD 760 million in 2022. It is estimated to reach an expected value of USD 1180 million during at a CAGR of 4.9% during the forecast period (2022-2031).
• By application, the global C5 resin market is segmented into paints and coatings, adhesives and sealants, printing inks, rubber compounding and other applications. The adhesives and sealants segment accounted for the largest market share and is estimated to exhibit a CAGR of 4.2% during the forecast period.

Regional Insights

By region, the global C5 resin market is segmented into Asia-Pacific, Europe, South America, North America, and Middle East & Africa.

Asia-Pacific accounted dominated the market and is estimated to grow at a CAGR of 4.4% during the forecast period. China's burgeoning economy has been primarily propelled by the numerous developments in the residential and commercial construction sectors. Hong Kong's housing authorities initiated a number of measures to expedite the construction of affordable housing in China. Officials intend to provide 301,000 units of public housing by 2030. DuPont has decided to invest approximately USD 30 million in the construction of a new adhesive manufacturing facility in Zhangjiagang, Jiangsu Province, East China. The new facility will produce adhesives for the transportation industry, primarily supporting two mega industry trends: vehicle electrification applications and lightweighting. It is anticipated that construction will commence in the third quarter of 2021, and the facility will be operational by early 2023. C5 Resins are utilised in tyres and other automotive components because of their superior mechanical properties. In addition, the product's enhanced braking performance and lower fuel consumption are likely to increase its utility in tyres and automotive components. The increase in automotive production in China will likely increase the demand for tyres and automotive components, which will be advantageous for C5 resins.

Europe is the second largest region. The paints and coatings industry, adhesives and sealants, printing inks, and the rubber compounding industry are the major end users of C5 resin. Construction and the automotive industry use paints, coatings, adhesives, and sealants extensively. The German construction industry is the largest in Europe. The construction industry in the country has been expanding at a moderate rate, primarily due to the rising number of new residential construction projects. In addition, the Federal Statistical Office (Destatis) reported that in May 2021, Germany authorised the construction of 32,384 dwellings, an increase of 8.7% compared to April 2021. With the expansion of the construction industry, it is anticipated that demand for C5 resins will increase.

North America is the third largest region. Demand for residential paints accounts for around 40% of the entire paints and coatings industry sales in the United States, followed by commodity finishes at 25%, special-purpose coatings at 20%, and others such as varnish removers and paint thinners at 5%. Consequently, the increasing demand for such paints is concurrently pushing the nation's paint production. Increasing demand from the residential construction sector is a major factor driving the adhesives market. Over time, the rubber industry in the United States has expanded. The nation is a significant user of rubber and tyres. In addition, the country produces a variety of rubber speciality compounds. Additionally, the United States imports rubber from Asian nations. Thus, imported rubber is utilised in the processing and production of a variety of rubber products. During April-June 2020 in the United States, natural rubber consumption demonstrates an 8.9% decrease compared to the same period in 2019. The United States is home to some of the largest tyre manufacturers in the world, including Goodyear Tire & Rubber Co., Cooper Tire & Rubber Co., Michelin, and Bridgestone Americas Tire Operations (these four companies hold over 70% of the market share). The rubber business in the United States has risen by leaps and bounds throughout the years. In addition to being a large producer and consumer of rubber, the country continues to be a major force in terms of rubber consumption, and this trend is projected to continue in the coming years. All of these factors contribute to market growth.

Competitive Players

Competitive Landscape

Key players in the global C5 resin market are Arakawa Chemical Industries Ltd, ray Valley, DuPont, Eastman Chemical Company, ENEOS Holdings Inc., Exxon Mobil Corporation, Henan Anglxxon Chemical Co. Ltd, Kolon Industries Inc., Lesco Chemical Limited, Neville Chemical Company, Puyang Ruisen Petroleum Resins Co. Ltd, Seacon Corporation, Shanghai Jinsen Hydrocarbon Resins Co. Limited, Zibo Luhua Hongjin New Material Co. Ltd, Zeon Corporation

Recent Developments

Market News

• November 20, 2022: DuPont (NYSE: DD) today announced the termination of the previously announced agreement [1] to purchase the outstanding shares of Rogers Corporation, as the businesses were unable to obtain the necessary regulatory approvals in a timely manner. In accordance with the agreement, DuPont will pay Rogers a termination fee of $162,500,000.
• November 2022: The majority of DuPont's former Mobility & Materials segment (the "M&M Business" or the "M&M Divestiture") was sold to Celanese for $11 billion in cash, subject to customary transaction adjustments in accordance with the transaction agreement dated February 17, 2022.
• June 2022: ENEOS Corporation (President: Saito Takeshi; “ENEOS”) and iXs Co., Ltd. (Representatives: Yamasaki Fuminori and Karino Takashi; “iXs”) have begun a joint study on maintenance and inspection service business using robotics*1. In conjunction with this, ENEOS Innovation Partners LLC., a subsidiary of ENEOS Holdings, Inc., has invested in iXs.

Segmentation

Global C5 Resins Market: Segmentation

By Application

• Paints and Coatings
• Adhesives and Sealants
• Printing Inks
• Rubber Compounding
• Other Applications

By Region

• Asia-Pacific
• Europe
• North America
• South America
• Middle East & Africa