Epoxy Market

Market Overview

The global epoxy market size was valued at USD 7.18 billion in 2023 and is projected to reach a value of USD 12.55 billion by 2032, registering a CAGR of 6.40% during the forecast period (2024-2032). The increase in epoxy market share during the forecast period is related to the demand for wind energy capacity to fuel the epoxy resin market growth.

Epoxy resin belongs to the family of oligomeric materials. It is made to chemically react with curing agents to form a thermoset polymer with high chemical and corrosion resistance properties. It is created by mixing Bisphenol A (BPA) and epichlorohydrin (ECH), which eventually forms the basic monomer unit of epoxy resin called BADGE or DGEBA. It is referred to as any class of adhesive plastics or other material polymers of epoxides. The term epoxy has broadly been accepted for more than its original usage for fiber-reinforced polymer composites. The product is known for its excellent adhesive properties, making it versatile in several industries. Owing to its heat resistance and chemical application attributes, epoxy is an ideal choice for usage where a stronghold under pressure is required. 

The market is expected to substantially expand throughout the forecast period due to rising demand for paints and coatings. The rise in demand for epoxy resins can be ascribed to the increasing expenditure on construction, specifically in the residential sector, primarily in North America and Western Europe. The exponential expansion of worldwide manufacturing operations is projected to stimulate the need for paints and coatings utilized in the creation of automobiles and other long-lasting products, as well as for industrial maintenance purposes. This is anticipated to enhance the worldwide demand for epoxy resins.

Highlights

• Glycidyl epoxy resins dominate the market by type
• The paints and coating segment leads the market by application

Market Dynamics

Market Drivers

Wind Energy Capacity Demand

One of the primary drivers of the epoxy resin market is the wind power energy sector. The global demand for epoxy is stoked by increased wind energy capacity installation caused as a result of the rapid exhaustion of conventional sources of energy. Epoxy resins are used as composites and coatings to create, transform, and allocate various renewable and non-renewable energy types. Epoxy resins are used to make composites, a standard component of large-sized windmill rotor blades. It is also used in turbine insulators and smart grids. For example, wind energy is the most significant source of renewable electricity generation in the United States, contributing 9.8% of the nation's electricity and continuing to expand. Meanwhile, Wind has generated USD 148 billion in investment over the past decade. The industry allocated USD 10 billion to new projects in 2023 alone.

On the other hand, epoxy resins are also utilized as a coating for steel and concrete towers of windmills. To protect and prevent the structure from salt-water corrosion, the wind turbine poles in the North Sea are coated with epoxy resins. It is used extensively in offshore energy farms because it is highly durable, has low brittleness, has high mechanical strength, and is lightweight. Epoxy resins enhance the strength-to-weight ratio of large and tall wind turbines, making it possible to manufacture long blades. In terms of megawatts, the total wind installed capacity has increased multiple-fold over the past decade.

Increasing Demand for High-Performance Coatings

The expansion of the epoxy resins market is being driven by the rising demand for paints and coatings that are resistant to severe weather conditions, especially in industries such as construction and aviation. Epoxy resins are renowned for their exceptional mechanical strength and resistance to extremely high temperatures; therefore, they are well-suited for challenging applications.

Market Restraints

Availability of Alternatives

Epoxy resins have excessively been used in several end-use industries like construction and flooring, food packaging, paintings, and coatings, etc. The product has now come to a standstill in terms of growth in the market. Traditionally used for various purposes, the manufacturers have found novel alternatives for epoxy resin, owing to its negative environmental implications. Epoxy coatings exhibit diverse properties like excellent processability, high stability, and low cost. However, food companies are seeking substitutes to replace BPA-based epoxy resins. On that note, the food manufacturers might also switch completely to other types of packaging like paper preservatives, plastic packaging, etc instead of replacing epoxy coatings.

Additionally, the paintings and coatings sector has shown concern regarding the BPA emission by epoxy resins. Polyurethane and phenolic resins are the top alternatives used in the market. Polyolefin and non-BPA epoxy coatings have recently been developed as substitutes for traditional epoxy resin coatings. 

Market Opportunity

Increasing Demand for Food and Beverages Metal Cans

Metal packaging plays a significant role in the process of food preservation. It is commonly known as canning. In this fast-paced world, canned food has become an essential human diet in most developed countries. Food and beverages can preserve the taste and nutritional values of the food content for longer years, so to store food for a longer period, the interaction between the metal and food must be minimal. Cans are typically covered with organic coatings to prevent chemical migration into the food. There are a limited number of coatings available for metal-based food packaging. 

In addition, the different epoxy resins utilized in the metal food packaging industry are epoxy-anhydride, which is used for internal white for three-piece cans; epoxy-amino, which is used for beer and beverage cans; etc. There is a vast market for canned food and beverages, which is likely to increase the traction of the epoxy resin market. According to the Food Packaging Forum, more than 300 billion beverage cans are manufactured yearly worldwide.

Regional Analysis

Asia-Pacific Dominates the Global Market

The global epoxy market analysis is conducted in North America, Europe, Asia-Pacific, the Middle East and Africa and Latin America.

Asia-Pacific is the most significant market shareholder and is estimated to grow at a CAGR of 6.2% over the forecast period. Rapid industrialization, rising government infrastructure expenditure, and rising Foreign Direct Investments (FDIs), particularly in China, India, Japan, and South Korea, have dominated the region. Increasing construction activity, growing automotive sector demand, and the availability of raw materials have all contributed to the expansion of the Asia-Pacific market.

Furthermore, in 2023, the regional market was primarily controlled by China in the epoxy resin industry. Market growth is anticipated to be driven by the increasing number of infrastructure development projects and the expanding manufacturing industry during the forecast period. China's construction business is expected to surpass other Southeast Asian countries due to government measures and financing to sustain its growth.

Similarly, the epoxy resin market in India is projected to experience significant expansion during the forecast period due to the thriving building industry. Invest India reports that as of 2024, India has committed a substantial investment budget of USD 1.4 trillion for infrastructure development. This budget is divided into many sectors, with 24% dedicated to renewable energy, 18% for highways and roads, 17% for urban infrastructure, and 12% for railways.

North Americais estimated to grow at a CAGR of 6.5% over the forecast period.The United States is anticipated to lead the global epoxy resin market in this region due to the presence of major industry participants. North America also claims a substantial share of the global epoxy resin market. Various end-use industries, including aerospace, automotive, and electronics, which require high-performance epoxy resins, fuel the region's market share. Increasing demand for environmentally friendly and high-performance products in industries such as aerospace, automotive, and electronics is anticipated to drive growth in the epoxy resin market in North America. Key actors such as BASF SE and Huntsman International LLC's presence in North America contribute to the region's epoxy resin industry market dominance and expansion.

Europe accounts for a significant revenue market share. The European market is anticipated to be driven by increased product demand for various applications, including construction, wind turbines, electrical and electronics, and paints and coatings. In 2023, the epoxy resin market in Germany possessed the highest market share. Germany is the region's most significant automobile manufacturer and serves as Europe's manufacturing hub. It is anticipated that the automotive industry in the country will experience growth in the future years, which will generate a demand for paints and coatings due to technological advancements such as self-driving cars and electric vehicles.

Similarly, the United Kingdom reveals a strong market. The demand for paints and coatings in the automotive industry is anticipated to increase in the coming years due to the presence of prominent automobile manufacturers in the UK, such as Jaguar, Land Rover, MINI, Aston Martin, Bentley, Rolls Royce, and Lotus Cars. This is expected to generate a demand for epoxy resins. Investments in the automotive sector are anticipated to increase due to initiatives aimed at product development, such as driverless vehicles.

Segmental Analysis

The global epoxy market is segmented based on type and application.

The market is further segmented by type into glycidyl epoxy (glycidyl-ether, glycidyl-ester, glycidyl-amine) and non-glycidyl epoxy (aliphatic, cycloaliphatic).

Glycidyl epoxy resins are distinguished by the inclusion of reactive epoxide groups, which confer remarkable adaptability and render them appropriate for many applications, including but not limited to adhesives, coatings, and electronic materials. In addition to cosmetics and coatings, wind turbines, composites, construction, electrical and electronic, and adhesives, these polymers have extensive applications in numerous other sectors. Glycidyl epoxy resins are employed in fabricating wind turbine blades owing to their exceptional strength and resistance to environmental influences. Significant consumption of glycidyl epoxy resins occurs in the automotive industry, specifically for lightweight applications and adhesives.

Non-glycidyl epoxy resins are characterized by the absence of epoxide groups and are predominantly employed as additives or modifiers in the formulation of other resins. Although less prevalent, commercially available non-glycidyl epoxy resins have distinct applications beyond producing epoxy thermosets. The utilization of these resins for particular objectives spans across diverse industries, thereby augmenting the overall heterogeneity of epoxy resin applications.

The market is further segmented by application into paints and coatings, construction and flooring, automotive and public transport, water pipework, food packaging, and others.

Epoxy resins are widely employed in the paints and coatings sector due to their exceptional adhesion qualities and long-lasting nature. These polymers resist heat, chemicals, and corrosion and establish an ornamental and protective coating on various surfaces. Epoxy compounds play a substantial role in improved durability and functionality of coated surfaces within the paints and coatings industry.

In construction and flooring, epoxy resins are predominantly utilized in flooring applications requiring chemical resistance and durability, a critical sector in the construction industry. Commercial, industrial, and residential structures fabricate sustainable, visually appealing, and cohesive flooring solutions. Epoxy flooring systems are ideal for various construction projects due to their durability, affordability, and contaminant resistance.

Epoxy resins are utilized in the automotive and public transportation industries for a multitude of functions, including but not limited to composite materials, adhesives, and coatings. These polymers improve overall performance and fuel economy by aiding in the automotive industry's mission to reduce weight. Due to their robustness and longevity, Ether resins find application in constructing structural parts, train interiors, vehicle bodies, and other elements within public transportation.

Recent Developments

• February 2024- DCM Shriram revealed its intention to allocate more than USD 10 billion towards the establishment of a new manufacturing facility for sophisticated material products. This investment will take place over the coming years. The comprehensive range of sophisticated materials products includes liquid epoxy resins, solvent cuts, hardeners, formulated resins, and reactive diluents, catering to diverse industries like electronics, wind turbines, electric vehicles (EVs), fireproofing, and lightweight applications.
• March 2024 - The evaluation of premium epoxy resins designed for applications requiring resistance to corrosion underscores the criticality of epoxy resins in safeguarding metallic apparatus and infrastructure against corrosion. Coatings composed of diverse epoxy resins and epoxy phenolic resins are efficacious in safeguarding against corrosion when applied to surfaces of steel and aluminum. To increase the corrosion resistance of these resins, chemical compounds such as graphene oxide, titanium dioxide, silicon dioxide, carbon fiber, and carbon nanotubes can be incorporated.