The global epoxy resin market size was valued at USD 21.65 billion in 2021 and is predicted to reach at USD 41.33 billion by 2030, increasing at a CAGR of 7.45% from 2022 to 2030. Copolymerization of an epoxide with a two-hydroxyl molecule produces epoxy resin. In a variety of industrial settings, these resins stand out because of their amazing corrosion resistance, extraordinary toughness, chemical resistance, and moisture resistance, as well as their high thermal stability, outstanding mechanical strength, extended durability, and exceptional adhesion. Adhesives, paints, and coatings composites, and electronic encapsulation all use epoxy resins.
It is also possible to use epoxy resins in fibres because of their reactivity and the speed with which they adhere to the fibres. There are a number of uses for low VOC compounds in the repair of steel structures, including pipelines. Moreover, composite repair is often employed in offshore buildings where welding is not a possibility. Wind turbines account for the majority of epoxy resin use in the energy sector. This growth in wind turbine installations around the world has resulted in numerous prospects for epoxy resins, as the rotors of wind turbines are typically built of them. For turbine blades, epoxy is ideal because of its high strength-to-weight ratio, lightness, and durability. Originally developed for turbine blades, epoxy resins have subsequently found widespread use in composites and adhesives for a variety of structural components, including wind rotor blades.
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Construction And Aviation Growth Are Driving Demand for Epoxy Resins
As demand for epoxy resins from the paints and coatings industry continues to rise, the developing worldwide construction industry serves as an indirect driving force for the global epoxy resins market. In the near future, epoxy resins will be in great demand due to their ability to provide stability to paint and coating formulas. It is expected that the construction industry, particularly in developing regions like Asia Pacific and Latin America, will have renewed development over the next few years following its clean recovery from the 2020 catastrophe. The worldwide epoxy resins market is expected to benefit from this trend. The continual rise in the use of epoxy resins in the aviation industry has also boosted the worldwide epoxy resins market. In addition to being extremely durable, epoxy resins are also resistant to intense heat.
To save money on fuel, the aircraft sector is eager to reduce weight by using epoxy resins, which reduces the overall weight. Epoxy resins are expected to see a continuous increase in demand in the aviation and aerospace industry in the near future. The growth of the epoxy resins market is also expected to be influenced by the rise of private firms in space exploration and aviation.
Increasing Utilization of Polyepoxides Derived from Bio-Sources
Epoxy resins made from biodegradable sources have been developed as a means of reducing the damage that resins made from petroleum can cause to the surrounding environment. Biomaterials including lignin, vegetable oils, rosins, tannins, as well as many other biomaterials are utilized to replace a portion of the petrochemicals. The percentage of petrochemicals that are replaced by biomaterials ranges from 20 to 50 percent.
These materials eliminate the need for (bisphenol A), also known as BPA, which is hazardous and requires particular treatment. Resins derived from biological sources have a wide range of potential applications, including those involving the production of coating materials, adhesives, composites, as well as other crosslinked materials.
It is anticipated that there will be a rise in demand for bio-based epoxy resins during the duration of the projection period. This growth will be driven by an increased need for environmentally responsible practices across a variety of end-use sectors.
Risks to People's Health and Changing Prices of Raw Materials
Epoxy resin floors are linked to a number of health hazards, including the emission of intense and deadly fumes, which can irritate both the lungs and the eyes. These emissions are preventing the market from expanding further. In addition, those who have asthma may have trouble breathing if they are exposed to these gases. Over the course of the forecast period, it is anticipated that stringent environmental restrictions governing bisphenol A will hinder demand growth.
Epoxies are often produced with the use of raw ingredients derived from petroleum. As a consequence of this, shifts in the cost of crude oil have a sizeable effect not only on the pricing of these raw materials but also on the prices of epoxy hardeners. The profit margin is affected by changing prices, which have a severe effect on small-scale firms.
Sustainable Coating Resins Provides Lucrative Opportunities
Due to the wide range of end-use industries where epoxy resin-integrated products can be used (wind energy, electronics, and consumer goods), manufacturers have a high degree of confidence in their ability to make money. Although the epoxy resin business is highly competitive, manufacturers are looking for a distinguishing element in order to stand above their rivals. Because of this, companies are acquiring each other in M&As and taking advantage of growth opportunities in sustainable coating resins.
Manufacturers are focusing on diversifying their product lines to take advantage of new value-adding applications, such as metal protection, plastic tooling, and automotive lightweight composites. They're spending a lot of money on R&D to develop highly adaptable epoxy resins that can be used in a variety of industries. The use of epoxy resins in the manufacture of aircraft, boats, and vehicles is being widely advertised.
The Global Epoxy Resin Market is divided into different segments according to the Application and Region (Geography).
By Application, the Global Epoxy Resin Market is segmented into Adhesives, Electrical & Electronics, Paints & Coatings, Wind Turbines, Composites, Construction, and Others. The application of paints and coatings was the most lucrative section of the market in 2021, accounting for more than 40% of total revenue. Because of their superior resistance to stains, cracks, blistering, extreme temperatures, and chemicals, paints and coatings based on epoxy resin are used extensively in a variety of settings, including residential and commercial buildings, ship making industries, automotive, and sewage treatment plants, amongst others. They have a low percentage of volatile organic compounds (VOCs), which makes them a great adhesive, and they have a strong performance against corrosion. Paints and coatings made with epoxy resin are frequently utilized for the purpose of applying a protective layer to the inside and exterior surfaces of commercial, residential, educational, and industrial structures.
The use of these paints and coatings not only enhances the aesthetic appeal of surfaces, but it also protects them from damaging effects of severe temperatures and ultraviolet radiation, preventing the surfaces from peeling, fading, or cracking. The non-residential sectors of emerging regions like Asia Pacific and the Middle East and Africa are seeing substantial growth, which is resulting in an increasing need for paints and coatings. These non-residential sectors include information technology, telecommunications, and retail. In addition, ongoing industrialization, rising government spending on infrastructure, and rising Foreign Direct Investments (FDI), particularly in Asia Pacific, are anticipated to contribute to the demand for epoxy resin-based paints and coatings, thereby fueling the growth of the market throughout the forecast period. This is anticipated to contribute to the demand for epoxy resin-based paints and coatings, especially in Asia Pacific.
By Region or Geography, the Global Epoxy Resin Market is segmented into North America, Europe, Asia Pacific, Latin America, and the Middle East & Africa. At over 60% of worldwide sales in 2021, the Asia Pacific region will continue to dominate the market in the years to come. Growth in the construction and automotive industries in developing countries like India, Japan, and South Korea is predicted to propel this industry throughout this period of time. In addition, the abundance of raw materials has made epoxy resin-based products a viable option in a wide range of industries. In 2021, China was the dominant regional player in the Asia Pacific area.
The Global Epoxy Resin Market is segmented by geography into North America, Europe, Asia Pacific, Latin America, and the Middle East & Africa.
Regional Growth Insights Request Sample Pages
In 2021, the Asia-Pacific region held the highest share of the global market, accounting for more than 60% of the total revenue. This region also held the position of being the most dominant. Over the course of the period covered by the forecast, the market is anticipated to be driven by factors such as the expanding number of building projects and the growing demand from the automotive sector in developing nations such as India, Japan, and South Korea. Epoxy resin-based goods can be used in a wide variety of end-use industries thanks to the simple availability of raw materials in these industries. This has created a huge opportunity for the development of these products.
In 2021, China maintained its position as the preeminent competitor in the Asia Pacific market. The key factors that are likely to drive the market over the course of the forecast period are the growing number of infrastructure development projects as well as the quickly expanding manufacturing industry. Because the government is taking measures and allocating funds to ensure that the country's development is maintained, the construction market in this country is anticipated to surpass that of other Southeast Asian countries.
For example, the National Development and Reform Commission (NDRC) reports that in 2019, the Chinese government approved 26 infrastructure projects with a combined total estimated investment of USD 142 billion. Around a similar vein, in the year 2020, the Communist Party of China said that the government was planning on allocating somewhere in the neighbourhood of 1.4 trillion US dollars for a public spending program related to digital infrastructure.
The government in India is launching a slew of large-scale residential projects over the next few years. Investment in infrastructure in India totals more than $1400 billion; Up until June 2021, 2,734 out of 5,956 projects in the Smart Cities Mission had been completed. As a result, the epoxy resins market in Asia-Pacific is expected to rise as a result of increased demand from the residential sector.