Unsaturated Polyester Resin Market

Market Overview

The global unsaturated polyester resin market size was valued at USD 10,442.3 million in 2022. It is expected to reach USD 15,910.28 million by 2031, growing at a CAGR of 4.79% during the forecast period (2023–2031).

Unsaturated polyester resins are primarily used in the manufacture of filled plastic products, such as gratings, tanks, pipes, and sanitary ware, as well as high-performance components for the marine and transportation industries, such as closure and body panels, fenders, boat hulls/decks, and other large glass fiber reinforced plastic articles. Plastic composites are primarily produced using unsaturated polyester resin. Composite materials are increasingly used in building and construction, transportation, industry, sports, and recreation.

Coatings and adhesives both use unsaturated polyester resins. Unsaturated polyester resins are in increasing demand as infrastructure development picks up. Compared to more traditional materials like metals and concrete, composite materials have several advantages, including low material cost, chemical and corrosion resistance, flexibility in component design, and electrical insulation. The market for unsaturated polyester resins is also expected to proliferate due to consumers' and enterprises' increased use of electric vehicles. This will fuel market growth for unsaturated polyester resins during the anticipated term.

Market Dynamics

Global Unsaturated Polyester Resin Market Drivers:

Unsaturated Polyester Resins' Preferred Qualities

Unsaturated polyester resins are the ideal matrix material for many composites because they are readily available in various forms and offer desirable properties. These qualities include, among others: Low shrinkage: Low shrinkage agents like polystyrene, polymethyl methacrylate, and diallyl phthalate polymers can be used to achieve the low shrinkage property of UPR. UPR is the ideal raw material for sheet molding compounds due to its low shrinkage property. Corrosion Resistance: Unsaturated polyester of the bisphenol A type, resin of the phthalic acid type, and polyester modified with rosin are used to make UPR corrosion-resistant. Due to this characteristic, UPR is an excellent raw material for making artificial marble. Low water absorption: The PET waste alcoholysis method and a brief curing period give UPR its low water absorption property. Over the past few years, demand for unsaturated polyester resin has primarily been driven by the characteristics of UPRs.

Global Unsaturated Polyester Resin Market Restraints:

Low Activity Levels and Delayed Demands

Due to their design flexibility, lightweight, low system costs, and mechanical strength, unsaturated polyester resins are widely used in the automotive sector. They are now an acceptable replacement for metal parts in vehicles. The automotive industry experienced encouraging growth over the previous ten years, but the pace of change has slowed recently. New car sales and production are declining in many regions, including Europe, Asia-Pacific, and the United States. This impacted most of the countries' previously rising automotive production. Markets, business models, and the competitive environment are all evolving. The closed borders have hampered the interregional movement of intermediate goods.

Some states or regions have been entirely in lockdown, and many factories operate with very little staff or have temporarily shut down. Low activity levels caused numerous project schedule changes and delays. The end-user begins delaying non-essential purchases due to all these disruptions, and they start to disengage from the consumption processes by delaying their demands for insulating materials. This has been negatively affecting the growth of the market.

Global Unsaturated Polyester Resin Market Opportunities:

Hydrophobic and Icephobic Property Induction Methods of UPR Advances

The Warsaw University of Technology and Adam Mickiewicz University developed a new technique to give unsaturated polyester resins hydrophobic and icephobic properties in December 2020. In this method, an unsaturated polyester resin-based gel coat was hybridized by adding nano silica and chemical additives from the triple functionalized polyhedral oligomeric silsesquioxanes (POSS) and double organofunctionalized polysiloxanes groups. These UPRs can be used in anti-icing coatings to help composite structures with polymer matrices, like wind turbines and airplanes, avoid ice buildup.

Due to challenging weather, wind turbines worldwide are susceptible to ice buildup. The accumulation of ice on wind turbines reduces not only their energy efficiency but also their control and monitoring, results in mechanical and electrical failures, and poses a risk to human safety. As a result, the increased use of the technique to give UPRs hydrophobic and icephobic properties will likely present a significant growth opportunity for the market under consideration during the forecast period.

Regional Analysis

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

Asia-Pacific Dominates the Global Market

Asia-Pacific is the most significant revenue contributor and is expected to grow at a CAGR of 5.76% during the forecast period. China has the largest economy in the Asia-Pacific region in terms of GDP. Even with the trade disruption brought on by its trade war with the US, the country's GDP grew by about 6.1% in 2019. The largest manufacturer of automobiles worldwide is China. However, the nation has seen a decline in automotive production since 2018. The country saw a drop in vehicle production of 4.16% in 2018 and 7.5% in 2019. The economic changes and China's trade conflict with the United States impacted the automotive industry's performance.

Additionally, the nation saw an 8.2% decline in domestic auto sales in 2019. In addition, the government's long-term goal is still the development of about 450 airports for the nation by 2035. Thus, it is anticipated that China's aircraft needs will grow along with the number of airports. By 2025, more than 10% of domestically produced commercial aircraft is expected to be supplied to the domestic market under the "Made in China 2025" plan. During the forecast period, this is anticipated to increase demand for unsaturated polyester resins.

Europe is expected to grow at a CAGR of 4.53% during the forecast period. Germany is the largest economy in Europe and the fifth largest globally. In 2019, the German economy grew by 0.6%, which was the weakest pace of growth in the preceding six years. In 2019, development was supported by increased state spending, booming construction, and more vigorous private consumption, which offset the struggling manufacturers' adverse effects. With 41 assembly and engine production facilities, Germany dominates the European automotive market and produces one-third of all the cars sold on the continent. In addition, manufacturers from various segments, including equipment manufacturers, materials and components suppliers, engines, and integrators of complete systems, are in Germany, one of the top manufacturing hubs for the automotive industry. It is anticipated that over 30-35 thousand new aircraft will be in service by the end of the next 20 years to meet the increasing demand in the aviation industry. Therefore, unsaturated polyester resin consumption is anticipated to rise during the forecast period, along with the growth in aircraft production.

The United States is the largest and most potent economy on earth. The U.S. is one of the world's top markets for both electronics and automobiles. It is also the nation with the highest expenditures in aerospace and defense. After China, the United States is the second-largest automotive manufacturer, and in 2019 it produced 10.9 million vehicles, a 3.7% decrease from the previous year. The nation has seen a significant increase in automobile production over the last five years. High exports of aerospace components have driven the manufacturing activities in the aerospace industry to nations like France, China, and Germany, as well as solid consumer spending in the United States. This can create a favorable momentum for the nation's unsaturated polyester resins market in aerospace applications.

Brazil's economy has grown slowly during the last few years. According to the International Monetary Fund, the country's GDP growth rate dropped from 1.3% in 2018 to 1.1% in 2019. Brazil's economy has recovered after its collapse due to recent political events and governmental initiatives. One of the biggest producers of commercial and regional aircraft in Brazil. This corporation produces various aerospace goods, including turboprops, general aviation, commercial, helicopter, and military and agricultural aircraft. Brazil's primary aircraft manufacturer, Embraer, significantly contributed to the expansion of aircraft manufacturing in that nation. The business established a USD 4.2 billion joint venture with Boeing for commercial aircraft, which was authorized in January 2019.

Additionally, deliveries of brand-new, more fuel-efficient single-aisle aircraft are scheduled for GOL and other Brazilian airlines. The order calls for the delivery of Boeing 737 MAX aircraft, which created new city pairs between Brazil and the United States. Commercial fleets currently in operation will grow as the order is delivered. This is anticipated to fuel the nation's demand for unsaturated polyester resins over the forecast period.

Saudi Arabia's economy is based on oil, and the government exerts tight control over all of the country's major economic activities. Saudi Arabia aims to become the region's new center for the automobile industry. Despite being a significant importer of vehicles and auto parts, Saudi Arabia is attempting to entice original equipment manufacturers (OEMs) to establish production facilities to grow the domestic auto industry. To benefit investors in the industry and reduce costs, it plans to establish an auto city. Additionally, it intends to build a light-vehicle manufacturing facility in Riyadh. Furthermore, discussions to build factories in the nation are currently being held with Toyota and other significant manufacturers. If these developments are successful, the unsaturated polyester resins market is anticipated to grow over the forecast period.

Segmental Analysis

The global unsaturated polyester resin market is segmented by type and end-user industry.

Based on type, the global market is bifurcated into ortho-resins, iso-resins, and dicyclopentadiene (DCPD).

The ortho-resins segment is the highest contributor to the market and is expected to grow at a CAGR of 4.04% during the forecast period. Unsaturated polyester resins, known as orthophthalic resins, are frequently used to create composite parts. Maleic anhydride, phthalic anhydride, and various glycols make up the fundamental chemistry of the resin backbone. A polycondensation reaction combines these components into an unsaturated polyester chain, which is then diluted with a reactive monomer (typically styrene) and other components to create a finished resin. A chemical reaction between the resin's backbone and styrene is started when the resin is combined with peroxides, turning the liquid into a robust and hard substance. Most of the time, ortho resins are processed along with glass fibers and fillers; however, this is only sometimes the case. Ortho resins are used in hand lay-up, spray-up, vacuum infusion, casting, filament winding, pultrusion, and SMC BMC processes due to their adaptability in performance and simplicity in processing.

Unsaturated polyester resins of the DCPD type are frequently used to create composite parts. In addition to the "regular ingredients" like maleic anhydride, phthalic anhydride, and glycols, these resins contain dicyclopentadiene. Compared to ortho resins, DCPD can reduce resin viscosity and styrene content. This typically translated into improved fiber wetting and increased loading capacity for inorganic fillers. DCPD resins also have less resin shrinkage, which enhances the surface quality (smoothness, gloss) of molded components. As a result, the above factors are anticipated to cause the demand for Dicyclopentadiene (DCPD) to increase significantly over the forecast period.

Based on the end-user industry, the global market is bifurcated into building and construction, chemical, electrical and electronics, paints and coatings, and transportation.

The building and construction segment owns the highest market and is expected to grow at a CAGR of 5.15% during the forecast period. In the building and construction industry, UPR is widely used for reinforcement, composite household structures, bathroom accessories, roof tiles, building panels, and concrete forming pans. Glass fiber Glass Fiber-reinforced Plastic (GRP), which is used in the building and construction industry to make flat and corrugated sheets, light domes and skylights, rain gutters, complete covers for sewage water treatment plants, washbasins, shower cabins, dormer windows, and door ornaments, heavily utilizes unsaturated polyester resins.

The advantages of GRP, such as its design flexibility, high dimensional accuracy, and superb compatibility with other building materials, are another factor influencing the market's expansion under study.

Due to their excellent chemical resistance to various chemicals, unsaturated polyester resins are used in the chemical industry to create pipes, ducts, and tanks. The hub for chemical processing is Asia-Pacific. The chemical industry is expanding quickly in nations like China, India, and the ASEAN nations. Due to improvements in critical end-user markets and rising demand for chemicals, the chemical industry has also experienced rapid growth in the United States. The domestic chemical industry's profitability is further increased by access to less expensive and more plentiful feedstock and energy resources. Investment has been drawn to the sector due to the nation's chemical industry's lucrative growth, resulting in outstanding greenfield and chemical expansion projects. However, global chemical production is anticipated to continue throughout the forecast period, supporting demand for unsaturated polyester resins.

Recent Developments

• April 2022- For its entire portfolio of Composite resins sold in Europe, the Middle East, and Africa, AOC announced an additional price increase of Euro 175 per ton. The price increase will go into effect immediately or as soon as the contracts permit.
• November 2022- Cooperation between BASF and G-Philos on stationary storage systems for renewable energy projects intensified.