Epoxy Resin Market Expected to Reach $16.6 Billion by 2030-Allied Market Research

According to a new report published by Allied Market Research titled, “Epoxy Resin Market by Form, Type, Application, and End Use: Global Opportunity Analysis and Industry Forecast, 2021–2030,” the global epoxy resin market was valued at $8.9 billion in 2020, and is projected to reach $ 16.6 billion by 2030, growing at a CAGR of 6.5% from 2021 to 2030.

Epoxy resins are thermosetting polymers with high-quality performance in several industrial applications for corrosion protection, thermal stability, mechanical strength, moisture resistivity, and superior adhesion. They are superior to other resins in aspects such as reduced degradation on water ingress and increased resistance to osmosis.

The demand for epoxy resin is rising rapidly from various end use industries such as building & construction, transportation, consumer goods, wind power, aerospace, and marine. To reduce greenhouse emissions, wind energy is being adopted as an alternative energy source, thus boosting the demand for epoxy resin-based composites. In the aerospace industry, epoxy systems are used in interior applications to reduce the weight of the aircraft. In addition, epoxy resins are widely used high-performance polymers, which possess exclusive mechanical and resistance properties. Thus, they are extensively used in various applications such as paints & coatings, adhesives & sealants, and composites, including electrical encapsulation & others.

Key market players invest heavily to develop novel epoxy resin products through strategic partnership and collaborations. Most of the industry players have adopted expansion and product development strategies to strengthen their product segment. Growth in end-use industries, increase in demand for lightweight composites, and rise in R&D activities drive the demand for epoxy resins, globally. However, fluctuation in raw material prices is expected to hamper the market growth during the forecast period. On the contrary, the development of bio-sourced raw materials for sustainable production is expected to provide remunerative opportunities for growth of the global market.

The epoxy resin market is segmented on the basis of form, type, application, end use, and region. By form, the liquid segment accounted for the highest market share in 2020, as liquid epoxy resins are suitable for variety of high-performance applications such as coatings, adhesives, civil engineering, automotive, marine, electronic & electrical insulation, and composites, which drive their adoption, globally.

By type, DGBEA or bisphenol A-based epoxy resin dominated the market with market share of 61.3% in 2020. It has been widely used in casting, bonding, coatings, paints, and composite materials, hence providing ample opportunities for market growth.

By application, paints and coating dominated the market with the market share of 26.7% in 2020. Epoxy paint is thicker and stickier as compared to normal paints that result in smooth finish. It protects metal surfaces from oxidation along with providing long-lasting finish. Furthermore, epoxy coatings offer enhanced chemical & water resistance, possess prolonged durability, and have superior adhesion to a variety of substrates, which boost their demand globally.

By end use, consumer goods segment accounted for the highest market share in 2020. Epoxy resins are extensively used for sport & leisure equipment and in the electronic industry as an insulation material in the form of adhesive, sealant, coating, and potting compound.

By region, Asia-Pacific is the most prominent region in terms of production and consumption of epoxy resin, owing to its increased adoption in several end-use industries. It was the largest consumer of epoxy resin in 2020, accounting for about 61.9% of the total share.

The key players operating in the global epoxy resin market include Atul Ltd  , BASF SE, Dow, Inc, Hexion, Huntsman Corporation, LLC, Kukdo Chemicals Co., Ltd, Nan Ya Plastics Corporation, Olin Corporation, Solvay SA, and Techstorm Advanced Materials.

Key Findings Of Study

• The LAMEA epoxy resin market is projected to grow at a highest CAGR of nearly 8.56%, in terms of revenue, during the forecast period.
• By physical form, the solid segment is anticipated to witness the growth rate of 7.18%, in terms of revenue, during the forecast period.
• On the basis of type, the novolac segment is anticipated to witness the moderate growth rate of 7.99%, in terms of revenue.
• As per application, the adhesives & sealants epoxy resin segment is anticipated to register a growth rate of 7.35%, in terms of revenue.
• Depending on end use, the aerospace segment is expected to exhibit a CAGR of 8.45%, in terms of revenue.

COVID-19 Impact on Market

• During the COVID-19 pandemic, the epoxy resin industry was impacted in terms of distribution and logistics due to lockdown across the globe. Epoxy resin production and distribution came to a halt because of the economic downturn due to the pandemic.
• The COVID-19 pandemic disrupted the aerospace, transportation, consumer goods, building & construction, and marine industries, resulting in reduced usage of epoxy resin in these industries.
• The global COVID-19 pandemic hindered inter-country activity and import & export of epoxy resin due to varied economic and legal limitations globally. As a result, the epoxy resin market impacted moderately in 2020. However, by the beginning of 2021, all the industries started their operation due to which the demand for epoxy resin improved in the aerospace, transportation, consumer goods, building & construction, and marine industries.