Global Molding Compounds Market Expected to Reach $17.02 Billion by 2031—Allied Market Research

The global molding compounds market size was valued at $10.10 billion in 2021, and is projected to reach $ 17.02 billion by 2031, growing at a CAGR of 5.5% from 2022 to 2031.

Molding compounds are composite materials that comprise epoxy resins, phenolic, silicas, pigments, polyester, and others. Molding compounds possess various properties such as it has high strength, tenacity, corrosion, heat resistance, and it is dimensionally stable owing to such functionalities it is extensively used in various end use industries such as electrical and electronics, automotive, electronics, industrial, manufacturing, and aerospace.

Increase in awareness regarding hygiene-related activities has led to growth of the packaging sector where molding compound are widely used for manufacturing films & wraps used for packaging a wide range of consumer goods. Moreover, increase in investments in building infrastructure in countries such as the U.S., China, Japan, Mexico, and India have led the building & construction sector to witness a significant growth where resin-based molding compounds such as epoxy, phenolic resins compounds are employed as insulating materials and cladding panels. These factors are predicted to contribute toward the global market growth.

However, production of molding compounds and resins-based molding compounds such as epoxy, phenolic, polyester resins release various toxic chemicals that if exposed beyond concentration limit may cause several health-related issues such as irritation in eye, vision failure, respiratory problems, dizziness, genotoxic, cardiovascular, and gastrointestinal problems. This factor is anticipated to hamper the market growth. Molding compounds are widely used as a substitute over metals in several end-use sectors such as building & construction, and automotive, owing to its resistance to corrosion, lightweight, and better insulation property.

In addition, factors such as growing manufacturing industry, availability of feedstock at reduced prices, and arrival of local players has led manufacturers to offer molding compounds at low prices. This factor is predicted to create remunerative opportunities for expansion of the molding compounds market in the future.

The global molding compounds market is segmented on the basis of resin type, application, and region. By resin type, the market is segregated into phenolic, epoxy, polyester, and others. The phenolic segment dominated the global market, in terms of revenue in 2021. This is attributed to the fact that phenolic based molding compound has a good resistivity to heat and corrosion, owing to such properties it is widely used in the manufacturing plants, automotive, and electrical and electronics components.

By application the market is divided into electrical and electronics, aerospace, automotive, and others. Electrical and electronics segment dominated the global market, in terms of revenue in 2021 with 30% share in the global market. This is attributed to the fact that molding compounds are used in pharmaceuticals, foods & beverages, electrical and electronics, and other end-use sectors. In addition, molding compounds enable production of consistent high-quality and has low cost. This has made consumers become more linear toward using molding compounds for various electrical and electronics sectors applications.

Region wise, the molding compounds market is analyzed across North America, Europe, Asia-Pacific, and LAMEA. The Asia-Pacific molding compounds market size is projected to grow at the highest CAGR during the forecast period, and accounted for a major market share in 2021, owing to rise in automotive sectors that have enhanced demand for molding compounds in the Asia-Pacific. The electric vehicle sector in China is increasing rapidly, which has forced molding compounds manufacturers to produce high-quality molding compounds for use in sealing systems to enhance aerodynamics of vehicles.

Key players operating in the global molding compounds market include BASF SE, CAPLINQ Corporation, Eastman Chemical Company, Evonik Industries AG, Henkel AG & Co. KGAA, Mar-Bal, Inc., Owens Corning., PLEXIGLAS, PPG Industries, Inc., SBHPP, SPF Composites, Starfire Systems Inc., Sumitomo Chemical Co., Ltd., The Lubrizol Corporation, and Toray Industries, Inc.

Key findings of the study

• In terms of resin type, phenolic segment is estimated to display the highest growth rate, in terms of revenue, registering a CAGR of 6.0% from 2022 to 2031.
• In terms of application, electrical and electronics segment is anticipated to register the highest CAGR of 6.1% during the forecast period.
• By region, the Asia-Pacific garnered the highest share of 43% in 2021, in terms of revenue, growing at a CAGR of 5.9%.

Impact of Covid-19 on Molding Compound Market

Disruption in production units, closure of manufacturing factories, and cutbacks in service sectors lead to disruption in global logistics and supply chain services. In addition, restrictions imposed, owing to the lockdown have declined growth of construction, automotive, and electronics sectors. Moreover, delays in infrastructure investments and complete shutdown of transportation hampered the molding compound market. In addition, as restrictions imposed due to lockdowns are being lifted in the fourth quarter of the pandemic, building & construction, automotive, aerospace, electronics, and manufacturing sectors are expected to recover, owing to the record of production units in both developed and developing economies.