Thermoset Molding Compound Market Expected to Reach $21.5 Billion by 2033

According to a new report published by Allied Market Research, titled, “Thermoset Molding Compound Market," The thermoset molding compound market size was valued at $11.7 billion in 2023, and is estimated to reach $21.5 billion by 2033, growing at a CAGR of 6.3% from 2024 to 2033.

Introduction

Thermoset molding compounds are used in the production of molded products through a process that involves heat and pressure. These compounds consist of thermosetting polymers, which are heated and undergo a chemical change that hardens them into a permanent shape. They are known for their high thermal stability, chemical resistance, and structural integrity. Thermoset molding compounds include phenolics, epoxies, melamine, and urea-formaldehyde resins. These materials are widely used in various industries such as automotive, electrical, and consumer goods for applications requiring durable and heat-resistant components.

Market Dynamics

Thermoset molding compounds exhibit outstanding resistance to heat and chemicals that makes them ideal for use in environments where exposure to harsh conditions is common. This property is particularly valuable in industries such as aerospace and defense, where materials must withstand extreme temperatures and corrosive substances. Furthermore, surge in emphasis on sustainability and environmental responsibility has spurred interest in thermoset materials, as they are formulated with recyclable or biodegradable components, reducing overall environmental impact compared to traditional materials. All these factors are expected to drive the thermoset molding compound market trends during the forecast period.

However, the development of thermoset formulations tailored to specific application requirements involves extensive R&D expenditures. Formulating thermoset resins with desired mechanical, thermal, and chemical properties demands sophisticated chemical expertise and testing capabilities. This R&D phase adds to the upfront costs before production even begins. Moreover, operational costs for maintaining and running thermoset molding facilities are substantial. These include energy costs for heating and curing processes, as well as ongoing maintenance of equipment to ensure consistent quality and productivity. All these factors hamper thermoset molding compound market growth.

Environmental regulations and standards are increasingly driving industries towards materials with lower emissions and environmental impact. Thermoset molding compounds, when formulated with eco-friendly additives and manufactured using energy-efficient processes, help industries meet stringent regulatory requirements while demonstrating commitment to sustainability initiatives. All these factors are anticipated to offer new growth opportunities for the thermoset molding compound market during the forecast period.

Segments Overview

The thermoset molding compound market is segmented into type, end-use, and region. On the basis of type, the market is divided into phenolic resin, epoxy resin, polyester resin, urea formaldehyde, melamine formaldehyde, and others. By end-use, the market is segmented into automotive, aerospace, electrical and electronics, and others. Region-wise, the market is analyzed across North America, Europe, Asia-Pacific and LAMEA.

On the basis of type, the market is divided into phenolic resin, epoxy resin, polyester resin, urea formaldehyde, melamine formaldehyde, and others. The melamine formaldehyde segment is anticipated to grow at the fastest CAGR of 7.4% during the forecast period. Melamine formaldehyde is valued for its durability and aesthetic qualities. It exhibits high hardness, scratch resistance, and surface gloss that makes it ideal for use in decorative laminates, kitchenware, and automotive parts. The growing consumer demand for aesthetically pleasing and long-lasting products in these sectors propels the usage of melamine formaldehyde. Moreover, its relatively low cost compared to other high-performance thermoset materials makes it a preferable option for manufacturers looking to balance performance and cost-efficiency. This combination of functional and economic benefits positions melamine formaldehyde as a key material in the thermoset molding compounds market.

By end-use, the market is segmented into automotive, aerospace, electrical and electronics, and others. The aerospace segment is anticipated to grow at the fastest CAGR of 7.5% during the forecast period. The demand for lightweight materials to improve fuel efficiency and performance in aerospace engineering has significantly boosted the use of thermoset molding compounds. These materials help in reducing the overall weight of aircraft, contributing to better fuel economy and lower carbon emissions. Moreover, innovations in resin formulations and manufacturing technologies have enhanced the properties of thermoset molding compounds that makes them more versatile and effective for advanced aerospace applications. This continuous development ensures that thermoset molding compounds remain at the forefront of materials technology in the aerospace sector.

Regional Analysis

Region-wise, the market is analyzed across North America, Europe, Asia-Pacific and LAMEA. Asia-Pacific is anticipated to grow at the fastest CAGR of 6.5% during the forecast period. Stringent environmental regulations and sustainability initiatives in the Asia-Pacific region are promoting the use of lightweight and high-strength materials to improve energy efficiency and reduce carbon footprints. Thermoset molding compounds, known for their excellent mechanical properties and longevity, are becoming the material of choice for manufacturers aiming to meet these regulatory standards. Moreover, the region's robust growth in the renewable energy sector, particularly in wind and solar power installations, is further propelling the demand for thermoset molding compounds, which are crucial for producing durable and reliable components in these applications.

Key players in the thermoset molding compound industry include BASF SE, Rebling, SBHPP, Huntsman Corporation, Kyocera Corporation, Evonik Industries AG, Kolon Industries Inc., Plastics Engineering Company (PLENCO), HEXION INC., and Eastman Chemical Company.

Key Market Insights

• By type, the phenolic resin segment was the highest revenue contributor to the market accounting for more than one-third of global thermoset molding compound market share in 2023.
• On the basis of end-use, the electrical and electronics segment was the highest revenue contributor to the market accounting for less than half of the global thermoset molding compound market share in 2023.
• Region-wise, Asia-Pacific was the highest revenue contributor of global thermoset molding compound market analysis in 2023.