The epoxy resin market was valued $5.9 billion in 2019, and is projected to reach $10.3 billion by 2027, at a CAGR of 7.0% from 2020 to 2027.
Epoxy resin is a thermosetting polymer formed by copolymerization of an epoxide with another compound having two hydroxyl groups. These resins are known for their enhanced performance in numerous industrial applications, owing to properties such as corrosion resistance, high thermal stability, superior mechanical strength, notable toughness, prolonged durability, resistance to chemical & moisture, and superior adhesion. Thus, epoxy resins majorly find their application across paints & coatings, adhesives, composites, and electronic encapsulation industries.
Increase in demand from end-use industries and surge in need for lightweight composites in aerospace and wind turbine applications are presently driving the growth of the global epoxy resin market. Vehicle manufacturers are adopting lightweight composite materials to meet the demand for design freedom, flexibility, high strength, and reduced vehicle weight. Moreover, in wind turbine blades, epoxy resins offer stronger mechanical performance, particularly tensile and flexural strength. Thus, increase in acceptance of this resin in the wind power industry is expected to boost the market growth. The number of end-use industries is rising duet increase in income, rise in urbanization, and surge in technology-intensive activities, which, in turn, boost the demand for epoxy resins, globally. Steady economic gains and rise in industrialization are further expected to contribute toward the growth of the global epoxy resin market.
However, the reaction between the key raw materials, epichlorohydrin (ECH) and bisphenol A (BPA) is the most common way to produce epoxy resin. Both ECH and BPA release toxic gases during combustion. Higher the temperature of combustion, greater is the amount of gases emitted. Moreover, epoxy resins are non-biodegradable. Thermoset resins cannot be recycled, and are not biodegradable. Thus, all these concerns significantly hamper the growth of the global market. Moreover, fluctuation is ECH prices affects the production cost of this resin. In addition, changes in demand and supply of ECH and BPA majorly impact the market. On the contrary, the development of bio-based epoxy resins is expected to remunerative opportunities for the expansion of the global epoxy resin market. Epoxy resins produced from bio-based raw materials can be a part of bio-polymers in future. Bio-based epoxy pre-polymers can be derived from sorbitol, natural sugars, and isosorbides. In addition, ECH can be manufactured using bio-sourced glycerol derived from oil plants. The production of epoxy resin from bio-sourced material is expected to create diverse growth opportunities for key players. Thus, its impact is expected to remain high throughout the forecast period. Moreover, increase in R&D activities to introduce new, improved epoxy resin systems for specific applications contributes toward the market growth.
The global epoxy resin market is segmented into type, physical form, application, end user, and region. On the basis of physical form, the market is categorized into solid, liquid, and solution epoxy. Depending on type, it is divided into diglycidylether bisphenol A (DGBEA), diglycidylether bisphenol F (DGBEF), novolac, aliphatic, and glycidylamine, and others. The applications covered in the study include paints & coatings, adhesives, composites, and electronic encapsulation & others. By end user, the market is segregated into building & construction, transportation, general industrial, consumer goods, wind power, aerospace, marine, and others. Region wise, it is analyzed across North America, Europe, Asia-Pacific, and LAMEA.
The key players operating in the global epoxy resin market are BASF SE, Atul Ltd., Dow Chemical Company, Hexion Inc., Huntsman Corporation, Kukdo Chemicals Co. Ltd., Nan Ya Plastics Corporation, Olin Corporation, Solvay SA, and Techstorm Advanced Materials. These major key players have adopted product launches as their key developmental strategy to expand their product offerings and stay competitive in the global market.