Acrylic Resins Market

Rising demand for acrylic resins in the automotive industry to fuel the Acrylic Resin market

In automotive applications, acrylic resin is used to coat and protect metal surfaces with paint and varnish. These resins, which are sold under the name hydroxyl-acrylic resins, are based on methacrylic monomers. Automobile coatings offer excellent protection and a beautiful appearance. Methacrylate resins are best paired with diisocyanates to offer flexibility to high-performance coatings due to their inherent great weather ability and scratch resistance. Fast-drying resins with high flow, gloss, durability, and fabrication qualities are produced using methyl methacrylate (MMA) modified alkyds, which are also effective in metal decorative finishes.

The manufacturing of a wide range of components and equipment, including ornamental trims, ambient lighting, door entry strips, exterior, rear, and indicator light covers, automobile glass, etc., uses methacrylate extensively. Less stress birefringence, lightweight, and good scratch resistance are a few of the important characteristics that make the resin the best choice for the automobile sector.

The automotive segment held a significant share of the acrylic resin market in 2021 growing at a CAGR of 22.90% during the forecast period. This is a result of many manufacturers demands, such as decreased methacrylate emissions of volatile organic compounds (VOCs), which contribute to smog production and provide a long-lasting protective surface coating on automobiles. The automobile sector makes extensive use of methacrylate monomers including butyl methacrylate and methyl methacrylate (MMA). Methacrylate monomers are mostly used for automobile glazing in the automotive sector.

Furthermore, immense growth in the automotive sector is one of the primary drivers of the acrylic resin market.

A crucial sector of the economy, automotive production is presently experiencing a fast transformation. The future of the businesses operating in this sector is being shaped by the introduction of electric cars and self-driving technologies. It's likely that individuals who are open to this change will expand the most during the next several years. The Asia-Pacific region is experiencing rapid expansion in the automobile industry. One of the industries with the quickest recent growth has been the Asia Pacific automobile market, which is predicted to rule the market for the next 10 years.

Also, lowering hazardous emissions improves safety and comfort, preserves the environment, and generates greater economic activity. Significant global developments in the automobile industry include the use of fuel-efficient cars.

Owing to a number of characteristics, including low-stress birefringence, lightweight, and good scratch resistance, among others, acrylic resins are frequently used in large vehicles, such as carriers and locomotives, as well as in passenger cars and other vehicles. Likewise, the market for acrylic resin is anticipated to rise as autonomous or electric vehicles become more prevalent. The automotive market is still anticipated to be driven in the next years by an increase in the use of vehicles powered by gasoline and diesel.

These trends in the growth of the automotive industry are expected to boost the demand for acrylic resin during the forecast period.

Global automotive manufacturing industry revenue between 2019 to 2022 (USD Trillion)

According to Statista, the global automotive manufacturing market was worth about 2.86 trillion U.S. dollars in 2021. The market is projected to grow to some 2.95 trillion U.S. dollars in 2022. This growth is a slow recovery, still under the industry’s 2019 market size. Hence increasing revenue from the automotive industry will positively impact the overall Acrylic Resin Market in the forecast period.

The development of electric cars increases the need for acrylic resin over the study period. Globally speaking, EV sales volumes are growing to the point where they may generate sizable profit margins for the automotive industry's upstream players and well-positioned leather suppliers. Thus, the increase in the production of e-vehicle coupled with gasoline-based cars is expected to increase the demand for the acrylic resin market during the forecast period.

The consumer goods sector is increasingly driving the Global Acrylic Resin Market Industry, as acrylic resins are widely used in various products, including household items, packaging, and electronics. The versatility of acrylic resins allows for their application in diverse consumer products, enhancing durability and aesthetic qualities. As consumer preferences shift towards high-quality and sustainable products, the demand for acrylic resins is expected to rise. This trend is likely to contribute to the overall growth of the market, reflecting the changing dynamics of consumer behavior and product innovation.

The construction sector plays a pivotal role in the Global Acrylic Resin Market Industry, particularly due to the rising demand for high-performance materials in building applications. Acrylic resins are favored for their weather resistance, aesthetic appeal, and versatility in coatings and sealants. With urbanization trends and infrastructure development gaining momentum globally, the market is expected to experience substantial growth. The anticipated increase in construction activities is likely to contribute to the market's expansion, aligning with projections that estimate the Global Acrylic Resin Market will reach 40.4 USD Billion by 2035.

The automotive industry is a significant driver for the Global Acrylic Resin Market Industry, as manufacturers increasingly utilize acrylic resins for their lightweight and durable properties. These resins are employed in various applications, including coatings, adhesives, and interior components. The shift towards electric vehicles, which require advanced materials for efficiency and performance, further propels this demand. As the automotive sector evolves, the Global Acrylic Resin Market is projected to reach 21.3 USD Billion in 2024, indicating a robust growth trajectory fueled by innovations in material science.

Technological innovations in the production of acrylic resins significantly influence the Global Acrylic Resin Market Industry. Advances in polymerization techniques and the development of bio-based acrylic resins enhance the efficiency and sustainability of manufacturing processes. These innovations not only improve product performance but also reduce environmental impact, aligning with global sustainability goals. As manufacturers adopt these technologies, the market is poised for growth, with a projected CAGR of 5.98% from 2025 to 2035, indicating a shift towards more eco-friendly production methods.

Environmental regulations and sustainability initiatives are becoming crucial factors in the Global Acrylic Resin Market Industry. Governments worldwide are implementing stricter regulations to reduce the environmental impact of industrial processes, prompting manufacturers to adopt more sustainable practices. Acrylic resins, particularly bio-based variants, align with these initiatives, offering lower emissions and improved recyclability. As companies strive to meet regulatory requirements and consumer expectations for sustainability, the demand for eco-friendly acrylic resins is likely to increase, further driving market growth.

Region-wise Acrylic Resin Market has been divided into North America, Europe, Asia-Pacific, Latin America, and Middle East & Africa. Asia-Pacific held the largest market share of 35.08% in 2022 due to the high availability of raw materials, rapid industrialization, and commercialization in the region. It is expected to increase the consumption of acrylic resin during the forecast period. The market was valued at USD 6,976.2 million in 2022 and is expected to exhibit a CAGR of 6.05%.

The ongoing economic strength of the Asia-Pacific area and the resulting rise in demand for infrastructure, equipment, manufacturing facilities, and other domains are projected to fuel the region's need for paints & coatings. Also, fresh prospects in end-user sectors like manufacturing, construction, packaging, automotive, and others are probably on the horizon thanks to the development of production facilities and rising investments in the area. The Asia-Pacific region's three fastest-growing economies are China, India, and Japan, which dominate various end-use sectors including building and construction, automobile, and so forth.

Also, there are several sizable paint industries in Europe, and the continent's four largest economies are Germany, France, Italy, and Spain. During the course of the projection period, it is anticipated that the paints and coatings segment will grow as a consequence of the existence of numerous well-known competitors in the area.

July 2022 BASF has completed the installation and start-up of a cutting-edge acrylic dispersions production line in Dahej, India, which will serve the coatings, construction, adhesives, and paper sectors in South Asian markets.

July 2022 Arkema will acquire Polimeros Especiales, a prominent emulsion resin producer in Mexico. The planned purchase of this market leader in solvent-free waterborne acrylic resins will boost Arkema's position in this rapidly increasing market such as architectural and decorative paints, textiles, pressure-sensitive adhesives, and construction.

Major market players are spending a lot of money on R&D to increase their product lines, which will help the Acrylic Resin Market grow even more. Market participants are also taking a range of strategic initiatives to grow their worldwide footprint, including new product launches, contractual agreements, mergers and acquisitions, increased investments, and collaboration with other organizations. Competitors in the Acrylic Resin Market industry must offer cost-effective products to expand and survive in an increasingly competitive and rising market environment.

One of the primary business strategies adopted by manufacturers in the global Acrylic Resin industry to benefit clients and expand the Acrylic Resin market sector is to manufacture locally to reduce operating costs. The market for Acrylic Resin is recognized as being extremely competitive and fragmented. The market for Acrylic Resin offers considerable potential opportunities for domestic and unorganised companies.

Some of the key players operating in the Acrylic Resin Market are Arkema, BASF SE, Evonik Industries AG, Dow Chemical Company, Mitsubishi, Chemical Corporation, Henkel AG & Co., Nippon Shokubai Kagaku Kogyo Co., Ltd., DIC Corporation, Sumitomo Chemical Company, and Covestro AG. To increase their global reach and client base, key firms are concentrating on acquisitions and product innovation.

BASF SE is a major player in the Acrylic Resins market, globally. It manufactures, markets, and sells chemicals, polymers, crop protection products, and performance products. Acrylic Resins, adhesives, surfactants, fuel additives, electronic chemicals, pigments, paints, food additives, fungicides, and herbicides are among its products. Construction, furniture and wood, agricultural, electronics and electrical, paints and coatings, automotive, home care, nutrition, chemicals, and other industries are served by the company. BASF conducts R&D in collaboration with global clients, scientists, and partners. The corporation operates through a global network of manufacturing plants.

Its operations are spread over Europe, Asia Pacific, South America, Africa, the Middle East, and North America. BASF is based in Ludwigshafen, Germany. The company has been focusing new product launches, expansions, and agreements in order to remain competitive in the Acrylic Resins market.

Evonik Industries AG: is a leading manufacturer of specialty chemicals globally. The company offers various products in the field of consumer goods, animal nutrition, and pharmaceuticals. They work in five business segments technology & infrastructure, performance materials, smart material, specialty additive, and nutrition & care. Everything in the new Nutrition & Care section is focused on enhancing human health, happiness, and quality of life. Automotive, paints, coatings, adhesives, construction, and many other industries receive high-performance materials from the Smart Materials division for use in green and energy-efficient systems. The Performance Materials sector provides ever-improving goods and technologies.

They are the foundation for many contemporary applications, such as polymers, transportation, nutrition, and pharmaceuticals. The Technology & Infrastructure division provides a comprehensive selection of services as a catalyst for innovation and digitization in the manufacturing environment. It has an operational presence in more than 100 countries. It operates 59 production plants in 27 countries and 38 R&D locations across the globe.