Epoxy Resin Market

Growing demand for paint & coating in various end-use industries is flourishing the demand for epoxy resins, representing one of the major factors in the global market growth.

Epoxy resin-based paints & coatings are widely utilized in architecture, automotive OEMs, automotive refinishing, marine coating, industrial coating, wood coating, coil coating, transportation coating, fiber optics coating, and more. The paint & coating helps are used to coat the interior and exterior surfaces of any object and protect from extreme temperature, UV radiation, cracks, stain, chemicals, and blistering. Epoxy resin-based paints & coatings have low Volatile Organic Compounds (VOCs) content and offer high anti-corrosion resistance and excellent adhesion.

Owing this these factors it is utilized in all most all sectors such as residential, commercial & infrastructure structure, healthcare, electronics devices, shipbuilding industries, automotive & transportation, industrial, and wastewater treatment plants among others. The rise in the growth of the end-use industry will eventually raise the demand for paint & coating. Thus, growing businesses will eventually expand the market size during the forecast period.

The American Coatings Show in 2024, to be hosted in Indianapolis, Indiana (USA), will see the introduction of multiple new decreased yellowing epoxy solutions by Westlake Epoxy, according to a 2024 announcement by Westlake Corporation. Epoxy Research Resin RSL-4710 in combination with Research Curing Agent RSC-4731 constitutes the Deep Pour Lower Yellowing Epoxy System. This two-component epoxy/amine solution is designed to have a lower exotherm temperature and a longer set time. Even in bright sunshine, the technology provides better color retention and superior air release.

Aditya Birla Chemicals announced in March 2022 that it would double its epoxy manufacturing capacity and go international to improve its competitive position in the global market.

According to epoxy resin market dynamics, the demand for consumer goods such as smartphones, wireless entertainment devices, gaming consoles, and others is increasing owing to advancements in technology and its need in day-to-day activity. For instance, as per Invest India, the global electronic devices market is valued at around USD 2.9 trillion in 2020 and is expected to grow in coming years owing to the rise in digitalization and the internet of things. Thus, rise in demand for electronic devices and consumer goods, the demand for paint & coatings, and the market will grow eventually during the forecast period.

Additionally, the rise in the aerospace and defense industry is accelerating market growth. For instance, according to the Aerospace Industry Association, the U.S. aerospace industry sales has been increased by 2.1% and the export market increased by 11.2% in 2021. The rise in the growth of the aerospace & defense industry will increase the demand for paint & coating during product development & maintenance of aircraft, fighter jets, and others. Thus, growing businesses will eventually expand the market size during the forecast period.

However, there have been significant advances in epoxy resin technology to cater to the demand. The advancement in epoxy resin technology along with increasing government spending, the rise in industrialization, and growing Foreign Direct Investments (FDI), especially in emerging economies are likely to anticipate the growth of epoxy resin market revenue during the forecast period.

By region, the study provides market insights into North America, Europe, Asia-Pacific, and the Rest of the World. According to market statistics, the Asia-Pacific epoxy resin market accounted for USD 3,62 billion in 2021 and is expected to exhibit a 7% CAGR during the study period. As per market data, this growth is attributed to the rising demand for consumer goods, along with the rising population and growing industrialization across the region.

For instance, China's epoxy resin market is the fastest growing market as China is one of the largest consumer electronics markets in the Asia-Pacific region. The rise in technology transitions, such as the rollout of 5G networks and IoT accelerating the growth of electronic products and others. For instance, as per American Coating Association, china holds 28% of the market share in terms of revenue in the global paints & coating market in 2021. Hence, Asia-Pacific is anticipated to register the highest growth rate over the forecast period from 2022–2030.

Furthermore, the major countries studied are The U.S., Canada, Germany, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.

Figure 2: Epoxy Resin Market Share By Region 2021 (%)Source: Secondary Research, Primary Research, Market Research Future Database, and Analyst Review

The North American epoxy resin market is expected to register a CAGR of 6.1% from 2022 to 2030. This is due to the rise in automotive, growing industrialization, and rapid demand for electronic goods. Moreover, the U.S epoxy resin market held the largest share, and the Canadian epoxy resin market was the fastest-growing market in the North American region

Europe epoxy resin market accounts for the significant share due to the availability of highly configured electronic devices, developed industries, and rising demand for electric vehicles. Further, the Germany epoxy resin market held the largest market share, and the UK epoxy resin market was the fastest-growing market in the European region.

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

One of the primary business strategies manufacturers adopt in the global epoxy resin industry to benefit clients and expand the epoxy resin market sector is manufacturing locally to reduce operating costs. In February 2022, Westlake Chemical Corporation has entered into a definitive agreement with Hexion Inc. to acquire Hexion’s global epoxy business for approximately $1.2 billion. The acquisition is expected to support the company to achieve the business’s long-term market development.

Induron Protective Coatings announced the release of Novasafe, their newest product, in 2023. Novasafe is a thick-film, ceramic-filled, furfuryl modified novolac epoxy that is resistant to the worst conditions seen in treatment facilities. In comparison to typical epoxies, Novasafe's formulation chemistry is unique in the market and allows it to perform what treatment plant operators need in the most harsh settings with one fewer layer and a thinner film than polyurethane/polyurea. Novasafe's special resin and filler package allows it to achieve this.

Swancor introduced two new products in 2022 called "EzCiclo" and "CleaVER," which provide cutting-edge solutions for the eventual recycling and reuse of wind turbine blades. "EzCiclo," Swancor's most recent invention, is an epoxy resin that is recyclable and reusable. Glass or carbon fiber composites could be recycled and broken down using "CleaVER" technology with "EzCiclo." By closing the loop, it recycles trash into repurposed glass/carbon fibers and oligomers, so reusing both reinforcement and resin.

DIC Corporation acquired Guangdong TOD New Materials Co., Ltd. - a coating resin manufacturer based in China, in July 2022. This acquisition will help DIC increase their capacity for coating resins and other products throughout Asia especially within the Chinese market region. DIC’s medium- to long-term plan envisages paints resins attaining dominance in Asia through a broad supply of resin products that can deliver additional functions while reducing environmental burdens as well as utilizing expansion of new production facilities at Ideal Chemi Plast India.