Epoxy Resins Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

Epoxy Resins Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The epoxy resins market was estimated at over 3,500 kiloton in 2020, and the market is projected to register a CAGR of over 6% during the forecast period (2021-2026).

The market was negatively impacted due to COVID-19 in 2020. Owing to the pandemic scenario, several countries went into lockdown. This affected various industries such as paints and coatings, adhesives and sealants, electrical and electronics, and others due to supply chain disruptions, work stoppages, and labor shortages. However, the condition is expected to recover in 2021, thereby restoring the growth trajectory of the market over the forecast period.

Key Highlights

• Over the medium term, the strong growth of the construction industry and the rising demand for electrical and electronic devices are driving the market growth.
• On the flip side, the health impacts of epoxy on health and the negative impact of the COVID-19 pandemic are expected to hinder the growth of the market.
• By application, the paints and coatings segment is expected to account for the largest share during the forecast period.
• Asia-Pacific dominated the market across the world, with the majority of demand coming from China and India.

Key Market TrendsPaints and Coatings Segment to Dominate the Market

• Epoxy resins are used as binders for coating applications to enhance the durability of coating for floor and metal applications.
• Epoxy resins help in the development of several properties in coatings, such as strength, durability, and chemical resistance. Its properties and abilities of quick-drying, toughness, excellent adhesion, good curing, abrasion resistance, and excellent water-resistivity make it suitable for providing protection to metals and other surfaces.
• Epoxy powder coatings are used on washers, dryers, and other white goods, on steel pipes and fittings used in the oil and gas industry, water transmission pipelines, and concrete reinforcing rebar due to their flexible applicability.
• The automotive, marine, and aerospace industries use epoxy coatings as primers for corrosion protection.
• Epoxy coatings can further act as protective coatings to industrial flooring.
• Germany has the largest automobile industry in Europe. Germany leads the European automotive market, with 41 assembly and engine production plants that contribute to one-third of the total automobile production in Europe. Germany, which is one of the leading manufacturing bases of the automotive industry, is home to manufacturers from different segments, such as equipment manufacturers, material and component suppliers, engine producers, and whole system integrators.
• However, in the first nine months of 2020, Germany produced 2.55 million cars and light commercial vehicles, which declined by 32.6% compared to 3.79 million vehicles during the same period in 2019. The outbreak of the virus has affected the production, but the growing sales in the country are expected to drive the market studied during the forecast period.
• Such factors are expected to have a significant impact on the demand for epoxy resins in paints and coatings, thus affecting the growth of the epoxy resins market during the forecast period.

Asia-Pacific Region to Dominate the Market

• China has the world’s largest electronics production base and offers tough competition to existing upstream producers, such as South Korea, Singapore, and Taiwan. Electronic products, such as smartphones, OLED TVs, and tablets, among others, have the highest growth in the consumer electronics segment of the market in terms of demand. With the increase in the disposable incomes of the middle-class population, the demand for electronic products is projected to increase steadily in the future, thereby driving the market studied.
• Additionally, China is one of the major countries in Asia-Pacific with ample construction activities, with the industrial and construction sectors accounting for approximately 50% of the GDP.
• In India, in the residential segment, the government is pushing huge projects in the next few years. The government’s ‘Housing for All’ initiative aims to build more than 20 million affordable homes for the urban poor by 2022. This will provide a significant boost to residential construction.
• The infrastructure sector plays a vital role in the growth and development of the Indian economy. The country’s government has been taking initiatives to attract FDIs in the manufacturing sector, to make India a manufacturing hub. The government is targeting an increase in the share of the manufacturing sector in GDP to 25% by 2022.
• The Japanese electrical and electronics industry is one of the world’s leading industries. The country is a world leader in the production of video cameras, compact discs, computers, photocopiers, fax machines, cell phones, and various other key computer components.
• Japan’s construction sector is expected to expand at a moderate pace over the next five years, owing to increasing investments in public and private infrastructure, renewable energy, and commercial projects. This, in turn, is improving both consumer and investor confidence.
• Such factors are expected to increase the demand for epoxy resins in the forecast period.

Competitive Landscape

The epoxy resins market is partially fragmented in nature with the presence of various players in the market. Some of the major companies in epoxy resins market includes 3M, Covestro AG, Hexion, Huntsman International LLC, and Olin Corporation, among others.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support

Companies Mentioned

3M
Aditya Birla Chemicals
Atul Ltd
BASF SE
Chang Chun Group
Covestro AG
DAICEL CORPORATION
DuPont
Hexion
Huntsman International LLC
Jiangsu Sanmu Group
Kemipex
KUKDO CHEMICAL CO. LTD
NAMA Chemicals
NAN YA PLASTICS CORPORATION
Olin Corporation
Sika AG
SPOLCHEMIE

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