Middle East & Africa Epoxy Resins Market - Segmented by Raw Material Type, Application, and Geography - Growth, Trends, and Forecast (2018 - 2023)
The Middle East & Africa epoxy resin market is expected to witness a CAGR of 6.17%, in terms of revenue, during the forecast period (2018 - 2023). The major factors driving the market studied are the strong growth of construction industry in Middle East & Africa and the rising demand for electrical and electronic devices. On the flipside, hazardous impact on health is expected to hinder the growth of the market. If epoxy resin is inhaled or absorbed through the skin, the solvent can affect the brain in ways similar to alcohol causing nausea, dizziness, slurred speech, headache, confusion, and loss of consciousness.
Growth of Construction Industry in the Region
Epoxy resins are used in the production of various products and materials, such as adhesives, plastics, paints, coatings, primers and sealers, flooring, etc., which find applications in the building and construction industry. Strong growth in the construction activities in the Middle East & African countries has been driving the market. In the Middle East, the countries have been investing on developing the non-oil sector. The GCC countries (Saudi Arabia, Kuwait, the United Arab Emirates, Qatar, Bahrain, and Oman) witnessed contract awards worth USD 32 billion, in the construction and transport sectors, during the first half of 2018, which indicates a noticeable increase from USD 27 billion in the second half of 2017. In countries, such as Saudi Arabia, the United Arab Emirates, and Qatar, construction of hotels is growing at a rapid rate. By the second quarter of 2018, total hotel construction pipeline stood at 603 projects, which is an all-time high. This indicated 119% increase in projects since the region’s low in the fourth quarter of 2013, when the total pipeline was as low was 275 projects. In the entire GCC healthcare sector, about 264 projects, worth above USD 24.7 billion, were under construction, as of February 2018, while about 227 projects, worth USD 12.7 billion, were in the design and pipeline stages. Hence, such factors are expected to drive the market for epoxy resins in MEA during the forecast period.
Paints and Coatings - The Dominant Application
Epoxy resins are reinforced polymer composites derived from petroleum sources and by themselves, are the result of a reactive process involving epoxide units. These resins are used as binders for coating applications to enhance durability of coating for floor and metal applications. Epoxy resins help in the development several properties in coatings, such as strength, durability, and chemical resistance. Epoxy powder coatings are used on washers, dryers, and other white goods, on steel pipes and fittings used in oil and gas industry, water transmission pipelines, and concrete reinforcing rebar, due to its flexible applicability. Automotive, marine, and aerospace industries, use epoxy coatings as primers for corrosion protection. Hence, due to such factors the demand for epoxy resins is expected to increase from the paints and coatings application.
Growing Demand in Saudi Arabia
Saudi Arabia is among the leading producers of paints and coatings in the Middle East & African region. The Kingdom of Saudi Arabia (KSA) has identified the following five industrial clusters (IC) to focus on, automotive cluster, minerals/metal cluster, chemical/polymer cluster, energy cluster, and pharmaceutical/biotech cluster. Under the chemical/polymer cluster, the government has stressed on the paints and coatings and adhesive and sealants industry. The country is steadily increasing its electrical and electronics manufacturing. As of 2016, there were more than 230 manufacturing units of electrical equipment and more than 50 manufacturing units of computer, electronics, and optical products. This number is expected to increase, as the country is focusing on increasing its manufacturing base. Saudi Arabia has also established defense electronics in the recent years for defense manufacturing. This establishment is expected to increase the demand for epoxy resins from defense electronics in the coming years. The composites and wind turbine blade manufacturing in the country is negligible. However, with the collaboration of Saudi Aramco Electric Systems and General Electric to deliver and install wind turbines in the country, there are opportunities for the development of wind turbine manufacturing. This is likely to add to the demand for epoxy resins during the forecast period.
Key Developments in the Market
- August 2018- BASF and Gustav Grolman GmbH & Co. KG strengthen their exclusive collaboration in Europe in the marketing of amine-based curing agents for the professional processing of epoxy resins.
Major Players -Jubail Chemical Industries LLC (NAMA Chemicals), Olin Corporation, Hexion, Huntsman Corporation, and Nan Ya Plastics Corporation. among others.
Reasons to Purchase the Report
- Current and future of epoxy resins market in the developed and emerging markets
- Analyzing various perspectives of the market with the help of Porter’s five forces analysis
- The segment that is expected to dominate the market
- Regions that are expected to witness the fastest growth during the forecast period
- Identify the latest developments, market shares, and strategies employed by the major market players
- 3 months analyst support, along with the Market Estimate sheet (in Excel)
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