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

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

The saturated polyester resins market is projected to register a CAGR of over 4.5% during the forecast period (2021-2026).

Due to COVID-19, due to lockdown regulations and a deficient number of workers, the production in various industries has decreased, and the supply of raw materials has been disrupted. Paint and coatings are one of the major applications of saturated polyester resins. The COVID-19 pandemic has affected the sales of paints as the construction activities were halted. India’s second-largest paint company, Berger Paints, reported approximately a 6.5 percent fall in its consolidated net profit to INR 1,032 million for the fourth quarter ended March 31, 2020. Also, the sales of automobiles have witnessed a decline and badly impacted the automotive paint producers. However, there is an increase in the home decorative paints segment as the people were confined to their homes due to lockdown.

Key Highlights

• Over the medium term, the major factors driving the market's growth are increasing demand from the packaging industry and rapid industrialization in Asia-Pacific and Central and Eastern Europe.
• On the flip side, the high processing and manufacturing cost of saturated polyester resins and COVID-19 impact is projected to hinder market study growth.
• The Asia-Pacific region is expected to dominate the market and is also likely to witness the highest CAGR during the forecast period.

Key Market TrendsIncreasing Demand for Powder Coatings

• Saturated polyester resins are primarily used to manufacture solvent-free powder paints and coatings. Owing to its superior properties, such as good weather resistivity, excellent impact strength, and adhesion to metals (even under humid conditions), saturated polyester resins are favored for exterior and interior architectural applications, coating machinery, domestic appliances, steel furniture, and garden tools.
• The growing construction sector is expected to drive the usage of powder coatings, thereby boosting the growth of the market studied during the forecast period.
• According to World Paint & Coatings Industry Association (WPCIA), the global sales volume of paints and coatings in 2019 is around USD 173 billion, primarily due to the rising construction industry and increasing household consumption expenditure. However, it declined in 2020 due to the COVID-19 impact in the major economies across the world.
• The construction sector has been witnessing robust growth in Asia-Pacific and Middle East & Africa. In the Middle East & African region, governments have been making efforts to develop the non-oil sectors after the region faced a financial crisis due to the drastic fall in oil prices in the past.
• Qatar was the bright spot for the construction industry, with the robust launch of projects ahead of FIFA World Cup 2022.
• Under the Vision 2030 economic transformation plan, the Saudi Arabian government has initiated numerous infrastructure projects. These projects majorly cover projects related to the power, water, hydrocarbons, construction, road, rail, seaport, and airport sectors.
• Hence, the robust growth of the construction industry is expected to drive the demand for powder coatings, further providing a positive influence on the market studied post COVID-19 recovery.

Asia-Pacific Region to Dominate the Market

• The Asia-Pacific region dominated the global market in terms of share, owing to the growing demand from economies like China, India, and Japan.
• China is expected to witness a healthy growth in the demand for saturated polyester resins during the forecast period, owing to the expected noticeable growth of construction, packaging industries, and paints and coatings demand in the country.
• For instance, it 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.
• China is promoting and undergoing a process of continuous urbanization, with a target of 60% in 2020. The increased living spaces required in the urban areas resulting from urbanization and the desire of middle-class urban residents to improve their living conditions may profoundly affect the housing market, thereby increasing the residential construction in the country.
• India is one of the major countries with a huge manufacturing sector, and the Make in India initiative has increased the number of industries being placed. According to the United Nations Industrial Development Organisation (UNIDO), in 2019, India ranked 42 out of 152 countries, with manufacturing value added (MVA constant 2015 USD) totaling USD 430.25 billion, or equal to 15.5% of its gross domestic product (GDP).
• India is also witnessing significant interest from international investors in the construction space. Foreign direct investment (FDI) in the construction development sector (townships, housing, built-up infrastructure, and construction development projects) stood at USD 25.66 billion from April 2000 to March 2020, according to the Department for Promotion of Industry and Internal Trade (DPIIT).
• The aforementioned factors are expected to drive the demand for saturated polyester resins in the region during the forecast period.

Competitive Landscape

The saturated polyester resins market is partially fragmented with the top players accounting for a small chunk of the market. Some of these major players include Arkema Group, Covestro AG, Showa Denko Materials Co. Ltd, Evonik Industries AG, and CIECH SA, among others.

Additional Benefits:

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

Companies Mentioned

IBM Corporation
Oracle Corporation
Internap Corporation
Packet Inc. (An Equinix Inc. Company)
Scaleway Inc.
Amazon Web Services Inc
Rackspace Inc.
CenturyLink, Inc.
LightEdge Solutions, Inc

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