Epoxy Resin Market Size, Share & Industry Analysis, By Application (Paint & Coatings, Electrical & Electronics, Wind Turbine & Composites, Civil Engineering, Adhesive & Sealants, and Others), and Regional Forecast, 2024-2032

The global epoxy resin market size was valued at USD 12.74 billion in 2023 and is projected to hit USD 21.37 billion by 2032, exhibiting a CAGR of 5.9% during the forecast period. Asia Pacific dominated the epoxy resin market with a market share of 68.76% in 2023.

Efficacy to offer exceptional durability, strong adhesiveness, and chemical resistivity have made epoxy resin an essential ingredient in a variety of commercial and industrial applications. These resins offer very good adhesion to a wide range of materials, making them an ideal choice for adhesive and sealant manufacturing. High-performance insulating properties are boosting the product adoption in the insulation of electric & electronic parts. Also, the epoxy compounds protect electronic parts from dust & moisture and improve the shelf life. The trend of reducing carbon footprint is driving demand for low-weight composites, which in turn creates a positive environment for epoxy-based composites.

In addition, higher heat resistance and durability provided by special epoxies play a crucial role in high end-applications, such as wind turbines or composites manufacturing. The growing adoption of epoxy technology in renewable energy sources, such as wind, solar, natural gas, and new battery technologies, is projected to fuel the global epoxy resin market growth during the forecast period.

The global impact of COVID-19 pandemic was unprecedented and staggering, with the market witnessing a negative demand shock across all regions amid the pandemic. The sudden drop is attributed to the halted activities in end-use industries, such as construction, automotive, aerospace, and electrical & electronics, which resulted in declined demand.

Epoxy Resin Market Trends

Growing Demand for Bio-based Polyepoxides to Boost the Market Growth

Bio-based epoxies have been developed to reduce petroleum-based resins' environmental impact. A certain portion of the petrochemicals, ranging from 20-50%, is replaced with biomaterials, such as lignin, vegetable oils, rosins, tannins etc. These materials lessen the need for BPA, which is toxic and needs to be handled carefully. The bio-based resins can be effectively used in similar applications, including coatings, adhesives, composites and others. Manufacturers such as Entropy Resins, Greenpoxy, and Resin Research Bio Epoxy have commercially developed bio-based resins, which contain bio-based materials in the range of 20-50%, depending on the epoxy system. With an increasing need for sustainability in epoxy end-use industries, the demand for bio-based products is projected to increase during the forecast period.

Growth Factors

Steadily Growing End-Use Industries to Drive the Market

The versatile nature of epoxy compounds backed by their properties led to higher adoption in downstream industries, such as construction, automotive, aerospace, electrical, electronics, energy and others. Thus, with the steady growth of these industries, the global market is projected to grow during the forecast period. The increasing need for advanced & long lasting powder coatings has raised demand across metal coating applications. The gaining popularity of lightweight materials in aerospace, automotive, & power industries has fueled the adoption of epoxies in structural composite parts. High investments in the construction sector are creating a highly conducive environment for epoxy flooring, epoxy adhesives & epoxy composites used in buildings. Production of next-gen vehicles and research activities associated with the same are also driving the growth of the epoxy industry. Rapid industrialization & changing government policies in major developing countries are favoring the development of all epoxy end-use industries and consecutively enhancing demand for polyepoxides. In developed economies, the technological advancement in epoxy chemistry is paving the way for further towards market growth.

Booming Wind Turbine Market to Surge Product Adoption 

According to the Epoxy Europe Association, over half of the European wind blade manufacturers utilize epoxy resins to benefit from their various unique properties, such as being lightweight and resistant to fatigue. Due to good adhesion and lack of shrinkage after cooling, they mostly combined with other fiber materials, such as glass and carbon fiber, to produce high-performance wind turbine blades. In addition, these resins are also used as coatings to protect several parts of the turbine, including insulators, stator end windings, and field coils for rotor brackets. As the wind energy sector is on the rise to offer the world a climate-friendly source of energy, the size of rotor blades is increasing to produce more power output. Apart from the size of rotor blades, the height of wind turbines is crossing limits of 100 meters, thus increasing the need for blades that can face stresses and strains at such heights. Blades reinforced with epoxy resin compounds can significantly increase their resilience and longevity. Therefore, the advantages associated with epoxy type of resins and the booming wind turbine market are likely to boost its sales during the forecast period.

BASF is supporting the manufacturers of these mighty machines by supplying innovative epoxy resin systems for highly resilient, fiber-reinforced components and coatings for rotor blades.

Ever larger rotor blades are constantly increasing the power output of modern wind turbines. The stresses and strains to which rotor blades of wind turbines are exposed at 90 meters above the ground are truly immense. Reaching top speeds of up to 300 kilometers per hour, forces are exerted on blade tips which make them bend for more than a meter. Weather conditions such as snow, rain, heat and UV radiation also take their toll on the blades.

They can cover concrete and steel towers for windmills to increase their lifetime. Finally, the enclosure of the engine housing (nacelle) is made of glass fibre composite material impregnated with epoxy resin.

RESTRAINING FACTORS

Raw Material Pricing Volatility to Restrict the Market Growth

Epoxies are manufactured from petroleum-based raw materials, such as BPA & ECH. Thus, fluctuation in crude oil prices significantly affects the prices of these raw materials and further the costs of epoxy resins. The fluctuating prices affect the profit margin and it negatively impacts the small scaled manufacturers. Moreover, the stringent regulations on volatile organic compounds led manufacturers to keep product quality up to a certain level. This, in turn, additionally costs the manufacturers in terms of skilled manpower & updated technologies. During COVID-19, the changed supply-demand scenario followed by lesser production has led to increased raw material prices in 2021. As a result, leading manufacturers announced a significant increase in epoxy prices in 2021.

Segmentation Analysis

By Application Analysis

Paint & Coatings Segment Accounts for the Largest Share in the Market owing to Rising Product Preference

Based on application, the global market is segmented as paints & coatings, electrical & electronics, wind turbine & composites, construction, adhesive & sealants, and others. Among these, the paint & coatings segment dominated the market in 2023 and is projected to lead the industry in the near future. Epoxy coatings are extremely durable, offer higher corrosion protection mechanical strength, and are easy to apply & maintain. Thus, these resins are widely used in metal coatings, floor coatings, white good coatings, marine & automotive part coatings and other protective coating applications.

In wind turbines, polyepoxides are used along with glass & carbon fiber to improve the overall durability & performance of blades. The wind turbine & composites segment is projected to show the fastest growth in this market, backed by rapid adoption and increasing investment in wind energy projects all over the world. In civil engineering, polyepoxides are used in repair & maintenance applications such as grouting cracks, repairing eroded concrete structures, aqueduct maintenance etc. Excellent adhesion to diversified substrates, including metals, plastics, wood, and others makes it an ideal choice for adhesive & sealant production. Other applications include textile processing, decorative arts & furniture, tooling etc.

REGIONAL INSIGHTS

Owing to the presence of large-scale manufacturers backed by bulk availability of raw materials, Asia Pacific accounted for the largest epoxy resin market share in 2023. The Asia Pacific market size was USD 8.76 billion in 2023. With favorable growth of end-use industries in China, India, South East Asian countries, the region is anticipated to lead this market even during the forecast period. China is the world leader in the consumption of epoxies. The paint & coatings industry in the country is well established and consumes a majority of epoxy based coatings for their excellent characteristics.

Moreover, the continuously expanding composites market, construction & automotive industries are further boosting the demand for durable & sustainable epoxies. India is projected to show prominent growth in the near future due to the rapid industrialization. Also, owing to the well-established epoxy supply chains & manufacturers, countries such as South Korea & Japan hold a significant portion of the regional market.

Europe occupied the second largest share in the global market followed by North America. In Europe, automotive, wind energy and composites are driving the growth of low & high cured epoxy resins. Germany is the leading contributor to the growth of the market. Innovations in automotive parts manufacturing, increasing demand for sustainable chemicals in construction activities, and a flourishing renewable energy industry are some of the key factors that are pushing demand for epoxies in the region.

In North America, increasing digitization is fueling demand for electrical & electronic systems. Epoxy-based long lasting & reliable components are used in these systems to reduce the cost and improve performance. Moreover, increasing investment in public & private infrastructure projects in the U.S. is creating immense opportunities for the growth of this market. The favorable growth of the food & beverage industry is paving way for applications such as metal can coatings.

Though Latin America, Middle East & Africa holds a smaller share, these regions are anticipated to indicate faster growth in the global market. Technological innovations, rapid industrial development, changing government policies, and rising disposable income in these regions are aiding the growth of epoxy-based end-use industries. In Latin America, Brazil led the market in 2020 on the back of the growth of construction, electronics and transportation sector in the country. Due to limited manufacturers, Middle East & Africa is considerably dependent on import from Asia Pacific, Europe & North America. However, to reduce the delivery span and cost structure, leading manufacturers are focusing on investing in these regions, which is further expected to create a positive environment for future growth.

List of Key Companies in Epoxy Resin Market

Production Capacity Expansion to be the Key Strategy to Augment Market Presence

With the growing competition in the epoxy industry, the bigger players, such as Kukdo, Huntsman, Aditya Birla Chemicals and others are strategically focusing on securing maximum production capacities to better serve the existing consumers. Leading companies are actively investing in the fastest-growing regional epoxy market, such as the Middle East and Africa.  For instance, Sika AG commissioned the epoxy plant in Qatar and started the production in April 2021. With this investment, the company is looking to tap potential demand for epoxy-based adhesives and flooring in construction & infrastructure development projects in Qatar. Such activities by leading players are expected to further strengthen the distribution network and paving the way for the growth of the market during the forecast period.

LIST OF KEY COMPANIES PROFILED

• Kukdo Chemical Co., Ltd. (South Korea)


• Huntsman Corporation (U.S.)


• Olin Corporation (U.S.)


• Nan Ya Plastics Corporation (Taiwan)


• Hexion Inc. (Westlake Chemicals) (U.S.)


• Chang Chun Group (Taiwan)


• Aditya Birla Chemicals (India)


• Sika Group (Switzerland)


• DIC Corporation (Japan)


• China Petrochemical & Chemical Corporation (China)

KEY INDUSTRY DEVELOPMENTS

• March 2024 – Grasim Industries Limited, in its Chemical business, inaugurated the capacity expansion project of Epoxy resins and formulation capacity at Vilayat, Gujarat. Grasim Industries Limited is a subsidiary of Aditya Birla Group. With this capacity expansion, the company’s overall capacity for its advanced materials will increase to 246,000 tons per annum.  


• February 2024 – India’s DCM Shriram announced the expansion of its epoxy manufacturing plant with an investment plan of USD 120.6 million over the next years.

• May 2023 – Dongying Yiruizheng New Material Technology Co., Ltd. announced that it is planning to expand its production capacity for epoxy resin in China to cater to the growing demand in the market. The company is planning to invest over USD 100 million to meet its expansion target.


• December 2020 – Kukdo Chemicals India announced the completion of its epoxy manufacturing plant at Gujarat. The production capacity of this epoxy plant is 40,000 tons per annum. After China, the company has strategically established its second overseas unit in India to capture the growing domestic demand and offer optimized epoxy solutions to consumers.


• December 2020 – Huntsman Corporation acquired the North American based company Gabriel Performance Products. Gabriel used to offer epoxy curing agents for end-markets such as coatings, composites, sealants and adhesives. With this acquisition, Huntsman strengthened its formulation expertise and competitiveness in the North American epoxy market.

REPORT COVERAGE

This market research report provides both qualitative & quantitative insights on epoxy resins across the world. Quantitative insights include market sizing in terms of value (USD Billion) & volume (Kiloton) across each segment, sub-segment and region profiled in the scope of the study. Also, it provides market analysis and growth rates of segment, sub-segment and key counties across each region. Qualitative insight covers an elaborative epoxy resin market analysis of key market drivers, restraints, growth opportunities, industry trends related to the market. The competitive landscape section covers detailed company profiling of the key players operating in the industry.

Report Scope & Segmentation