Petroleum resins also referred to as hydrocarbon resins are low-density materials used in various applications such as adhesives, print inks, polymer- additives and coatings. Obtained through the distillation of heavy hydrocarbon feedstock, Petroleum resins, are capable of producing excellent flexibility, bonding strength and tackifying effect which makes them suitable to be used in applications such as adhesives, rubber, paints & coatings and others areas where tackiness is required.
Owing to some of the excellent properties such as thermal stability, softening point and heat resistance petroleum resins are used in cosmetic and personal hygiene products industry. Extensive use and demand for the hydrocarbon resins is the key driving force escalating its market on the global platform.
Acknowledging the kind of traction gained by this market, Market Research Future (MRFR) has recently published a study report. In its report, MRFR foretells that the global Petroleum Resin market is expected to grow exponentially by 2023, registering a phenomenal CAGR during the forecast period (2017 – 2023).
Additional factors driving the market growth include increasing population along with the increasing urbanization & industrialization worldwide. Industries like automotive & transport, and building & construction, backed by the increasing sales due to the consumers ‘improving purchasing power led by the improving economic conditions are driving the market growth, augmenting the demand for Petroleum Resins.
On the hand, stringent regulation laid by EPA and REACH in view of, the high amount of VOC emission released in the environment by the paints & coatings industry is expected to obstruct the market growth.
Global Petroleum Resin Market - Segmentations
The MRFR analysis is segmented into four key dynamics: -
By Resin Types : C5, C9, and Hydrogenated Hydrocarbon among others.
By Applications : Adhesives, Paints & Coatings, and Printing Inks among others.
By End-Uses : Construction, Automotive, Packaging, and Personal Hygiene among others.
By Regions : North America, Europe, APAC and Rest-of-the-World.
The C5 segment by types accounts for largest market share due to its unique features such as testifying effect, chemical resistance, and others.
Whereas the C5/C9 segment is estimated to perceive a rapid growth due to its augmenting consumption in heavy end-use industries. While the hydrogenated hydrocarbon resin segment, backed by the eco-friendly and reliable nature of the product is poised to grow at the highest rate during the review period.
The Paints & Coatings segment by applications holds the major share in the market due to the some of the unique properties these resins offer such as quality finishing, alkali resistance and tackiness.
Whereas the adhesives segment is forecasted to perceive a higher growth in the market owing to the growing consumption of C9 resins to add unique features in the product such as fast dry, color spreading, and brightening effects.
The construction segment by end-uses will acquire the major share of the market due to widespread uses of petroleum resins in infrastructures, industrial roofing and membranes.
Global Petroleum Resin Market - Geographical Analysis
The North America market is one of the lucrative markets for Petroleum Resins globally. The growing demand for hydrocarbon resins from some of the burgeoning sectors such as construction, automotive, and packaging is a key driving force pushing the market growth in the region. Additionally, factors such as high disposable income along with the increasing investments in the end-use industries are fostering the market growth, boosting the demand for the product.
Whereas the Europe market for Petroleum Resin is another promising market attributing to the augmenting penetration of end-user industries, the presence of automotive refinishes producers and burgeoning packaging industry. Besides, the growing consumption of hydrocarbon resins in the sectors such as aviation, energy, and marine along with the increasing innovations and technological advancements is estimated to propel the market growth. Some of the European countries such as the U.K., Italy, Germany, and France will be observing a notable growth in the market during the review period.
Asia Pacific petroleum resin market is thriving due to the expanding production capacities in the region, substantial investments, and automation. Additionally, government initiatives such as “Make in India,” implemented by the Indian Government is fuelling the major industries to witness a significant growth. Moreover, the endless consumption of the product in some of the major end-use industries make the countries such as China, Japan, and India are the major contributors to the market growth. Numerous automotive manufacturing bases present in India, China, Japan, and South Korea are, in turn, expected to drive the Petroleum resin market, witnessing the increasing sales.
Rapidly increasing uptake of the latest OEM digital color solution is expected to drive the market growth in the region. Also, emerged as a global manufacturing hub for petroleum resins China market is expected to witness huge growth due to the availability of cost-competitive labor force and abundance of the required feedstock.
Global Petroleum Resin Market – Competitive Landscape
The competitive market of Petroleum Resin appears fragmented with the matured & small key players along with the new entrants forming a competitive landscape. Through the acquisition, strategic partnership, expansion, product/technology launch & collaboration, these players try to gain competitive advantage. Substantial investments are transpired in the R&D to develop an entirely different technology compared to their competition.
The Global Petroleum Resin Market is driven by some of the eminent players including Eastman Chemical Company (US), Exxon Mobil Corporation (US), Idemitsu Kosan Co.,Ltd (Japan), Arakawa Chemical Industries, Ltd. (Japan), Puyang Changyu Petroleum resins Co., Ltd.(China), Kolon Industries, Inc.(South Korea), The Dow Chemical Company(US), BASF SE(Germany), Neville Chemical Company(US), and Cray Valley(France). MRFR profiles them in its analysis & finds out their strategies that help keeping them in the forefront of the market competition.
July 25, 2018 – Hanwha Chemical Corp. (South Korea), a chemical unit of Hanwha Group, announced its plans to build a petroleum resin manufacturing facility in Yeosu, S.Korea, by 2019, with an aim to expand its production capacity for chemicals used in an array of industrial applications.
The company has already signed a USD 279 Mn. investment agreement with Yeosu City that involves building the new facility dedicated to producing dicyclopentadiene (DCPD) hydrogenated petroleum resins inside Yeosu National Industrial Complex.
Hanwha Chemical also mentioned that it is poised to break ground for the new DCPD hydrogenated petroleum resin facility with 50,000 ton annual capacity in 2018 with an aim to complete construction on a 165,000 square meter site by 2019.