ID: MRFR/CnM/8386-CR | June 2021 | Region: Global | 136 pages
Dicyclopentadiene (DCPD) Market is projected to register a CAGR of 5.1% to reach USD 1,071.74 Million by the end of 2027.
The global dicyclopentadiene market is expected to register healthy growth during the review period. The global dicyclopentadiene market is primarily driven by its extensive use in manufacturing fiber-reinforced plastics (FRP). FRP has replaced conventional structural materials, such as wood and metals, owing to their high strength-to-weight ratio, chemical resistance, weatherability, easy fabrication, and versatility of product design. The ongoing trend of high strength and lightweight structural materials has resulted in high demand for dicyclopentadiene. Another key driver of the global market is its use in the production of ethylene propylene diene monomer (EPDM) rubber, further used in seals, gaskets, and O-rings across various end-use industries.
The growing construction industry in developing regions, with rising residential and commercial construction, especially in India and China, coupled with improving standards of living and rising disposable incomes, is driving the growth of the dicyclopentadiene market. Increasing spending by the Indian government on infrastructure development, such as the Smart Cities Mission, Green Corridor, and the building of ports, is propelling the market growth. Additionally, in late 2013, the Chinese government started the One Belt One Road project for transportation infrastructure development, which is likely to propel the growth of the construction industry, thereby driving the global market.
However, the availability of phthalic anhydride in the production of unsaturated polyester resin coupled with fluctuating availability of raw materials restrains the market growth. In addition to this, regulatory constraints associated with plastics and polyesters further hamper the market growth.
A fuel with parameters such as high energy density, lower viscosity, and freezing point is desirable to be used in missile aircraft/jets at higher altitudes. In this regard, exo-tetrahydrodicyclopentadiene—a major constituent of JP-10 fuel—possesses ideal properties to be used as missile fuel and can be produced from its endoisomeric form known as endo-tetrahydrodicyclopentadiene. Dicyclopentadiene is used as a feedstock to produce endo or exo-tetrahydrodicyclopentadiene either in one or two steps. JP-10 is an advanced jet fuel currently obtained from fossil energy. Owing to its excellent properties, JP-10 has been widely used in military aircraft. However, the high price and low availability limit its application in civil aviation.
The growing demand for lightweight and fuel-efficient military aircraft for homeland security and counterterrorism is a major factor expected to fuel the global market growth. The increase in aircraft production is attributed to the improvement in the commercial aviation network, growth of the tourism industry, economic development, and increased air passenger traffic. Thus, the growth of the aerospace industry is expected to increase the demand for composites made of unsaturated polyester resin and drive the growth of the global market during the forecast period.
COVID-19 Impact Analysis
The outbreak of COVID-19 has had a negative impact on the production of dicyclopentadiene due to the disruption in the supply chain across the globe. In response, to protect workers from the spread of the new coronavirus, the companies in the market have restricted travel and face-to-face meetings. According to the United Nations, the global economy is projected to contract by around 3% or more, projected by the World Economic Situation and Prospects report 2020.
The companies are working aggressively toward safeguarding the health and wellbeing of their employees while also supporting government goals of maintaining critical business activities in healthcare, power generation, and food production domains. Additionally, the transition by major players in this market to support the need for medical products is a key factor impacting the growth of the market. For instance, Dow helped meet the overwhelming demand for medical and personal care supplies by ramping up its production as a manufacturer of the raw materials behind personal protective equipment, hand sanitizer, disinfectants, IV bags, food ingredients, and packaging. The company continues to follow all guidelines issued by the World Health Organization and US Centers for Disease Control and Prevention as it manages daily operations.
Supply Chain Analysis
The process of analyzing every stage and action taken by stakeholders involved in the development and distribution of extruded plastics is known as supply chain analysis. Raw materials and retailers, extruded plastics manufacturers, dealers, and end-use industries are all part of the supply chain.
Dicyclopentadiene is produced as part of the separation process of crude C5 streams, a by-product of ethylene produced commercially by the steam cracking of a wide range of hydrocarbon feedstocks. Ethylene is obtained mainly from cracking naphtha, gasoil, and condensates with the coproduction of propylene, C4 olefins, and aromatics (pyrolysis gasoline).
Widening application scope along with the increasing necessity for bio-based products has prompted manufacturers to focus on product innovation to provide specific solutions in the dynamic end-use industries. Moreover, continuous R&D and innovation to develop novel application areas for dicyclopentadiene are anticipated to bolster the market growth during the forecast period.
Global Dicyclopentadiene market Revenue, by Application, 2019 (USD Million)
Sources: MRFR Analysis
The global dicyclopentadienehas been segmented based ongrade, application, and region.
Based on grade, the global dicyclopentadiene market has been segmented into polyester resin grade, hydrocarbon grade, high purity grade, and the global dicyclopentadiene market others.
Based on application, the global dicyclopentadiene market has been segmented into unsaturated polyester resin, hydrocarbon resin EPDM elastomers, cyclic olefin polymer (COP) & copolymer (COC), poly-DCPD, and others.
Global Dicyclopentadiene market Share, by Region, 2019 (%)
Sources: MRFR Analysis
The global market, by region, has been segmented into North America, Europe, Asia-Pacific, Latin America, and the Middle East & Africa. The Asia-Pacific market accounted for 47.2% of the global market share in 2019 and is expected to register the highest CAGR of 5.4% over the forecast period. The rapid growth of the unsaturated polyester resin manufacturing industry has been the primary factor driving the regional market growth. Moreover, a continuous increase in demand for various types of plastics, adhesives, and coatings is expected to provide a major boost to the dicyclopentadiene market within the Asia Pacific region.
North America emerged as the second-largest market for dicyclopentadiene, with a value share of 22.0% of the global market in 2019. The presence of well-developed plastics and automotive manufacturing industries is the main factor responsible for the regional demand. Moreover, the ready availability of key petroleum feedstocks has also been projected to boost the production and demand for dicyclopentadiene within North America.
Some of the world’s largest automotive manufacturers, including Volkswagen, Mercedes Benz, BMW, and FIAT, located across Europe, generate significant demand for automotive coatings, synthetic rubbers, and plastics. As a result, the region is generating significant demand for dicyclopentadiene as an intermediate in the production of various types of coatings, plastics, and EPDM rubber. Additionally, the growth of the medical device manufacturing industry is expected to drive the demand for cyclic olefin polymer (COP) & copolymer (COC) and thereby the demand for dicyclopentadiene over the forecast period.
The competitive landscape offers an analysis of the key developments by the companies operating in the global market. The global market for dicyclopentadiene is projected to witness healthy growth during the forecast period, owing to the significant growth of the oil and gas industry. The high demand for dicyclopentadiene in the production of EPDM, varnishes, and paints is a key driver of the market. The other factors favoring the market growth include increased consumption of dicyclopentadiene in the building and construction and automotive sectors. Asia-Pacific accounted for over 30% of the global market in 2019, and with the growing oil and gas sector in the region, the demand for dicyclopentadiene is expected to increase and drive the global market growth during the forecast period.
The Dow Chemical Company, Braskem, Cymetech Corporation, Chevron Phillips Chemical Company, and ExxonMobil Chemical are the prominent players operating in the global dicyclopentadiene market. These players account for most of the global market share owing to their industry experience, wide product portfolio, global revenue base, and global distribution network. Additionally, the adoption of various strategies, such as expansion, product development, and acquisition, are expected to help these players gain maximum revenue and long-term growth during the review period.
Key players operating in the global microcrystalline cellulose market include Exxon Mobil Corporation, Chevron Phillips Chemical Company, Cymetech Corporation, Nova Chemicals Corporation, Tokyo Chemical Industry CO., LTD (TCI), Royal Dutch Shell, The Dow Chemical Company, Braskem, Lyondellbasell Industries Holdings B.V, Sinopec.
Global Dicyclopentadiene market, by Type
Global Dicyclopentadiene market, by Application
Global Dicyclopentadiene market, by Region
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