Encapsulation Resins Market Research Report Information By Product Type (Epoxy Resins, Silicone Resins, Polyurethane Resins and Others), By Application (Transformers, Sensors, Switchgears, Insulators, Capacitors, Relays & Coils, Adhesives & Sealants and Others), By End-Use Industry (Building & Construction, Automotive, Transportation, Electrical & Electronics, Marine and Others), and By Region (North America, Europe, Asia-Pacific, And Rest Of The World) –Market Forecast Till 2032

Global Encapsulation Resins Market Overview

Encapsulation Resins Market Size was valued at USD 4.2 Billion in 2022. The encapsulation resins market industry is projected to grow from USD 4.34 Billion in 2023 to USD 5.674 Billion by 2032, exhibiting a compound annual growth rate (CAGR) of 3.40% during the forecast period (2023 - 2032). The market is primarily being driven by two market drivers: increasing consumer electronics demand and the expanding automotive sector.

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Encapsulation Resins Market Trends

• Growing adoption of electric vehicles (EV) is driving the market growth

Encapsulation resins are mainly used to protect electronic components and gadgets from harsh environmental factors as physical shock, corrosive air, chemicals, heat, and dust, among many others. These resins can be used to enclose a unit or only a single component completely. E-mobility is growing in popularity as a result of technical improvements. The performance of batteries is a difficulty for electric vehicle (EV) designers because heat can affect battery life. The electronic components must be protected to increase dependability and long-term performance in EVs. Encapsulation resin has many advantages for electric vehicles, including increased thermal endurance, higher thermal conductivity to distribute heat, and a decrease in expensive repair and maintenance. The sales of EVs worldwide in 2021 reached 6.75 million units, a 108% increase over 2020, according to the electric vehicle world sales database. This volume of sales includes both passenger vehicles and light trucks. The restrictions governing VOC emission and environmental consciousness have increased the demand for these resins in the automotive industry. These resins help the batteries operate more efficiently and have longer battery life by forming a protective layer around them. Encapsulation resin demand is therefore increasing as electric vehicle adoption grows.

Furthermore, the protection of electronic devices and components, including printed circuit boards (PCBs), electronic boards, sensors, capacitors, coils, transformers, power controllers, and filters, among many other electric devices, is greatly aided by encapsulation resin and potting components. These polymers help electrical components operate better while also shielding them from the hostile environment. These resins provide a wide range of advantages, such as protecting against saltwater immersion in maritime applications, chemical sensor protection in automotive applications, thermal recycling in aerospace applications, and long-term temperature exposure with household appliances. These have also been included in recent years into creating LED lighting fixtures for homes and businesses. According to the international energy agency (IEA), light efficiency improvements and the implementation of LEDs are progressing in 2021. LEDs account for about 50% of sales in the building lighting market. In addition, encapsulating resin is appropriate for the e-mobility sector and complies with a number of performance standards for automotive parts, as of late. As a result, the market is expanding due to the many advantages of encapsulating resin and its appropriateness for usage in a variety of applications. Thus, driving the encapsulation resins market revenue.

Encapsulation Resins Market Segment Insights

Encapsulation Resins Product Type Insights

The encapsulation resins market segmentation, based on product type includes epoxy resins, silicone resins, polyurethane resins and others. The epoxy resins segment dominated the market. Due to their characteristics, including low shrinkage after curing, toughness, exceptional chemical resistance, and hardness, epoxy resins have been widely used in a variety of applications during the past many years. These resins provide greater protection against corrosive chemicals and humidity, have a low coefficient of thermal expansion, and are simple to apply.

Encapsulation Resins Application Insights

The encapsulation resins market segmentation, based on application, includes transformers, sensors, switchgears, insulators, capacitors, relays & coils, adhesives & sealants and others. The sensors category generated the most income. Encapsulation resins are frequently used to safeguard and improve the functioning of different kinds of sensors. Resin materials are frequently used to encapsulate temperature sensors, such as thermocouples and resistance temperature detectors (RTDs). Temperature sensors are given mechanical stability, thermal insulation, and environmental protection by encapsulation resins, enabling precise and trustworthy temperature measurements in a variety of applications.

Encapsulation Resins End-Use Industry Insights

The encapsulation resins market segmentation, based on end-use industry, includes building & construction, automotive, transportation, electrical & electronics, marine and others. The electrical & electronics category generated the most income. The encapsulating and potting of a variety of electrical and electronic applications frequently uses silicone, epoxy, and polyurethane resins. Electrical devices and components can be protected using these resins from hostile environmental elements. Additionally, it safeguards electronic components against a number of security risks like tampering. Electric components like integrated circuits (ICs), capacitors, and diodes can all benefit from encapsulation, which can be employed on the entire assembly.

Figure 1:  Encapsulation Resins Market, by Distribution channel, 2022 & 2032 (USD Billion)

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Encapsulation Resins Regional Insights

By region, the study provides the market insights into North America, Europe, Asia-Pacific and Rest of the World. The North American encapsulation resins market area will dominate this market due to regional growth in the marine and construction industries, as well as regional growth in the market for electronic equipment. The prominent presence of electrical and electronics companies in this region and the industry's impressive expansion throughout the years in this region are fueling the market's expansion.

Further, the major countries studied in the market report are The US, Canada, German, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.

Figure 2:  ENCAPSULATION RESINS MARKET SHARE BY REGION 2022 (USD Billion)

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Europe encapsulation resins market accounts for the second-largest market share because the region's automobile industry is experiencing moderate expansion. The need for encapsulating resins is also being driven by the increased use of these materials in a variety of electronics devices as well as their use in the building and construction, automotive, and aerospace industries. Further, the German encapsulation resins market held the largest market share, and the UK encapsulation resins market was the fastest growing market in the European region

The Asia-Pacific Encapsulation resins Market is expected to grow at the fastest CAGR from 2023 to 2032. This expansion is primarily related to the rise in demand for encapsulating resins in a variety of electronic applications, including transformers, cables, printed circuit boards, photonics integrated circuits, sensor assemblies, and many more. Moreover, China’s encapsulation resins market held the largest market share, and the Indian encapsulation resins market was the fastest growing market in the Asia-Pacific region.

Encapsulation Resins Key Market Players & Competitive Insights

Leading market players are investing heavily in research and development in order to expand their product lines, which will help the encapsulation resins market, grow even more. Market participants are also undertaking a variety of strategic activities to expand their footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. To expand and survive in a more competitive and rising market climate, encapsulation resins industry must offer cost-effective items.

Manufacturing locally to minimize operational costs is one of the key business tactics used by manufacturers in the encapsulation resins industry to benefit clients and increase the market sector. In recent years, the encapsulation resins industry has offered some of the most significant advantages to market. Major players in the encapsulation resins market attempting to increase market demand by investing in research and development operations include Aremco (US), Dow (US), Hitachi Chemical Co., Henkel AG & Co. KGaA (Germany), BASF SE (Germany), H.B. Fuller Company (US), Huntsman International LLC (US), Master Bond Inc. (US), ELANTAS GmbH (Germany), Shin-Etsu Chemical Co., MG Chemicals (US), Dymax Corporation (US), Robnor ResinLab Ltd (UK), LORD Corporation (US) and RBC Industries.

Producer and distributor of both consumer and commercial goods is Henkel AG & Co KGaA. The company's product line consists of adhesives, sealants, functional coatings, hair cosmetics, hair salon supplies, oral care, skin care, and body care items, as well as laundry detergents and additives, hard surface cleaners, toilet care, air care, and insect control goods. In June 2021, low pressure moulding technology from the business Henkel AG & Co. KGaA satisfies the demand for encapsulating components for power, industrial automation, HVAC, and lighting applications, as well as for medical and electronic components.

Chemical production firm Shin-Etsu Chemical Co Ltd. Organic and inorganic chemicals, electronics components, and functional materials are all produced and sold by this company. In addition to polyvinyl chloride (PVC), silicones, cellulose derivatives, semiconductor silicon, LED packaging materials, epoxy moulding compounds, rare earth magnets, and synthetic quartz, the company's product line also includes silicones. The company's goods are used in infrastructural elements, digital household appliances, agricultural applications, electrical cables, medical devices, commonplace goods, and mobile phones.

Key Companies in the encapsulation resins market include

• Aremco (US)


• Dow (US)


• 
  Hitachi Chemical Co.


• Henkel AG & Co. KGaA (Germany)


• BASF SE (Germany)


• B. Fuller Company (US)


• Huntsman International LLC (US)


• Master Bond Inc. (US)


• ELANTAS GmbH (Germany)


• Shin-Etsu Chemical Co.


• 
  MG Chemicals (US)


• Dymax Corporation (US)


• Robnor ResinLab Ltd (UK)


• LORD Corporation (US)


• RBC Industries

Encapsulation Resins Industry Developments

October 2021: Huntsman International LLC. has developed a new epoxy encapsulation and impregnation substance that serves as a trustworthy insulator for electric drives. A large-scale adoption of electric mobility will be made possible in large part by this content.   

January 2020: Developed primarily for the Indian market, innovative encapsulating resin was released by Electrolube. In its facility in Bangalore, the business produced this novel resin.

Encapsulation Resins Market Segmentation

Encapsulation Resins Product Type Outlook (USD Billion, 2018-2032)

• Epoxy Resins


• Silicone Resins


• Polyurethane Resins


• Others

Encapsulation Resins Application Outlook (USD Billion, 2018-2032)

• Transformers


• Sensors


• Switchgears


• Insulators


• Capacitors


• Relays & Coils


• Adhesives & Sealants


• Others

Encapsulation Resins End-Use Industry Outlook (USD Billion, 2018-2032)

• Building & Construction


• Automotive


• Transportation


• Electrical & Electronics


• Marine


• Others

Encapsulation Resins Regional Outlook (USD Billion, 2018-2032)

• North America
  
  
  
  • US
  
  
  • Canada
  
  
  
  


• Europe
  
  
  
  • Germany
  
  
  • France
  
  
  • UK
  
  
  • Italy
  
  
  • Spain
  
  
  • Rest of Europe
  
  
  
  


• Asia-Pacific
  
  
  
  • China
  
  
  • Japan
  
  
  • India
  
  
  • Australia
  
  
  • South Korea
  
  
  • Australia
  
  
  • Rest of Asia-Pacific
  
  
  
  


• Rest of the World
  
  
  
  • Middle East
  
  
  • Africa
  
  
  • Latin America