Flexible Epoxy Resin Market Research Report—Global Forecast till 2030

Flexible Epoxy Resin Market Research Report Information By Type (Urethane Modified, Rubber Modified, Dimer Acid, Others) APPLICATION (Primer, Composites, Adhesives, Semiconductor, Electrical Laminate, Others) End-Use Industry (Paints & Coatings, Construction, Automotive, Electrical & Electronics, Military & Defence, Others) Forecast 2030

ID: MRFR/CnM/4551-CR | November 2022 | Region: Global | 110 Pages         

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Flexible Epoxy Resin Market

The flexible epoxy resin (FER) market was estimated at USD 540.5 million in 2020 and projected to reach USD 1,076.15 million by 2030, at a CAGR of 7.19% during the forecast period (2022-2030).

Segmentation
10 urethane modified rubber modified dimer acid
Application primer composites adhesives semiconductors
End-use industry paints & coatings construction automotive Electrical & Electronics
Key Players
Companies Profiled   Olin Corporation (U.S.)   Hexion (U.S.)   Kukdo Chemical Co. Ltd. (South Korea)   Aditya Birla Chemicals (India)   Huntsman International LLC (U.S.)   DIC CORPORATION (Japan)   Emerald Performance Materials (U.S.)   EPOXONIC (Germany)   Spolchemie (Czech Republic)   Cardolite (U.S.)   Atul Ltd. (India)   INTERTRONICS (Oxfordshire)   Conren Ltd. (U.K)   Mereco Technologies (U.S.)   Resoltech (France)
Drivers
Market Driving Forces   The growing demand for flexible epoxy resin from the paints & coatings application is driving the growth
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Flexible Epoxy Resin Market Overview


The global flexible epoxy resin market is projected to register healthy growth during the forecast period, 2022–2030. The market was valued at USD 599.53 million in 2021 and is projected to register a CAGR of 7.19% to reach USD 1,076.15 million by the end of 2030.


Flexible epoxy resins, also known as polyepoxides, are reactive prepolymers and polymers containing epoxide. Epoxy functional groups are also known as epoxy functional groups. To achieve high mechanical, thermal, and chemical properties, flexible epoxy resins can be reacted (cross-linked) with themselves via catalytic homopolymerisation, or with a variety of co-reactants such as polyfunctional amines, acids (and acid anhydrides), phenols, alcohols, and thiols. These co-reactants are often referred to as hardeners or curatives, and the cross-linking reaction is referred to as curing. These cured flexible epoxy resins composites have a wide range of applications in paints and coatings, electrical & electronics, automotive, and other fields. For example, composites are used as encapsulates for semiconductor materials, surface coatings, adhesives, painting materials, and other materials.


COVID-19 Impact on the Thermoformed Plastics  Market:


The outbreak has significantly impacted the chemicals & materials supply chains, international trade, and manufacturing operations worldwide. Flexible epoxy resin production declined amidst the COVID-19 pandemic as market players had to shut production facilities or operate the facilities below the optimal production capacities to avoid the spread of the novel coronavirus. Additionally, the variable costs of raw materials owing to supply disruptions due to border and trade restrictions have impacted the production of flexible epoxy resin industry. However, some large market players have continued operations at their production facilities. Furthermore, downturns in the European and Asian Pacific, particularly Chinese, Latin American, or other world economies, increases in interest rates, and unfavorable currency fluctuations have affected the flexible epoxy resin market.


The outbreak caused a huge impact on the supply of raw materials. The global COVID crisis badly hit the chemical industry, which affected the price margins of raw materials and end products. Thus, the outbreak has resulted in the disruption of the supply-demand of raw materials, which affected the production of chemicals to a huge extent. 


COVID-19 has impacted the sales of flexible epoxy resin market globally. The paints & coating industry, which constitutes the highest share of the flexible epoxy resin market, has halted globally, impacting the market. The manufacturers cannot run down their products to the application industries due to a reduction in logistics. On the other hand, the suppliers are back to business, and distribution channels have re-opened. The sales & distribution channel comprises distributors, retailers, wholesalers, and e-commerce merchants who have signed long-term agreements with the manufacturer to ensure the final product's availability at different locations as and when required.


Market Dynamics


Drivers

  • Growing paints & coatings market: Flexible epoxy resins have a lower tensile strength at higher elongations, allowing them to withstand the differential movement of bonded parts more effectively. It provides excellent hardness with a tough, protective coating. They also have greater peel strength and adhesion to most engineered plastics. These properties allow epoxy paints for wider applications such as floor coatings and adhere aggressively to fiberglass, metal, plastic, and wood. During the forecast period, APAC is expected to be the fastest-growing market, which accounts for 45% of the global epoxy coatings market. The region comprises countries with varying economic development levels, and China & India are the fastest growing markets. The region's growth is primarily due to the use of paints and coatings in various end-use industries such as architectural (residential and non-residential) and industrial to push the use of flexible epoxy resins in the paints & coatings industry. In North America & Europe region, due to stringent government policies on VOC emissions, the growth in the forecast period is expected to be stagnant.

  • Increasing flexible epoxy demand in the construction industry: Flexible epoxy resins have a wide range of applications in the construction industry, such as adhesives, paints, plastics, coatings, primers & sealants, flooring, and others. The near-term recovery is expected to be driven by housing construction, while the medium-term outlook will be driven by infrastructure spending. Urbanization in emerging markets is expected to boost growth using flexible epoxy resins. The growing population worldwide could result in an additional 2.5 billion people moving to urban settlements by 2050, with Asia and Africa accounting for nearly 90% of the increase.

  • Rising demand from the automotive industry: Flexible epoxy resins are widely used in the automotive industry for their anti-corrosive, compatibility with filler materials, and thermal, electrical, mechanical, and lightweight properties. Epoxy, when combined with filler materials (GO, carbon fibers, glass, clay, CNT), nanocomposite materials are produced, which are best suited to manufacture and replace most of the conventional materials used in automotive parts & assemblies such as bumper beams, headliners, door panels, package trays, seatbacks, interior parts, dashboards, power transmission drive shafts and others. The automotive industry is a rapidly growing sector of most country’s economies. Because of consumer and global population growth, the continuous need for a better, safer, and more cost-effective transportation approach with low emissions are growing. Thus, demand for epoxy resins can show a growth in automotive applications.


Restraints

  • Potential health issues: The usage of flexible epoxy resin poses environmental and human health hazards. Skin allergies, asthma, and irritations of the eyes, nose, and throat are the most common side effects of excessive exposure to harmful epoxy chemicals. Epoxy solvents absorbed through your skin frequently affect your central nervous system. Nausea, confusion, headache, and loss of consciousness are common symptoms of solvent overexposure. Epichlorohydrin is used to produce Epoxy resins, which can cause human cancer. Some studies have shown signs of genetic mutation in animals, especially the glycidyl ethers present in the epoxies.


Opportunity



  • Increasing prevalence of flexible epoxy resin in electrical & electronics goods production: Electronics is a sector where the number of epoxy resin applications has increased dramatically in recent years. Epoxies with amine type curing & anhydride type curing are most used in the electrical & electronics market. They are essential components in internal circuits, transistors and printed circuit boards, LEDs, solar panels, motors, generators, transformers, switchgear, bushings, insulators, printed wiring boards (PWB), semiconductor encapsulants, and many other devices due to their properties as electric insulators. Essential everyday items such as smartphones and modern medical equipment such as MRI. Epoxies with amine type curing & anhydride type curing are the most used epoxies in the electrical & electronics market. Due to their high heat resistance, water resistance, flexibility, and bonding in demanding applications such as semiconductor packaging, molding materials, electrical laminates, and aerospace applications, these epoxy resins are considered high-performance chemistries.


Challanges



  • Intense competition between players in the market: The market for flexible epoxy resin is highly competitive. It depends on significant capital investment, proprietary technology development, and product research and development maintenance, comprising many big and small players. With the growing demand for various flexible epoxy resin products in construction, automotive, electrical & electronics, and others, the major players in the market are focusing on R&D investments to launch products that would cater to the requirements of the consumers.

  • For instance, Westlake announced that it had completed the acquisition of Hexion’s global epoxy business. Huntsman International LLC. Following organic and inorganic growth approaches, it focuses on enhancing its coating, adhesives, sealants, and elastomers segments. Olin Corporation majorly focuses on product development to expand its product offerings. It has been continuously investing heavily to offer an enhanced and unique product portfolio to provide an enriched experience to its consumers. The huge demand has also aided the growth of the distributors in the market who cater to the demand from niche markets. The flexible epoxy resin market is highly fragmented due to the presence of many manufacturers across the world. To acquire a dominant position, emphasis is laid on inorganic growth strategies like mergers, expansions, acquisitions, partnerships, and collaborations.


Segmentation


By Type



  • Urethane Modified

  • Rubber Modified

  • Dimer Acid

  • Others


BY  APPLICATION



  • Primer

  • Composites

  • Adhesives

  • Semiconductor

  • Electrical Laminate

  • Others


BY End-Use Industry



  • Paints & Coatings

  • Construction

  • Automotive

  • Electrical & Electronics

  • Military & Defence

  • Others


By Region



  • North America

  • Europe

  • Asia-Pacific

  • South America

  • Middle East

  • Africa


Regional Analysis


The global flexible epoxy resin market has been studied for following regions—North America, Europe, Asia-Pacific, Latin America, and the Middle East & Africa. Among these, Asia-Pacific dominated the market with a market share of 48.76% by volume, accounting for USD 267.97 Million in 2021; it is expected to register the highest CAGR of 7.81% by value from 2022 to 2030. Europe was the second largest with a share of 24.56% by volume in 2021, sized at USD 163.35 million; it is projected to exhibit a CAGR of 7.29% by value.


The existence of sizable flexible epoxy resin industry in the region is likely to make the Asia-Pacific region the largest expanding market for flexible epoxy resin  market globally. The flexible epoxy resin market is also anticipated to grow throughout the forecast period because of rising government investments in infrastructure development in developing nations like China and India. Because of the high demand for flexible epoxy resin for construction and electronical, Europe has been actively monitoring the Asia-Pacific market. The growing demand for the product from a variety of end-use sectors, including building and construction, electrical and electronics, and automotive, is what drives the North American market. The Latin America and Middle East & Africa regions are showing consistent growth during the forecast period. Finally, due to technological developments and the rising demand for automotive in these countries, it is anticipated that the markets in the Middle East and Africa and Latin America would experience considerable growth over the projection period.


Competitive Landscape


The global flexible epoxy resin market is characterized by the presence of many regional, and local vendors. The market is highly competitive with all the players competing to gain maximum market share. The increasing flexible epoxy resin demand in end-use industry for epoxy-based composites boosting the sales flexible epoxy resin is the key driver of the market. The vendors compete based on cost, product quality, and mainly on availability of the products according to the geographies. It is crucial for the vendors to provide cost-effective and high-quality flexible epoxy resin to compete in the market. The competitive scenario is fragmented between the tier-1, tier-2, and tier-3 companies, while tier-1 and tier-2 companies in the market hold over 60% the global flexible epoxy resin market share.


The growth of market participants depends on market and economic conditions, government regulations and industry developments. Therefore, players should focus on expanding their production capacity to meet demand and improve their services. DIC Corporation, Olin Corporation, Hexion, Kukdo Chemical Limited, Aditya Birla Chemicals, Huntsman International LLC, Emerald Performance Materials, Resoltech, Epoxonic, Cardolite Corporation Spolchemie, Atul Limited, Conren Limited, Intertronics and Mereco Technologies are the major players in today's market . We compete on quality, price and availability. These players are mainly focused on developing flexible epoxy resins. International players dominate the market, but there are also modest regional and local players with smaller market shares. International players with a global presence with established production facilities or sales offices are increasing their presence in key regions such as North America, Europe, Asia Pacific, Latin America, Middle East and Africa.


Report Overview:


The global flexible epoxy resin market has been segmented into type, application, end-use industry and region. In terms of insights, this report has focused on various levels of analysis such as market dynamics, value chain analysis, Porter's five forces, competitive landscape, and company profiles—all of which comprise and discuss views on the global nickel hydroxide emerging and fast-growing segments, regions, and countries.


Objectives of the Study



  • To get a comprehensive overview of the global flexible epoxy resin market

  • To get wide-ranging information about the key factors driving the market and market opportunities

  • To gain information regarding the key players in the industry, their product portfolio, strategies, and key developments

  • To gain insights about the key country/region in which the market is growing


Intended Audience



  • Industrial sector

  • Broadcast sector

  • Enterprise sector

  • Digital communication

  • Construction industry



Report Scope:

Report Attribute/Metric Details
  Market Size    2030: USD 1,076.15 million
  CAGR   7.19 %CAGR (2019-2030)
  Base Year   2021
  Forecast Period   2021-2030
  Historical Data   2019 & 2020
  Forecast Units    Value (USD Million)
  Report Coverage    Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
  Segments Covered   Type, Application, End-Use Industry
  Geographies Covered   North America ,Europe, Asia-Pacific,South America, Middle East ,Africa
  Key Vendors   DIC Corporation, Olin Corporation, Hexion, Kukdo Chemical Limited, Aditya Birla Chemicals, Huntsman International LLC, Emerald Performance Materials, Resoltech, Epoxonic, Cardolite Corporation Spolchemie, Atul Limited, Conren Limited, Intertronics and Mereco Technologies
  Key Market Opportunities   â€˘ Increasing prevalence of flexible epoxy resin in electrical & electronics goods production
  Key Market Drivers   â€˘ Growing paints & coatings market • Increasing flexible epoxy demand in construction industry • Rising demand from the automotive industry


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