Flexible Epoxy Resin Market - Forecast(2023 - 2028)

Flexible Epoxy Resin Market Overview

The Flexible Epoxy Resin Market size is projected to grow at a CAGR of 4.8% during the forecast period 2022-2027 and reach US$755.2 million by 2027. Flexible epoxy resin is a thermosetting resin that can be categorized into various types, including urethane modified, rubber modified and dimer acid modified resins. They are primarily used in a wide range of industries including construction, automotive, electrical & electronics, coating and other industries. The expansion of flexible epoxy resins is primarily driven by their usage in the construction industry. According to recent insights from the World Cement, the global construction industry output increased by 5.7% in 2021. An increase in construction activities and the growth of the electronics industry are expected to drive the growth of the flexible epoxy resin market size in the upcoming years. In 2020, the COVID-19 pandemic negatively impacted construction activities as a result of the country-wide shutdown of construction sites, shortage of labor and the decline of the supply and demand chain all across the world. This temporarily affected the growth of the flexible epoxy resin industry. However, a steady recovery in new development and construction contracts has been witnessed across many countries around the world since 2021, which in turn, is driving the demand for flexible epoxy resins. On the other hand, fluctuating prices of raw materials may confine the growth of the market.

Flexible Epoxy Resin Market Report Coverage

The "Flexible Epoxy Resin Market Report – Forecast (2022-2027)” by IndustryARC, covers an in-depth analysis of the following segments in the Flexible Epoxy Resin Market.

Key Takeaways

• Water-borne formulation held a significant share in the Flexible Epoxy Resin Market in 2021, owing to its increasing demand and benefits such as low VOC (Volatile Organic Compounds) and HAP (Hazardous Air Pollutant) levels over other types of formulation.
• Coating industry held the largest share in the Flexible Epoxy Resin Market in 2021, owing to the increasing demand for Flexible Epoxy Resins from the coating sector across the world.
• Asia-Pacific dominated the Flexible Epoxy Resin Market in 2021, owing to its increasing demand from the coating sector in the region. In July 2019, Asian Paints commenced the commercial production of coatings and intermediaries in the Mysore plant in India, with a total capacity of 211,888 tons per annum.
• A detailed analysis of strengths, weaknesses, opportunities and threats would be provided in the Flexible Epoxy Resin Market Report.

Figure: Flexible Epoxy Resin Market Revenue Share, by Geography, 2021 (%)

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Flexible Epoxy Resin Market Segment Analysis – by Formulation

The water-borne formulation held a significant Flexible Epoxy Resin Market share of over 20% in 2021, owing to a range of benefits they offer over other types of formulation. Water-based formulations contain 80% water and a small number of other solvents such as polyvinyl ether and glycol. It offers a wide range of properties and benefits such as excellent adhesion properties, good resistance to heat and abrasion, along with anti-corrosion properties in comparison to solvent-borne and other types of formulation. Moreover, water-borne formulations are environment-friendly due to low VOC (Volatile Organic Compounds) and HAP (Hazardous Air Pollutant) levels which makes them less toxic and flammable in comparison to solvent-borne and other formulations. Hence, all of these benefits of the water-borne formulation are driving its demand over other types of formulation, which in turn, is expected to boost the growth of the market during the forecast period.

Flexible Epoxy Resin Market Segment Analysis – by End-use Industry

The coating industry held the largest Flexible Epoxy Resin Market share of over 25% in 2021, owing to the increasing production of paints and coatings across the globe. For instance, according to Japan Paint Manufacturers Association (JPMA), the total paints and coatings production in Japan reached 1,645,960 tons in 2019. Moreover, according to the British Coatings Federation (BCF), the first 5 months of 2021 achieved significant sales results in both industrial and decorative coatings in the United Kingdom, owing to strong consumer demand for DIY commodities such as paints and coatings in the country. Furthermore, Nippon Paints Group made medium to long-term investments in 2021 for upgrading and streamlining industrial facilities in Japan during 2021-2023 to boost the production of paints and coatings to secure its position in the market.

Flexible Epoxy Resins such as rubber modified and dimer acid modified resins are thermosetting resins that are primarily used in the production of coatings, owing to their excellent corrosion resistance, durability, easy processing, high mechanical properties, low shrinkage during cure, along with its excellent chemical resistance and adhesion properties. Thus, such surging production from the coating industry is expected to increase the demand for flexible epoxy resins, owing to their above-mentioned properties. This is expected to expand the Flexible Epoxy Resin market size during the forecast period.

Flexible Epoxy Resin Market Segment Analysis – by Geography

Asia-Pacific held a dominant Flexible Epoxy Resin Market share of around 34% in 2021. The consumption of flexible epoxy resin is particularly high in APAC due to its increasing demand from the coating sector in the region. For instance, according to Japan Paint Manufacturers Association (JPMA), the total paints and coatings production in Japan reached 1487.7 million tons in 2020. Moreover, in 2020, the government of Vietnam announced its plan to develop the paint and coating industry with a vision for 2030. The average growth rate in the production value of the paint and coating industry is expected to reach up to 14% during the period from 2021 to 2030. Thus, such surging growth of the coating sector in multiple countries across the region is expected to increase the demand for flexible epoxy resins for use in the production of such paints and coating. Its excellent corrosion resistance, easy processing, durability, high mechanical properties, along with excellent chemical resistance and adhesion properties are major reasons for its demand. This is anticipated to propel the growth of the market during the forecast period.

Flexible Epoxy Resin Market Drivers:

An increase in construction activities

Construction activities are considered to be the pillar of growth for a country and also play a major role in increasing the overall global economy. The factors such as urbanization and the rapid pace of development to aid the economic growth of the countries are driving the construction activities in various regions across the world. According to Volvo CE, the construction sector saw an increase in construction activities across multiple regions since the fourth quarter of 2020. South America saw an increase of 12%, Asia by 39%, Europe by 20% and China by 28% in 2020. Furthermore, YIT Corporation commenced the construction of numerous residential apartment building projects in Finland, the CEE countries and Russia in December 2021, with total investments of around EUR 200 million (US$236.5 million). The projects are scheduled to be completed by the end of 2023. Thus, an increase in global construction activities is expected to increase the demand for flexible epoxy resins, owing to their useful properties & usage. This is anticipated to drive the growth of the Flexible Epoxy Resin market in the upcoming years.

Growth of the electronics industry

Flexible Epoxy Resins are commonly used in the electronics industry for the protection of electronics components from dust, moisture, corrosive agents, chemicals and short circuits. According to recent insights published on Growth from Knowledge (GRK) in September 2021, the global consumer electronics industry was valued at US$42.8 billion during the first quarter of 2021, an increase of 18% in comparison to 2020. This happened due to an increase in electronic production. It further states that the GDP growth rate of consumer electronics in countries like India, China, the U.S and regions like Europe is expected to increase by up to 8.1%, 5.7%, 1.4% and 1.7%, respectively, by the end of 2022. According to the Japan Electronics and Information Technology Industries Association (JEITA), the electronics production by the global electronics and IT industries is expected to increase by 5% and reach up to US$3,536.6 billion by the end of 2022 as compared to 2021. Furthermore, the total production of display devices by the global electronics industry reached US$178.3 billion in 2021, an increase of 24% from US$144.2 billion in 2020. Hence, such surging growth of the electronics industry is expected to increase the demand for Flexible Epoxy Resins, owing to their above-mentioned properties. This is expected to accelerate the growth of the market in the upcoming years.

Flexible Epoxy Resin Market Challenge:

Fluctuating prices of raw materials may confine the market growth

Some of the raw materials required for the production of Flexible Epoxy Resins are obtained from crude oil. As a result, fluctuations in the prices of crude oil may hinder the growth of the market. For instance, in 2020, the international benchmark for petroleum prices across the world, also known as Brent crude prices, decreased to US$9.12 per barrel, which was the lowest record since December 10, 1998. Similarly, in April 2020, India’s Crude Oil Basket (COB) reached US$19.90 per barrel, which was the lowest record since February 2002. During the first 11 months of the year 2020-21, the average annual price of India’s COB was around US$42.72 per barrel, which decreased by 30% more than the average COB price in 2019-20. Furthermore, as per revised estimates for 2020-21, the COB increased by around 35% from its initial budget estimate. Such uncertainty regarding the price of crude oil may affect the prices of raw materials that are used in the production of flexible epoxy resins. Thus, such instability and fluctuating prices of raw materials may limit the growth of the Flexible Epoxy Resin industry during the forecast period.

Flexible Epoxy Resin Industry Outlook

Technology launches, acquisitions and increased R&D activities are key strategies adopted by players in the Flexible Epoxy Resin Market. The top companies in the Flexible Epoxy Resin Market are:

1. Hexion
2. Olin Corporation
3. Huntsman Corporation
4. Kukdo Chemical
5. Momentive Performance Material Holding LLC
6. Aditya Birla Chemicals
7. Jiangsu Sanmu Group Corporation
8. DIC Corporation
9. Easy Composites
10. Mereco Technologies

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