Modified Alkyd Resin Market - Forecast(2023 - 2028)

Modified Alkyd Resin Market Overview

Modified alkyd resin market size is estimated to reach US$2.7 billion by 2027 after growing at a CAGR of 4.1% during 2022-2027. Alkyd resins can be categorized into different types such as modified, short oil type, medium oil type, and long oil type. Alkyd resin is thermoplastic polyester resin produced with heating of combination of polybasic acids or their anhydrides with polyhydric alcohols. Alkyd resin is chemically modified with the addition of other monomers in order to offer more value and viability for its use in numerous applications. Few of the commercially available modified alkyd resins are acrylic modified, rosin modified, phenolic modified, and urethane modified including others. This type of alkyd resin owns several valuable properties such as high hardness, chemical resistance, fast drying, oil water resistance, wrinkle resistance, and high gloss owing to which these are used in range of industrial applications.

COVID-19 Impact

Many industries across the globe have faced several challenges due to the COVID-19 pandemic. The industries such as building and construction, automotive, paints and coatings, wood industry, and electrical & electronics including many others have experienced pitfalls. Many projects in such industries have been halted due to an interrupted supply chain and employee shortages due to quarantines. Also, the production and demand in paint and coatings industry has declined due to an interrupted supply chain and cessation in transportation of raw materials. According to The British Coatings Federation (BCF), the world coating industry shows the decline of 2.3% in terms of volume in 2020 where North and Latin America were amongst the worst hit regions. Moreover, there was a sharp decrease in the construction projects due to unavailability of labor. Thus, the global pause in industrial production and distribution, the demand and consumption of modified alkyd resin has hampered to an extent in several industries. 

Report Coverage

The “Modified Alkyd Resin Market Report – Forecast (2022-2027)”, by IndustryARC, covers an in-depth analysis of the following segments of the modified alkyd resin industry.

Key Takeaways

• Asia Pacific is the leading region in the global modified alkyd resin market. This growth is mainly attributed to the increased demand for modified alkyd resin in paints and coatings industry. 
• Wood coating is expected to be the significant segment owing to the surge in demand for modified alkyd resin in its production.
•  Modified alkyd resin plays an important role in several industries especially in the paints and coatings, wood industry, building and construction, and marine which is expected to provide significant growth opportunity to the industry players in the global modified alkyd resin market.

Modified Alkyd Resin Market Segment Analysis – By Type

The polyurethane modified alkyd segment held the largest modified alkyd resin market share in 2021 with a share on over 21%. Alkyd resin is a thermoplastic polyester resins produced with the combination of polybasic acid or anhydrides heating with polyhydric alcohols. It is considered as the preferred material in the manufacturing of protective coatings and significant ingredient in synthetic paints. Polyurethane modified alkyd resin are majorly utilized to produce fast drying coatings possessing superior abrasion resistance. These coatings further can be further used in range of applications such as furniture sealers and coatings, floor varnish, and pigmented coatings. These are adopted in these applications owing to their fast air drying, good gloss, chemical resistance, good hardness, and abrasive resistance. Thus, superior properties along with the several applications is increasing the demand for polyurethane modified alkyd resin, in turn, supporting the growth of global market. 

Modified Alkyd Resin Market Segment Analysis – By End Use Industry 

The paints and coatings segment is expected to grow at a fastest CAGR of 4.7% during the forecast period in the global modified alkyd resin market. Alkyd resin is modified with the combination of different resin in order to improve properties such as high hardness, fast air drying, chemical resistance, weather resistance, wrinkle resistance, good toughness, and superior gloss. These modified resins are extensively used for floor paint, industrial finished and primers, clear wood varnishes, decorative paints, and marine paints including many other applications. The different modified alkyd resin is used in the production of protective coating for vehicles such as bus, car, trucks, etc. Also, it is utilized in steel pipe varnish and drying paints for steel. Along with this, other paints and coatings applications of modified alkyd resin are industrial baking enamels, metal primers, traffic paint, floor enamels, and furniture finishes. Thus, the wide range of applications of modified alkyd resin in paints and coatings industry is boosting the market growth.

Modified Alkyd Resin Market Segment Analysis – By Geography

The Asia Pacific region held the largest modified alkyd resin market share in 2021 and with a share of over 34%. This growth is mainly attributed to the increase in demand for modified alkyd resin in several end use industries in this region such as building & construction, agriculture, paints and coatings, electrical & electronics, and automotive including many others. These resins are widely used in the manufacturing of enamel for agricultural tools, mirror backing paints, acid curing wood coatings, and enamels for numerous machinery applications. Modified alkyd resin extensively used in paints and coatings industry for wide range of applications such as to produce industrial primer, wood coating enamel, and other industrial coatings. Thus, the significant base of end use industries is providing ample growth opportunities to industry players operating in global modified alkyd resins market.

Modified Alkyd Resin Market Drivers

Growth of Paints and Coatings Industry

Modified alkyd resin is considered as one of the widely used raw material in the production of paints and coatings. It can be used for the production of industrial primers, enamels, wood coating, can coatings, and mirror backing paint including many others which is further utilized for agriculture tools, industrial machineries, toys, kitchen cabinets, and can coating applications. Alkyd based paints and coatings are considered as the notable products in protective coatings market and used as suitable material for several industrial applications. These paints and coatings are easy to apply with spray brush and other methods and does not require any external mixing for enhanced performance. According to Coatings World, Asia Pacific is the leading region in world accounting for around 46% of global coating market by value in 2019 and has grown with a CAGR of 3.3% during the same year. Superior corrosion resistance, moisture resistance, and low cost makes it a preferred choice in wide range of industries. Thus, the growth in paint and coatings industry is fueling the growth of global modified alkyd resin market.

Increase in Demand from Wood Furniture Industry

Modified Alkyd Resin is used in numerous industries such as building and construction, automotive and transportation, paints and coatings, agriculture, and electrical and electronics including many others. Alkyd coatings can be suitable for metal, concrete, and wood surfaces, Modified alkyd resin is extensively used in the production of finishes and furniture coatings for both metal and wooden surfaces. In wooden furniture it can be utilized for wood coloring agent, wood basecoat, wood primer, wood finishes, clear wood finishes, and acid curing wood coatings. It offers fast drying wood finish which can also be used on metal surfaces and used to produce steel furniture enamels. It enables production of superior quality clear wood varnish suitable for exterior and interior wood applications. There is an increase in demand for furniture owing to rise in construction activities, increase in urbanization, and surge in disposable income. For instance, Indian Brand Equity Foundation stated that according to World Bank Study, organized furniture industry is estimated to grow with 20% every year which is mainly attributed to surging consumer base in Asia. Thus, the growth in furniture industry is driving the growth of global modified alkyd resin market.

Modified Alkyd Resin Market Challenges

Volatile Crude Oil Prices

Modified alkyd resin is manufacturing using range of materials such as polyurethane, rosin, silicone, styrene, vinyl, and epoxy ester including many others. The production and prices of these materials are largely dependent on petroleum-based sources. Thus, any change or fluctuations in the crude oil prices directly affects the prices of modified alkyd resin. For instance, according to U.S. Energy Information Administration, prices of crude oil in 2021 have increased up to $71/lb from $42/lb in 2020. Thus, volatile crude oil prices or change supply demand of the other application market may impact the prices and supply of modified alkyd resin. Thus, volatile crude oil prices directly impact the prices of raw material for modified alkyd resin which is restraining the growth of global market.

Modified Alkyd Resin Industry Outlook

Modified alkyd resin market top 10 companies include -

1. Sang Won Chem Co., LTD
2. Eternal Materials Co., Ltd.
3. HECCKEM
4. Uniform Synthetics
5. DIC Corporation
6. Polynt S.p.A.
7. Macro Polymers
8. D.S.V. Chemicals
9. Arakawa Chemical Industries, Ltd.
10. Synpol Products Private Limited

Recent Developments

• In March 2022, Groupe Berkem, a leading bio-based chemicals manufacturer has launched a range of 100% bio-based alkyd resins to be used in the construction paints application.
• In September 2021, DIC Corporation has launched a new global common coating resins product finder. This product finder helps the customers to identify right product from more than 300 coatings resin along with their applications, key features, and product information.
• In May 2021, PPG Industries has announced the investment of a US$13 million in its Jiading, China paints and coatings facility including eight new powder coating production lines and expanded its Powder Coatings Technology Center. This will enhance the company’s capability of research and development.

Relevant Reports

 Alkyd Coatings Market - Forecast(2022 - 2027)

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 Protective Coatings Market - Forecast(2022 - 2027)

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Paints and Coatings Market - Forecast(2022 - 2027)

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