Petroleum Resin Market - Forecast(2023 - 2028)

Petroleum Resin Market Overview

The Petroleum Resin Market size is estimated to reach US$3.4 billion by 2027 after growing at a CAGR of 7.1% during the forecast period of 2022-2027. Petroleum Resin is a resin such as aliphatic, aromatic, hydrocarbon resin and hydrogenated resin which are a by-product of crude oil. The chemical resistance, anti-aging, low volatility and rich adhesive nature of these adhesives are influencing their demand in major end-users such as automotive, building & construction, aerospace and paper, thereby positively impacting the Petroleum Resin Market. Factors such as the rapid increase in automotive production, growing construction activities and bolstering growth in the aerospace industry are driving the growth in the petroleum resin industry. However, the growing price of crude oil could pose a challenge to the growth of the market and would negatively impact the Petroleum Resin Market size. The disruption caused by the COVDI-19 decreased the market demand for petroleum resins in major sectors such as automotive and building & construction, which negatively influenced the petroleum resin industry outlook.

Petroleum Resin Market Report Coverage

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

By Grade – Industrial and Technical.
By Type – Aliphatic, Aromatic, Hydrocarbon Resin, Hydrogenated Resin and Reactive.
By Application – Paints & Coatings, Inks, Adhesives (Hot Melt and Pressure Sensitive), Tires, Concrete Curing Compound and Others.
By End-use Industry – Aerospace (General, Military and Others), Building & Construction (Residential, Commercial, Industrial and Infrastructural), Automotive (Passenger Vehicles, Light Commercial Vehicles and Heavy Commercial Vehicles), Paper Industry, Rubber Industry and Others.
By Geography - North America (the USA, Canada and Mexico), Europe (UK, Germany, France, Italy, Netherlands, Spain, Belgium and the Rest of Europe), Asia-Pacific (China, India, Japan, South Korea, Australia, New Zealand, Indonesia, Taiwan, Malaysia and Rest of APAC), South America [Brazil, Argentina, Colombia, Chile and Rest of South America) and the Rest of the World (the Middle East and Africa)].

Key Takeaways

• Asia-Pacific dominates the Petroleum Resin Market due to the rapidly growing automotive and building & construction sector which is stimulating the demand for petroleum resin such as aliphatic, aromatic and hydrocarbon resin for paints & coatings and adhesives applications.
• Increase in aircraft deliveries to tackle the growing air passenger traffic problem has boosted petroleum resin demand for tire application in the aerospace sector, thereby propelling the growth of the petroleum resin industry and positively impacting the petroleum resin industry outlook.
• Anti-aging features provided by petroleum resin improve the durability of the products which is expected to stimulate the demand for such resin for various industrial applications, resulting in positive market growth.
• An increase in the price of crude oil will lead to a simultaneous increase in the price of the aliphatic, aromatic and hydrocarbon resins, which would hamper the market growth and would also negatively impact the Petroleum Resin Market size during the forecast period.

Petroleum Resin Market Segment Analysis – by Grade

The industrial grade held the largest share in the Petroleum Resin Market share in 2021 and is expected to grow at a CAGR of 6.8% during the forecast period 2022-2027. Industrial grade petroleum resin consisting of aliphatic, aromatic and hydrocarbon resin has high mechanical strength and chemicals as well as temperature resistance. Such resin holds major applicability in various end-use industries such as building & construction, automotive, rubber and paper where it is used in paints & coatings, adhesives and construction materials such as concrete. The high-performance nature of the industrial grade petroleum resin coupled with the significant growth shown by these sectors is propelling the demand and usage of grade in them which is contributing to the segment growth of the industrial grade petroleum resin during the forecast period.

Petroleum Resin Market Segment Analysis – by End-use Industry

Building & construction sector held the largest share in the Petroleum Resin Market share in 2021 and is projected to grow at a CAGR of 7.4% during the forecast period 2022-2027. Petroleum resin such as aliphatic have excellent thermal stability, heat-resistance and softening effect, which is driving its demand in the sector in cement curing agent and paints & coating applications. The building & construction sector has shown significant growth on account of growing construction activities in the residential and commercial segments. For instance, according to Eurostat, in January 2022, production in commercial building construction increased by 4.2% in Europe in comparison to 2021 same month. Furthermore, according to the Australian Bureau of Statistics, in February 2022, the number of dwellings approved in Australia rose 43.5% with private sector house approvals showing a 16.5% rise. Such an increase in the building & construction sector will accelerate the demand and usage of petroleum resin for cement curing agents and paints & coatings applications, thereby driving the market growth during the forecast period.

Petroleum Resin Market Segment Analysis – by Geography

Asia-Pacific held the largest share in the Petroleum Resin Market share in 2021 up to 45%. The region is a manufacturing hub for major industrial sectors such as automotive and building & construction sectors which are major end-users of petroleum resin for paints & coatings and adhesives applications. Growing demand for new automobiles, as well as residential units coupled with favorable industrial policies, has increased the productivity of such sectors in Asia-Pacific. For instance, according to the International Organization of Motor Vehicle Manufacturers, in 2021, India’s automotive production stood at 4.39 million units, showing a 30% increase in comparison to 2020. Also, according to China’s National Bureau of Statistics, in Q2 of 2021, the construction sector of China registered a growth of 1.8% while its cumulative growth was 8.6% in the first half of 2021. Furthermore, according to Japan’s Ministry of Land, Infrastructure, Transport and Tourism, in May 2022, construction orders in Japan increased by 30.5% in comparison to the same month in 2021. Such an increase in productivity will accelerate petroleum resin demand in the automotive and building &b construction sectors for paints & coatings and adhesives applications, resulting in a positive growth of the Petroleum Resin Market in the Asia-Pacific region during the forecast period.

Petroleum Resin Market Drivers

Rapid Increase in Automotive Production:

Petroleum resin such as hydrocarbon resin has high applicability in the automotive sector where they are used in paints & coatings and hot melt adhesives applications due to their rich temperature and abrasion resistance nature. The growing demand for the passenger as well as commercial vehicles coupled with favorable government policies related to industrial investments has increased the overall production of automobiles. For instance, according to the International Organization of Motor Vehicles Manufacturers, in 2021, global automotive production stood at 80.1 million units, which showed a 3% increase from 2020’s production. Also, automotive production at the regional level showed significant growth, for instance, according to the same data provided by the International Organization of Motor Vehicles Manufacturers, in 2021, automotive production in South America increased by 18% and in Africa by 16%. Such a rapid increase in automotive production has boosted petroleum resin demand and usage for paints & coatings and adhesives applications, resulting in a positive petroleum resin industry growth.

Bolstering Growth in Aerospace Industry:

Petroleum resin has rich chemical stabilizing and viscosity properties which makes it an essential material to be used in aircraft tires for improving their durability and mechanical strength. The aerospace sector has shown significant growth over the years owing to the growing demand for new aircraft, which has increased the overall rate of aircraft deliveries. According to the General Aviation Manufacturer Association, in Q1 of 2022, total aircraft deliveries increased by 14.7% in comparison to Q1 of 2021. Furthermore, according to the annual reports of Boeing, the cumulative aircraft deliveries of the company increased by 3.5% in comparison to 2020. Such an increase in aircraft deliveries on account of growing demand has created a surge in the demand and usage of petroleum resin in aircraft tires, thereby positively impacting the growth of the petroleum resin industry during the forecast period.

Petroleum Resin Market Challenge

Growing Price of Crude Oil:

Petroleum resin is made by polymerizing the mixtures of unsaturated monomers that are obtained as a by-product of crude oil. The growing industrial demand for crude oil at the global level coupled with supply chain mishaps has increased the price of crude oil. For instance, according to the US Energy Information Administration, in October 2021, crude oil prices stood at US$86 dollars per barrel, showing a 104.7% increase in comparison to 2020’s price for the same month. The increase in crude oil price could simultaneously increase the overall price of manufacturing petroleum resin resulting in their irregular production, which could pose a challenge to the growth of the Petroleum Resin Market. This would also negatively impact the Petroleum Resin Market size during the forecast period.

Petroleum Resin Industry Outlook

Technology launches, acquisitions and R&D activities are key strategies adopted by players in the Petroleum Resin Market. The top 10 companies in the Petroleum Resin Market are:

1. Dow Chemical Company
2. Exxon Mobil Corporation
3. Eastman Chemical Company
4. KOLON Industries Inc.
5. Arakawa Chemical Industries Ltd.
6. Mitsui Chemicals Inc.
7. Zeon Corporation
8. Total Cray Valley
9. Lesco Chemical Limited
10. Neville Chemical Company

Recent Developments

• In June 2021, KOLON Industries Inc. added 15,000 tons of annual capacity in its hydrocarbon resin manufacturing and such addition increased the company’s total annual capacity of 200,000 tons for its hydrocarbon resin manufacturing.
• In May 2021, Henkel launched a new range of hot melt adhesives Technomelt Supra ECO which offers greater sustainability, higher performance and low carbon emissions.
• In May 2020, Exxon Mobil began production of hydrocarbon resin and hydrogenated resin at its manufacturing complex in Singapore which is the largest integrated refining and petrochemical complex of the company.

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