Single Component Epoxy Market - Forecast(2023 - 2028)

Single Component Epoxy Market Overview

Single component epoxy market size is forecast to reach US$3.4 billion by 2027, after growing at a CAGR of 5.6% during 2022-2027. Single component epoxy is suitable for bonding various materials including metals, composites, wood, and even some plastics. Single component epoxy is developed at low-temperature curing single part epoxies for use on material that would melt or deform during heat curing adhesives process. Single component epoxy is widely used for bonding, coating, fixing different electronic components like printed circuit boards, auto components, and others. According to Semiconductor Industry Association, the demand for semiconductors in 2020 by various end-use industries are automotive 11.4%, computers 32.3%, communication 31.2%, consumer 12%, Industrial 12%. The use of semiconductors in various end-use industries uses single component epoxy during the fabrication of semiconductors for bonding and fixing the devices. Therefore the growing usage of semiconductors will boost the single component epoxy market during the forecast period.

COVID-19 Impact

The Covid-19 pandemic has been a major challenge for the Single Component Epoxy market owing to directly affecting the manufacturer's supply chain across the globe and shut down the production facilities to minimize the risk of virus spread. The major sectors such as automotive, aerospace, marine, consumer appliances, and others have been highly impacted. According to The European Automobile Manufacturers Association, European Union GDP has contracted by 6.3% in 2020 as compared to 2019. The car market has a significant decline of 20.6% in Europe, a 16.6% decline in the United States, 6.8% drop in Chinese car sales throughout 2020. Therefore, the initiation taken by the government and private sector will help to recover the single component epoxy market during the forecast period.

Single Component Epoxy Market Report Coverage

The report: “Single Component Epoxy Market – Forecast (2022-2027)”, by IndustryARC, covers an in-depth analysis of the following segments of the Single Component Epoxy industry.

By Form: Solid, Liquid, and Paste.
By Curing Process: Thermal, UV Light, and Others.
By Application: Bonding, Sealing & Adhesives, Coating, Potting, Encapsulation & Impregnation, Fixing, and Others.
By End-Use Industry: Transportation (Automotive, Aerospace, Marine, Railway), Building & Construction (Residential Construction, Commercial Construction, Infrastructure, and Others), Electrical & Electronics, Household Appliance, Healthcare, Energy, Packaging, Chemical Processing, Optical Industries, Industrial, Oil & Gas, and Others.
By Geography: North America (USA, Canada, and Mexico), Europe (UK, Germany, Italy, France, Netherlands, Belgium, Spain, Russia, and Rest of Europe), Asia-Pacific (China, Japan, South Korea, India, Australia, and New Zeeland, Indonesia, Taiwan, Malaysia, and Rest of APAC), and Rest of the World: The Middle East(Saudi Arabia, UAE, Israel, Rest of the Middle East) and Africa(South Africa, Nigeria, Rest of Africa) 

Key Takeaways

• The Asia Pacific is expected to register a CAGR of 6.8% during the forecast period (2022-2027). The increasing demand for adhesive and sealants for automotive, construction, and others in Asian countries such as China, India, Japan, and South Korea is driving the market demand for single component epoxy.
• The growing demand for adhesives in woodworking to protect from warping or cracking due to its high bonding strength and as a sealing paint that protects against water damage is driving the market.
• The rising demand for single-component epoxy in various end-use industries like oil & gas, building & construction, and other industrial applications owing to high strength and corrosion resistance is boosting the market during the forecast period.

Figure: Asia Pacific Single Component Epoxy Market Revenue, 2021-2027 (US$ Billion)

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Single Component Epoxy Market Segment Analysis – By Form

The liquid form segment accounted for around 38% of the market share in 2021 and is estimated to grow at a significant CAGR during the forecast period. The liquid form exhibits many properties such as low viscosity, solvent resistance, good flexibility, and high impact strength among others. They are used in the construction sector for structure, cabinet, flooring, and millwork. According to the Associated General Contractors of America (AGC), the construction sector of the US is a major contributor to the economy and creates nearly US$1.4 trillion worth of structures every year. Therefore, the growing demand for coating during the construction activity will boost demand for single component epoxy during the forecast period.

Single Component Epoxy Market Segment Analysis - By Application

The sealing & adhesives segment accounted for approximately 26% of the market share in 2020 and is estimated to grow at a significant CAGR during the forecast period. Sealing & adhesives are widely used in aerospace, defense, electrical & electronics, automotive, and other sectors owing to high thermal & dimensional stability, versatility, reactivity, and chemical resistance property. According to Invest India, the global electronic devices market is estimated to be over US$2 trillion. The global electronic systems manufacturing industry of India has grown from 1.3% in 2012 to 3.6% in 2019. Therefore, the growing electronic systems manufacturing will boost the demand for sealing & adhesives segments which in turn drive the single component epoxy market during the forecast period.

Single Component Epoxy Market Segment Analysis - By End-Use Industry

The building and construction segment accounted for more than 15% of the market share in 2021 and is estimated to grow significantly during the forecast period. Single component epoxy is mostly utilized in public and private infrastructures for connecting precast materials, bonding of steel support components, and carbon seals for slabs and columns. According to The U.S. Census Bureau and the U.S. Department of Housing and Urban Development, the total number of new residential construction completed in November 2021 is 1,282,000, building Permits issued by the authority is 1,712,000 and begins construction for 1,679,000 houses with an increase of 0.9% as compared to the same period in the US. Therefore, the growing building and construction segment will fuel the demand for single component epoxy during the forecast period. 

Single Component Epoxy Market Segment Analysis - By Geography

Asia Pacific region held the largest share in the single-component epoxy market in 2021 up to 40%, owing to the presence of large infrastructure projects in developing countries like China, India, Indonesia, and others. The comprehensive use of single component epoxy in bonding, adhesive & sealants, and others are helping in the market growth during the forecast period. According to The Ministry of Housing and Urban-Rural Development China, the construction industry has revealed the plan to push the construction pillar sector of the country's economy onto a greener, smarter and safer path with an investment of a 6% share of the China GDP by 2025 in January 2020. According to India Brand Equity Foundation, the Government of India allocate US$1.4 trillion under the national infrastructure pipeline for the sectors such as energy, roads, urban and railways amounting to 71% of the projected infrastructure investments in India during 2019-2025. Therefore, the growing infrastructure sector is growing the demand for the single component epoxy market.

Single Component Epoxy Market Drivers

The demand for Fixings & Bonding in Electric & Electronics

The growing demand is rising for fixings and bondings in the electric and electronic sector to fix various devices like speakers, headphones, smartphones, laptops, and others by providing high-quality, reliable insulation for electrical appliances. The low shrinkage, low exothermicity during cure, excellent mechanical, & electrical insulating properties and high toughness is driving the single component epoxy market. According to Invest India, the global electronic components market is forecasted to reach US$191.8 billion by 2022, of which the Asia Pacific region is likely to capture a dominant share. Growth in the Indian electronic components market is also driven by rising local demand and a growing electronics ecosystem. Therefore, the growing demand for electronic devices will be driving the single component epoxy market during the forecast period.

Single Component Epoxy Market Challenges

Higher Price of Epoxy

The cost of epoxy resins is much higher. The reason behind this is its production cost, while producing products, the machinery and the equipment which are used are tagged with higher expense, also, these machineries require high maintenance. Owing to this factor, the product of epoxy comes with a higher price as compared to its alternative materials, which tends to constrain the growth of the market. In addition, even if the single component epoxy provides better results, the customer usually prefers the less cost. Such factors have become the major challenge of single component epoxy in terms of consumption, which constrains the growth of the market.

Single Component Epoxy Industry Outlook

Technology launches, acquisitions, and r&d activities are key strategies adopted by players in the market. Single Component Epoxy top 10 companies include:

1. 3M Company
2. Dowdupont
3. Huntsman Corporation
4. Aditya Birla Chemicals
5. BASF SE
6. Henkel AG & Co.
7. Mitsui Chemicals Inc.
8. Permabond
9. Sika AG
10. Kukdo Chemical Co. Ltd.

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