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Thermosetting Plastics Market - Forecast(2023 - 2028)
Thermosetting Plastics Market Overview
Thermosetting
Plastics Market size is expected to reach a value of US$76.1 billion by the end of
the year 2026 and it is set to grow at a CAGR
of 5.6% during the forecast period from 2021-2026. The increase in construction activities
around the globe is one of the major factors driving the thermosetting plastics
market. Thermosetting plastics such as vinyl ester are used for coatings in
tanks, pipes, and flue stack linings of the construction industry. Unsaturated
polyesters are usually used for the production of fiber-reinforced plastics for use
in sanitary ware, tanks, and piping. Unsaturated polyesters are also considered
eco-friendly as they have less volatile organic compound content. One of the
main advantages of thermosetting plastics is that they can be put through injection
molding, which helps in getting products of any shapes or forms. This is one of
the factors driving the need and demand of the thermosetting plastics industry.
COVID-19 impact
Amid the
Covid-19 pandemic, the thermosetting plastics market was affected in various
ways. The operations of the thermosetting plastics market were abruptly put to
a halt owing to the economic lockdown. This also went on to affect the various
aspects of the thermosetting plastics industry such as imports, exports, sales
and distribution, and others. It caused untoward consequences such as mass
unemployment, closedown of markets, insolvencies, etc. However, the thermosetting
plastics market witnessed a steady growth by the end of the year 2020 and is
estimated to grow further and cover the industry’s loss towards the end of the
year 2021.
Report Coverage
The report: “Thermosetting Plastics Market – Forecast
(2021-2026)”, by IndustryARC, covers an in-depth analysis of the following
segments of the Thermosetting Plastics Market Industry.
By Type: Phenolic, Polyurethanes, Alkyds, Epoxy Resin, Vinyl Ester, and Others
By
Application: Adhesive
and Sealants, Pipeline, Insulation, Automobile Components, Consumer Appliances, and Others.
By End-Use
Industry: Building
& Construction, Electrical & Electronics, Automobile, Oil & Gas,
Industrial, and Others.
By Geography: North America (U.S, Canada, Mexico), Europe (Germany,
UK, France, Italy, France, Netherlands, Belgium Spain, Russia and Rest of
Europe), APAC (China, Japan India, South Korea, Australia, New Zealand,
Indonesia, Taiwan, Malaysia), South America (Brazil, Argentina, Colombia, Chile
and Rest of South America) and RoW (Middle East and Africa).
Key Takeaways
- Asia-Pacific market held the largest share in the thermosetting plastics market due to the increase in government initiatives for developing smart cities and modern infrastructures in countries like China and India.
- The increase in construction activities coupled with the government initiatives for developing infrastructure is majorly driving the thermosetting plastics market.
- The increase in demand for polyurethane in the automobile industry as well as building & construction industry.
- Amid the Covid-19 pandemic, the thermosetting plastics market went through a lot of setbacks which lead to huge losses. It is however set to improve in the coming months of 2021.
FIGURE: Thermosetting Plastics Market Revenue, 2020-2026 (US$ Billion)
Thermosetting Plastics Market Segment Analysis – By Resin Type
Epoxy resin held the largest share of 32% in the thermosetting plastics market
in the year 2020. Epoxy resins and unsaturated polyesters are widely used for
their properties like elasticity, exceptional chemical resistance and are relatively quick to cure. The unsaturated polyesters and epoxy resins are
widely used in the construction industry. It is used in thermal insulation,
roofing, piping, repair & maintenance activities and others, in the
building and construction industry. The epoxy resin market is estimated to grow
at an annual rate of 4% during the year 2021. This will lead to an increase in
the growth of the epoxy resin segment in the thermosetting plastics market.
Thermosetting Plastics Market Segment Analysis – By Application
The adhesive and sealants segment held the
largest share of 37% in the thermosetting plastics market in the year 2020. Adhesives and
sealants are hugely used in the construction industry, which is driving the
adhesives and sealants segment in the thermosetting plastics market. The
increase in construction activities is hugely driving the use of adhesives
and sealants products in the construction activities. According to Global
Construction Perspectives and Oxford Economics report, the global construction
industry is estimated to reach US$ 8 trillion by the year 2030. This is set to
drive the use of adhesives and sealants in the construction industry.
Thermosetting Plastics Market Segment Analysis – By End-Use Industry
The building and
construction segment held the largest share of 42% in the thermosetting
plastics market in the year 2020. The increase in the population coupled with
the need for infrastructure to accommodate the growing population is driving
the growth of the thermosetting plastics market. For instance, according to the World Bank,
the cost of expenditure in the construction industry across the world was
estimated to reach US$11.9 trillion in the year 2020, which is an increase of
4.2% as compared to the previous year's expenditure. This leads to the
increase in the use of thermosetting plastics in the construction industries
for various activities including roofing, piping, insulating, and in adhesives
and sealants.
Thermosetting Plastics Market Segment Analysis – By Geography
Asia-Pacific
region held the largest share of 44% in the thermosetting plastics market in
the year 2020. The increase in the growth of the construction industry and
automobile industry in countries like China, India, and Japan is driving the
thermosetting plastics market. Thermosetting plastics are used widely in the
automobile sector for various purposes like interior parts etc. In the
long-term development plan for the automotive industry, the Chinese government set
a goal for 2020, to reach an annual sales of 2 million for their new energy
vehicles (NEV). This will increase the growth of the automobile industry which will
eventually increase the demand for the thermosetting plastics market in the region.
Thermosetting Plastics Market Drivers
Increase in the demand from the automobile industry
The increase in demand for polyurethane from the automobile industry is driving the thermosetting plastics market. Polyurethanes foam is used in the arm rests, head rests, cushioned instrument panels and other parts of a car’s interior. According to the International Organization of Motor Vehicle Manufacturers, the total production of cars and commercial vehicles amounted to 91.78 million units globally in the year 2019. The increase in the production of vehicles eventually increase the demand of thermosetting plastics as they are extensively used in the production of interior components of the cars and other commercial vehicles.
Government initiatives in infrastructure
The increase in the government initiatives regarding the
infrastructure facilities is hugely driving the thermosetting plastics market
as they are widely used in the construction activities. Thermosetting plastics
are widely used in adhesives and sealants, insulation, piping activities and
other appliances such as toilet-wares and kitchen appliances. For instance, the
Chinese Government came up with an initiative called ‘New Type Urbanization
Plan’ wherein the government aims at developing the nation’s infrastructure by
the year 2020. Initiatives like this are hugely driving the thermosetting
plastics market as they are used in many of the construction activities.
Thermosetting Plastics Market Challenges
Strict regulations on the disposal of thermosetting plastics waste
There are various stringent government regulations by
various government bodies on the disposal of waste derived from the production of
thermosetting plastics. The non-fulfilment of such regulations attract legal
actions from the government. This is one of the major challenges faced by the
thermosetting plastics market. For instance, according to the Guidelines for
Disposal of Thermoset Plastic Waste including Sheet moulding compound
(SMC)/Fiber Reinforced Plastic (FRP) initative taken by the Ministry of
Environment, Forest and Climate Change, Government of India, there are certain
pre-requisites for co-processing of SMC/FRP polymer waste in cement plants like
the local authority will collect the waste from the chemical plant as the plant
must also maintain a record of the quantity received and utilized by them, so as to
not leave a loophole in the quantity consumed by the chemical plant.
Thermosetting Plastics Market Industry Outlook
New product launches, expansion, collaborations, partnerships, investments, acquisitions and mergers are some of the key strategies adopted by players in the Thermosetting Plastics Market. Major players in the Thermosetting Plastics Market include:
- Daicel Corporation
- Celanese Corporation
- Covestro AG
- Mitsubishi Engineering Plastic Corporation
- Teijin Chemicals Limited
- SABIC Innovative Plastics
- Solvay Plastics
- Schulman Inc.
- LyondellBasell Industries
- Chevron Phillips Chemical Company LLC among others.
Acquisitions/Technology Launches
- On
July 20, 2020, Daicel Corporation acquired the engineering plastics segment of
Celanese cooperation for US $1.575 billion. This acquisition will help Daicel
Group to develop new products and diversify into other advanced engineering
plastics.
Relevant Reports
Specialty
Plastics Market – Forecast (2021 - 2026)
Code: CMR 1099
Performance
Plastics Market – Forecast (2021 - 2026)
Code: CMR 1259
Conductive
Plastics Market – Forecast (2021 - 2026)
Code: CMR 0325
Polymers
Market In India – Forecast (2021 - 2026)
Code: CMR 0151
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