Specialty resins find applications across various end-use industries including construction, electronics, automotive, healthcare, and food packaging. They provide properties such as adhesion, durability, water and chemical resistance which help improve performance of products. With growing infrastructure development activities, increasing automotive production, and expanding electronics sector worldwide, the demand for specialty resins is projected to surge substantially in the coming years.
The global specialty resins market is estimated to be valued at US$ 13.63 Bn in 2024 and is expected to exhibit a CAGR of 6.3% over the forecast period 2024 to 2031.
Key Takeaways
Key players operating in the specialty resins market are BASF SE, Hexion Inc., SABIC, Royal DSM, Arkema, Radiant Color NV, Mitsubishi Chemical Corporation, The Dow Chemical Company, Huntsman International LLC, Aldex Chemical Company Limited, Thermax Limited, International Specialty Chemicals Ltd., Purolite, Kolon Industries, Revex Plasticiser, Tetra, V. B. Chem Industries, Orson Resins And Coatings Private Limited, & Nye Lubricants, Inc., Scholle Ipn Corporation.
The Global specialty resins market Growth is anticipated to witness high growth opportunities in construction, automotive, and electronics industries. Rapid urbanization and infrastructure development initiatives across developing regions are likely to drive the demand for construction resins. Growth of the automotive industry and increasing preference for lightweight vehicles will augment sales of transportation resins. Rising electronics consumption worldwide along with miniaturization of devices offers scope for specialty electronics resins.
Technological advancements play a key role in driving the specialty resins market. Resin manufacturers are focusing on developing bio-based and hybrid resins with improved properties. Furthermore, nano-enabled resins with enhanced durability, thermal resistance and sustainability are gaining traction. Production of specialty resins from recyclable feedstock using green chemistry is also contributing to market expansion.
Market Drivers
Growth in the construction industry: Expanding construction activities worldwide on the back of rapid urbanization, infrastructure development projects especially in Asia Pacific and Middle East regions will propel the demand for specialty resins in applications such as coatings, sealants and adhesives.
Rising automotive production: Increasing automobile manufacturing supported by high vehicle sales is a major factor augmenting the consumption of specialty transportation resins in applications like exterior body panels, bumpers and under the hood components.
Growing electronics industry: Proliferating electronics industry due to rising disposable incomes and burgeoning demand for smartphones, tablets, laptops and home appliances will drive the specialty electronics resins market.
Challenges in Specialty Resins Market
The specialty resins market is facing challenges related to increasing raw material prices and environmental regulations. Volatility in raw material prices affects the overall production cost for manufacturers. Specialty resins are derived from petrochemicals such as ethylene, propylene, benzene, toluene, and xylene, whose prices regularly fluctuate according to global oil prices. Environmental agencies have imposed stringent regulations pertaining to the use of hazardous and toxic substances in the production of resins. Manufacturers need to invest in developing bio-based and recycled resin alternatives to comply with these regulations.
SWOT Analysis
Strength: Specialty resins offer superior properties like high heat distortion temperature, corrosion and chemical resistance. This makes them suitable for applications in automotive, construction and electronics industries.
Weakness: Specialty resins have high production costs due to involvement of complex chemical reactions in manufacturing. This limits their use only for high-performance applications.
Opportunity: Growing demand for lightweight and high-performance materials from end-use industries provides scope for development of novel specialty resin formulations. Increasing construction activities in Asia Pacific and Middle East regions also present new market opportunities.
Threats: Stringent environmental regulations around the world restrict the use of toxic substances in resins. Substitution threat from bio-based and recycled polymer alternatives also looms large over specialty resin manufacturers.
Geographical Regions
The Asia Pacific region dominates the global specialty resins market in terms of value, accounting for more than 35% share. This is attributed to strong growth of end-use industries like construction, automotive and electronics in China, India, Japan and South Korea. North America is the second largest market supported by resins demand from petrochemical and oil & gas sectors in the US and Canada.
Fastest Growing Region
The Middle East region is expected to witness the fastest growth in the specialty resins market during the forecast period. This is due to ongoing massive construction projects for hotels, malls and real estate in GCC countries. Increasing investments in infrastructure development as part of Vision 2030 also drives the specialty resins demand in Saudi Arabia.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
