Specialty Resins Market Size, Share & Trends Analysis Report By Application (Building & Construction, Water Treatment, Marine, Electrical & Electronics, Automotive, Aerospace, Others), By Type, By Function, By Region And Segment Forecasts, 2022 - 2030

Report Overview

The global specialty resins market size was valued at USD 7.3 billion in 2021 and is expected to expand at a compound annual growth rate (CAGR) of 6.3% from 2022 to 2030. Increasing demand from building & construction is anticipated to significantly drive the market growth during the forecast period. Increasing demand for specialty resins is attributed to the growing construction spending, particularly residential construction, especially in North America and Western Europe. Specialty resins are resins with unique properties that are used in a wide variety of applications. Special resins are more expensive than conventional resins due to their advanced features like chemical resistance, water resistance, and resistance to harsh temperatures. Specialty resins are important elements in the production of a wide range of paints and coatings, which are subsequently used in a number of applications such as building & construction, marine, automotive, electrical & electronics, furniture, and household. These resins are also used to make aircraft composites in the aerospace industry.

Asia Pacific has been the leading consumer of specialty resins, fueled by increasing demand from China and India. Increasing disposable income and willingness to spend is expected to drive the market over the coming years. In the recent past, global automotive production has grown rapidly due to growing demand from middle-class families and rising disposable income in developing countries such as China, Vietnam, India, Brazil, and others. The booming automotive industry is expected to create demand for products in areas such as under-the-hood components, vehicle exteriors, and interiors. The increasing use of resins in the automotive sector is driven by the need for lightweight, low-cost multipurpose vehicles with high fuel efficiency and a focus on aesthetics and comfort. This is expected to increase demand for specialty resins worldwide. However, volatile specialty resin feedstock prices are expected to dampen the market growth during the forecast period.

In addition, the outbreak of COVID-19 has negatively impacted the demand for epoxy resin in various applications including water treatment, marine, electrical & electronics, and others owing to the stalled manufacturing activities, restrictions in supply and transportation, and economic slowdown across the globe in 2020. Moreover, the recommencing industrial operation is projected to positively influence the demand for the specialty resin industry in the times to come.

Application Insights

The building and construction application segment led the market and accounted for more than 37.0% of revenue share in 2021. Specialty resins are widely utilized in residential & commercial buildings, marine industries, automotive, and wastewater treatment plants among others owing to their excellent resistance to cracks, stains, blistering, extreme temperatures, and chemicals. They offer excellent high anti-corrosion performance, adhesion, and low volatile organic compounds content.

Growing demand in the construction sector is predicted to drive growth in the market during the procasted period. Construction is a broad industry that includes everything from mining, quarrying, and forestry to infrastructure and building construction, product manufacturing and supply, and repair, maintenance, and disposal. Specialty resin is used in the production of plastics, paints, coatings, flooring, plastics, primers and sealants, adhesives, and other building materials and components. For example, according to construction industry statistics, in 2021, the US construction sector generated $1.6 trillion in sales. The average US construction industry spends nearly $1,245 billion a year. Thus, the growing demand in the construction industry is driving the growth of the market.

Moreover, ongoing industrialization, increasing government infrastructure spending, and surging foreign direct investments (FDI), especially in the Asia Pacific is expected to contribute to the demand for specialty resins, thereby fueling the growth of the market.

Type Insights

Epoxy type segment has dominated the market and accounted for more than 34.0% of revenue share in 2021. The main types of specialty resins are epoxy resins, unsaturated polyester resins (EPS), vinyl, and polyamide. Epoxies are polymeric materials that contain more than one three-membered ring, also known as epoxy, and are thermoset polymers. The most common form of specialty resin is epoxy, which is used as an adhesive, sealant, bond coat, and matrix for composite materials.

Unsaturated polyester resin (UPR) is a precipitated product of anhydrides and unsaturated acids or diols with or without diacids. It is used in the construction and marine sector as well as in pipes and tanks. Vinyl specialty resins are used in new industrial applications such as printed circuit boards, rigid foams, coatings, automotive parts, building materials, metal foil laminates, and fiber-reinforced composites. Polyamides are a family of thermoplastic polymers that are high-density, opaque polymers with excellent strength and heat resistance. Various types of special resin functions include protection, insulation, and others.

Function Insights

Protection function segment dominated the market and accounted for more than 59.0%of revenue share in 2021. The major functions of specialty resin covered in this report are insulation, protection, and others. The protection function market is expected to hold the highest market share during the forecasted period. The market is driven by increased demand from applications such as building & construction, water treatment, marine, electrical & electronics, automotive, aerospace, and others. The specialty resin has a high strength-to-weight ratio because its cells are not cross-linked, lightweight, and are composed of individual cells of low-density polymer, making it the perfect material for a protective function.

Region Insights

Asia Pacific region dominated the market and accounted for the largest revenue share of more than 61.0% in 2021. Rising construction activities and growing demand from the automotive sector in emerging countries, such as India, Japan, and South Korea, are expected to drive the market over the forecast period. Furthermore, the easy availability of raw materials has provided huge opportunity for the use of specialty resin-based products in various end-use sectors.

China dominated the regional market in 2021. The rising number of infrastructure development projects and growing manufacturing industry are expected to drive industry growth in the coming times. China’s construction market is likely to outperform other Southeast Asian countries owing to government initiatives and funding to retain its development.

For instance, according to National Development and Reform Commission (NDRC) in 2019, China government approved 26 infrastructure projects with a total expected investment of USD 142 billion. Similarly, in 2020, the Communist Party of China announced that the government is planning around USD1.4 trillion for a digital infrastructure public spending program.

Key Companies & Market Share Insights

Key players operating in the global specialty resins market compete based on their product development capabilities and new technologies used in product formulations. Established players such as Huntsman International LLC have invested in the development of innovative and sustainable solutions for formulating new and advanced resins that give them an edge over their competitors. For instance, in September 2020, Huntsman International LLC launched ARALDITE 2000 Adhesive core range consisting of three technologies: epoxy, acrylic, and polyurethane, for helping businesses to maximize their productivity by covering up to 80% of all bonding needs.

Similarly, in September 2021, Polytek Development Corp. a portfolio company of Arsenal Capital Partners which is one of the leading specialized producers of polymers for mold forming, coating, and casting applications, acquired the specialty resin & chemical. Some of the prominent players in the global specialty resins market include:

• 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

Specialty Resins Market Report Scope

Global Specialty Resins Market Segmentation

This report forecasts revenue and volume growth at global, and regional levels and provides an analysis of the latest industry trends in each of the sub-segments from 2019 to 2030. For this study, Grand View Research has segmented the specialty resins market report based on application, type, function and region:

• Application Outlook (Volume, Kilotons; Revenue, USD Million, 2019 - 2030)

  • Building & Construction

  • Water Treatment

  • Marine

  • Electrical & Electronics

  • Automotive

  • Aerospace

  • Others

• Type Outlook (Volume, Kilotons; Revenue, USD Million, 2019 - 2030)

  • Vinyl

  • Epoxy

  • Polyamides

  • Unsaturated Polyester Resins

  • Others

• Function Outlook (Volume, Kilotons; Revenue, USD Million, 2019 - 2030)

  • Protection

  • Insulation

  • Others

• Regional Outlook (Volume, Kilotons; Revenue, USD Million, 2019 - 2030)

  • North America

    • U.S.

    • Canada

    • Mexico

  • Europe

    • Germany

    • France

    • U.K.

    • Italy

  • Asia Pacific

    • China

    • India

    • Japan

  • Central & South America

    • Brazil

  • Middle East & Africa

    • Saudi Arabia

    • South Africa