Unsaturated Polyester Resin Market Size, Share & Trends Analysis Report By Product (DCPD, Orthophthalic, Isophthalic), By End Use (Building & Construction, Electrical, Marine), By Region, And Segment Forecasts, 2020 - 2027

Report Overview

The global unsaturated polyester resin market size was valued at USD 11.65 billion in 2019. Recent developments in the building and construction and tank and pipes are likely to drive the demand for isophthalic in these end-use segments. Increasing use of environment-friendly and energy saving products is also expected to positively influence the market for unsaturated polyester resin (UPR).

Ongoing research and developments in bio-based unsaturated polyester resin are likely to boost market growth as they offer recyclability, excellent strength, and thermal and corrosion resistance with lower thickness. Technological breakthroughs, innovations, and studies carried out for expanding the product’s application scope are projected to foster demand.

Unsaturated polyester resin is majorly used in the manufacturing of plastic composites. The use of composite materials is increasing in industries including building and construction, transportation, industrial, and sports and recreation. Composite materials offer various advantages such as low material cost, chemical and corrosion resistance, flexibility in component designing, and electrical insulation over the conventional materials such as metals and concrete components.

Composite materials are used to produce frames, panels, interior components, and various other components used in automotive, transportation, agriculture, and construction industries. In electrical and electronics industry, unsaturated polyester resin composites are used for manufacturing microwave antennas, substation equipment, printed wiring boards, and standoffs and pole line hardware. The wide application scope of unsaturated polyester resin composites is expected to drive their demand over the forecast period.

Unsaturated Polyester Resin Market Trends

Building & construction industry is majorly growing in countries such as China, India, and the U.S. In the U.S., public infrastructure such as bridges, wastewater treatment facilities, old narrow roads, and others is deteriorating, thus, surging the need for redevelopment. According to the American Society of Civil Engineers, by 2025, the country is expected to need USD 4 trillion to redevelop its infrastructure. 

In India, construction industry is majorly driven by rail, road, and rural infrastructure. According to the India Brand Equity Foundation (IBEF), the government of India has allocated USD 1.5 trillion from 2019 to 2025 for infrastructure development in the country. Under the Pradhan Mantri Gram Sadak Yojana (PMGSY), the redevelopment of 1,25,000 km roads is scheduled from 2019 to 2025. 

China is globally the largest building & construction market owing to its huge population. According to the International Trade Association, China’s 13th five-year plan is focused on reducing road traffic, redevelopment of housing infrastructure, and development of medium and small-sized cities. This is expected to boost construction activities in the country, in turn, driving the demand for unsaturated polyester resins over the forecast period.

The use of composite materials is increasing in industries including building & construction, transportation, industrial, sports & recreation, and others. They offer various advantages such as flexibility in component designing, corrosion and chemical resistance, electrical insulation, and low material cost over the conventional materials such as metals and concrete components. 

Composite materials are used to produce interior components, frames, panels, and various other components used in automotive, transportation, agriculture, and construction industries. Substation equipment, microwave antennas, standoffs & pole line hardware, and printed wiring boards in electrical & electronics industry are made from unsaturated polyester resin composites. These wide applications of unsaturated polyester resin composites is expected to drive the market over the forecast period.

Raw materials used in the manufacture of unsaturated polyester resin include maleic anhydride, phthalic anhydride, and propylene glycol, which are primarily derived from hydrocarbon fuels such as crude oil and natural gas. In North America, the production of ethylene (from which propylene is produced) is mainly dependent on natural gas, which is available at a very low cost owing to the vast shale gas reserves in the region. Thus, ethylene producers in the region are very competitive, keeping the resin market very tight and exporting in large quantities. Future supply-demand fluctuations are expected to keep the prices of plastics very volatile across global markets.

Product Insights

In terms of revenue, orthophthalic emerged as the largest product segment and accounted for over 35% of the unsaturated polyester resin market in 2019. Its properties such as mechanical properties, low thermal stability, resistance to corrosion, and low cost over other substitutes makes it suitable for various industries. The lighter weight of orthophthalic also results in ease of usage and transport.

DCPD is a white crystalline compound produced by the separation process of C5 petroleum products such as naphtha, gas oils, and crude oil. DCPD is polymerized to form PDCPD, which exhibits properties such as high deflection temperature, high resistance to chemical corrosion, and high impact resistance.

PDCPD is generally used for the manufacture of construction equipment, tractors, buses, and trucks. Increasing penetration of DCPD in marine applications such as recreational boats, owing to low resin shrinkage without the addition of fiber, is expected to augment segment growth over the forecast period. In addition, low VOC emissions and styrene content in DCPD is likely to fuel its demand as an alternate to orthophthalic resin in the coming years.

End-use Insights

In the building and construction industry, unsaturated polyester resin is increasingly being used in reinforcement, roofing, concrete, and composites of household structures, factories, buildings, and mass transit applications. Infrastructural development in BRICS and the Middle East countries has driven the global construction market, which, in turn, is expected to boost the demand for unsaturated polyester resin over the forecast period.

Rising concerns over corrosion associated with metal tanks and pipes coupled with gaining importance of tank farm management in onshore and offshore oil and gas applications have increased the scope for fiber reinforced plastic tanks and pipes. Increasing demand for fiber reinforced plastic tanks and pipes is expected to boost the growth of the market for UPR over the next eight years.

In addition, increasing drilling activities for crude oil production in offshore land, which is more prone to corrosion in Brazil and the Middle East countries, are likely to augment the use of fiber reinforced plastic over the coming years. Growing demand for unsaturated polyester resin composite material in printed circuit boards (PCBs), on account of their superior properties such as unparalleled rigidity and durability, is expected to have a positive impact on the market in the near future.

In addition, rising demand for composites in solder pallets, speaker housings, and reinforced cell phones is expected to augment the growth of the market for UPR over the forecast period. However, the availability of alternate polymer resin such as epoxy resin and nylon for composites manufacturing is anticipated to restrain the demand for UPR in electrical end uses.

Regional Insights

Asia Pacific dominated the market for UPR with a revenue share of over 57.0% in 2019. The market is driven by the growth of the major end-use industries such as construction, electronic, transport and marine. Robust manufacturing base of automotive industry in China, Japan, and India coupled with increased sales of passenger vehicles is anticipated to augment the growth of the market for UPR in the near future.

The presence of major electrical & electronics manufacturing companies, such as Toshiba Corporation, Pegatron Corporation, Samsung Electronics, LG Electronics, Fujitsu Ltd, and Sony Corporation, among others, is propelling the demand for unsaturated polyester resin in this region.  Thus, with the growing electrical and electronics industry, the demand for composites is also rising, which, in turn, is expected to drive the overall market of unsaturated polyester resin, as composites are utilized during the manufacturing of in printed circuit boards.

In addition, favorable policies such as foreign direct investments (FDI) and Make in India implemented by the government of India are expected to create ample growth opportunities for automobile industry, which, in turn, is expected to increase the consumption of unsaturated polyester resin in automobile applications.

The Europe unsaturated polyester resin market is majorly driven by the rising demand for the product from key applications such as building & construction, electrical, marine, and & wind energy systems. Building & construction was the largest end-use industry of unsaturated polyester resin in Europe in 2019 owing to the extensive use of these resin in numerous applications such as mortar, coating, and sealants. In addition, UPRs protect the surface from abrasions, corrosion, and chemicals. UPRs are being increasingly used in pipes, as artificial stones, and on walls & roofs.

In North America, the market for unsaturated polyester resin is primarily driven by the growth in construction, electronics, and manufacturing sectors. UPR and UPR-based composites are extensively used in the building and construction sector and in other applications such as tanks and pipes.

Favorable government policies concerning infrastructural development at a domestic level through the National Infrastructural Plan (NIP) coupled with “Affordable Healthcare Act” in the U.S. have resulted in the construction of healthcare units and hospitals in the region. Also, construction projects, such as Atlanta Chattanooga High Speed Rail Ground Transportation project and redevelopment & expansion of JFK International Airport are anticipated to create lucrative growth opportunities for various sectors including electronics, transportation, and aviation. This is expected to propel the demand for unsaturated polyester resin in the region over the forecast period.

Recovery of the construction industry in the region, owing to increasing demand for non-residential construction projects such as hospitals, schools, and colleges, is expected to positively impact the market in North America over the forecast period.

Key Companies & Market Share Insights

Most of the key players operating in the market for UPRhave integrated their production and distribution operations to maintain product quality and expand regional outreach. The initiatives provide companies a competitive advantage in the form of cost benefits, thus increasing the profit margin. Companies are undertaking mergers and acquisitions and research and development activities to develop new products to sustain market competition and changing end-user requirements.

Research activities focused on new materials, which combine several properties, are projected to gain wide acceptance in the industry over the coming years. Some of the prominent companies manufacturing these products include INEOS, BASF SE, Polynt, Koninklijke DSM N.V., U-PICA Company. Ltd., Eternal Materials Co., Ltd., Satyen Polymers Pvt. Ltd., Dow, UPC Group, Scott Bader Company Ltd., Tianhe Resin Co., Ltd., and LERG SA.

Unsaturated Polyester Resin Market Report Scope

Global Unsaturated Polyester Resin Market Segmentation

This report forecasts revenue and volume growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2016 to 2027. For the purpose of this study, Grand View Research has segmented the global unsaturated polyester resin market report on the basis of product, end use, and region.

• Product Outlook (Volume, Kilotons; Revenue, USD Million, 2016 - 2027)

  • DCPD

  • Orthophthalic

  • Isophthalic

  • Others

• End-use Outlook (Volume, Kilotons; Revenue, USD Million, 2016 - 2027)

  • Building & Construction

  • Tanks & Pipes

  • Electrical

  • Marine

  • Transport

  • Artificial Stones

  • Others

• Regional Outlook (Volume, Kilotons; Revenue, USD Million, 2016 - 2027)

  • North America

    • U.S.

  • Europe

    • Germany

    • U.K.

  • Asia Pacific

    • China

    • India

  • Central & South America

  • Middle East & Africa