Epoxy resins are synthetic polymer composites derived from petroleum sources. It acts as a raw material for various chemicals used across paint and coatings, construction, electronics industries. Epoxy resins can be categorized into the following types:
Bisphenol epoxy resins: This resin has the lowest molecular weight among other resins.
Aliphatic epoxy resins: These resins have low levels of viscosity, good weather resistance, and low dielectric constants.
Novolac epoxy resins: It has a relatively high level of adhesive strength compared to others.
Halogenated epoxy resins: These types of resins are the most preferred options for flame resistance and electrical applications.
Epoxy resin diluents: This resin is formed by the glycidylation of aliphatic alcohols or polyols.
Glycidylamine epoxy resins: These epoxy resins have relatively high levels of functionality and a low-medium viscosity at room temperature, making them easier to process than epoxy phenol novolac (EPN) and epoxy cresol novolac (ECN).
The global epoxy resin market was valued at 3.6 million tons in 2020 and it is expected to grow at a CAGR of ~6% from 2020 to 2027 due to rising demand from the booming construction and electronics sector in APAC. APAC is also the largest geographic segment in the global epoxy resins market with more than 50% market share followed by North America and Europe. The liquid epoxy resin accounts for the largest share of the global epoxy resins market due to its wide range of applications. However, solid epoxy resin is the fastest-growing segment due to the high demand in powder coating applications. Paint and coatings are the largest end-user segment of the global epoxy resins market with more than 50% market share followed by the adhesive and sealants segment.
Raw material costs are the major cost driver of epoxy resin production. Key raw materials include DGBEA (Bisphenol A and ECH), DGBEF (Bisphenol F and ECH), formaldehyde, phenols, aliphatic alcohols, Glycidylamine (Aromatic Amines and ECH). The cost of raw materials accounted for more than 50% of the overall cost of production followed by machinery, equipment, and labor costs. As the price of ECH is highly volatile, epoxy resins manufacturers outsource their production to low-cost labor countries like China to reduce cost and increase profitability.
Covid-19 pandemic and related lockdowns affected the growth of the global epoxy resin industry. Construction and automotive, two of the largest end-users of epoxy resins were among the most affected industries during the pandemic. Moreover, the increasing need for biodegradable polymers and stringent environmental regulations regarding bisphenol A is expected to hinder the demand growth during the forecast period.
Olin Corporation, Nan Ya Plastics Corporation, Huntsman Corporation, Hexion Inc, Kukdo Chemical Co. Ltd., Chang Chung Plastics Co. Ltd, Aditya Birla Chemicals the 3M Company, BASF SE, Sinopec Corporation, are some of the key suppliers of epoxy resins. The global epoxy resin industry feature a moderately fragmented landscape with the top ten players contributing less than 30% of the market share. Many suppliers are planning to increase their operational capacity from 70% to 90%. Leading suppliers are strengthening their presence through multiple mergers and acquisitions. Grand View Research will help our client identify the best-suited suppliers by mapping their core capabilities and operational efficiency.
Component wise cost break down for better negotiation for the client, highlights the key cost drivers in the market with future price fluctuation for different materials (e.g.: steel, aluminum, etc.) used in the production process
Offering cost transparency for different products / services procured by the client. A typical report involves 2-3 case scenarios helping clients to select the best suited engagement with the supplier
Determining and forecasting salaries for specific skill set labor to make decision on outsourcing vs in-house.
A typical newsletter study by capturing latest information for specific suppliers related to: M&As, technological innovations, expansion, litigations, bankruptcy etc.
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