The chemical and physical properties such as low curing time, chemical resistance, high strength and flexibility of epoxy resin material has utility in various applications such as adhesive, composites, paints and coatings and construction materials. Continuously developing wind energy market and R&D initiatives are two key factors for the growth of wind turbine market. The global market for wind energy is flourishing like never before and it has been expected to witness new record installations in near future.
The Global epoxy-resins wind turbine market generated revenue of $423 Million in 2016 and is anticipated to contribute $794 Million by 2025, growing at a CAGR of 7.39%. Various reasons for growth of the epoxy resin market are the growth of construction industry, higher demand from paints and coatings and aerospace industry, growth of wind energy market, increase in consumption in electrical and electronics sector and an improvement in economies all over the world.
Epoxy resins have epoxide functional group and are thermosetting polymers. These undergo the curing process by heat, ultraviolet light or curing agents. Its properties are its versatility, high resistance to chemicals, toughness, good adhesion, strong durability at both low and high temperatures, high electrical resistance and ability to be poured on casts without forming bubbles. It can be used for laminates, insulators, jewelry and industrial applications.
It is used extensively in paints and coatings industry as it dries quickly and provides protective, tough coating with excellent hardness. Increase in disposable income and changing lifestyle have led to growth of construction and automotive industry where it is used as primers. It is used for corrosion resistance in metal cans and containers and resin-based coatings are used as a primer in marine paints and automotive.
Epoxy resin market is segmented on the basis of geography and application. Epoxy resins find applications in various industries adhesives, paints and coatings, construction, automotive, electric and electronics, wind turbine, aerospace, composites and others.
Market drivers for epoxy resin are increase in demand from end use industries like construction and automotive, growth in renewable energy like wind has increased demand for epoxy resins, improving economies has led to higher construction activity and increasing disposable incomes.
Paint and coatings industry has the largest market share of the epoxy resin market and it is expected to grow steadily over the next few years. Industrial and automobile application are expected to grow in the coming years as these resins have better heat resistance as compared to alkyd-based or latex-based paints. Higher demand for powder coatings, electrical and electronic laminates, and waterborne coatings, flooring and paving applications will boost market growth.
Composite material application sector is expected to report highest growth in the forecast period of 2017-2025. There is expected to be increase in demand for lightweight material with superior performance from aviation and automation industry.
Growth for demand in green energy has led to increase in setting up of wind turbines all over the globe. Epoxy resins are used to coat wind turbines and increase in wind energy will lead to growth of the global epoxy resin market.
Factors that will restrain market growth are increase in cost of raw materials cost, rising awareness of health hazards associated with BPA-based products and availability of polyurethane and phenolic resins as alternatives in various applications.
Figure: Global Epoxy Resin Market by Geography (%) in 2015
Source: Inkwood Research
Market regions that are covered in the report are North America, Europe, Asia-Pacific and RoW. Asia-Pacific market has the highest market share in the epoxy resin market and accounted for 64% global epoxy resin consumption. It is expected to report fastest growth in the forecast period as well. Reason for such high growth in the Asia-Pacific region is growth of composites and paints and coatings industry. Growth in automotive production and huge infrastructure development will drive the market. China has the highest market share.
North America and Europe too will report growth in the coming years. Demand from growing automotive industry and coatings in marine industry will drive the North American market growth. Wind turbine usage increase will also propel the market in both Europe and North America. Europe market growth will be due to demand from automotive and aerospace industries.
The major market players for epoxy resin are 3M Company, Nan Ya Plastic Corporation, BASF SE, Chang Chun Plastics Co. Ltd., Hexion Specialty Chemicals, DuPont, Huntsman Corporation, SanMu Group, Kukdo Chemical Co. Ltd. and Nama Chemicals. Nan Ya Plastic corp is the largest market player. Companies are forming alliances and are going for mergers and acquisitions to strengthen their market position. Organizations are investing in research and development to come up with novel and innovative products that will capture new market share.