Specialty Resins Market will grow at highest pace owing to rising demand from construction and automotive industry

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.

The specialty resins market comprises various thermoset resins including polyester resins, polyurethane resins, epoxy resins, and vinylester resins that are used in various end-use industries like construction, marine, automotive, electronics, and aerospace. These resins possess special chemical and physical properties that make them different from commodity resins. Specialty resins offer exceptional performance features like heat resistance, chemical resistance, strength, adhesion and abrasion resistance. They play a key role in manufacturing composites and finding applications as paints, coatings, adhesives and sealants. The growing demand for composite materials and high performance products from end-use industries is driving the growth of specialty resins market.

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 growing demand from construction and automotive industries is driving the Global specialty resins market Growth. Specialty resins are increasingly used in composites for manufacturing exterior panels, doors and other components of vehicles due to their light weight and corrosion resistance properties. In construction sector, specialty resins reinforced composites are gaining popularity for use in tiles, pipes, panels and other construction materials due to moisture resistance and durability.

Technological advancements are leading to development of new bio-based and hybrid specialty resins. Owing to environmental regulations, companies are investing in R&D to develop specialty resins from renewable resources like plant-oils and natural polymers like lignin and poly lactic acid using advanced polymerization techniques.

Market Trends
Growing demand in emerging economies: Countries like China, India, Brazil, Mexico etc. are witnessing increased industrial development and infrastructural investment which is fueling the growth of end-use industries of specialty resins like construction, marine, automotive etc.
Rising environmental regulations: Stringent regulations regarding VOC emissions and use of hazardous substances are propelling the demand for non-phthalate plasticizers and bio-based specialty resins.

Market Opportunities
Development of specialty epoxy resins: Epoxy specialty resins modified with nanofillers and engineered polymers show promise for applications requiring high strength, scratch resistance and moisture barrier properties.
Increasing R&D in bio-based specialty resins: Government support for green chemistries and sustainability is creating opportunities for specialty resin companies to develop new plant oil and lignin based specialty resin product range.

Impact of COVID-19 on Specialty Resins Market growth

The COVID-19 pandemic has adversely impacted the growth of the specialty resins market in 2020. Government-imposed lockdowns and movement restrictions disrupted supply chains and halted production activities globally. This led to reduced demand from key end-use industries like automotive, construction, electronics, packaging, and other industrial sectors. Most specialty resin manufacturers witnessed contraction in revenues due to the decline in volume sales. However, with mass vaccination drives and relaxation of lockdown measures in 2021, the market started recovering gradually.

Geographical impact

Asia Pacific was the largest as well as the fastest-growing regional market for specialty resins in terms of value before the pandemic. Countries like China, India, Japan, and South Korea were major contributors to the regional market growth due to rising manufacturing activities and strong demand from end-use sectors. However, COVID-19 severely disrupted supply chains and manufacturing activities in Asia Pacific, negatively impacting the market. Europe followed Asia Pacific in terms of value share in the pre-COVID period. Countries including Germany, UK, France and Italy witnessed considerable demand from major end-use industries. However, the pandemic severely affected European economies.

Future Strategies

As the market starts recovering, specialty resin manufacturers will need to focus on strengthening supply chains and ensuring business continuity. Many companies are actively working on strategies like expanding production capacities in less COVID-affected regions, developing application-specific product portfolios, and targeting high growth end-use industries like renewable energy and healthcare. Emphasis on innovation and development of sustainable bio-based and recycled specialty resin varieties can drive future market growth. Collaborations with key customers to streamline operations and meet evolving demands will also be critical for specialty resin providers.

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Purvaja Jadhao

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