Petroleum resins are hydrocarbons obtained from petroleum sources which find wide applications in printing inks, adhesives, rubber, and paints and coatings industries. They are primarily used in paints and coatings to impart qualities like gloss, hardness, adhesion and water resistance. Petroleum resins based paints and coatings see tremendous demand in construction and automotive industries. The global construction industry has been witnessing high growth over the past few years with increasing residential and non-residential projects worldwide. Moreover, the revival of automotive industry especially in developing countries of Asia Pacific and Latin America has also been propelling the demand for automotive paints and coatings.
The global petroleum resins market is estimated to be valued at US$ 3697.05 Mn in 2023 and is expected to exhibit a CAGR of 21% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Dynamics:
The growing demand from paints and coatings industry remains the key driver for petroleum resins market wherein they are used to impart qualities like hardness, gloss and resistance. As mentioned earlier, the rising construction activities particularly in developing nations along with growth of automotive industry has been augmenting the paints and coatings demand fueling the petroleum resins consumption. According to data, the global construction industry witnessed growth of over 3% in between 2018-2021. Moreover, Asia Pacific region accounted for over 60% of global construction output in 2021 led by countries like China and India. This bullish growth of construction industry especially in developing nations bodes well for the petroleum resins market over the forecast period.
SWOT Analysis
Strength: Petroleum resins have high temperature and oxidation resistance which makes them suitable for protective coatings and hot melt adhesives. They provide high gloss and flexibility to various applications. Resins also offer good adhesion to a variety of substrates.
Weakness: Strict environmental regulations in Europe and North America regarding the emissions of volatile organic compounds limit the use of petroleum resins in certain paints and coatings. Dependence on crude oil as a raw material also leads to price fluctuations depending on global oil prices.
Opportunity: Growing demand for hot melt adhesives from packaging and construction industries is a major opportunity. Increasing use of petroleum resins in the production of tire cords and electric cables also provides growth prospects. Government investments in infrastructure development across developing nations boosts the market.
Threats: Rise in crude oil prices increases the prices of petroleum resins adversely impacting the cost of end use products. Stringent environmental norms regarding the use of petroleum based products in developed regions pose a threat. Substitution risk from bio-based and natural resin alternatives also looms large over the market.
Key Takeaways
The Global Petroleum Resins Market Size is expected to witness high growth over the forecast period of 2023 to 2030 on account of growing demand from key end use industries. The market size is projected to reach US$ 3697.05 Mn by 2030 at a CAGR of 21%.
Regional analysis:
Asia Pacific region currently dominates the global market and is expected to maintain its lead through 2030 driven by China, India, Indonesia, and other developing countries. Rapid industrialization and infrastructure growth across APAC creates sustained demand for petroleum resins. North America and Europe are other major regional markets albeit experiencing moderate growth rates due to stringent environmental regulations in these regions.
Key players:
Key players operating in the petroleum resins market are TotalEnergies, ExxonMobil Corporation, Eastman Chemical Company, China Petroleum & Chemical Corporation, Zeon Corporation, Arakawa Chemical Industries, Ltd., Mitsui Chemicals, Inc., Idemitsu Kosan Co.,Ltd., Neville Chemical Company, and RTGERS Group. TotalEnergies is the global market leader with strong presence across major regions. Eastman Chemical and ExxonMobil are other leading multinational companies in the market.
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