Epoxy Resin Market - Global Outlook & Forecast 2024-2029

MARKET ANALYSIS

The epoxy resin market size was valued at USD 12.24 billion in 2023 and is projected to reach USD 16.49 billion by 2029, growing at a CAGR of 5.10% during the forecast period. The growth of the epoxy resin market is attributed to increasing demand across sectors like automotive, construction, and electronics. Epoxy resins are highly valued for their heat resistance, durability, and adhesion properties, making them ideal for applications such as automotive coatings, adhesives, and composite materials. Additionally, advancements in technology have enabled the development of high-performance epoxy resin with enhanced thermal stability, mechanical strength, and reduced curing times. For example, Huntsman’s Araldite series delivers high-performance epoxy resins for structural adhesives, particularly in industries like aerospace and electronics.

The construction industry significantly contributes to the epoxy resin market growth, with widespread usage in bonding agents for lamination in flooring, windows, roofs, walls, and decks. According to the U.S. Census Bureau, construction spending in the U.S. during July 2024 was estimated at USD 2,162.7 billion, a 6.7% increase compared to July 2023. Total spending in the first seven months of 2024 reached USD 1,237.5 billion, reflecting an 8.8% increase over the same period in 2023. Such robust growth in the construction sector is expected to propel the demand for epoxy resins, thereby driving the overall market expansion.

Global shipments in the epoxy resin market are anticipated to reach 5,457.91 million tonnes by 2029. The market is witnessing a shift toward sustainable materials, with increasing demand for bio-based epoxy resins derived from renewable sources. These bio-based variants reduce environmental impact by using alternatives like vegetable oils, lignin, and tannins, minimizing the reliance on bisphenol A. The rising focus on sustainability is expected to fuel the adoption of bio-based epoxy resins across industries, further boosting the epoxy resin market growth.

MARKET TRENDS & DRIVERS

Evolving Market of Bio-based Epoxy Resins

With growing environmental concerns, the epoxy resin market is evolving toward bio-based formulations made from renewable resources such as plant-based oils. These sustainable resins offer comparable performance to traditional epoxy resins while significantly reducing environmental impact. They emit lower VOCs, consume less energy during production, and can be recycled or disposed of in eco-friendly ways. The adoption of sustainable epoxy resins helps industries comply with stricter environmental regulations while avoiding penalties and reputational risks. Industries such as construction, automotive, and electronics are increasingly turning to these eco-friendly solutions, driving the overall growth of the epoxy resin market.

Technological Advancements

Technological advancements have introduced innovative formulations in the epoxy resin market, enhancing their properties for use in demanding industrial applications. The incorporation of nanotechnology, for example, has improved strength, durability, and resistance to chemicals and extreme temperatures. Additionally, advancements in curing agents and additives have enabled faster curing times and better adhesion, expanding the potential applications of epoxy resins. These innovations are creating new opportunities in the epoxy resin market, allowing businesses to remain competitive and capitalize on emerging trends.

SEGMENTATION INSIGHTS

INSIGHTS BY RAW MATERIAL

In 2023, the DGBEA raw material segment held the largest share in the epoxy resin market, accounting for over 36% of the global market by value. DGBEA is synthesized using epichlorohydrin and Bisphenol-A and is extensively used in coatings, adhesives, composites, and encapsulation applications. Its demand continues to grow in industries such as construction, automotive, and aerospace, driven by modernization and industrialization. The rising need for high-performance materials in electric vehicles and advanced automotive applications also contributes to the growth of this segment within the epoxy resin market.

INSIGHTS BY FORMULATION

The global epoxy resins market by formulation is segmented into liquid, solid, and powder. The liquid epoxy resin segment dominated the market in 2023 due to its superior properties. Industries like automotive and aerospace rely on liquid epoxy resins for coatings and composite materials, where their durability, chemical resistance, and high strength enhance product longevity and performance.

INSIGHTS BY BONDING

The epoxy resins market by bonding is segmented into two-part, one-part, and three-part formulations. In 2023, the two-part segment dominated due to its exceptional mechanical strength, thermal stability, and chemical resistance. This segment’s versatility allows customization to meet various application needs, such as different curing times or flexibility. Meanwhile, the one-part bonding segment is expected to grow rapidly due to its simplified application and reduced labor requirements.

INSIGHTS BY CURING METHOD

The cold cure segment led the epoxy resins market in 2023 and is projected to grow at a CAGR of 5.32%. Cold-cure formulations, which harden at room temperature, are widely used in construction and electronics for bonding, coatings, and encapsulation applications. Their ease of use and versatility make them a popular choice for time-sensitive projects, further driving demand in the epoxy resin market.

INSIGHTS BY APPLICATION

The paints and coatings segment dominated the global epoxy resins market by application in 2023 and is expected to maintain its lead during the forecast period. Epoxy coatings are widely used in automotive, construction, marine, and oil and gas industries due to their durability, corrosion resistance, and ease of maintenance. Additionally, the composites segment is witnessing the fastest growth, driven by increased investments in wind energy projects globally, boosting its share in the epoxy resins market.

INSIGHTS BY END-USERS

The construction sector holds the largest share of the epoxy resins market, driven by its use in concrete bonding, structural repairs, and adhesives. These materials are essential for ensuring structural integrity in buildings and infrastructure. The power and energy sector is the fastest-growing end-user segment, benefiting from the rising adoption of renewable energy and related investments in developing countries.

GEOGRAPHICAL ANALYSIS

The APAC region accounted for around 41% of the global epoxy resin market share by value in 2023 and is expected to dominate during the forecast period. Rapid industrialization, expanding automotive and construction sectors, and the growth of composites markets in China, India, and Japan are key drivers. Meanwhile, North America and Europe also hold significant shares, with North America benefiting from strong demand in residential and commercial construction and Europe driven by applications in wind energy and automotive. Latin America, the Middle East, and Africa, though smaller contributors, are projected to show faster growth due to industrial development and rising disposable incomes.

VENDORS LANDSCAPE

The global epoxy resin market features a competitive landscape with major players such as 3M, Dow Inc., Huntsman Corporation, Sika AG, and Ashland Global Holdings Inc. These companies focus on innovation, sustainability, and expanding production capacities to maintain their market positions. For instance, Aditya Birla Chemicals doubled its manufacturing capacity in 2022, enhancing its presence in the epoxy resins market. Competition is also intensifying as companies invest in high-growth regions like APAC and the Middle East to capture emerging opportunities.