Synthetic Resin Market - Forecast(2023 - 2028)

Synthetic Resin Market Overview

The Synthetic Resin Market size is projected to reach a value of US$521.6 billion by the end of 2027 after growing at a CAGR of 4.8% during the forecast period 2022-2027. A synthetic resin is a chemical substance that is synthesized to closely resemble the properties of its natural counterpart. Synthetic resins based on polyethylene, polyvinyl chloride, formaldehyde, aliphatic, and glycidyl amine occur in a wide range of products, such as plastics, paints, and varnishes. Products that are manufactured with synthetic resins provide better long-term corrosion protection of metal substrates because of their increased durability, owing to which its market demand is being spurred. The growth can be attributed to the increasing demand for paints, coatings, adhesives, and sealants from the bolstering building and construction industry across various regions globally. However, the increasing adoption of bio-based resins as an eco-friendly alternative over the coming years is anticipated to impede the global synthetic resins market growth over the forecast period.

Synthetic Resin Market COVID-19 Impact

The COVID-19 epidemic negatively impacted the synthetic resin demand in a variety of end-use industries, including automotive, aerospace, construction, and more. Due to the closure of non-essential businesses, the outbreak had a significant impact on the aerospace, automotive, and construction industries. As demand for automobiles and aircraft dwindled, production was abruptly halted. For instance, according to the International Organization of Motor Vehicle Manufacturers, global automotive production will fall by 16 percent in 2020. Due to the impact of the COVID-19 pandemic, Toyota Motor Corporation's global vehicle manufacturing in 2020 was flat at 12.6 percent year over year. Furthermore, during the pandemic, construction output was drastically decreased. According to the Office for National Statistics, the construction industry in the United Kingdom was 11.6 percent lower in July 2020 than it was in February 2020. In August 2020, the level of project construction in the United Kingdom was 10.8% lower than in February 2020. Due to this the demand for paints, coatings, adhesives, and sealants significantly reduced, which impacted the Synthetic Resin Market revenue in 2020.

Report Coverage

The report: “Synthetic Resin Market Report – Forecast (2022-2027)” by IndustryARC, covers an in-depth analysis of the following segments of the Synthetic Resin Market.

Key Takeaways

• Asia-Pacific dominates the Synthetic Resin Market, owing to the increasing transportation and construction industry in the region. The increasing per capita income and evolving lifestyle of individuals coupled with the rising population are the major factors expanding the transportation and construction industry in APAC.
• Excellent properties such as toughness, resistance to several environmental factors, stability, and flame resistance, are making synthetic resin more popular in the electrical and electronics industries for manufacturing components such as printed circuit boards, electrical encapsulation circuits, components, and assembly materials.
• Synthetic resins are being used in the oil & gas industry as they are an ideal match for the challenges of withstanding high-pressure, high-temperature environments. Thermoset resins have excellent thermal stability in high-pressure and high-temperature environments, allowing for more modular and robust product offerings with longer service existences.
• However, increasing the adoption of bio-based resins over synthetic resins on account of their eco-friendly nature is acting as a major challenge for the global synthetic resins market during the forecast period.

Synthetic Resin Market Segment Analysis – by Type

The thermoplastic resins segment held the largest share in the Synthetic Resin Market in 2021 and is forecasted to grow at a CAGR of 4.9% during the forecast period 2022-2027. Reheating, remolding, and cooling thermoplastics without causing chemical changes is possible. The primary benefit of thermoplastics is their broad range of uses. Thermoplastics are materials with high strength, low weight, and low processing costs. Furthermore, thermoplastic materials are relatively simple to manufacture in large quantities and with high precision. Thus, all these advantages associated with thermoplastic resins are majorly contributing to its segment growth. However, the main disadvantage of using thermoplastics instead of metals is that they have a lower melting point. When low-quality thermoplastics are exposed to the sun for long periods, they can melt. This factor is restricting the thermoplastic resin segment growth over the forecast period.

Synthetic Resin Market Segment Analysis – by End-use Industry

The transportation segment held a significant share in the Synthetic Resin Market in 2021 and is forecasted to grow at a CAGR of 5.6% during the forecast period 2022-2027, owing to the increasing usage of synthetic resins in the transportation component. The transportation industry demand high-reliability synthetic resins. Synthetic resins are known to provide excellent mechanical strength, structural support, and durability. The synthetic resin manufactured components withstand the initial impact force of installation, as well as the repeated stress of inspections and repairs. They also have high shear, compressive, flexural, and tensile strength to withstand the stresses of takeoff, flight, and landing. Synthetic resins even exhibit high strength at elevated operating temperatures and also provide insulation from heat when used to separate two components due to which they are extensively used in the transportation sector. Moreover, synthetic resins offer excellent electrical insulation properties and low toxicity/burn characteristics which minimize the damage and risk in the case of fire or explosion. Due to all these extensive characteristics of synthetic resins, it is being widely used in the transportation sector, which is anticipated to drive the Synthetic Resin Market during the forecast period.

Synthetic Resin Market Segment Analysis – by Geography

Asia-Pacific region held the largest share in the Synthetic Resin Market in 2021 up to 41% and is forecasted to grow at a CAGR of 6.2% during the forecast period 2022-2027, owing to the increasing transportation industry in APAC countries. For instance, according to the Organisation Internationale des Constructeurs d'Automobiles (OICA), automotive production and Vietnam grew by 1.2 percent and 5.5 percent from the previous year to 5,71,632 and 2,50,000 units, respectively, in 2019. In November 2020, Boeing forecasted that China's airlines would spend US$1.4 trillion on 8,600 new planes and US$1.7 trillion on commercial aircraft services over the next 20 years. According to India Brand Equity Foundation (IBEF), India’s domestic automobile production increased at a 2.36 percent CAGR from FY16 to FY20, with 26.36 million vehicles produced in FY20. Between FY16 and FY20, domestic automobile sales increased at a 1.29 percent compound annual growth rate (CAGR), with 21.55 million vehicles sold in FY20. According to the Japan Automobile Manufacturers Association (JAMA), automobile production in Japan increased in November from 6,67,462 units in October to 6,90,311 units. Thus, the growth of the global Synthetic Resin Market in the region is being aided by the increasing transportation sector in APAC, thereby dominating the market in the Asia-Pacific region.

Synthetic Resin Market Drivers

Government Initiatives Bolstering the Growth of the Building & Construction Sector

Synthetic resin-based paints, coatings, adhesives, and sealants are often employed in residential buildings in applications such as windows, walls, doors, floors, and more. The governments are taking initiatives to increase building & construction activities. For instance, Kansai International Airport in Japan will spend about 100 billion yen ($911 million) by 2025 to upgrade the larger terminal, to increase space for international flights at the country's No. 2 hub. The Indian Union Budget of February 2020 aims to build 100 new airports by 2024 as part of the Centre's Udan scheme to help with growing air traffic. The health facility revitalization component of the national health insurance indirect grant in South Africa has been allocated R4.6 billion over the medium term (2020-2021). A fraction of this budget will go toward the planning and construction of the Limpopo Central Hospital in Polokwane, which is set to open in 2025/26. The Ministry of Housing and Urban Development (MoHUA) has been given Rs 50,000 crore (US$6.8 billion), and a fund of Rs 25,300 crore (US$3.5 billion) has been set up to help complete stalled housing projects. The Indian government has launched a project called the “Pradhan Mantri Awas Yojana (PMAY) program”, which aims to provide affordable housing to all urban poor people by 2022 through financial assistance. Such government initiatives are set to increase the demand for paints, coatings, adhesives, and sealants in the residential construction sector, and further drive the Synthetic Resin Market growth during the forecast period.

Bolstering Growth of Personal Care & Cosmetics and Food & Beverages Sector

Synthetic resins are often used to manufacture packaging materials for various end-use industries such as food, cosmetics, pharma, and more. Due to rising consumer demand and increasing per-capita income of individuals, the personal care & cosmetics and food & beverage industry is booming in various regions. According to the India Brand Equity Foundation (IBEF), the beauty, cosmetics, and grooming market in India in 2025 will have grown from US$6.5 billion to US$20 billion. According to the International Trade Administration, Thailand's beauty and personal care goods market was valued at around US$6.2 billion in 2018 and is projected to grow to US$8.0 billion by 2022. Thailand's beauty and personal care sector is projected to grow at a rate of 7.3 percent per year from 2019 to 2022. According to the China Chain Store & Franchise Association, the food and beverage (F&B) sector in China reached $595 billion in 2019, up 7.8% from 2018. In 2019, Canadian poultry farmers manufactured a record 1 493.5 million kilograms of chicken, turkey, and stewing hens, according to Statistics Canada, up 1.7 percent from 2018. Since the personal care & cosmetics and food & beverage sector industries are booming, the demand for packaging is also significantly increasing. Thus, the increasing personal care & cosmetics and food & beverage sector act as a driver for the synthetic resins market during the forecast period.

Synthetic Resin Market Challenge

Shift Towards Bio-based Resins

Many resin manufacturers have shifted away from synthetic resins to bio-based resins due to the globalization of the economy, increased awareness of carbon footprints, increased emphasis on sustainable systems, and the evolution of product lifecycle analysis. Bio-resins have a lot of potential. They reduce reliance on petrochemicals and allow manufacturers who use them to promote greener products due to price volatility. Furthermore, they have a better entire life cycle than petrochemical-based resins, with a lower carbon footprint, lower manufacturing toxicity, and less reliance on fossil fuels. Businesses are constantly launching bio-resins in the market as a result of this shift. SABIC, for example, launched a new portfolio of bio-based ULTEMTM resins in November 2021 in Saudi Arabia, which offers sustainability benefits while delivering the same high performance and processability as incumbent ULTEM materials. These ground-breaking polyetherimide (PEI) materials are the industry's first certified renewable high-performance, amorphous polymers. Thus, such advantages of bio-based resins over synthetic counterparts and constant product launches of bio-based resins are anticipated to restrict the Synthetic Resin Market growth.

Synthetic Resin Industry Outlook

Technology launches, acquisitions, and R&D activities are key strategies adopted by players in the Synthetic Resin Market. Synthetic Resin Market's top 10 companies are:

1. Huntsman International LLC
2. MCC Chemicals Inc.
3. UPC Technology Corporation
4. Bayer AG
5. DSM
6. Sinopec Corporation
7. Formosa Plastics Group
8. Purolite
9. The Dow Chemical Company
10. BASF SE

Recent Developments

• In May 2021, Adani Group, an Indian conglomerate, announced plans to build a 2 million tonne/year coal-to-polyvinyl chloride (PVC) plant in Mundra, Gujarat, for Rs 292 billion ($4 billion). PVC grades such as suspension PVC (resin), chlorinated PVC (C-PVC), and emulsion PVC are produced in the proposed project (paste).
• In June 2020, in the Asia Pacific, Dow developed and launched a newly formulated post-consumer recycled (PCR) plastic resin for collation shrink film applications. The new resin contains 40 percent PCR, resulting in a film that performs similarly to those made with virgin resins. XUS 60921.01 is a product made with recycled plastics collected domestically in China by Dow's strategic recycling partners and manufactured at Dow's external manufacturing site in Nanjing, China.
• In February 2019, in Navi Mumbai, Maharashtra, India, Arkema opened a new polyester resin manufacturing facility. A dedicated laboratory was included in this new facility to offer both application development and technical support. The facility will enable Arkema to better serve customers in India's fast-growing powder coating market, as well as the Gulf Region and neighboring countries.

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