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Forecast Period
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2024-2028
|
|
Market Size (2022)
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USD2.76 billion
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CAGR (2023-2028)
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6.90%
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Fastest Growing Segment
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Aliphatic C5 resins
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Largest Market
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Asia Pacific
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Market Overview
Global Petroleum Resin Market has valued at USD2.76 billion in 2022 and is anticipated to project robust growth in the forecast
period with a CAGR of 6.90% through 2028. The large-scale use of these
products, owing to their various advantages including excellent thermal
stability, peeling strength, tackability, heat-resistance, and a high softening
point, is expected to significantly augment the industry growth over the forecast
period. With the rising demand for petroleum resins in various applications
such as contact adhesives, footwear and leather, hot melt adhesives, rubber and
plastic modification, and wax modification, the industry growth is set to
experience a substantial boost.
Furthermore, the increasing use of these products
in the paints and coatings industry, thanks to their ability to offer high
gloss, is expected to further fuel the demand over the forecast period. The
good compatibility of these resins with various products, including EVA, SBS,
SIS, and SEPS, is another factor that is anticipated to contribute to the
market share growth in the coming years.
The application scope of these resins has been
continuously expanding, ranging from adhesives, printing inks, tapes &
labels, to rubber compounding, which has led to a growing need for innovation
in this industry. Moreover, the development of the paints and coatings industry
in countries such as Indonesia, the U.S., India, Germany, and China, along with
increasing government spending in the packaging sector in India, Mexico, and
Saudi Arabia, is expected to provide a significant impetus for growth.
In addition, the growing consumer awareness
regarding baby hygiene products in emerging economies, particularly in India
and China, is expected to play a critical role in determining the industry's
growth trajectory over the forecast period.
However, it is important to note that the
volatility in crude oil prices and the increasing consumption of rosin resins
in various applications, including construction and automotive, are expected to
pose challenges and restrict the overall product growth over the forecast
period. Nonetheless, technological advancements aimed at introducing new
process technologies and increasing output levels are expected to create new
growth avenues and opportunities in the industry.
Key Market Drivers
Growing Demand of Petroleum Resin in Construction
Industry
The surge in infrastructure development worldwide,
particularly in emerging economies, has significantly boosted the demand for
petroleum resins. These versatile resins play a crucial role in the production
of paints, adhesives, and sealants, which are extensively utilized in various
construction activities. As countries continue to invest in infrastructure
development to support economic growth, the demand for petroleum resin is
expected to experience a substantial increase.
Petroleum resins offer a wide range of benefits
that make them highly attractive to the construction industry. One of their key
advantages is their exceptional adhesive properties, ensuring strong and
long-lasting bonds between different materials. Moreover, petroleum resins
exhibit superior thermal stability, high resistance to acids, and remarkable
durability, making them an ideal choice for construction applications that
require robust and reliable performance.
In recent years, petroleum resins have been
increasingly adopted in road construction due to their remarkable waterproofing
and adhesive properties. These resins are extensively used in the formulation
of hot-melt road marking paints, providing not only excellent color stability
but also good flow properties and enhanced nighttime visibility. This ensures
safer and more efficient road markings, thereby contributing to improved road
safety and navigation.
The growing emphasis on sustainability in
construction practices has further fueled the demand for petroleum resins.
These resins are derived from by-products of the petrochemical industry, making
them a more environmentally friendly choice compared to other synthetic
materials. By utilizing petroleum resins, the construction industry can reduce
its ecological footprint while still maintaining high-performance standards.
In conclusion, the increasing demand for petroleum
resins in the construction industry serves as a vital driver for the global
petroleum resin market. The simultaneous rise in infrastructure development,
the exceptional properties offered by petroleum resins, their wide adoption in
road construction, and the growing demand for sustainable construction
materials all contribute to the upward trajectory of this market. As these
trends persist and evolve, the petroleum resin market is poised to witness significant
growth in the coming years, catering to the ever-expanding needs of the
construction industry.
Growing Demand of Petroleum Resin in Automotive
Industry
One of the primary drivers of the petroleum resin
market is its growing demand in the construction industry. Petroleum resins are
extensively used in the production of paints, adhesives, and sealants, which
are vital components in various construction activities such as building
construction, infrastructure development, and renovation projects. The
versatility of petroleum resins allows them to be used in a wide range of
applications, including coatings for walls, floors, and ceilings, as well as
bonding agents for different construction materials.
Another significant factor contributing to the
growth of the petroleum resin market is its increasing adoption in road
construction. Petroleum resins are specifically used in hot-melt road marking
paints due to their excellent color stability, good flow, and enhanced
nighttime visibility. These resins help create durable and highly visible road
markings, improving road safety and reducing the risk of accidents. The use of
petroleum resins in road construction also ensures long-lasting and
weather-resistant road markings, minimizing the need for frequent maintenance
and repainting.
The growing emphasis on sustainability in
construction practices has also fueled the demand for petroleum resins. Derived
from by-products of the petrochemical industry, petroleum resins are considered
a more sustainable choice compared to other synthetic materials. Their
production helps reduce waste and utilize resources efficiently, contributing
to a more environmentally friendly construction industry. Additionally, the
durability and longevity of petroleum resins in various applications reduce the
overall environmental impact by minimizing the need for frequent replacements
and repairs.
In conclusion, the global petroleum resin market is
experiencing significant growth driven by increasing demand from the
construction industry, advancements in road construction techniques, and a
growing focus on sustainability. With the added detail and these trends set to
continue, the petroleum resin market is poised for further expansion in the
coming years, playing a crucial role in the development of sustainable and
efficient construction practices worldwide.
Key Market Challenges
Competition from Bio-based and Alternative Resins
Bio-based resins are gaining popularity due to
their numerous environmental benefits. These resins, derived from renewable
resources such as agricultural crops and biomass, offer a sustainable
alternative to traditional petroleum-based resins. Not only do they reduce
dependence on fossil fuels, but they also help mitigate greenhouse gas
emissions. The global bio-based resins market is projected to witness a robust
growth rate, with a compound annual growth rate (CAGR) of over 16% during the
forecast period, indicating a strong demand for these eco-friendly products.
While bio-based resins often exhibit different
properties and performance characteristics compared to their petroleum-based
counterparts, ongoing research and development efforts are focused on bridging
this gap. With advancements in technology and production processes, the costs
associated with bio-resin production are steadily decreasing, making bio-based
resins more competitive and economically viable.
The market shift towards sustainable materials is
another significant factor influencing the petroleum resin market. As
industries increasingly recognize the importance of environmental stewardship
and face regulatory pressures, there is a growing demand for greener
alternatives. Bio-based resins, being derived from renewable resources and
offering a lower carbon footprint, align perfectly with this sustainability
trend.
It is true that bio-based resins face competition
from well-established petroleum-based resins in terms of cost, performance, and
availability. However, as the emphasis on sustainability continues to grow and
more efficient production technologies emerge, bio-based resins are expected to
become increasingly competitive in the market. The ongoing innovation and
adoption of bio-based resins will contribute to a more sustainable future,
benefiting both the environment and various industries dependent on resin materials.
Key Market Trends
Shift Towards Environmentally Friendly Formulations
The impact of petroleum-based products on the
environment is an increasingly pressing concern worldwide. As awareness of
climate change and environmental degradation grows, there is a growing need for
more sustainable alternatives to traditional petroleum-based resins. This has
led to the exploration and development of bio-based and plant-based resins,
which offer a greener and more eco-friendly solution.
While petroleum-based resins, such as olefins, have
become more affordable due to the drop in oil prices, their negative
environmental impact cannot be ignored. This has prompted a shift in preference
towards greener options that have a lower carbon footprint and minimize harm to
ecosystems.
In addition, regulatory bodies across the globe are
implementing stricter environmental regulations to reduce the use of hazardous
substances. This has created a strong impetus for industries, such as the
aliphatic solvents and thinners industry, to focus on developing eco-friendly
formulations. The demand for sustainable solvents has witnessed a noticeable
surge as companies strive to meet these stringent regulations.
Furthermore, consumers are increasingly conscious
of the environmental and health impacts of the products they use. In the
coatings industry, for instance, there is a growing preference for low VOC
(Volatile Organic Compounds) paints that are safe to be applied inside homes.
This consumer demand for environmentally friendly and health-conscious products
is driving manufacturers to prioritize the development and usage of resins
obtained from biological sources.
As a result, the alkyd resin market, primarily used
in paints and coatings, is poised for significant growth in the coming years.
This growth can be attributed to the development of environmentally friendly
alkyd resins, which align with the changing preferences and values of
consumers.
By embracing these sustainable alternatives,
industries and manufacturers can not only reduce their environmental footprint
but also meet the evolving demands of consumers who prioritize eco-friendly and
health-conscious choices.
Segmental Insights
Type Insights
Based on the category of type, the Aliphatic C5
resins segment emerged as the dominant player in the global market for Petroleum
Resin in 2022. The upward trend of the C5/C9 hydrocarbon market is expected to
continue over the forecast period. This can be attributed to the growing
utilization of C5 resins in various industries such as tire manufacturing,
personal hygiene products, automotive applications, and building and
construction sectors. The increasing demand for C5 resins is primarily driven
by their exceptional properties, including high chemical resistance, low
pollutant emissions, strong adhesion, and excellent color retention. These
desirable characteristics are anticipated to further boost the demand for C5
resins in the coming years.
Moreover, the C5/C9 hydrocarbon market is projected
to experience a significant revenue rise, with a predicted compound annual
growth rate (CAGR) of 7.2% from 2017 to 2025. The consumption of C5/C9
hydrocarbons is expected to witness a surge in sectors such as printing ink,
rubber production, paints, and tire manufacturing. The product offers a wide
range of superior properties, including peeling strength, tack ability,
heat-resistance, chemical stability, miscibility, low molecular weight, and
high waterproofing.
Furthermore, factors such as the comparatively
lower price of C5/C9 petroleum in comparison to C5 resins and the increasing
usage of this hydrocarbon in the tire industry due to its excellent tack and
adhesion between rubber particles and cord are anticipated to drive the demand
for C5/C9 hydrocarbons over the forecast period. These factors collectively
contribute to the positive growth outlook for the C5/C9 hydrocarbon market.
Application Insights
The Paints & Coatings segment is projected to
experience rapid growth during the forecast period. Petroleum resins, acting as
a binder resin, provide a wide range of advantages in various applications.
Notably, they exhibit fast drying properties, ensuring efficient production
processes. Additionally, these resins demonstrate excellent resistance to alkali
and abrasion, resulting in durable and long-lasting coatings. Moreover, they
have the ability to enhance the gloss of paint, as well as improve adhesion,
hardness, and resistance to alkali and acids.
Furthermore, petroleum resins exhibit remarkable
compatibility with pigments, auxiliary agents, and resin rosins. This
compatibility enhances the overall tenacity, rigidity, and adhesive force of
paint materials, ultimately contributing to the formation of a smooth and
flawless paint surface. The increasing demand for resins in the road marking
paint industry is primarily driven by their exceptional performance,
brightness, and quick dryness, making them a preferred choice in this sector.
As a result, the market potential for petroleum resins is expected to witness
significant growth.
Paint plays a crucial role in marking travel lanes,
loading zones, and parking spaces, ensuring safety and organization on roads
and highways. With the focus on infrastructure development and the construction
of new highways, there is a growing need for high-quality petroleum resins.
Additionally, the emphasis on repair and maintenance operations further
contributes to the demand for these resins, driving the growth of the global
petroleum resins market.
Regional Insights
Asia Pacific emerged as the dominant player in the Global
Petroleum Resin Market in 2022, holding the largest market share in terms of both
value and volume. The presence of a robust manufacturing base of tapes, rubber
compounding, and adhesives in India, Singapore, and China plays a significant
role in the growth of the industry. The increasing automotive production,
particularly in China, Indonesia, Japan, Malaysia, and Taiwan, is expected to
drive the demand for the product.
Moreover, ongoing industrialization and rising
foreign investments in the packaging and paints & coatings sectors are
anticipated to further augment the industry size in the upcoming years. The
favorable Foreign Direct Investment (FDI) policies and the "Make in
India" initiative implemented by the Government of India are expected to
create immense opportunities for the automobile industry in the country. This,
in turn, will contribute to the growth of the hydrocarbon resins market.
Furthermore, the growing demand for fast-moving
consumer goods in the Asia Pacific region is likely to drive the demand for
inks and packaging materials, thereby spurring the market growth. The
increasing disposable income, changing lifestyle patterns, and urbanization are
factors fueling the demand for consumer goods, leading to a positive outlook
for the market.
In summary, the combination of a robust
manufacturing base, increasing automotive production, ongoing
industrialization, favorable government policies, and the rising demand for
consumer goods in the Asia Pacific region are key factors expected to drive the
growth of the industry in the coming years.
Recent Developments
- In June 2021, KOLON Industries Inc. expanded its
hydrocarbon resin manufacturing capacity by an impressive 15,000 tons annually.
This strategic addition has further bolstered the company's total annual
capacity, reaching a remarkable milestone of 200,000 tons for its hydrocarbon
resin manufacturing operations. This significant increase in capacity positions
KOLON Industries Inc. as a leading player in the industry, ready to meet the
growing demands of the market.
- In May 2021, Henkel, a renowned adhesive
manufacturer, introduced an innovative range of hot melt adhesives called
Technomelt Supra ECO. This groundbreaking product line not only offers
exceptional performance and reliability but also takes sustainability to new
heights. By leveraging advanced formulation techniques, Henkel has successfully
developed a range of adhesives that not only deliver superior bonding
capabilities but also contribute to reduced carbon emissions. With Technomelt
Supra ECO, Henkel is driving the industry towards a greener and more
sustainable future.
- In May 2020, Exxon Mobil, a global leader in the
energy and petrochemical industry, commenced production of hydrocarbon resin
and hydrogenated resin at its state-of-the-art manufacturing complex in
Singapore. This manufacturing complex stands as the largest integrated refining
and petrochemical facility in the company's portfolio. By strategically
entering the hydrocarbon resin market, Exxon Mobil has diversified its product
offerings and strengthened its position as a key player in the industry. The production
of hydrocarbon resin and hydrogenated resin at this advanced facility
underscores Exxon Mobil's commitment to innovation and meeting the evolving
needs of its customers.
Key Market Players
- Arakawa
Chemical Industries,Ltd.
- Exxon
Mobil Corporation
- Henan
Anglxxon Chemical Co.,Ltd.
- INNOVA
(TIANJIN) Chemical Co.,LTD
- Kolon
Industries, Inc.
- Lesco
Chemical Limited
- Neville
Chemical Company
- Puyang
Tiancheng Chemical Co.,Ltd.
- RuiSen
ReSin Co. Ltd.
- Synthomer
PLC
|
By Type
|
By
Application
|
By End User
|
By Region
|
|
·
Aliphatic C5 resins
·
Aromatic C9 Resins
·
C5/C9 Resins
·
Hydrogenated hydrocarbon Resins
|
·
Adhesive & Sealants
·
Printing Inks
·
Tapes & Labels
·
Rubber Compounding
·
Paints & Coatings
·
Others
|
·
Building & Construction
·
Consumer Goods
·
Automotive
·
Personal Hygiene
·
Tire
·
Others
|
·
North America
·
Europe
·
Asia Pacific
·
South America
·
Middle East & Africa
|
Report Scope:
In this report, the Global Petroleum Resin Market has
been segmented into the following categories, in addition to the industry
trends which have also been detailed below:
- Petroleum Resin Market, By Type:
o Aliphatic C5 resins
o Aromatic C9 Resins
o C5/C9 Resins
o Hydrogenated hydrocarbon Resins
- Petroleum Resin Market, By Application:
o Adhesive & Sealants
o Printing Inks
o Tapes & Labels
o Rubber Compounding
o Paints & Coatings
o Others
- Petroleum Resin Market, By End User:
o Building & Construction
o Consumer Goods
o Automotive
o Personal Hygiene
o Tire
o Others
- Petroleum Resin Market, By
Region:
o North America
§ United States
§ Canada
§ Mexico
o Europe
§ France
§ United Kingdom
§ Italy
§ Germany
§ Spain
o Asia-Pacific
§ China
§ India
§ Japan
§ Australia
§ South Korea
o South America
§ Brazil
§ Argentina
§ Colombia
o Middle East & Africa
§ South Africa
§ Saudi Arabia
§ UAE
§ Kuwait
§ Turkey
§ Egypt
Competitive Landscape
Company Profiles: Detailed analysis of the major companies
present in the Global Petroleum Resin Market.
Available Customizations:
Global Petroleum Resin Market report with the given
market data, Tech Sci Research offers customizations according to a company's
specific needs. The following customization options are available for the
report:
Company Information
- Detailed analysis and
profiling of additional market players (up to five).
Global Petroleum Resin Market is an upcoming report
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