Market Trends of Asia-Pacific Epoxy Resins Industry
Paints and Coatings Segment to Dominate the Market
- Epoxy resins, derived from petroleum sources, are reinforced polymer composites formed through a reactive process involving epoxide units.
- These resins primarily serve as binders in coating applications, bolstering the durability of coatings, especially in flooring and metal applications.
- Epoxy resins enhance coatings by imparting strength, durability, and chemical resistance. Their quick-drying, toughness, strong adhesion, good curing, abrasion resistance, and water-resistance qualities make them ideal for safeguarding metals and various surfaces.
- Owing to their versatility, epoxy powder coatings find applications on washers, dryers, and other white goods, as well as steel pipes and fittings in the oil and gas sector, water transmission pipelines, and concrete reinforcing rebar.
- Epoxy coatings are used as primers for corrosion protection in the automotive, marine, and aerospace industries. They can also protect industrial flooring.
- Thus, a significant rise in the paints and coatings industry (mainly automotive and industrial coatings) in Asia-Pacific is projected to fuel the epoxy resins market during the forecast period.
- Numerous paints and coatings manufacturers in India have expanded their production capacities to meet rising demands, likely contributing to market growth in the foreseeable future. In August 2023, Berger Paints unveiled its strategy to double revenue over the next five to six years by investing INR 2,700 crore (USD 325.08 million). The company plans to augment its capacity in West Bengal, Odisha, and the Western region, alongside expanding brownfield operations to support growth.
- Moreover, the Indian paint industry is projected to invest INR 350,000 million (USD 4.19 billion) to INR 450,000 million (USD 5.29 billion) in capital expenditure. The developments in Indian paints and coatings are as follows:
- JSW Paints has expressed its plans to construct a third manufacturing unit by 2025-2026 to serve the North and Central India markets. The company has already invested INR 7.5 billion (USD 89.83 million) in expanding its existing units in Karnataka and Maharashtra.
- China National Coatings Industry Association stated that the paints and coatings industry has grown by 7% in recent years.
- Moreover, China, renowned for its industrialization and manufacturing sector, has a significant demand for paints and coatings, particularly in sectors such as automotive, industrial, and construction. In the global coatings market, China accounts for more than one-fourth of the overall share.
- Such factors are expected to drive the demand for epoxy resins in paints and coatings, thus fueling the growth of the market during the forecast period.
- The above-mentioned factors are expected to fuel the demand for epoxy resin in paints and coatings, which is expected to fuel market growth.
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China to Dominate the Market
- China, boasting the world's most extensive electronics production base, presents formidable competition to established upstream producers like South Korea, Singapore, and Taiwan. Notably, electronic products – including smartphones, OLED TVs, and tablets – are witnessing robust growth in consumer electronics demand. This surge is further fueled by rising disposable incomes among the middle class, a trend expected to persist, propelling the market forward.
- China's electronics manufacturing sector, buoyed by its cost-efficiency and surging demand, continues its rapid expansion. As the middle class's purchasing power climbs, so does the appetite for electronic goods, a trend that bodes well for the epoxy resins market.
- The domestic electronics manufacturing sector has been experiencing consistent growth due to favorable government policies, including 100% foreign direct investment (FDI), the absence of a requirement for an industrial license, and a shift from manual to automatic production processes.
- Thanks to its low labor costs and adaptable policies, the country stands out as a prime market for electronics producers. The National Bureau of Statistics of China stated that the retail trade revenue of household appliances and consumer electronics in the country accounted for CNY 94.61 billion (USD 123.83 billion) in November 2023, witnessing a growth rate of 1.01% compared to the same period in the previous year.
- Additionally, in Asia-Pacific, China stands out as a key player, with its industrial and construction sectors contributing nearly 50% to the nation's GDP. As the construction industry continues to expand, it is poised to bolster the demand for paints and coatings in the coming years.
- European Coatings reports that there are nearly 10,000 coating manufacturers in China, including leading global companies like Nippon Paint, AkzoNobel, Chugoku Marine Paints, PPG Industries, BASF SE, and Axalta Coatings. These companies have manufacturing bases across the country.
- Paints and coatings companies have been increasingly investing in China. For instance, as of April 2024, Nipsea Group, the parent company of Nippon Paint China, opened a new coatings plant with an investment of CNY 960 million (USD 133 million) in Tianjin, driven by an automobile production boom in China. The company's Tianjin plant will focus on producing industrial coatings to meet the surging demand from China's automotive sector.
- Thus, growing demand from several end-user industries is driving the market for epoxy resins.
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