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 8.3% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Petroleum resins are amorphous semi-solid hydrocarbon polymers obtained from the refining of crude oil. They have superior performance properties such as bonding strength, moisture resistance, heat resistance etc. making them suitable for use in adhesives, sealants, coating, ink, paper, rubber and other applications. The global construction sector is witnessing robust growth which is expected to drive the demand for paints and coatings using petroleum resins as adhesion and binder agents. Resins also provide weather and chemical resistance to coatings and adhesives. In rubber applications, petroleum resins impart properties like enhanced tackiness and reduce compound viscosity. They enhance performance of sealants, mastics and caulks.
Market key trends:
Growth in the construction industry worldwide has boosted the consumption of adhesives, sealants, paints and coatings which employ petroleum resins as key components. Developing countries in Asia Pacific and Middle East are witnessing highest construction activities which is fueling regional petroleum resin demand. Constant R&D is enabling development of bio-based and hybrid petroleum resins with improved performance characteristics to replace traditional fossil fuel-derived resins. This is expected to drive the market growth over the forecast period. Stringent environmental regulations regarding VOC emissions from coatings and adhesives have increased focus on green petroleum resin formulations. The market is witnessing a shift towards increased use of C5 hydrocarbon resins owing to their superior performance and lower material cost compared to C9 resins.
Threat of new entrants: Low capital requirements and established customers make it easier for new players to enter the market. However, presence of major players and need for specialized production facilities act as a barrier.
Bargaining power of buyers: Large buyers such as rubber manufacturers have higher bargaining power due to the consolidated nature of buyers market. They bargain for better prices and customized product offerings.
Bargaining power of suppliers: Presence of numerous raw material suppliers reduces their bargaining power. Established players source raw materials from diverse global locations to avoid dependency on any single supplier.
Threat of new substitutes: Limited availability of effective substitutes provides less threat from substitution. However, ongoing R&D in bio-based and hybrid materials could lead to newer alternatives in the long run.
Competitive rivalry: The global market is highly competitive with major players competing on factors like product quality, pricing and expansion to regional markets.
The Global Petroleum Resins Market Size was valued at US$ 3697.05 Mn in 2023 and is expected to grow at a CAGR of 8.3% during 2023 to 2030.
Regional analysis: Asia Pacific dominates the global market with over 35% share majorly driven by China, India and other Southeast Asian countries. This is attributed to expanding end-use industries, low production cost and growing polymers market. North America and Europe are other prominent markets owing to presence of leading petrochemical companies.
Key players: Key players operating in the petroleum resins market include Arakawa Chemical Industries, Eastman Chemical Company, Exxon Mobil Corporation, Ltd., Kolon Industries, Inc., Lesco Chemical Limited, Zeon Corporation, Seacon Corporation, Neville Chemical Company, Total Cray Valley, and Anglxxon Chemical Co., Ltd. These companies are focusing on new product launches, capacity expansion and mergers & acquisitions to strengthen their market position.
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it