C5 Resin Market Trends
Growth Drivers
- Growing Paints and Coatings Industry – C5 resin has an extensive range of applications as a modifier for paints and coatings processes. It also can act as a tackifier for adhesives and pressure-sensitive adhesives, when used in combination with various types of resins. All these factors coupled to extend the utilization rate of C5 resins in the paints and coatings industry expected to contribute positively to market growth during the forecast period. The worldwide paint and coatings market was expected to be worth over USD 160 billion in 2021, rising to nearly USD 240 billion by 2029.
- Rapid Growth of Adhesives and Sealants Industry – In the recent period, the demand for C5 resin in various adhesives and sealants applications as it provides good adhesion and promotes tack in hot-melt and pressure-sensitive adhesives. It has been stated that the global adhesives and sealants industry was valued at almost USD 70 billion in 2022 and is further expected to grow at 6% CAGR.
- Extensive Growth in the Automotive Industry - Recently, it has been calculated that the global automotive industry manufacturing industry amounted to almost USD 3 trillion by the end of 2021.
- Growth in the Chemical Industry - According to recent estimates, the global chemical industry's revenue in 2021 was projected to exceed over USD 5 trillion.
Challenges
- Long Manufacturing Cycles – The manufacturing of C5 resin requires a lot of raw materials which need to be handled carefully. Unfortunately, the constant fluctuation in prices of the raw materials along with the long manufacturing cycles is estimated to lower the adoption rate and subsequently hamper the market growth during the forecast period.
- Requirement of Higher Initial Investment
- Stringent Government Rules
C5 Resin Market: Key Insights
The chemical industry is a major component of the economy. According to the U.S. Bureau of Economic Analysis, in 2020, for the U.S., the value added by chemical products as a percentage of GDP was around 1.9%. Additionally, according to the World Bank, Chemical industry in the U.S. accounted for 16.43% to manufacturing value-added in 2018. With the growing demand from end-users, the market for chemical products is expected to grow in future. According to UNEP (United Nations Environment Programme), the sales of chemicals are projected to almost double from 2017 to 2030. In the current scenario, Asia Pacific is the largest chemical producing and consuming region. China has the world’s largest chemical industry, that accounted for annual sales of approximately more than USD 1.5 trillion, or about more than one-third of global sales, in recent years. Additionally, a vast consumer base and favourable government policies have boosted investment in China’s chemical industry. Easy availability of low-cost raw material & labour as well as government subsidies and relaxed environmental norms have served as a production base for key vendors globally. On the other hand, according to the FICCI (Federation of Indian Chambers of Commerce & Industry), the chemical industry in India was valued at 163 billion in 2019 and it contributed 3.4% to the global chemical industry. It ranks 6th in global chemical production. This statistic shows the lucrative opportunity for the investment in businesses in Asia Pacific countries in the upcoming years.
|
Base Year |
2024 |
|
Forecast Year |
2025-2037 |
|
CAGR |
5.2% |
|
Base Year Market Size (2024) |
USD 848.97 million |
|
Forecast Year Market Size (2037) |
USD 1.64 billion |
|
Regional Scope |
|
