Hydrocarbon Resins Market Trends
Growth Drivers
- Increasing Construction Activities Owing to Development in Economic Standards – The construction sector utilizes huge amounts of paints and coatings for walls, windows, doors, and floors which is estimated to drive market growth. The paints, coatings, sealants, and adhesives are widely used in the construction sector and are made of hydrocarbon resin polymers as per the market analysis.
The construction sector in the United States is estimated to be worth USD 2 trillion in 2021 per the estimations and about 3% of the workforce in the U.S. works in the construction industry.
- Growing Applications of Hydrocarbon Resins in the Manufacturing Industry – According to the reports, more than USD 2 trillion was contributed from the manufacturing sector to the U.S. GDP in 2021 which is more than 10% of the total GDP.
- Growing Consumption of Rubber across the World for Various Uses – The global consumption of natural rubber which is made for tires and tire products in 2022 was more than 75% according to the stats.
- Increasing Usage of Sealants and Adhesives in the Furniture Industry – The value of adhesives and sealants in the year 2022 was estimated to be worth USD 68 billion across the globe.
- Growing Packaging and Printing Sector is Boosting the Market Growth – The packaging sector in the world garnered a value of over USD 360 billion as of 2022 reports.
Challenges
- Fluctuating Costs of Petroleum and Crude Oil
- Pollution Caused by Hydrocarbon Products
Hydrocarbons are made from petroleum products and are not readily biodegradable. The hydrocarbons release fumes that harm the lungs and cause coughing, choking, and neurologic problems when inhaled. These also lead to environmental pollution and cause gastrointestinal irritation, and diarrhea when ingested. All these factors are estimated to hamper the market growth.
- Availability of Alternate Substitute Products
Hydrocarbon Resins 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 Program), 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 favorable government policies have boosted investment in China’s chemical industry. Easy availability of low-cost raw material & labor 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 |
6.8% |
|
Base Year Market Size (2024) |
USD 2.34 billion |
|
Forecast Year Market Size (2037) |
USD 5.5 billion |
|
Regional Scope |
|
