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Thermoset Molding Compound Market - Forecast(2024 - 2030)
Thermoset Molding Compound Market Overview
Thermoset Molding Compound Market size is projected to reach US$11.4
billion by 2027, after growing at a CAGR of 6.8% during the forecast period
2022-2027. Thermosetting molding compounds such as phenolic resins, epoxy
resins, polyester resins, urea formaldehyde and melamine formaldehyde possess properties
such as good electrical insulation, corrosion and heat resistance, which make them
an ideal material for a variety of end-use applications. A thermoset molding
compound is widely employed in the electrical & electronics industry. Since the global electrical & electronics industry is growing, it is
supporting the thermoset molding compound industry growth. The
Japan Electronics and Information Technology Industries Association (JEITA) forecasted
that the production by the global electronics and IT industries would grow by 2%
year-on-year in 2020 to reach US$2,972.7 billion and would grow by 7% year on
year in 2021 to reach a record US$3,175.6 billion. Factors such as the need
for lighter weight in aerospace and transportation drive the growth of the
thermosetting molding compound market. Several end-use industries in the Thermoset
Molding Compound industry suffered negative effects as a result of the novel
coronavirus pandemic, which had a direct impact on the Thermoset Molding
Compound market size in the year 2020.
Thermoset Molding Compound Market Report Coverage
The “Thermoset Molding
Compound Market Report – Forecast (2022-2027)” by IndustryARC, covers an
in-depth analysis of the following segments in the Thermoset Molding Compound industry.
By Type: Phenolic
Resins, Epoxy Resins, Polyester Resins, Urea Formaldehyde, Melamine
Formaldehyde and Others.
By End-use Industry: Automotive [Passenger Vehicles (PV), Light Commercial Vehicles
(LCV) and Heavy Commercial Vehicles (HCV)], Aerospace (Commercial Aircrafts,
Military Aircrafts and Others), Electrical & Electronics (Antennas, Circuit
Breakers, Switchgears and Others) and Others.
By Geography: North America (the USA, Canada and Mexico), Europe (the UK, Germany,
France, Italy, the Netherlands, Spain, Belgium and the Rest of Europe), Asia-pacific
(China, Japan, India, South Korea, Australia and New Zealand, Indonesia,
Taiwan, Malaysia and the Rest of APAC), South America (Brazil, Argentina, Colombia,
Chile and the Rest of South America) and the Rest of the World (the Middle East and Africa).
Key Takeaways
- Asia-pacific dominates the Thermoset Molding Compound market, owing to the increase in investment in the electronics sector and transportation infrastructure in Asia-pacific. This increase can be attributed to the increasing per capita income and growing population in Asia-pacific.
- The market is expanding as a
result of the positive attributes of Thermoset Molding Compounds, such as
their anti-corrosiveness, increased heat resistance and toughness, which make
them ideal for use in electrical and electronic applications.
- The emergence of nanotechnology, these compounds' superior performance in comparison to their alternatives and the surge in interest in lightweight and fuel-efficient cars offer the sector promising growth prospects.
- However, it is estimated that the high investment cost of Thermoset Molding Compounds may impede the expansion during the forecast period.
Thermoset Molding Compound Market Segment Analysis – by Type
The phenolic resins segment held a significant share in the Thermoset
Molding Compound market share in 2021 and is estimated to grow at a CAGR of 6.9%
during the forecast period 2022-2027, due to their improved properties. Phenolic resins are appropriate for use in
insulation due to their low thermal conductivity. Due to its water resistance, high
thermal stability and fire resistance, phenolic resin is used as a permanent
binder and adhesive for wooden building panels as well as a binder for mineral
wool insulation. By altering the manufacturing catalyst, phenolic resin's
properties can be altered for each application. As a result, the demand for phenolic
resin-based Thermoset Molding Compound is on a significant upsurge, thereby
driving segmental growth.
Thermoset Molding Compound Market Segment Analysis – by End-use Industry
The electrical & electronics segment held a significant share in
the Thermoset Molding Compound market share in 2021 and is projected to grow
at a CAGR of 7.4% during the forecast period 2022-2027. The electrical and
electronics industries benefit from thermoset molding compounds such as
phenolic resins, epoxy resins, polyester resins, urea formaldehyde and melamine
formaldehyde because they effectively insulate against electricity and heat. A strong molding material with strong dielectric
properties, thermal shock resistance, corrosion resistance, arc resistance and
electrically insulating properties is required for parts like circuit breakers,
electrical enclosures or housings, covers, relays, switches, insulators and
motor components. Furthermore, various electrical & electronic products
such as covers, housings and circuit breakers require a molding material that
protects sensitive internal electronics and components. This is accelerating the
demand for Thermoset Molding Compound in the industry, which is subsequently
propelling the segment growth.
Thermoset Molding Compound Market Segment Analysis – by Geography
Asia-pacific held the largest Thermoset Molding Compound market share of up to 42% in 2021, owing to the bolstering growth of the electrical & electronics sector in Asia-pacific. For instance, the consumer electronics and home appliance sector in India generated $9.84 billion in revenue in 2021 and is projected to grow to US$21.18 billion by 2025, according to the India Brand Equity Foundation (IBEF). The global electronics industry is expected to produce 7% more in 2021 than it did in 2020, reaching US$3,175.6 billion, according to the Japan Electronics and Information Technology Industries Association (JEITA). China's electronic information manufacturing sector experienced steady growth in revenue and profits last year, according to the February 2022 report. According to the Ministry of Industry and Information Technology, operating revenue for the sector reached approximately 14.1 trillion yuan (roughly $2.2 trillion) in 2021, an increase of 14.7 percent from the previous year. With the increasing electrical & electronics production, the demand for molding materials significantly increased, which accelerated the demand for Thermoset Molding Compound in Asia-pacific.
Thermoset Molding Compound Market Drivers
Increasing Automobile Production:
Thermoset Molding Compound provides
lightweight materials for use in automotive manufacturing. The high-end vehicle
manufacturers use carbon fiber composites to provide an enhanced finish. According to the Germany
Trade & Invest (GTAI), German passenger car and light
commercial vehicle OEM generated foreign market revenue of EUR 274 billion in
2021, an increase of ten percent over 2020. The International Organization of
Motor Vehicle Manufacturers (OICA) estimates that heavy truck production in
Europe increased by 31%, from 236,328 units in 2020 to 308,300 units in 2021.
India's domestic automobile production increased between FY16 and FY20 at a
compound annual growth rate (CAGR) of 2.36 percent, with 26.36 million vehicles
produced in FY20, according to the India Brand Equity Foundation (IBEF). With
the increasing automobile production, the demand for lightweight automotive
components is also increasing, thereby acting as a driver for the Thermoset
Molding Compound market during the forecast period.
Flourishing Aerospace Sector:
In the aerospace industry, Thermoset Molded internal components are
used within the cabins of civilian, commercial and military aircraft as they
aid in making aircraft lightweight. The demand for aircraft is on an upsurge
in various regions. According to Boeing's current business
forecast, the Middle East would need 2,520 new aircraft by 2030. Also, according to Boeing India, there is a demand for 2,300 aircrafts
worth US$320 billion over the next 20 years. According to Boeing, in 2020, 8,995
aircraft fleets were delivered in North America. It is estimated to reach 10,610
fleets by 2039. Considering the importance associated with lightweight
airplanes, it is expected that the increasing aerospace industry would act as a
driver for the Thermoset Molding Compound market.
Thermoset Molding Compound Market Challenge
Fluctuating Raw Material Prices:
The raw materials often used for the production of Thermoset Molding Compounds are the downstream products of crude oil, such as epoxy resins. During
the previous few years, the price of crude oil has been extremely volatile. The price of Brent crude oil has increased from US$43.73/bbl in 2016
to US$71.31/bbl in 2018 and then decreased to US$64.21/bbl in 2019 and
US$41.84/bbl in 2020, according to the BP Statistical Review of World Energy.
The volatility in the price of oil has caused fluctuation in the prices of raw
materials for the manufacturing of thermoset molding compounds. Thus, the
fluctuation in the price of crude oil has a direct influence on the price of
the Thermoset Molding Compounds, which is a significant challenge for the
market during the forecast period.
Thermoset Molding Compound Industry Outlook
Technology launches,
acquisitions and R&D activities are key strategies adopted by players in
the Thermoset Molding Compound market. The top 10 companies in the Thermoset
Molding Compound market are:
- Ashland Global Holding Inc.
- BASF SE
- Eastman Chemical Company
- Evonik Industries AG
- Hexion Inc.
- Huntsman Corporation
- Kolon Industries Inc.
- Kyocera Chemical Corporation
- Plastics Engineering Company
- Rogers Corporation
Recent Developments
- In March 2021, BASF announced a partnership with Sumitomo (SHI) Demag to create the first fully-automated, all-electric injection moulding cell for new high-performance polymer manufacturing.
- In April 2020, Evonik announced the completion of the Marl expansion of its polyamide plant. The substance also combines quality and performance with excellent parameter estimation, uses very little water, has great structural correctness and has excellent UV resistance.
Relevant Reports
Report Code: HCR 0272
Report Code: CMR 67878
Report Code: CMR 68243
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