by C5 Resins, also known as hydrocarbon resin, is a colorless semi-solid material that is non-polar and chemically inert. It is produced through oligomerization and polymerization of C5 hydrocarbon stream which is a by-product of crude oil refining. C5 resins find major applications in paints and coating industries where they are used as modifiers or extenders. They impart flexibility, tackiness and water resistance to paints and adhesives. Rapid growth of the construction sector globally has increased the demand for paints and coatings in infrastructure and buildings. This has provided a boost to the consumption of c5 resins.
The global C5 Resins Market is estimated to be valued at US$ 861.82 Mn in 2023 and is expected to exhibit a CAGR of 7.3% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Dynamics:
Growth in the construction sector has been one of the major drivers for the c5 resins market. According to the Global Construction 2030 report, the construction industry worldwide is expected to grow by 85% to USD 15.5 trillion by 2030. This growth is attributed to rapid urbanization and industrialization in developing nations. Rising income levels have also increased spending on infrastructure development and residential buildings. The increasing demand for paints, adhesives and other construction chemicals from the expanding construction industry has positively impacted the consumption of c5 resins. An anticipated growth in residential and commercial construction projects over the forecast period is expected to further support market growth. While various factors have contributed to the market growth so far, rising environmental concerns and stringent regulations pertaining to VOC emissions from paints and coatings may restraint the market to a certain extent over the coming years. C5 resin producers are focusing on developing bio-based and environment-friendly resins to address these issues and gain a competitive edge in the market.
Segment Analysis
The global C5 Resins market is dominated by the adhesives and sealants segment. This segment accounts for over 40% market share owing to high usage of C5 resins in various adhesives and sealants applications across industries such as construction, automotive, packaging and others. C5 resins possess superior bonding and chemical resistant properties which make them suitable for usage in various adhesives and sealant formulations. The paints and coatings segment is expected to emerge as the fastest growing segment during the forecast period due to increasing product usage in industrial and architectural paints.
PEST Analysis
Political: There are no significant political risks affecting the C5 Resins market globally.
Economic: The global GDP growth and rising disposable incomes are driving higher consumption of end-use products such as adhesives, paints and coatings using C5 Resins.
Social: Increasing application of C5 Resins in end-use goods such as automotive and construction materials is driven by rising population and urbanization rates worldwide.
Technological: Emphasis on developing bio-based and recyclable C5 Resins and their derivatives with improved properties is opening new avenues of growth for manufacturers.
Key Takeaways
The Global C5 Resins Market Forecasts is expected to witness high growth during the period of 2023 to 2030 supported by rising consumption across end-use industries. The adhesives and sealants segment dominates currently while paints and coatings are anticipated to emerge as the fastest growing application segment. The global C5 Resins Market is estimated to be valued at US$ 861.82 Mn in 2023 and is expected to exhibit a CAGR of 7.3% over the forecast period 2023 to 2030.
The Asia Pacific region dominates the global C5 Resins market currently accounting for over 40% of the overall demand. China drives most of the growth supported by large production and consumption of C5 resin containing goods within adhesives, construction and automotive industries.
Key players operating in the C5 Resins market are ABB Ltd., Siemens AG, Larsen & Toubro Limited, General Electric Company, Honeywell International, Inc., Rockwell Automation, Inc., Emerson Electric Co., Mitsubishi Electric Corporation, Toshiba Corporation, Hitachi Ltd., Schneider Electric SE, Alstom SA, and Fuji Electric. Players are focusing on developing bio-based and sustainable C5 Resins through innovation and new product development.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
