by Petroleum resins are aromatic and aliphatic resins obtained by the chemical modification or thermal treatment of aromatic or aliphatic petroleum refinery streams. The common applications of petroleum resins include adhesives, sealants, coatings, inks, rubber compounding, road marking, and construction. The growing construction industry and infrastructural development globally has significantly boosted the demand for adhesives and sealants, which in turn fuels the petroleum resins market. Petroleum resins provide excellent adhesion and flexibility to hot melt adhesives and pressure-sensitive adhesives used in construction. They improve the viscosity and film formation properties of sealants used for caulking and sealing.
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 21% over the forecast period 2023 To 2030, as highlighted in a new report published by Coherent Market Insights.
Market Dynamics:
Growing demand from adhesives and sealants industries: The construction industry is expanding rapidly due to ongoing infrastructure development projects and increasing residential and commercial construction activities globally. This is propelling the demand for adhesives and sealants which further drives the petroleum resins market. Petroleum resins improve the bonding strength and flexibility of adhesives and enhance the viscosity and water resistance of sealants.
Growing automotive industry: The automotive industry is growing consistently on account of increasing vehicle production and sales. Petroleum resins are used in various automotive applications such as automotive coatings, automotive sealants and adhesives, automotive under-the-hood applications, automotive gaskets, and hoses. They provide high temperature and chemical resistance to automotive coatings and impart high adhesion strength to automotive adhesives. Thus, the expanding automotive sector augments market growth.
Segment Analysis
The petroleum resins market is segmented into C5 resins, C9 resins, and hydrocarbon resins, among which C5 resins dominate the market with over 35% market share. The high demand for C5 resins is due to their widespread use in coatings and inks, owing to their property of forming clear and glossy coatings with good adhesion and flexibility.
PEST Analysis
Political: The petroleum resins industry is reliant on crude oil prices and policies related to oil exploration and production. Any fluctuations in crude oil prices or policies affecting oil supply directly impact the petroleum resins market.
Economic: The growth of the paints and coatings industry is a major driver of the petroleum resins market. As emerging economies witness infrastructural developments and construction activities rise, demand for paints and coatings rises, boosting petroleum resins consumption.
Social: Increasing consumer spending on home improvement and renovation activities in developed regions is driving demand for paints and coatings, positively impacting the petroleum resins market.
Technological: Developments in producing more specialized resins like hydrogenated resins and aromaticmodified resins have enhanced the performance characteristics of petroleum resins, enabling their use in applications like chewing gums and adhesives.
Key Takeaways
The global Global Petroleum Resins Market Size is expected to witness high growth over the forecast period. 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 21% over the forecast period 2023 to 2030.
North America holds the largest share of the market currently due to the strong presence of paints and coatings manufacturers in the region. The Asia Pacific region is expected to witness the fastest growth on account of rising paints and coatings consumption in China, India, and other developing Asian countries with rising construction activities.
Key players operating in the petroleum resins market are Afterpay, Zippay, VISA, Sezzle, Affirm, Paypal, Splitit, Latitude Financial Services, Klarna, Humm, and Openpay. Key players are focusing on capacity expansion and new product development to strengthen their market position.
Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
