C5 Resin Market size is estimated to reach ~USD 1200 Million by the end of 2035 by growing at a CAGR of ~5% over the forecast period, i.e., 2023 – 2035. In addition to this, in the year 2022, the market size of C5 resin was ~USD 760 Million. The major factor that is attributed to market growth is the rising construction industry across the world. Owing to the advantageous chemical composition of C5 resins, it is considered to be one of the vital components in building infrastructures and other construction projects. For instance, the global construction industry amounted to almost USD 6 trillion in 2020, and it is expected to reach almost USD 14 trillion by 2030.
Apart from the aforementioned factors, it is noticed that the growth of the market is dependent on the rising demand for paints & coatings across the world. Furthermore, the various advantages provided by C5 resins i.e. good adhesion, along with the compatibility with most of the base polymers, polymer modifiers, and antioxidants. Also owing to these several advantages, C5 resins have found their application in various industries which in turn is anticipated to aid the expansion of the market shortly. High-quality C5 resin is used in various applications such as hot melt adhesives, sealants, coatings, bookbinding, rubber and plastic compounding, and wax blends.
Base Year |
2022 |
Forecast Year |
2023-2035 |
CAGR |
~5% |
Base Year Market Size (2022) |
~ USD 760 Million |
Forecast Year Market Size (2035) |
~ USD 1200 Million |
Regional Scope |
|
Growth Drivers
Challenges
The market is segmented and analyzed for demand and supply by application into paint & coating, adhesive, printing ink, rubber and wax compounding, and others. Out of these segments, the paint & coating segment is estimated to gain the largest market share of about ~38% in the year 2035. Factors that are estimated to aid segment growth during the analysis period are the increasing demand for paints and coatings from various end-use industries such as automotive, construction, healthcare, adhesives, and others. As per recent reports, it has been estimated that a total amount of 860 million gallons of architectural paint was utilized in the United States in 2020. Furthermore, C5 resin has an extensive range of applications as a modifier for paints and printing inks which is also estimated to create a positive outlook for segment growth in the assessment period.
The global C5 resin industry is also segmented and analyzed for demand and supply by the end-use industry into construction, medical, printing, mining, packaging, automotive, and power generation. Amongst these three segments, the construction segment is expected to garner a significant share of around ~32% in the year 2035. The major factor for segment growth during the forecast period is the rapid growth of the real estate sector and the rising favorable initiatives for infrastructure development. As per recent estimates, the revenue generation of real estate companies worldwide stood at approximately USD 10 billion in 2021. Furthermore, the escalation in the number of projects of residential and non-residential buildings along with the rising investments in research and development activities is also estimated to fuel segment growth.
Our in-depth analysis market of C5 resin includes the following segments:
By Type |
|
By Application |
|
By Form |
|
By Distribution Channel |
|
By End-Use Industry |
|
The market share of C5 resin in Asia Pacific, amongst the market in all the other regions, is projected to be the largest with a share of about ~35% by the end of 2035. The market in the Asia Pacific region is projected to witness considerable growth over the forecast period on the back of rising growth in the C5 resin production and its rising utilization in the region. China and India are the leading countries in the Asia Pacific to churn out the C5 resin. For instance, in 2018, the total C5 resin production in China amounted to USD 165 billion, while in 2021 it crossed USD 175 billion. Additionally, in the Asia Pacific region is forecasted to grow on the back of rapidly increasing construction activities.
The North American C5 resin market is estimated to be the second largest, registering a share of about ~24% by the end of 2035, owing to the excessive utilization of C5 resin in tire manufacturing and adhesive formulation. Moreover, the growing automotive industry in the region is expected to increase the demand for C5 resin in the region. Furthermore, the rising investments in prominent applications in various industries along with the emerging advanced technologies in the region during the forecast period.
Furthermore, the market in the European region, amongst the market in all the other regions, is projected to hold a majority of the share by the end of 2035. One of the major factors for market growth in the region is the rising favorable government initiatives for the development of advanced C5 resin through research activities. Also, the rising awareness level about C5 resin among the European region, the rising opportunities for utilization of C5 resin in various industries, and the expansion of the chemical industry are other factors that are projected to drive market growth.
In 2023, market players might incur losses due to huge gap in currency translation followed by contracting revenues, shrinking profit margins & cost pressure on logistics and supply chain.
Controlling Inflation has become the first priority for global economies from last quarter of 2022 and to be followed in 2023. With skewed economic situations, rise in interest rate by governments to control spending and inflation, spiked oil and gas prices, high inflation, geo-political issues including U.S. & China trade war, Russia-Ukraine conflict to intensify the global economic issues.
The interest rates in the U.S. may be less sensitive in 2023 as compared to 2022; sigh of relief for businesses. Positive business sentiments, healthy business balance sheets, growth in construction spending (private construction value in 2022 stood at $1,429.2 billion, 11.7 percent (±1.0 percent) above the $1,279.5 billion spent in 2021, Residential construction in 2022 was $899.1 billion, up by 13.3 percent (±2.1 percent) from $793.7 billion in 2021, non-residential construction touched $530.1 billion, 9.1 percent (±1.0 percent) above the $485.8 billion in 2021.) showcases minimal impact of recession in the country.
Similarly, spiked spending in the European and major Asia economics including, India, China & Japan to showcase less impact on the global demand.
Author Credits: Smruti Ranjan, Rajrani Baghel
Ans: The utilization of C5 resin as a tackifier to formulate adhesives, in paint, coating, rubber compounding, and packaging are the major factor driving the growth of the market during the forecast period.
Ans: The market size of C5 resin is anticipated to attain a CAGR of ~5% over the forecast period, i.e., 2023 – 2035.
Ans: The easier access to alternatives of C5 resin along with the requirement of higher initial investment and long manufacturing process are some of the factors that are estimated to be the growth hindering factors for the market expansion.
Ans: The market in the Asia Pacific region is projected to hold the largest market share by the end of 2035 and provide more business opportunities in the future.
Ans: The major players in the market are Arakawa Chemical Industries. Ltd., Cray Valley S.A., Kolon Industries, Inc., ENEOS Holdings, Inc., DuPont de Nemours, Inc., Shanghai Jinsen Hydrocarbon Resins Co., Ltd., Zibo Luhua Hongjin New Material Group Co., Ltd, Eastman Chemical Company, Lesco Chemical Limited, Neville Chemical Company, and other key players.
Ans: The company profiles are selected based on the revenues generated from the product segment, the geographical presence of the company which determines the revenue generating capacity as well as the new products being launched into the market by the company.
Ans: The market is segmented by type, application, form, distribution channel, end-user industry, and by region.
Ans: The online segment is anticipated to garner the largest market size by the end of 2035 and display significant growth opportunities.
Submit Your Request For Proposal (RFP)