Cyanate Ester Resins Market Analysis by Type (Bisphenol-based, Novolac-based, and Others); by Application (Composite, Adhesives, and Others); and by End-use Industry (Airplanes & Defense, Automotive, Electrical & Electronics, and Others) – Global Supply & Demand Analysis & Opportunity Outlook 2023-2035
Buy Now Report ID: 4407 | Published Date: Apr 13, 2023
The global cyanate ester resins market size is estimated to reach ~USD 500 Million by the end of 2035 by growing at a CAGR of ~11% over the forecast period, i.e., 2023 – 2035. In addition to this, in the year 2022, the market size of cyanate ester resins was ~USD 340 Million. The primary factor for the robust growth of the market during the assessment period is the rising utilization rate of cyanate ester resins in the automotive industry. Cyanate ester resins are replacing the steel components in a vehicle owing to their wonderful strength along with enhanced properties and lower wetness absorption which makes it an ideal option for manufacturers to produce lightweight vehicles. Thus, the rapid boom in the automotive industry is expected to bring lucrative opportunities for market growth during the forecast period. As per recent records, it has been stated the global automotive sector generated a revenue of approximately USD 3 trillion in 2021. This figure is anticipated to constantly rise and reach almost USD 8 trillion by 2035.
Properties of cyanate ester resins such as excellent strength and enhanced electrical properties as compared with other resins are the major factor for its high utilization rate in various end-use industries such as automotive, defense, electronics, and others. Furthermore, it has other advantages such as high resistance power against heat and harsh reactions along with flexibility and robustness which makes it a preferred option for electronics, automobiles, and other products which require strong materials for smooth and effective operation for years. All these advantages couple up to help in aiding in the expansion of market growth during the forecast period.
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Base Year |
2022 |
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Forecast Year |
2023-2035 |
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CAGR |
~11% |
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Base Year Market Size (2022) |
~ USD 340 Million |
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Forecast Year Market Size (2035) |
~ USD 500 Million |
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Regional Scope |
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Growth Drivers
Growing Demand and Production of Vehicles Across the Globe – As the economies are developing, people are propelled to opt for products such as lightweight and efficient vehicles for their convenience. Cyanate ester resin, being a versatile component with many added benefits such as high mechanical strength, enhanced durability, and resistance against harsh conditions is used for many components such as exhaust of race cars, brakes, and others. Therefore, the increasing demand and production of vehicles are anticipated to increase the utilization rate of cyanate ester resins in the next few years. The International Organization of Motor Vehicle Manufacturers (OICA), released global sales of vehicle statistics which revealed that it rose to 56 million in 2021 from 53 million in 2020. Whereas, the global production of vehicles was calculated to be 57 million in 2021.
Growth in the Electronics Sector – Cyanate ester resins are being highly used to manufacture electrical products and electronics as cyanate ester resins are a good conductor of electricity and increase the durability of the products. Therefore, the high demand for electronic commodities by the global population and the rapid boom in the electronics industry is expected to create a positive outlook for the growth of the global market. As per recent estimates, it was calculated that the revenue generated by the U.S. electronics industry in 2019 stood at USD 300 billion.
Increased Expenditure in Research & Development Activities – The World Bank released the global expenditure made in the Research & Development (R&D) sector, which showed that in 2020 it was 2.63% of the total GDP. This is an increase from last year's 2.14% of total GDP in 2016.
The Boom in the Chemical Industry – Rapid industrialization and development in India have propelled the Indian chemical industry to grow by a CAGR of 10% with a revenue of USD 300 billion by 2025.
Challenges
The global cyanate ester resins market is segmented and analyzed for demand and supply by application into composite, adhesives, and others. Out of the three types of applications, the adhesives segment is estimated to gain the largest market share of about ~45% in the year 2035. The primary reason for segment growth is the high versatility of ester resins in adhesives applications. It is used for a variety of applications including space crafts, aircraft, missiles, antennae, radomes, microelectronics, and microwave products. Moreover, adhesives have been highly used in electronic products owing to their advantages which are considered to be another growth factor for segment expansion during the forecast period.
The global cyanate ester resins market is also segmented and analyzed for demand and supply by end-use industry into airplanes & defense, automotive, electrical & electronics, and others. Amongst these segments, the automotive segment is expected to garner a significant share of around ~38% in the year 2035. The major factor for segment growth is the blooming of the automotive industry along with the rising preference for connected vehicles and autonomous cars which require cyanate ester resins for efficient vehicles. For instance, it was estimated by 2025, there will be almost 470 million connected cars on the roads of the world. Also, the usage of cyanate ester resins helps in reducing the overall weight of the vehicle and increasing the durability as compared with steel. Therefore, the recent high demand for automobiles is anticipated to increase the demand for cyanate ester resins to provide extra protective layers to the vehicles. Worldwide car sales grew to around 67 million automobiles in 2022, up from around 66 million units in 2021.
Our in-depth analysis of the global cyanate ester resins market includes the following segments:
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By Type |
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By Application |
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By End Use Industry |
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The market share of cyanate ester resins in North America, 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, owing to the blooming chemical industry. The growth of the chemical industry is a positive indicator of the increased production rate of cyanate ester resins in the upcoming years. According to recent reports, the chemical industry generated nearly USD 550 billion in revenue in the United States region in 2019. Further, the high demand for vehicles is augmenting the automotive sector in the region. This is expected to bring lucrative opportunities in the upcoming years as the cyanate ester region is a preferred option for vehicle manufacturers to produce lightweight, durable, and efficient vehicles. According to the International Organization of Motor Vehicle Manufacturers (OICA), the sales of all types of vehicles in the American region grew from 20,814,832 in 2020 to 22,001,152 in 2021, whereas the production of the same region was 16,151,639 vehicles in 2021.
The Asia Pacific cyanate ester resins market is estimated to be the second largest, registering a share of about ~24% by the end of 2035. The major factor for the expansion of the market growth during the forecast period is the increased investment in research and development activities to introduce high-quality cyanate ester resins. Also, the rapid growth in the various end-use industries in the region is anticipated to bring lucrative growth opportunities for market growth in the upcoming years. Furthermore, rising favorable government initiatives and the presence of major key players in the region are estimated to create positive opportunities for market growth during the next few years.
Further, 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. The European government is investing hefty amounts in developing a strong aircraft and defense industry for economic growth which is expected to generate favorable opportunities for the utilization rate of cyanate ester resins which in turn is expected to favor market expansion. Also, the rising awareness level about the advantages of cyanate ester resins as compared to traditional resins among the European manufacturing industries is projected to create a positive outlook for market growth in the region during the forecast period.
Hexcel Corporation along with Spirit AeroSystems Europe has entered into a collaboration at its Aerospace Innovation Centre (AIC) to enhance aircraft manufacturing technologies for future aircraft production.
Lonza Group Ltd. has joined hands with Adva Biotechnology Ltd. which will enable the expansion of automated bioreactors globally.
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 expansion of the aerospace & defense industry along with the expansion of the automotive industry is expected to bring lucrative growth opportunities to the market growth.
Ans: The market size of cyanate ester resins is anticipated to attain a CAGR of ~11% over the forecast period, i.e., 2023 – 2035.
Ans: The high fluctuation in prices of raw materials along with increasing issues related to reusability and recyclability and long processing and increased manufacturing costs are some of the factors that are expected to hamper the market growth.
Ans: The market in the North American 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 Lonza Group Ltd., Hexcel Corporation, Henkel AG & Co. KGaA, Argosy International Inc., Huntsman International LLC, Mitsubishi Gas Chemical Company Inc., Toray TCAC Holding B.V, Solvay Group, Novoset, LLC, TenCate Protective Fabrics, and other key players,
Ans: The company profiles are selected based on the revenues generated from the product segment, geographical presence of the company which determine 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, end-use industry, and by region.
Ans: The automotive segment is anticipated to garner the largest market size by the end of 2035 and display significant growth opportunities.
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