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 2023-2033
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The chemical industry is a major component of the economy. According to the U.S. Bureau of Economic Analysis, in 2020, for the U.S., the value added by chemical products as a percentage of GDP was around 1.9%. Additionally, according to the World Bank, Chemical industry in the U.S. accounted for 16.43% to manufacturing value-added in 2018. With the growing demand from end-users, the market for chemical products is expected to grow in future. According to UNEP (United Nations Environment Program), the sales of chemicals are projected to almost double from 2017 to 2030. In the current scenario, Asia Pacific is the largest chemical producing and consuming region. China has the world’s largest chemical industry, that accounted for annual sales of approximately more than USD 1.5 trillion, or about more than one-third of global sales, in recent years. Additionally, a vast consumer base and favorable government policies have boosted investment in China’s chemical industry. Easy availability of low-cost raw material & labor as well as government subsidies and relaxed environmental norms have served as a production base for key vendors globally. On the other hand, according to the FICCI (Federation of Indian Chambers of Commerce & Industry), the chemical industry in India was valued at 163 billion in 2019 and it contributed 3.4% to the global chemical industry. It ranks 6th in global chemical production. This statistic shows the lucrative opportunity for the investment in businesses in Asia Pacific countries in the upcoming years.
Growth Drivers
Expansion in the Automotive Industry – The utilization of cyanate ester resins in place of steel is the prime factor that is driving the sales of cyanate ester resins in the automotive industry. Thus, the expansion of the automotive industry is expected to drive the growth of the cyanate ester resins market. As per recent statistics, the revenue generation by the global automotive industry by 2030 is projected to reach USD 9 trillion.
Boom in Chemical Industry – Rapid industrialization and developement in India has propelled the Indian chemical industry to grow by a CAGR of 10% with a revenue of USD 300 billion by 2025.
Challenges
The cyanate ester resins market is segmented and analyzed for demand and supply by end-use industry into airplanes & defense, automotive, electrical & electronics, and others. Out of these, the automotive segment is attributed to garner the highest market share by 2033, owing to the blooming of automotive industry. As per recent statistics, the global automotive industry is forecasted to reach approximately USD 9 trillion by 2030. Also, the recent high demand for automobiles is anticipated to increase the demand for coating resins to provide extra protective layers to the vehicles. As per the International Organization of Motor Vehicle Manufacturers (OICA), the global sales of vehicles increased to 56,398,471 units in 2021 from 53,917,153 units in 2020. whereas the global production of vehicles is calculated to be 57,054,295 units in 2021, an increase from 55,908,989 units in 2020.
Regionally, the global cyanate ester resins market is studied into five major regions including North America, Europe, Asia Pacific, Latin America and Middle East & Africa region. Amongst these, the market in North America is projected to hold the largest market share by the end of 2033, owing to the blooming chemical industry. According to recent reports, the chemical industry generated nearly USD 550 billion in revenue in the US 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. 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 global cyanate ester resins market is further classified on the basis of region as follows:
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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.
Ans: The expansion of aerospace & defense industry along with the expansion of automotive industry is expected to bring lucrative growth opportunities in the market growth.
Ans: The market is anticipated to attain a CAGR of ~11% over the forecast period, i.e., 2023 – 2033.
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 North America is projected to hold the largest market share by the end of 2033 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 others.
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 2033 and display significant growth opportunities.
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