Dicyclopentadiene Market Market Trends

Growth Drivers

• Diverse applications in various industries: The dicyclopentadiene market offers a wide range of chemicals and composites for various industries. The multi-functional material serves many sectors including construction, electronics, automotive, and aerospace. This has further increased the demand for DCPD-based materials. The component can be used for manufacturing coatings, adhesives, and building materials for these industries. This makes DCPD one of the most preferable components for production houses. The features of resistance to heat, erosion, and harmful chemicals have also inflated the demand for dicyclopentadiene in the paints and coatings industry.
• Technological advancements in production: The dicyclopentadiene (DCPD) market is introducing new production methods to cope with the growing demand. Companies are investing to discover enhanced forms of catalytic and cracking processes to serve the purpose. Such innovative technologies have helped to produce high-quality DCPD cost-effectively and efficiently. The NLM study conducted in February 2022 states, that the Steam Cracking method of ORLEN can process a wide range of valuable hydrocarbons including dicyclopentadiene from gasses and heavy oils. These hydrocarbons can be further used as a profitable monomer in various chemical applications.

Challenges

• Volatility of raw materials: As PCPD is derived from petroleum-based feedstocks, the fluctuation in petroleum prices can create uncertainty in raw material supply for the dicyclopentadiene (DCPD) market. This may further impact the stability and pricing strategy of manufacturing companies. Disruptions in the raw material supply chain due to geopolitical tensions and natural disasters can affect the availability and affordability of these products. Such difficulty in cost management of production can also create difficulties in seamless supply to the market. 
• Increasing awareness about sustainability: Changing consumer preferences towards using eco-friendly materials can hinder the progress of the dicyclopentadiene (DCPD) market. The limited recycling of DCPD-based products such as resins raises concerns about their environmental impact. This may further discourage investors, particularly those who are focused on reducing their carbon footprint. Strict regulations on chemical manufacturing and emissions can also hamper the approval of new launches. In addition, this may force consumers to switch to other sustainable alternatives.