The Specialty Resins Market growth is driven by increasing demand from paints and coatings sector

The specialty resins market involves synthetic resins that exhibit superior physical and chemical properties such as high strength, stiffness, chemical and heat resistance compared to commodity resins. Specialty resins find wide application in various end-use industries including paints and coatings, construction, automotive, electrical & electronics and others owing to their superior properties. In the paints and coatings industry, specialty resins are used in production of architectural paints and powder coatings attributed to high durability and weather resistance.

The global specialty resins market is estimated to be valued at US$ 13.63 Bn in 2024 and is expected to exhibit a CAGR of 6.3% over the forecast period 2024 to 2031.

Key Takeaways

Key players operating in the Global specialty resins market Growth are BASF SE, Hexion Inc., SABIC, Royal DSM, Arkema, Radiant Color NV, Mitsubishi Chemical Corporation, The Dow Chemical Company, Huntsman International LLC, Aldex Chemical Company Limited, Thermax Limited, International Specialty Chemicals Ltd., Purolite, Kolon Industries, Revex Plasticiser, Tetra , V. B. Chem Industries, Orson Resins And Coatings Private Limited,  Nye Lubricants, Inc., Scholle Ipn Corporation. Key players are focusing on new product development and capacity expansion strategies to strengthen their market position.

The growing demand from end-use industries such as paints and coatings, construction, automotive and electrical & electronics is expected to drive the specialty resins market during the forecast period. Specialty resins provide advantages such as durability, flexibility, corrosion and scratch resistance in end products.

Major players are focusing on geographic expansion strategies in emerging markets of Asia Pacific, South America, Middle East and Africa. Abundant availability of raw materials and cheap labor costs make these regions lucrative for specialty resin manufacturers. The emergence of local resin manufacturers is also expected to intensify competition during the forecast period.

Market drivers

The major driver propelling the growth of specialty resins market is the increasing demand from paints and coatings industry. Specialty resins exhibit excellent properties such as weather resistance, chemical resistance and UV stability ideal for production of architectural paints and industrial coatings. Powder coatings manufactured using specialty resins have high demand owing to low volatile organic compound emissions. Growing construction activities in Asia Pacific and Middle East are expected to drive the consumption of specialty resins in paints and coatings applications over the forecast period. Other key drivers include growing automotive production and rising electronics manufacturing in Asia Pacific region.

Impact of geopolitical situation on Specialty Resins market growth and geographical regions
The current geopolitical instability across various regions is impacting the growth of the specialty resins market. The ongoing Russia-Ukraine war has disrupted global supply chains and trade routes. Both Russia and Ukraine are among the major exporters of key raw materials used in specialty resins production such as epoxy resins and unsaturated polyester resins. The restrictions on Russian imports have increased raw material costs for specialty resin manufacturers globally.

The political tensions between US and China are also affecting market expansion opportunities. The tariffs and sanctions imposed by the US government on Chinese goods are restricting Chinese specialty resin exporters. Additionally, the strict Covid-19 lockdowns in China are causing delays and uncertainties in materials procurement for foreign specialty resin companies dealing with Chinese suppliers.

The instability in the Middle East due to ongoing conflicts is another concern area. As the Middle East is a key export market for specialty resins, ongoing warfare and sanctions are shrinking available market opportunities. Manufacturers need to explore new geographical regions and diversify supplier bases to mitigate risks from geopolitical issues.