Petroleum resins are hydrocarbon resins used across various end-use industries due to their favorable properties like excellent tack, low odor, and high heat resistance. They are synthesized from petroleum-derived feedstock and find extensive applications as adhesives, road mark films, printing inks, and hot-melt compositions. The global petroleum resins market is driven by the growing demand for adhesives and sealants from the construction and packaging industries.
The global petroleum resins market is estimated to be valued at US$ 2.2 billion in 2024 and is expected to exhibit a CAGR of 7.4% over the forecast period 2024 to 2031.
Key Takeaways
Key players operating in the Petroleum Resins Market Companies are ExxonMobil Corp, Eastman Chemical Company, Arakawa Chemical Industries, Ltd., Zeon Corporation, Kolon Industries Inc.
The growing demand for adhesives and sealants from end-use industries like construction, packaging, and tires is fueling the petroleum resins market. Petroleum resins find wide application in adhesives used in plywood, particleboard, and flooring due to their excellent tack and high heat resistance. Rapid urbanization and infrastructure development are driving the construction industry, thereby augmenting market growth.
Petroleum resins manufacturers are expanding their production facilities globally to cater to the rising demand. For instance, Arakawa Chemical Industries is expanding its production capacity for petroleum resins in China. Companies are also focusing on Middle East and Africa region due to raw material supply and demand opportunities.
Market key trends
Increasing penetration of hot-melt adhesives across various end-use industries is one of the Petroleum Resins Market Growth. Hot-melt adhesives are easy to use, allow instant bonding, and require minimal surface preparation. They are increasingly replacing solvent-based adhesives due to environmental and regulatory pressures. Petroleum resins are preferred in hot-melt adhesives applications owing to their excellent thermal stability.
The growing demand for lightweight and high-performance materials from automotive and aircraft industries is another trend. Petroleum resins are used in composite applications to improve impact strength and surface properties. With the focus shifting towards fuel efficiency and emission reduction, the consumption of composites made of petroleum resins is expected to rise significantly over the forecast period.
Porter’s Analysis
Threat of new entrants: High capital requirements and strong economies of scale in production and distribution limit the threat of new entrants in this market.
Bargaining power of buyers: Large, sophisticated buyers in industries such as adhesives and rubber have significant influence on pricing and product development.
Bargaining power of suppliers: Fuel and feedstock prices are determined by global commodity markets limiting individual supplier power over downstream petroleum resins producers.
Threat of new substitutes: New substitute technologies can threaten existing petroleum resins used in applications like adhesives, coatings, rubbers and others if they offer improved performance or lower costs.
Competitive rivalry: Major global players dominating production and stringent performance, quality and regulatory requirements intensify competition in this industry.
Geographical Regions
The Asia Pacific region accounts for the largest market share in terms of value led by strong demand from countries like China and India. Growing end-use industries and infrastructure modernization support continued high consumption.
The Middle East and Africa region is anticipated to witness the fastest growth over the forecast period with increasing regional refining capacities and expanding chemicals production bases, especially in the GCC countries. Rapid industrialization and infrastructure development across Africa also contribute to market expansion.
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