CED Resins Market

CED Resins Market Overview

The CED resins market globally is forecast to reach US$613.4 million by the end of 2027 after growing at a CAGR of 4.2% during 2022-2027. The growth in the automobile industry and development in the construction sector is forecasted to drive the growth of the CED resins market globally. Epoxy resin is anticipated to lead the CED resin type owing to its superior adhesion and corrosion resistance properties. Epoxy resin is widely used in cathodic electro-deposition coating and is regarded as the benchmark for rust and corrosion resistance. Epoxy resin based epoxy coatings is extensively used in the automotive sector. The presence of Bisphenol A based epoxy resin, blocked isocyanates cross-linking agent, and epoxy amine binder in cathodic electro-deposition coating keeps the corrosion resistance quality intact and makes CED resin used extensively in automotive and other industrial equipment. This high-quality resistance property of epoxy resin is expected to drive the CED resins market. However, insufficient raw materials for manufacturing epoxy resins due to Covid-19 might hinder the CED resins market growth.

COVID-19 Impact

Although factors like increased demand for epoxy resin in the automotive sector are driving the growth of the market, it is no surprise, this market is also facing a challenge due to COVID-19. Just like any other business and industry, the CED resins market too got impacted severely by COVID-19. Due to disruption in the supply chain and a poor workforce, CED resin manufacturers suffered procuring raw materials to produce resins that are used in protective coatings. Also, the price of epoxy resins increased sharply, adding to the difficulties of resin manufacturers and suppliers. According to the German Paint and Printing Inks Association data, the price of epoxy resin increased by 60% in 2020 due to Covid-19. This price hike in epoxy resin raw materials is seen in other parts of the world and according to experts, the price will come down in the coming years due to the expansion of some major industries such as the automobile and construction sectors.

CED Resins Market - By Process

Batch-type dip tanks coating process is anticipated to be a driving force in the growth of the CED resins market. Most automobile manufacturers prefer the dip tank process to perform the cathodic electrodeposition coating onto automotive parts. The immersive dipping system allows the e-coat to reach every edge, corner, and recessed area and provide maximum protection to the entire product. Cathodic epoxy coatings protect the automotive components from corrosion through dip tank coating and are considered the benchmark for corrosion resistance. The involvement of bisphenol A based epoxy resin, epoxy amine, and blocked isocyanate in cathodic epoxy coating amplifies the corrosion resistance quality. According to Hartford Finishing Inc. data, a US-based e-coating and wet painting provider, 99% of all new cars manufactured are electrodeposition coated, and this further proves that epoxy resin will be at the center stage of automotive and other heavy equipment production processes, thereby, expanding the CED resins market.

CED Resins Market - By Resin Type

Epoxy resin is anticipated to lead the resin type segment owing to the massive use of this resin in automotive, farming, electrical appliances, and many other industries. With the implementation of epoxy resin (composed of Bisphenol A based epoxy resin), blocked isocyanates, and epoxy amine binder in the cathodic electro-deposition coating, the coating acts as an anti-corrosion and anti-rust agent providing utmost protection to vehicles against diverse climatic conditions. Bisphenol A based epoxy resin is the most widely used epoxy resin. According to the second quarter 2021 results by Olin, a US-based leading supplier of epoxy resins, epoxy resin sales touched US$850 million which was US$397.4 in the second quarter of 2020. This is a positive sign for epoxy resin which will boost the confidence of manufacturers to produce and utilize epoxy more in cathodic electro-deposited epoxy coatings, and this, in turn, is expected to drive the growth of the CED resins market during the forecast period. Acrylic resin is expected to witness decent demand due to its strong UV resistance and good corrosion property.

Request for Sample Report @ https://www.industryarc.com/pdfdownload.php?id=18899

Report Price: $ 4500 (Single User License)

CED Resins Market - By Application

The automotive sector is projected to be an excellent growth area for CED resins during the forecast period growing with a CAGR of 4.4%. Growing production of automobiles globally demanding a huge requirement of epoxy and acrylic resin for use in cathodic electro-deposition. This coating is deposited onto automobiles and their various parts, mostly through paint baths in dip tanks for protection against rust and corrosion. The growing market of EV vehicles, especially in regions like Asia-Pacific and Europe is driving the massive utilization of epoxy resin. China is poised to propel the growth of the CED resins market, due to increasing demand for NEVs and shift in customers attitudes regarding more investment in cars. According to the 2020 report by Autohome, a Chinese online auto information provider, consumers in the Chinese market are more willing to spend on cars and car-related loans, thereby expanding the car business in the region. Also, the report predicted that by 2025, the annual sales volume of new energy vehicles (NEVs) is likely to hit 3 million units which were 1.2 million units in 2019. India is also demonstrating excellent development in the electric vehicles (EV) segment owing to the purpose of reducing vehicle emissions. According to the statistics by India Brand Equity Foundation (IBEF), the electric vehicle market is anticipated to be a US$ 7.09 billion market opportunity by 2025, which will surely boost the CED resins market. The European region is showing encouraging figures in the passenger cars segment as the passenger car registrations in June 2021 increased by +10.4% compared to the same month last year, and this will boost the CED resins market in this region.

Apart from Automotive, the rapid expansion in construction activities in the Asia-Pacific region is also projected to support the CED resins market. Both epoxy and acrylic resins are extensively used in construction equipment due to their corrosion resistance and UV resistance properties respectively. The massive expansion in the construction sector is attributed to increasing investment by private players and organizations in emerging economies like China, India, and others. According to the report by India Brand Equity Foundation (IBEF), Foreign Direct Investment (FDI) in the construction development sector (housing, townships, built-up infrastructure, and construction development projects) between April 2000 and March 2021 was valued at US$ 26.08 billion. Such huge investment in the construction sector is projected to expand the CED resins market.

CED Resins Market - By Geography

The Asia-Pacific region held a 30% CED resins market share in 2021. This region is projected to lead the CED resins market in the forecast period owing to massive growth in the automotive industry, mostly in countries like China, India, and South Korea. Epoxy resin is hugely used in the production of automotive parts owing to its rust and corrosion resistance properties. China is expected to drive the automotive sector due to the exponential growth in NEVs (New Energy Vehicles) and smart vehicles with highly autonomous driving functions. Going by the reports of the China Association of Automobile Manufacturers (CAAM), the automotive sector is poised to stay on track and the recent massive sales of NEVs in China further proves that. According to the 2021 statistics by CAAM, new-energy vehicles accounted for 10 percent of new car sales in China. Going forward, as per CAAM, the sale of new-energy-vehicle is projected to maintain a stable graph, which in turn, will support the growth of CED resin in the region. In the passenger vehicles segment, the number is projected to hit 30 million by 2029 which was 21.44 million units in 2019, as per the report of Chinese online auto information provider Autohome. The Indian automobile sector is also poised to be in a growing phase during the forecast period. According to India Brand Equity Foundation (IBEF) report, Foreign Direct Investment (FDI) received for the automotive development sector of India was valued at US$ 25.85 billion between April 2000 to March 2021 and this, in turn, is projected to amplify the CED resin market in the coming years.

The European region is projected to witness significant growth during the forecast period due to the growing demand for electrically chargeable vehicles (EVs) and hybrid electric vehicles (HEVs). According to European Automobile Manufacturers Association (ACEA) statistics, the hybrid electric vehicles segment accounted for 11.9% of total car sales in 2020, which was 5.7% in 2019. Similarly, electrically-chargeable vehicles witnessed a rise in sales as this segment accounted for 10.5% of total car sales in 2020 which was only 3% in 2019, and this, in turn, will support the growth of CED resins.

CED Resins Market Drivers

Increasing vehicle production

The automotive sector has always been a major contributor to the development of the CED resins market and in the coming years, this sector will continue to have a strong impact owing to the massive production of vehicles. The passenger cars segment is on rampage mode in current times, especially in regions like Asia-Pacific and Europe. According to reports of the China Association of Automobile Manufacturers (CAAM), the new energy vehicle segment will dominate the Chinese automotive market during the forecast period with an annual sales volume of NEVs is likely to hit 3 million units in China, which is a big jump in sales compared to the 1.2 million NEVs unit sold in 2019. In Europe, the automotive industry is also witnessing a healthy trend mostly due to a surge in demand for electrically chargeable vehicles (EVs) and hybrid electric vehicles (HEVs). According to 2020 statistics by European Automobile Manufacturers Association (ACEA), hybrid electric vehicles made up 11.9% of total car sales which was 5.7% in 2019. Similarly, electrically-chargeable vehicles made up 10.5% of total car sales, up from 3% in 2019. This growth is projected to continue also in the forecast period and will boost the CED resins market.

Expanding market in the construction sector

The expansion in the construction sector majorly in emerging economies like China, India, and others in the Asia-Pacific region is expected to propel the growth of the CED resins market. The changing lifestyle and huge investment in the construction industry by private firms will spur the production of epoxy and acrylic resins. For instance, the statistics by India Brand Equity Foundation (IBEF) indicate that India received a Foreign Direct Investment (FDI) valued at US$ 26.08 billion in the construction development sector (housing, townships, built-up infrastructure, and construction development projects) between April 2000 and March 2021. This massive amount of investment in the region will surely create high demand for CED resins.

Direct Purchase @ https://www.industryarc.com/purchasereport.php?id=18899

CED Resins Market Challenges

The increased price of epoxy resins

CED resin supply chain and production functionality got badly affected due to the mayhem caused by COVID-19, which led to a shortage of raw materials. This shortage of raw material increased the price of CED resins, especially epoxy resin. For instance, US-based company Hexion which deals with resins production, increased the prices for epoxy resins in Europe, The Middle East, Africa, India by 100 Euro/MT and in the US by $0.07 per Pound due to an increase in raw material costs, effective from February 2020. Region-wise, Europe suffered a huge rise in epoxy resins price during the pandemic. According to British Coatings Federation (BSF) January 2021 press release report, the price of epoxy resin risen sharply in the latter part of 2020 due to supply bottlenecks, courtesy of the COVID-19 pandemic. Increasing freight and production cost got increased, adding to the pain of epoxy resin suppliers and manufacturers. So, the lack of raw materials might create a dent in the growth of the CED resins market in the coming years.

CED Resins Market Industry Outlook

Major investment in R&D activities, innovation, acquisitions, and technology launches are key strategies adopted by players in the CED resins market. Major players in the performance fabric market are:

PPG Industries Inc

Nippon Paint Holdings Co. Ltd.

Durr AG

KCC Corporation

Axalta Coating Systems

B.L. Downey

BASF

Kansai Paint Co. Ltd, among others.

Acquisitions/Product Launches

In January 2020, US-based fortune 500 company PPG Industries acquired Industria Chimica Reggiana (ICR), a manufacturer of coatings and paints for automotive and light industrial industries.

Germany-based company Durr AG to build a paint shop for the Chinese EV start-up firm Enovate in 2021. The paint shop will be present inside Enovate’s new e-car factory implementing RoDip E rotational dip process and cathodic electrocoating.

Key Takeaways

Epoxy resin is anticipated to expand the CED resin growth during the forecast period due to its high-quality corrosion and rust resistance properties.

The automotive sector is projected to drive the growth of the CED resins market, owing to the huge implementation of epoxy resin in the automotive sector as it offers superior corrosion resistance to auto components and accessories. For instance, according to India Brand Equity Foundation (IBEF) data, India was the fifth-largest auto market in 2020 with 3.49 million units sold combinedly in the commercial and passenger vehicles segment.

Asia Pacific is poised to drive the CED resin market due to the expansion of construction activities and the large production of the automobile sector, especially in countries like China, India, and Japan. According to the China Association of Automobile Manufacturers (CAAM), the automobile sector will stay on a progressive track in China and NEVs (New Energy Vehicles) will witness more demand in the coming years.

Relevant Reports

Epoxy Resin Market

https://www.industryarc.com/Report/16463/epoxy-resin-market.html

For more Chemical and Materials related reports, please click here 

About IndustryARC: IndustryARC primarily focuses on Cutting Edge Technologies and Newer Applications market research. Our Custom Research Services are designed to provide insights on the constant flux in the global supply-demand gap of markets. Our strong team of analysts enables us to meet the client research needs at a rapid speed, with a variety of options for your business. Any other custom requirements can be discussed with our team, drop an e-mail to sales@industryarc.com to discuss more about our consulting services.

Media Contact
Company Name: IndustryARC
Contact Person: Mr. Venkat Reddy
Email: Send Email
Phone: (+1) 970-236-3677
Address:Madhapur
City: Hyderabad
Country: India
Website: https://www.industryarc.com/