Dublin, Oct. 19, 2021 (GLOBE NEWSWIRE) -- The "Thermosetting Plastics Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)" report has been added to ResearchAndMarkets.com's offering.
The market for thermosetting plastics is expected to witness a CAGR of more than 5% during the forecast period. A major factor driving the market studied is the growing construction industry in Asia-Pacific.
Additionally, the rising demand for polyurethane in the automotive industry is likely to favor the market growth. On the flipside, stringent government regulations and the impact of COVID-19 pandemic are likely to hamper the market growth.
Asia-Pacific dominated the market across the world with the largest consumption from countries, such as China and India.
Key Market Trends
Increasing Demand from Construction Industry
Thermosetting plastics are the cross-linked polymers that are being widely used in construction activities because of their excellent properties such as chemical resistance, heat resistance, structural integrity, less in weight, providing hardness, insolubility, thermal and electrical resistance. Thermosetting plastics are being usually preferred for structural applications in buildings and architecture that include adhesives and sealants, thermal insulation, roofing, piping, bridge structures, and repair and rehabilitation of civil structures.
Epoxies and Unsaturated polyesters have wide applications in the construction industry. Epoxies are being used for pipes, tanks, pressure vessels, and tooling jigs and fixtures also reinforcements applications and exhibit high mechanical strength, chemical resistance, electrical insulating properties.
Unsaturated polyesters which are being used for roofs, awnings, skylight domes, partitions, wall siding, decorative fixtures, fences, bathroom accessories, the surfacing of concrete floors.
The demand for thermosetting plastics from developing economies, like China and India, is much more than the demand form developed countries, like United States and United Kingdom and others because of the rapid construction growth in the developing countries. In developed countries, the construction sector is mature, as compared to the construction sector in developing economies, which is growing drastically, fuelled by the growing population and increasing urbanization.
For Instance, India's construction industry was growing at a rate of about 6% over the past four years. The construction growth in India is double when compared to the growth of 2.9% from 2011 to 2015. Also, it is expected that the construction industry grows at almost twice as fast as China by 2030. The country has even experienced significant interest from foreign investors in its infrastructural sector. In the Union Budget 2020-21, the government allocated INR 1.696 trillion to develop transport infrastructure and announced to launch infrastructure projects worth INR 103 trillion to boost infrastructure activities in the country. Also, India is likely to witness around ~USD 1.3 trillion of investment in housing over the next seven years and is likely to witness construction of 60 million new homes in the country.
China has been focusing of construction activities and considered as one of the fastest growing countries in the world in the recent times. According to the National Bureau of Statistics China, the revenue from the construction industry in 2019 is more than USD 3,444 billion that is more than USD 3,263 billion in 2018.
According to the National Bureau of Statistics of China, value added in the construction industry, China in 2019 is CNY 7,090.4 billion which is more than 2018 ( CNY 6,180.8 billion) (shown in graph). However the Infrastructure investment growth for the first 5 months in 2020 declined by around 6.3% compared to the year 2019, from a drop of about 10.3 % for the first 4 months, although still down compared to around 5.6 % growth for the first 5 months of 2019.
Also, from Asia-Pacific, Singapore has witnessed a positive growth in 2019 and the investments into the construction sector is expected to increase over next few year. In 2020, the total construction demand, which is the value of construction contracts to be awarded, is likely to range between ~USD 28 billion to ~USD 33 billion.
In North America, According to the United States Census Bureau, In April 2020, total private construction valued USD 1,00,405 millions, the value of educational institutes construction is USD 14,913 million, and health care constructions valued USD 36,764 million. Furthermore, the increasing number of partnerships of foreign investors with domestic construction players is likely to boost the residential construction in the region, in Mexico also.
The growing building construction in the above-mentioned countries is a key driving factor for thermosetting plastics. But, the recent outbreak of the COVID-19 resulted in the lockdown and stopped the construction activities for a while and hence is restraining the demand for thermosetting plastics in the construction industry. However, the virus is controllable and over the forecast period, the market studied is expected to witness positive growth.
China to Dominate the Asia-Pacific Market
In Asia-Pacific, China is the largest economy, in terms of GDP. In 2019, the country witnessed about 6.1% growth in its GDP, despite having trade disturbance, caused due to its trade war, with the United States. Currently, the Chinese economy has been severely hit with the COVID-19 outbreak. The country was by far the worst affected nation with the virus outbreak beginning in the country itself. All the major manufacturing industries have taken a major hit as the entire nation has gone into a self-quarantine situation to contain the virus outbreak.
According to the National Bureau of Statistics of China, in the first three months of 2020, the nation's GDP has declined by 6.8% marking the first decline in about 44 years. According to International Monetary Fund (IMF) projections, the real GDP annual percent change in China is projected to be 1.2% in 2020 and the country is expected to witness a growth rate of 9.2% in 2021, subject to the post-pandemic global economic recovery.
In China, the Construction industry has a prominent role in the growth of the country's economy and is one of the largest industries in the country. The sector has witnessed a significant growth even in middle of economic crisis. This is due to the country's belief that infrastructure investment is an option to boost economic growth during slow down. Similar kind of investments are expected in the construction industry to push the economic growth, back to recovery post covid-19. The construction activity in the country resumed from April, after implementation of lockdown when almost all industries have been shutdown in January.
In 2019, the Chinese government approved 26 infrastructure projects at an estimated investment of about USD 142 billion in 2019 which are estimated to be completed by 2023 as revealed by According to National Development and Reform Commission and also the growing demand for housing is likely to drive the residential construction in the country both in public and private sectors. The new hotels projects in the country increased by about 15% in 2019, the increase in construction of tall buildings, and hotels is driving the market studied.
The Chinese automotive manufacturing industry is the largest in the world with a production share of just over 28% in 2019. The industry witnessed a slowdown in 2018, wherein the production and sales declined. Similar trend continued in 2019, with the production declined to 25.7 million vehicles by dropped by about 7.5% year-on-year.
According to the China Association of Automobile Manufacturers (CAAM), automotive production is expected to decline by about 2% in 2020. But, due to the corona virus pandemic and the implementation of lockdown, the automotive manufacturing units have been shut down in the first quarter.
The growing production of motor vehicles, as well as the expanding construction industry, is expected to support the consumption of thermosetting plastics in multiple applications which is a positive factor that drives the market demand in the coming years.
According to the Organization Internationaledes Constructeurs d'Automobiles(OICA), China is the largest producer of automobiles the country alone produced 2,57,20,665 vehicles in 2019 which holds about 30% of the global. Although the sales has decreased, it is expected to increase in the coming years creating an increased consumption of thermosetting plastics thereby creating need for more the market studied in the region in the region.
However, The number of vehicles produced in June is about 2.32 million which registered a staggering 6.3% month-on-month growth. The number of vehicles produced from January to June is about 10.1 million which is down by 16.8% year-on-year compared to the same period last year. In the second quarter with the industries being resuming operations slowly the manufacturing is expected to pickup pace and is expected to drive the market.
China is the largest consumer of electric vehicles, in 2019 alone, there are about 1.2 million new electric vehicle registrations up by 3% compared to last year 2018, which is very low compared to the growth rate of more than 75% for past four years. There are about 2,000 Fuel Cell Electric Vehicles (FCEVs) on road in China, by the end of 2019. The Chinese government is planning to have a minimum of 5,000 fuel cell electric vehicles by 2025 and 1 million by 2030. With government promoting the use of electric, hybrid, and fuel cell electric vehicles also expected to drive the market.
Some of the major manufacturers of thermosetting plastic resins include Chang Chun Group, AdessoAdvanced Materials, Anhui Zhong Bo new material Co., Ltd, Jiangsu sanmugroup Co,Ltd.
However, currently, due to the COVID-19 outbreak, the economic activities and industrial manufacturing activities have been affected significantly in the country. As of mid-2020, IMF predicted that China is likely to register GDP growth of about 1.2% for 2020, which reflects a significant decline from 6.1% in 2019.
Key Topics Covered:
2 RESEARCH METHODOLOGY
3 EXECUTIVE SUMMARY
4 MARKET DYNAMICS
4.1.1 Growing Construction Industry in Asia-Pacific
4.1.2 Rising Demand for Polyurethane in the Automotive Industry
4.2.1 Stringent Government Regulations
4.2.2 Impact of COVID-19 Pandemic
4.3 Industry Value Chain Analysis
4.4 Porter's Five Forces Analysis
4.5 Technological Snapshot
5 MARKET SEGMENTATION
5.1.1 Unsaturated Polyesters
5.1.7 Vinyl Ester
5.1.8 Other Types
5.2 End-user Industry
5.2.2 Adhesive and Sealants
5.2.3 Electronics and Appliances
5.2.5 Other End-user Industries
6 COMPETITIVE LANDSCAPE
6.1 Mergers and Acquisitions, Joint Ventures, Collaborations, and Agreements
6.2 Market Ranking Analysis
6.3 Strategies Adopted by Leading Players
6.4 Company Profiles
6.4.1 Alchemie Ltd.
6.4.2 Asahi Kasei Corporation
6.4.3 BASF SE
6.4.4 BUFA GmbH & Co. KG
6.4.5 Celanese Corporation
6.4.6 Covestro AG
6.4.7 Daicel Corporation
6.4.9 Eastman Chemical Company
6.4.11 Kanoria Chembond Pvt. Ltd.
6.4.12 Lanxess AG
6.4.13 LG Chem
6.4.14 Mitsubishi Engineering-Plastics Corporation
6.4.15 NIHON GOSEI KAKO Co.,Ltd
6.4.16 Polynt SpA
6.4.17 Satyen Polymers Pvt. Ltd.
6.4.18 SHOWA DENKO K.K.
6.4.20 Sumitomo Bakelite Co., Ltd.
6.4.21 U-PICA Company Ltd.
7 MARKET OPPORTUNITIES AND FUTURE TRENDS
7.1 Growing Demand for Bio-based Thermosetting Plastics
7.2 Emerging Applications in Composites
For more information about this report visit https://www.researchandmarkets.com/r/b4qmmp
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