Petroleum Resin Market Size, Share, Opportunities,COVID-19 Impact, And Trends By Type (Aliphatic, Aromatic, Others), By Application (Paints & Coatings, Printing Inks, Adhesives, Concrete, Softening Agent, Others), By Industry Vertical (Automotive, Aerospace, Building & Construction, Rubber, Others), And By Geography - Forecasts From 2023 To 2028

Petroleum resin is a thermoplastic hydrocarbon resin that has high chemical & temperature resistance, low volatility, and is anti-aging owing to which it finds high applicability in paint & coatings and adhesives applications in the automotive sector. Furthermore, the resin has high chemical stability due to which it is applied on aircraft tires for achieving high mechanical strength and durability. Also, as a curing compound, it is used in concrete to maintain the moisture content thereby improving its strength. Rapid development in such major end users of petroleum resin is driving its market demand. For instance, according to the General Aviation Manufacturer Association’s data, in 2021, worldwide aircraft shipment stood at 2,630 units which represented an increase of 9.6% in aircraft shipment than the previous year. Furthermore, petroleum resin is used in the rubber industry as a softening agent during rubber manufacturing for improving the elastomeric hardness of end rubber products. The growing industrial demand for rubbers has led to an increase in their production output. For instance, according to the monthly NR Statistical Report, November 2022 released by the Association of Natural Rubber Producing Countries, in November, global rubber production witnessed a 2.7% growth reaching 1.426 million tons, in comparison to 1.294 million produced in 2021 for the same month.

Based on industry vertical, the petroleum resin market is segmented into automotive, aerospace, building & construction, rubber, and others. The building & construction sector is projected to hold a decent market share during the forecast period. Petroleum resin holds excellent thermal resistance and provides rapid quick drying due to which it is used in the adhesives application in construction activities. Moreover, the resin as a curing compound is applied in concrete for strength improvement. The rise in the construction of residential & commercial buildings, and the undertaking of infrastructure projects coupled with favorable investments has increased the overall growth of the building & construction sector in major countries. For instance, according to the Australia Bureau of Statistics data, the number of residential dwellings approved in February 2022 saw 43.5% growth with the private dwelling witnessing a 16.5% rise. Furthermore, according to the Office of National Statistical Office, in August 2022, infrastructure construction saw a 5.3% increase and the overall construction output was 3.2% above the February 2020 level. With such an increase in the construction output, the demand and usage of petroleum resin for adhesives and concrete applications are also anticipated to increase, thereby stimulating the petroleum resin market growth during the forecast period.  

The surge in automotive production and sales is driving the market growth of petroleum resins. Petroleum resin due to its rich abrasion and temperature resistance is used in automotive paints and coatings thereby acting as a performance enhancer for such products applied on automotive components. The improvement in living standards and disposable income has improved the demand for automobiles which has been further elevated by favorable government schemes & investment, thereby increasing the overall automotive production volume. For instance, according to the International Organization of Motor Vehicle Manufacturers, in 2021, global automotive production stood at 80.1 million units representing a 3% increase over 2020. Moreover, as per the same source, global automotive sales stood at 82.6 million units representing a 4.9% increase over 2020’s sales volume. With such significant growth in the global production and sales of automotive, the demand and usage of petroleum resin for paints & coatings application is also anticipated to increase, thereby augmenting the overall market growth during the forecast period.

The high price volatility of crude oil is anticipated to pose a challenge to the market growth of petroleum resin, as petroleum resin is driven by the polymerization of unsaturated monomers which is obtained as a by-product of crude oil.

Recent developments

• South Korea-based KOLON Industries Inc, in June 2021, expanded its total annual hydrocarbon resin production capacity up to 200,000 tons through the addition of 15,000 in the annual capacity.

Covid-19 Impact on the Petroleum Resin Market

The COVID-19 pandemic negatively impacted the growth of the petroleum resin market as due the lockdown restrictions, decreased the availability of necessary labor and raw materials in major end users of petroleum resin such as automotive and building & construction, which decreased their productivity. For instance, according to the International Organization of Motor Vehicle Manufacturers data, in 2020, global automotive production stood at 77.7 million units which saw a decrease of 13% in comparison to the 92.2 million units produced in 2019. Furthermore, as per the UNEP’s 2020 Global Status report for building and construction, it was found that global construction activities witnessed a drop of 10-25% in comparison to 2019. However, with the government showing ease in restrictions, the productivity of such major end users is showing a steady increase which will further enhance in the future, thereby providing a positive outlook to the petroleum resin market.

Petroleum Resin Market Scope:

Segmentation

• By Type
  • Aliphatic
  • Aromatic
  • Others
• By Application
  • Paints & Coatings
  • Printing Inks
  • Adhesives
  • Concrete
  • Softening Agent
  • Others
• By Industry Vertical
  • Automotive
  • Aerospace
  • Building & Construction
  • Rubber
  • Others
• By Geography
  • North America
    • USA
    • Canada
    • Mexico
  • South America
    • Brazil
    • Argentina
    • Others
  • Europe
    • Germany
    • France
    • United Kingdom
    • Italy
    • Spain
    • Others
  • Middle East and Africa
    • Saudi Arabia
    • Israel
    • United Arab Emirates
    • Others
  • Asia Pacific
    • China
    • Japan
    • South Korea
    • India
    • Australia
    • Indonesia
    • Thailand
    • Taiwan
    • Others