Acrylic Resins Market Overview
Acrylic Resins Market is forecast to reach $24.43 billion by 2025, after growing at a CAGR of 5.3% during 2020-2025. The excellent chemical properties and special aesthetic properties of acrylic resin make it a very useful commodity for a wide range of applications. Macroeconomic determinants such as volatile organic compounds ordinances in a variety of countries, displacement from solvent-borne to water-borne applications, and technological development in developing nations would also contribute to a rise in particular markets.
APAC dominates the Acrylic Resins market owing to Rapid urbanization and industrialization, especially in emerging economies such as China, and India has prompted governments to increase construction spending. This development is expected to boost demand for acrylic resin in building and architectural applications.
Moreover, the ongoing M&A activities among suppliers would further cater to the growth in Global Acrylic Resins Market.
Surging R&D activities are some of the opportunities which are expected to fuel the market.
Acrylic Resins Market Segment Analysis – By Form
Solvent Based held the largest share in the Acrylic Resins market in 2019. Solvent-based acrylic coating resin is a polymer made from a cross-linking reaction between acrylic and ester monomers through unsaturated bonds. Acrylic resin consists of thermoplastic and thermosetting forms. Acrylic paint is very weather resistant, water resistant and solvent resistant. It can also co-polymerize with other monomers to meet the performance requirements of hardness and softness. Solvent Based acrylic resins are mainly used in oil-based cement paint, plastic paint, marine paint, automotive baking paint, appliances/metal baking paint, and others.
Acrylic Resins Market Segment Analysis – By Type
Thermoplastic Acrylic Resins held the largest share in the Acrylic Resins market in 2019. Polymers that make up the resin do not contain any reactive group. Thus, polymer chains are not cross-linked in these resins. High molecular weight polymers are used to enhance interaction between different polymer chains. Thermoplastic resins are typically softened and can be reshaped as temperature rises. This property makes these resins suitable for some industrial processes, such as injection molding, compression molding or extrusion. The key uses of these resins include inks and adhesives.
Acrylic Resins Market Segment Analysis – By End Use
Paints and Coatings has been the primary market for Acrylic Resins in 2019 growing at a CAGR of 5.9%. Acrylic resins are used in the paint and coating industry as they have a shiny finish for residential and commercial construction, decorative coatings and DIY (do-it-yourself) coatings. The major application of acrylic resin is in the paint and coating industry. Furthermore, with the growing construction industry and its demand for Acrylic Resins particularly in the regions of Asia-Pacific, North America and Europe, the demand of Acrylic Resins for all kinds of buildings is expected to see an upsurge. Residential application segment is witnessing growth due to the rising penetration from untapped markets. Furthermore, R&D in Acrylic Resins will support the growth.
Acrylic Resins Market Segment Analysis – By Geography
APAC dominated the Acrylic Resins market with a share of more than 41%, followed by North America and Europe. Asia Pacific, among them, has the maximum potential for development in the coming years. It is due to the growing fortunes of the citizens of the region due to rapid economic development. This, in turn, would cause high demand in the area. Asia Pacific also has a dominant role on the global market in terms of both production and consumption. India and China are two major market-driven economies in Asia Pacific due to their acrylic requirements for building, paint and coating applications, industrial and commercial segments. Flexible regulations coupled with government support, such as tax relief to support manufacturing, mainly in China and India, are expected to have a positive effect on acrylic resin production in the region.
Acrylic Resins Market Drivers
Advance Properties will drive the market
Acrylic resins are weather and hydrolysis resistant, have a glossy exterior appearance and provide color consistency and adherence. Because of these special perceived advantages, they are used in a variety of items such as mobile phones, aircraft windshields, watch crystals, optical lenses, PC displays, paper and fiber processing binders, outdoor signs, headlights, dishes, floor waxes, lighting fixtures, piano keys and so on. The rapid expansion of such end-use industries, especially the automotive industry, is expected to provide a significant boost to the global acrylic resin market.
Acrylic Resins Market Challenges
Impact in Environment and Health Hazard will restrict the market growth
Countering market growth is a growing concern about the health hazards associated with raw materials and their unpredictable prices and environmental regulations, especially in advanced western countries. Acrylics or other plastics degrade very slowly and thus join the ocean and coastal habitats, posing a threat to birds and marine creatures. Acrylic is derived from fossil fuels and petroleum products that are considered non-eco-friendly. Some types of acrylic, but not all, can be recycled. Under normal conditions of use, acrylic degassing does not occur and works in an environmentally safe manner much like glass.
Acrylic Resins Market Landscape
Technology launches, acquisitions and R&D activities are key strategies adopted by players in the Acrylic Resins market. Major players in the Acrylic Resins market are BASF SE, Dow Chemical Company, Arkema S.A, Mitsubishi Chemical Holdings Corporation, Hitachi Chemical Co. Ltd. and Others.
In April 2019, DIC Corp. acquired Ideal Chemi Plast Pvt. Ltd. Ideal Chemi Plast manufactures and sells polyester, acrylic, alkyd, and other resins for applications in coil and wood, automotive refinish coatings and others. This acquisition will enable DIC to increase its position in the Indian market.