April 20, 2024

Petroleum Resins Market is Estimated to Witness High Growth Owing to Increasing Demand for Adhesives & Sealants

Petroleum resins are aromatic hydrocarbon resins produced from petroleum feedstocks which are thermoplastic in nature. They are used as tackifier or hard resin in adhesives and sealants owing to their advantageous properties such as durable bonding ability, resistance to temperature extremes and other chemical interactions. The increasing demand for adhesives & sealants from construction, footwear and packaging industries is the primary driver augmenting the growth of the global petroleum resins market.

The Global petroleum resins market is estimated to be valued at US$ 4259.01 Mn in 2024 and is expected to exhibit a CAGR of 6.5% over the forecast period 2024 to 2030.

Key Takeaways

Key players operating in the Global Petroleum Resins Market Share are Siemens Healthineers AG, Shimadzu Corporation, Koninklijke Philips, Hologic, Inc., Fujifilm holdings corporation, Esaote SPA, Carestream Health, Samsung Medison (Samsung Electronics Co. Ltd), and Canon Inc. (Canon Medical Systems Corporation), among others. These companies are focusing on new product developments and strategic collaborations to cater to the growing demand for petroleum resins.

The key opportunities in the market include rising infrastructure development activities in emerging countries of Asia Pacific and Middle East & Africa region coupled with increasing use of petroleum resins in applications such as road construction, building and paving. Moreover, the advancements in adhesive technologies such as hot melt adhesives, moisture cure adhesives etc. are expanding the application scope of petroleum resins.

The technological advancements in distillation and cracking processes have enhanced the production scalability and quality of petroleum resins. Further, ongoing R&D for bio-based and environment-friendly petroleum resins is expected to propel the market growth over the forecast period.

Market drivers

The primary driver augmenting the growth of global petroleum resins market is the rising demand from the adhesives & sealants industry. Petroleum resins find significant usage as tackifiers in pressure sensitive adhesives, construction adhesives and hot melt adhesives owing to their adhesion properties and cost-effectiveness. Particularly, the growth in construction and infrastructure industries in developing countries is directly positively impacting the consumption of adhesives & sealants and subsequently driving the market growth of petroleum resins.

Current challenges in Petroleum Resins Market:

The petroleum resins market is facing challenges due to fluctuating raw material prices and increasing environmental regulations regarding fossil fuel-based products. Strict environmental norms around the globe are hampering the demand for petroleum resins from various end-use industries. Moreover, growing consumer awareness about sustainability is also negatively impacting the market. The producers are confronting issues to manage production costs due to inconsistent crude oil prices in the international markets. Additionally, the easy availability of bio-based substitutes is a major threat to the petroleum resins market.

SWOT Analysis

Strength: Petroleum resins have excellent properties like adhesion, tackiness and flexibility. They can withstand high temperatures. These resins are economical and have widespread applications.

Weakness: Petroleum resins are non-renewable and derived from crude oil. Fossil fuel prices volatility impacts their production costs. Strict environmental regulations are a challenge.

Opportunity: Growing infrastructure and construction industries in developing economies boost the demand. Research on modifying petroleum resins to reduce environmental footprint can expand applications.

Threats: Easy availability of bio-based substitutes is a major threat. Stringent government rules regarding fossil fuel-based products hamper the market. Sustainability concerns among consumers negatively impact the demand.

Geographical regions with high market concentration:

The Asia Pacific region dominates the global petroleum resins market and holds around 40% of the total market share, both in terms of production and consumption. Countries like China, India, Indonesia, and Japan are the major markets in the region. This high concentration is due to growing construction and automotive industries in these countries.

Fastest growing region:

The Middle East and Africa region is expected to be the fastest growing market for petroleum resins during the forecast period. This rapid growth is attributed to ongoing and upcoming infrastructure projects, expanding oil & gas industry, and developing end-use sectors in the region. Countries like Saudi Arabia, UAE, Nigeria, and South Africa are likely to fuel the petroleum resins demand in coming years.

*Note:
1.      Source: Coherent Market Insights, Public sources, Desk research
2.      We have leveraged AI tools to mine information and compile it