According to a new report published by Allied Market Research, titled, “acrylic resins market by type, application, and end-user: global opportunity analysis and industry forecast, 2021–2028”,
The global acrylic resins market size was valued at $18.7 billion in 2020, and is projected to reach $28.3 billion by 2028, growing at a CAGR of 5.2% from 2021 to 2028.
Acrylic resins, a type of thermoplastic or thermosetting polymer, is produced from acrylic and methacrylic ester monomers. Acrylic resins can be solvent-based and water-based systems. Density of acrylic resin ranges from 1.02 to 1.19 g/cc. Acrylic resins have high water resistance, high adhesion, and these are resistant to cracking. This is majorly used in molding materials, coatings, and adhesives.
Growth in application of acrylic resins in various end-use industries such as building & construction and automotive is expected to boost the acrylic resins market growth. In addition, owing to high adhesion, acrylic resins are widely used as primary binders in paints and coatings. Moreover, rise in number of new city projects in emerging nations, such as China, India, and Japan is expected to fuel demand for acrylic resins. The rise in prominence of bio-based resin systems is expected to create new market opportunities.
On the basis of type, the water based resins emerged as the market leader and is expected to witness highest market growth. Growing emphasis of water based acrylic resins in coating applications is expected to drive the acrylic resins market growth. Acrylic resin is used as a primary binder for industrial coatings.
On the basis of application, the paints and coatings segment will witness highest market growth. Acrylic resins are widely used as binders for paints and coatings. Moreover, acrylic resins used in paints and coatings are high temperature and chemical resistant with high durability.
On the basis of end user, the buildings & construction segment garnered highest market share in 2020. With growth in number of construction projects, demand for coating binders is on the rise. Moreover, significant growth in residential and commercial construction projects in countries such as China and India, is expected to create growth opportunities for the market.
Region wise, Asia-Pacific accounted for the highest revenue share in 2020. This is attributed to emerging application of acrylic resins in building and construction projects. China has the highest market size in Asia-Pacific. The government in China is focused to reduce volatile components in resins, which further enhances demand for various water-based acrylic resins for coating.
Major players have adopted business expansion, merger, and acquisition to sustain the intense market competition. Some of the key players profiled in the report include Basf Se, Arkema, The Dow Chemical Company, Mitsubishi Chemical Holdings, Sumitomo Chemical, Dic Corporation, Dsm, and Mitsui Chemicals.
COVID-19 scenario analysis
- Rapid spread of COVID-19 pandemic largely impacted the demand from end users of acrylic resins such as building and construction, automotive, and electronics. Lockdown measures and travel restrictions hindered large number of construction activities, which further impacted the market demand. In addition, owing to reduced labor force, large number of industrial projects were delayed that affected the market demand.
- Countries across the globe imposed ban on cross-border imports of various goods, which largely impacted supply chain of the acrylic resins market. Delayed supply of raw materials and increase in lead time affected production of acrylic resins.
- However, rise in demand for new construction projects in medical and healthcare sectors is expected provide new growth opportunities. In addition, growth in prominence of private transport and personal vehicles to maintain social distancing is slowly improve the market growth.
Key findings of the study
- The type the water based acrylic resins segment is projected to grow at the highest CAGR of around 5.7%, in terms of revenue, during the forecast period.
- By end-user, the building and construction held more than 35% market share with a CAGR of 4.5%, in terms of revenue, during the forecast period.
- By region, the Europe dominated the market with more than 40% market share.