Thermoset Molding Compound Market Expected to Reach $18.0 Billion by 2030—Allied Market Research

According to a new report published by Allied Market Research, titled, “Thermoset Molding Compound Market," The thermoset molding compound market was valued at $9.8 billion in 2020, and is estimated to reach $18.0 billion by 2030, growing at a CAGR of 6.3% from 2021 to 2030.

Thermoset molding compounds, such as high-heat resistance, dimensional stability, and electrical insulation capability make them ideal material for several end-use applications. These are highly used in electrical & electronics applications owing to its toughness, resistance to several environmental factors, stability, and flame resistance. It delivers superior performance as compared to other substitute products, such as metals and thermoplastics as these are generally stronger than thermoplastics due to the polymer cross-linking and are better suited for high temperature applications.

The thermoset molding compound market is driven by increase in application in the electronic sector. It also provides anti-corrosive and heat resistance properties, which increases product life cycle and greater efficiency in electrical applications, which boost the market growth. Factors such as need for weight reduction in aerospace & transportation and rise in demand for thermally stable & corrosion resistance components drive the growth of thermoset molding compounds market. Thermosetting compounds offer significant advantages in preventing rust on car bodies and key mechanical components, thereby protecting service times, extending expected periods, and expanding implementation in the automotive sector, promoting the growth of the market in the future.

The rapid increase in population explosions and increase in investment in the electronics sector in developing countries drive the market growth. Increase in public awareness and purchasing power in both developed and developing countries drive the market growth globally. Phenolic resins for electrical components with high mechanical strength and heat resistance, which are ideal for electronic applications attract the attention of manufacturers. Volatile oil prices, regulatory challenges associated with these compounds, and fierce competition from various global giants can hinder the market development.

The outbreak of COVID19 disrupted the growth trajectory of the thermoset molding compound market. The crisis has imposed blockades, limiting the international movement of non-essential goods and resources, and ultimately delaying the manufacturing activities of various industries that create huge demand for thermosetting molding compounds.

The global thermoset molding compound market is segmented on the basis of type, end-user, and region.

The global thermoset molding compounds market mainly emphasizes on thermoset resins and its different types including phenolic resin, epoxy resin, polyester resin, urea formaldehyde resin, melamine formaldehyde resin, and others. Thermoset molding compound market analysis further includes the current market trends and future opportunities in several end-use industries such as automotive, aerospace, and electrical & electronics. The global thermoset molding compound market is analyzed based on four regions, which include North America, Europe, Asia-Pacific, and LAMEA. Amongst them, Asia-Pacific leads the global thermoset molding compound market in terms of value and volume. LAMEA is the fastest growing region owing to the rise in urbanization and growth in demand for lightweight materials in automotive industries.

The key players operating in the global Thermoset molding compound market are Ashland Global Holding Inc., BASF SE, Eastman Chemical Company, Evonik Industries AG, Hexion Inc., Huntsman Corporation, Kolon Industries Inc., Kyocera Chemical Corporation, Plastics Engineering Company (Plenco), and Rogers Corporation. Other major players in the market include Hitachi Chemical Company Ltd., Cosmic Plastics Inc., Chang Chun Plastics Co. Ltd., Saudi Basic Industries Corporation (SABIC), Nan Ya Plastics Corporation, Allnex Belgium S.A., Georgia-Pacific Chemicals LLC, Jiangsu Tianxin Chemical Co., Ltd., Mitsui Chemicals Inc., and Chemiplastica SPA are competing for the share of the market through product launch, joint venture, partnership, and expanding the production capabilities to meet the future demand for the thermoset molding compound market in the forecast period.

Key Findings of Study

• By region, Asia-Pacific accounted for the largest market share in 2020.
• By type, the phenolic resin segment held the largest market share in 2020.
• By end-user, the automotive segment held the largest market share in 2020.

IMPACT OF COVID-19 ON GLOBAL THERMOSET MOLDING COMPOUND MARKET

• Emergence of COVID-19 had less impact on the growth of the global thermoset molding compound market during the pandemic outbreak period.
• This impact is mostly attributed to significant disruptions in the raw material transportation, unavailability of labor, and shutdown of many manufacturing industries.
• The decrease in demand for many non-essential products and shut down of manufacturing industries created a negative impact on the development of the global thermoset molding compound market.