Market Trends of Europe Epoxy Resins Industry
This section covers the major market trends shaping the Europe Epoxy Resins Market according to our research experts:
Paints and Coatings Segment to Dominate the Market
- Epoxy resins are reinforced polymer composites derived from petroleum sources resulting from a reactive process involving epoxide units. These resins are used as binders for coating applications to enhance the durability of coating for floor and metal applications.
- Epoxy resins help develop several properties in coatings, such as strength, durability, and chemical resistance. Its properties and abilities of quick-drying, toughness, excellent adhesion, good curing, abrasion resistance, and excellent water resistivity make it suitable for protecting metals and other surfaces.
- Epoxy powder coatings are used on washers, dryers, steel pipes, and fittings. Due to its flexible applicability, it is also used in the oil and gas industry, water transmission pipelines, and concrete reinforcing rebar.
- The automotive, marine, and aerospace industries use epoxy coatings as primers for corrosion protection. In 2021, Fincantieri, an Italian shipbuilder, signed a memorandum of agreement (MOA) for the construction of two hydrogen-powered cruise ships to be delivered in 2027-28, driving the demand for epoxy coatings in the marine industry.
- Residential construction is also increasing significantly in the region comprising luxury and middle-class housing, which are expected to drive market growth. For instance, the Thorpebury Housing Community started a construction project worth USD 709 million in Q1 2022. The project aims to construct 4,500 homes on 364 ha of land in East Midlands, England, propelling the growth of the construction industry's epoxy resins paints and coatings segment.
- Furthermore, according to the United Nations Economic Commission (UNEC) for Europe, the construction industry's value as a percentage of GDP varied widely between European countries. In 2021, Albania's construction industry accounted for around 11% of GDP, Germany 5.9%, and France 5.6% , contributing to the demand for epoxy resins in the region.
- Such factors are expected to drive the demand for epoxy resins in paints and coatings, thus increasing the market's growth during the forecast period.
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Germany to Witness Highest Growth
- Germany is expected to witness significant market growth during the forecast period owing to the expanding construction, electrical and electronics, and several other industries.
- The construction industry in the country has been growing considerably, driven by the increasing number of commercial construction activities. For instance, the Ostendstraße1-14 Commercial Buildings construction project worth USD 1,293 million was initiated in Q1 2022 in Berlin, Germany. The project aims to fulfill the growing demand for office, retail, hotel, and commercial facilities in Germany.
- Also, several residential construction projects are ongoing. For example, the KrampnitzHousing Development Project worth USD 1,831 million is under construction in Brandenburg, Germany, and is expected to be completed in Q4 2038. The project aims to provide living space for 10,000 people.
- Hence, with the growth of construction and building, and other sectors in the country, the demand for epoxy resins in the paints and coatings industry is expected to grow in the country in the upcoming years.
- Moreover, Germany received orders for the development of LNG-powered cruise ships. For instance, in 2021, Flensburger Schiffbau-Gesellschaft (FSG), a German shipbuilding yard, signed a contract with SeaRoad, a Tasmania-based transport firm, for the construction of a new roll-on/roll-off (RoRo) vessel with liquefied natural gas (LNG) propulsion worth USD 117.29 million. Thus, with the country's expanding marine industry, the demand for epoxy resins also increases significantly.
- Additionally, the country is also witnessing considerable epoxy resin demand from its automotive sector. Germany witnessed an increase in used car and truck sales in 2021, reflecting a 33% and 9% increase, respectively, contributing to the demand for epoxy resins in the automotive refinish sector. In addition, new truck sales increased by about 8% in 2021 compared to 2020.
- Thus, all the above-mentioned factors contribute significantly to the increasing demand for epoxy resins in Germany during the forecast period.
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