How Has the Encapsulation Resins Market Size Evolved in Recent Years?
The encapsulation resins market has seen considerable growth due to a variety of factors.
•In the past few years, there has been a consistent growth in the size of the encapsulation resins market. It is anticipated to increase from $4.44 billion in 2024 to $4.63 billion in 2025, exhibiting a Compound Annual Growth Rate (CAGR) of 4.2%.
This growth during the historical period can be credited to several factors such as the expansion of the electronics industry, wider use in automotive electronics, an upswing in renewable energy applications, and a surge in demand within the aerospace and defense sectors.
What are the Market Size and Expected Growth Rates for the Encapsulation Resins Market?
The encapsulation resins market is expected to maintain its strong growth trajectory in upcoming years.
• In the ensuing years, the encapsulation resins market is anticipated to witness robust growth, eventually swelling to $5.69 billion by 2029 with a 5.3% compound annual growth rate (CAGR).
The catalysts for this surge in the predictive timespan can be traced back to the proliferation of electric vehicles (EVs), the escalating reliance on 5G technology, the advent of the Internet of Things (IoT), advancements in medical electronics, and the emphasis on green, sustainable formulations. The trend projections within the forecast span encompass product innovation, an inclination towards eco-friendly resins, the uptake of UV-curable resins, the need for resins with high thermal conductivity, and tailoring for particular applications.
What Are The Essential Drivers Behind The Growth Of The Encapsulation Resins Market?
The growth of the encapsulation resins market is being driven by the rising popularity of electric vehicles. An electric vehicle is distinguished by its electric motor, which is powered by a battery and can be externally charged. Encapsulation resins are used in these vehicles to encapsulate electric motors, providing electrical insulation, thermal dissipation, and managing the NVH (Noise, Vibration, and Harshness) level. For example, in May 2023, the World Economic Forum, a non-governmental organization based in Switzerland, stated that total EV sales in 2022 hit 10.5 million, a 55% increase compared to 6.7 million in 2021. Additionally, the total EV market share climbed from 8.3% in 2021 to 13% in 2022. As such, the encapsulation resins market is being boosted by the escalating use of electric vehicles.
How Is The Global Encapsulation Resins Market Divided Into Key Segments?
The encapsulation resins market covered in this report is segmented –
1) By Resin Type: Epoxy Resins, Polyurethane Resins, Silicone Resins, Other Resins
2) By Application: Transformers, Sensors, Switchgears, Insulators, Capacitors, Relays And Coils, Adhesives And Sealants, Other Applications
3) By End-Use Industry: Building And Construction, Automotive, Transportation, Electrical And Electronics, Marine, Other End-Users
Subsegments:
1) By Epoxy Resins: Liquid Epoxy Resins, Solid Epoxy Resins, Modified Epoxy Resins
2) By Polyurethane Resins: Flexible Polyurethane Resins, Rigid Polyurethane Resins, Hybrid Polyurethane Resins
3) By Silicone Resins: Alkoxy Silicone Resins, Hydride Silicone Resins, Modified Silicone Resins
4) By Other Resins: Polyester Resins, Phenolic Resins, Acrylic Resins
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What Trends Are Reshaping The Future Of The Encapsulation Resins Market?
One notable trend observed in the encapsulation resins market is associated with product innovations. To maintain their competitive edge, major firms in this market are focusing on the development of technological solutions. An example of this is Induron Protective Coatings, a US-based company in the coatings industry, which introduced a new novalac epoxy, Novasafe, in November 2023. Novasafe is a furfuryl-modified, thick film, and ceramic-filled novolac epoxy that is capable of enduring the harshest conditions found in treatment plants. Not only can Novasafe tolerate exposure to varying concentrations of sulfuric acid for a prolonged period, but it also has a thinner film compared to polyurethane/polyurea. This unique resin and filler package lends it this attribute.
Who Are the Key Players in the Encapsulation Resins Market?
Major companies operating in the encapsulation resins market include:
• Hitachi Chemical Co. Ltd.
• Dow (The Dow Chemical Company)
• 3M Company
• Henkel AG & Co. KGaA
• BASF SE
• Shin-Etsu Chemical Co. Ltd.
• Arkema Group
• Huntsman International LLC
• Givaudan SA
• H.B. Fuller Company
• ELANTAS GmbH
• LORD Corporation
• Momentive Performance Materials Inc.
• Dymax Corporation
• Optics Balzers AG
• Electrolube Ltd.
• Epoxy Technology Inc.
• NAGASE ChemteX Corporation
• Panacol-Elosol GmbH
• RBC Industries Inc.
• Robnor ResinLab Ltd.
• MG Chemicals Ltd.
• Coatema Coating Machinery GmbH
• Master Bond Inc.
• Mereco Technologies Group Inc.
• ACCRAbond Corporation
What are the Regional Insights into the Encapsulation Resins Market?
North America was the largest region in the encapsulation resins market in 2024. The regions covered in the encapsulation resins market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa
