Impregnating Resins Market Size Forecast to Reach $2.3 Billion by 2027
Impregnating Resins Market size is forecast to reach US$2.3 billion by 2027 after growing at a CAGR of 7.2% during 2022-2027. Impregnation resins are noticeably viscous and are organic liquids that are utilized for wood modification. They originally contain formaldehyde for phenol formaldehyde resins, and another majorly used resin includes epoxy resin. Impregnating resins are also known as secondary insulation material which is used in the form of liquid resins that get diluted with the reactive thinners, which acts as a catalyst in the dispensing equipment. The main advantage of impregnating resin is its mechanical stability and the protection it offers from climate influences. They are also utilized in generators, electric motors, and transformers for electrical insulation, filament winding and assist in providing protection to resin and enhancing heat transfer among wires wending, iron cores, and slot insulations. Adoption of the Impregnating Resin for electrical insulation is additionally expected to drive the growth of the market.
COVID-19 Impact
Currently, due to the COVID-19 pandemic, the core industries such as the electrical, automotive, and transportation industry are highly impacted. Global leading countries in automotive production, firstly being China, Wuhan alone accounted for 50% the of total china’s production, and china experienced a drop of 40% in the year 2020 compared to the year 2019, and secondly being the United States, as well experienced a drop of 19% in total automotive production during this period. The imposed lockdown has been attributed to significant disruptions experienced by their respective manufacturing and supply-chain operations as a result of various restrictions that were enforced by governing authorities across the globe. Moreover, consumer demand has also subsequently reduced as individuals are now more keen on eliminating non-essential expenses from their respective budgets as the general economic status of most individuals has been severely affected by this outbreak. These aforementioned elements are expected to burden the revenue trajectory of the global Impregnating resins market over the forecast timeline. Also, due to supply chain disruptions such as raw material delays or non-arrival, disrupted financial flows, and rising absenteeism among production line staff, OEMs have been forced to function at zero or partial capacity, resulting in lower demand and consumption for Impregnating resins in 2020-2021.
Impregnating Resins Market Segment Analysis – By Type
The Solvent-based segment held the largest share of 46% in the Impregnating Resins market in 2021. They have better properties to sustain secondary insulation. These resin formulations include monomer-based epoxy, alkyl, and polyesteramides resins. Solvent-based impregnating resins are mainly used for their fast and deep impregnation of rotational types of equipment and machinery. Advantages offered by solvent-based impregnation, including at room-temperature impregnation, excellent strength and stability, easy application, and processability, are liable for the huge market growth of this segment. Solvent-based impregnated resins are available in the market, commercially as a macroporous resin that’s impregnated with a solvent or something called an extractant, which is an organic liquid. The advantages involved in solvent-based impregnating resins are some of the major facts supporting the market growth for the segment in the Impregnating Resins market during the forecast period.
Request for Sample Report @ https://www.industryarc.com/pdfdownload.php?id=505541
Report Price: $ 4500 (Single User License)
Impregnating Resins Market Segment Analysis – By Resin Type
The Phenol-Formaldehyde segment held the largest share of 42% in the Impregnating Resins market in 2021. Phenol formaldehyde is also known as phenolic resins and is one kind of synthetic polymer that is obtained by the reaction of phenol with formaldehyde. Phenol-Formaldehyde was the first commercial synthetic resin and has a low viscosity that ensures fast and deep impregnation of rotational machines. Some of the Advantages offered by phenol-formaldehyde resin include room temperature impregnation, very high reactivity, excellent stability, and versatile processability, boosting the consumption of the resin. They have been widely used for the production of molded products, such as automotive and electrical components. At one time, they were the primary material used for the production of circuit boards but now it is slowly being replaced with epoxy resins for circuit board materials, as they have a bit more fire-resistivity capacity. There are two main production methods for Phenol formaldehyde resin. In the First method, phenol and formaldehyde react directly to produce a thermosetting network polymer, and the second method restricts the formaldehyde to produce a prepolymer that is referred to as novolac which may be molded and then cured with the addition of more formaldehyde and then heated. There are many variations available in both the production and input materials that are used to produce a wide variety of Phenol-formaldehyde resins for special purposes, hence contributing to its growth.
Impregnating Resins Market Segment Analysis – By Application
The Electrical components segment occupied the largest share in the Impregnating Resins market in 2021 up to 48%. Impregnating resin is an insulating material that is used for sealing the voids between wires in an electrical component like motors and generators. These resins are used to impregnate the electrical windings of the electrical motors and generator to improve their overall performance and make them last and work for a longer period of time. Vacuum Pressure Impregnation is one of the most commonly used processes of impregnation for motors and generators. Another Impregnation process referred to as the Trickle Impregnation process is employed for quick production cycles in motors and generators that have minimal or no wastage of resin. According to the U.S. Census Bureau, the United States generated a sales revenue of 9.46 billion US Dollars from the motors and generators in the year 2020. With the increasing consumption and production of electric vehicles and electric components globally from the automotive industry, the demand for impregnating resins is likely to increase in the forecast period. Hence, Electrical components are projected to be the largest market in the Impregnating Resins market
Impregnating Resins Market Segment Analysis – By End-Use Industry
The Electrical and electronics segment held the largest share in the Impregnating Resins market in 2021 and is growing at a CAGR of 8.3% during 2022-2027, due to the increased consumption of electric motors and electric vehicles globally. Climate change, accelerated decarbonization, and strict government regulations to reduce pollution and greenhouse gas emissions are increasing the demand for electric vehicles, which are boosting the consumption of impregnating resins in this segment. Moreover the Government’s involvement and initiatives like the development of more charging ports and offering attractive subsidies on electric vehicles across the globe, which is also driving the market demand for advanced impregnating resins that makes the motors more protective and provide high mechanical stability during the working. The growth of the electrical and electronics segment is mainly accelerated by technological developments and new innovations in the automotive industry. For instance, Nissan and Tesla Motors have successfully commercialized electric vehicles in the passenger car market and are hugely welcomed by consumers. Electric vehicle sales have increased reportedly with growth in all three top auto market countries of China, the United States, and Europe. According to the Real Clear Energy organization, “Sales increased by 160% in the first half of 2021 from a year earlier, to 2.6 million units, representing 26% of new sales in the global automotive market.” Such huge expansions in the electrical and automotive segment will raise the production needs and capacity of impregnating resins and is expected to generate increased market sales and opportunities for the impregnating resins market.
Impregnating Resins Market Segment Analysis – By Geography
Asia-Pacific region held the largest share in the Impregnating Resins market in 2021 up to 42%. The Asia Pacific is a rapidly growing region of the global market, primarily owing to the rise in disposable income for the spending on electric motors and the high population in the region. China is the largest base for electrical and electronics products in the world and exhibits attractive opportunities for the Impregnating Resins market in the Asia Pacific due to the presence of some prominent electric vehicle manufactures and innovators in the country, government support, and rising awareness regarding the benefits of electric motor and appliances. According to the National Bureau of Statistics of China, online retail sales of household appliances and consumer electronics in China have gone up by 4.6% and had amounted to more than 100 billion yuan, in the year 2020. Thus, increasing purchases of consumers and the prevailing competition among OEMs and major market players have been boosting the need for high-end electrical motors and electronics to be installed in vehicles across different price ranges in recent times by every developing economy. The market in the Asia Pacific and some parts of North America is projected to expand significantly in the near future, which is expected to boost the Impregnating Resins market.
Impregnating Resins Market Drivers
Increasing Demand in the electrical and electronics industry
Recently, there has been an increased demand observed in the electrical and electronics industry mainly for electric motors and generators. The growing demand for electric batteries, motors, and appliances, and the requirement of long-lasting life and productivity of generators, and other electric-run machines influence the impregnating resins market. Additionally, climate change has become a global problem now, many governments across the world are pushing and encouraging their citizens the use electric vehicles than gas-powered vehicles, which account for 30% of greenhouse gases. With that many market players like Tesla are coming with innovative ideas to bring in a major shift to the electric vehicle world. This demand will skyrocket the demand for impregnating resins during the forecast period
Increasing Automotive Production
The specific strength and modulus of impregnating resins are higher than most ordinary insulating material thus they are increasingly being employed to replace their equivalents in the insulation of the electric and automotive components. Impregnating resins are becoming more popular in the automobile sector due to their greater productivity, faster mixing times, lower power consumption per batch. In spite of the coronavirus crisis, between march and may 2020, global automotive sales contracted by around 15% globally. But within a few months, the market recovered by 5% showing a positive sign of growth. Thus, increasing automotive sales and production will require more automotive and its electrical components, which will act as a driver for the impregnating resins market during the forecast period.
Direct Purchase @ https://www.industryarc.com/purchasereport.php?id=505541
Impregnating Resins Market Challenges
Volatility In prices of raw materials
Growth in the electric and automotive industry in developing countries is providing lucrative opportunities to the impregnating resins market by increasing its demand and leading to compromise in its quality. Due to Fluctuation in prices of raw materials, it is hampering the quality of impregnating resins. For instance, in 2018 BASF had to increase its prices suddenly for all its impregnating resins by €30 per metric ton within Europe on top of fluctuations in raw material prices as of the month of August. Such immediate fluctuation due to the shortages faced could affect both the suppliers and consumers. So, the vendors try to go for a lower quality raw material to overcome the extra costs they have to pay for the high-quality raw materials. Thus, high fluctuation of the raw material cost associated and low awareness among consumers are some of the factors that have become the major challenge of Impregnating resins in terms of consumption, which constrains the growth of the market.
Impregnating Resins Market Landscape
Technology launches, acquisitions, and R&D activities are key strategies adopted by players in the Impregnating Resins market top companies are:
1. Elantas
2. Axalta Coating Systems
3. Von Roll Holdings
4. Hitachi Chemicals
5. Kyocera Corporation
6. AEV
7. BASF
8. Aditya Birla Chemicals
9. Bodo Moller Chemie Group
10. Robnor Resinlab
Acquisitions/Technology Launches
On June 2019, AEV Company acquired the whole 100% equity shares of a Hungarian manufacturer, Korax Kft. They are manufacturers of Epoxy and Polyurethane Casting resins used for the electrical and electronic industry.
On October 2018, Kyocera Corporation announced that they will begin the construction of their manufacturing plant in Kanagawa, Japan, and open the facility in April 2020. The facility reportedly will increase the company’s capacity by 50% for conductive and insulation pastes utilized in semiconductors, digital devices, automotive electronics, and energy products, among others. They said that this developed facility will help the company to cater to the increasing demand for impregnating resins globally as well.
Key Takeaways
The Asia Pacific dominates the Impregnating Resins market, like India, China, Japan as major countries in consumption, and is likely to act as an opportunity, in the future.
The automotive components segment is expected to be the fastest-growing impregnating resins application during the forecast period.
Automotive and electrical being the key end-use industry, Increasing electric vehicle production and consumption is expected to offer various opportunities for the growth of the market.
In Asia-Pacific, China is one of the leading countries, emerged as a major Impregnating Resins consumer, due to strong government support, efforts toward standardization, and expanding application manufacturing units and segments.
Relevant report
High Temperature Resin Market
https://www.industryarc.com/Research/High-Temperature-Resin-Market-Research-500448
For more Chemicals and Materials Market reports, please click here
About IndustryARC: IndustryARC primarily focuses on Cutting Edge Technologies and Newer Applications market research. Our Custom Research Services are designed to provide insights on the constant flux in the global supply-demand gap of markets. Our strong team of analysts enables us to meet the client research needs at a rapid speed, with a variety of options for your business. Any other custom requirements can be discussed with our team, drop an e-mail to [email protected] to discuss more about our consulting services.
Media Contact
Company Name: IndustryARC
Contact Person: Mr. Venkat Reddy
Email: Send Email
Phone: (+1) 970-236-3677
Address:Madhapur
City: Hyderabad
Country: India
Website: https://www.industryarc.com/
