Thermosets Market is valued at USD 34.09 Billion in 2022 and it is expected to reach USD 51.19 Billion by 2029 with a CAGR of 5.98% over the forecast period.
Thermosets are a class of polymers that are cross-linked and cured, resulting in a rigid and stable material that cannot be re-melted or reshaped. These are widely used in a variety of applications due to their excellent mechanical and thermal properties. The first thermoset, Bakelite, was invented in 1907 by Leo Baekeland, and it became a popular material for electrical insulators, automotive parts, and consumer goods. Over time, other thermosets such as epoxy, phenolic, and polyurethane have been developed for various applications.
Thermosets are used in a wide range of industries such as automotive, construction, electrical, aerospace, and consumer goods. These are commonly used in adhesives, coatings, composites, and molded parts.
North America is a significant market for thermosets, driven by factors such as the growing demand for high-performance materials in the aerospace and automotive industries, increasing demand for composites in wind turbine blades, and rising demand for eco-friendly materials. The region is home to several leading manufacturers of thermoset-based materials, including Huntsman Corporation, BASF SE, Dow Inc., and Eastman Chemical Company.
In addition, the United States has a well-developed renewable energy sector, which is driving demand for thermoset-based materials in wind turbine blades. According to the American Wind Energy Association, the US wind energy industry installed a record 16,836 MW of new wind capacity in 2020, bringing the total installed capacity to over 122,000 MW.
Europe is a significant market for thermoset materials, with a growing demand for composites in the wind energy, aerospace, and automotive sectors driving growth. The European thermoset resin market is expected to grow at a compound annual growth rate of 5.3% from 2021 to 2026, reaching a value of €4.4 billion by the end of the forecast period. For example, the automotive sector is one of the largest consumers of thermoset materials in Europe, with applications including body panels, bumpers, and interior components. According to the European Chemical Industry Council, the European automotive market accounted for €170 billion in sales in 2019, making it a significant market for thermoset materials.
Revenue in the thermosets market is generated through the sale of raw materials, intermediates, and finished products. Companies in the thermosets industry may also earn revenue through licensing and technology transfer agreements.
The thermosets supply chain includes raw material suppliers, intermediates manufacturers, resin and adhesive manufacturers, and finished product manufacturers.
The thermosets value chain includes product design and development, raw material sourcing, manufacturing, distribution, and end-use application.
The COVID-19 pandemic has had both positive and negative impacts on the thermosets market. On the positive side, increased demand for thermoset materials used in medical equipment such as ventilators, PPE, and testing kits, the growth in demand for thermoset-based composites in the aerospace and defense industries, and a rise in demand for thermosets in the construction sector for applications such as insulation and flooring. However, on the negative side, disruption in the supply chain and manufacturing operations due to lockdowns and travel restrictions, and a decrease in demand for thermoset materials used in automotive and consumer goods industries due to economic slowdown.
Rising demand for renewable energy and increasing use of thermoset-based materials in wind turbine blades: The rising demand for renewable energy has led to an increase in the installation of wind turbines, which in turn has increased the demand for thermoset-based materials in wind turbine blades. Thermoset-based materials offer excellent mechanical properties and are resistant to fatigue, making them ideal for use in the harsh and dynamic environment of wind turbine blades.
For example, according to the Global Wind Energy Council (GWEC), the global wind power capacity reached 743 GW by the end of 2020, with 93 GW of new installations added during the year. The global wind power capacity is expected to reach 1,400 GW by 2025 and 2,600 GW by 2030, driven by the increasing demand for renewable energy and the growing installation of wind turbines.
Increasing demand for lightweight and high-performance materials: The increasing demand for lightweight and high-performance materials in various end-use industries is driven by the need for improved fuel efficiency, reduced emissions, and enhanced performance. The use of thermoset-based materials is an ideal solution as offer excellent mechanical properties, high strength-to-weight ratios, and durability.
In addition, thermoset-based materials are resistant to heat, chemicals, and moisture, making them suitable for use in harsh environments. As various industries continue to prioritize sustainability and energy efficiency, the demand for thermoset-based materials is expected to grow further in the future.
For example, in the aerospace industry, the use of high-strength composites such as CFRP has enabled significant weight savings in aircraft structures. For example, the Airbus A350 XWB contains around 53% CFRP by weight, resulting in a 25% reduction in fuel consumption compared to previous-generation aircraft.
Increasing environmental concerns and stringent government regulations: Increasing environmental concerns and stringent government regulations are major restraints for the thermosets market. As the negative impact of traditional materials on the environment becomes more apparent, governments worldwide are implementing stricter regulations to encourage the use of sustainable and eco-friendly materials.
These regulations often include measures to limit emissions, reduce waste, and promote recycling. The adoption of thermoset-based materials, while beneficial in terms of their properties and performance, can be limited by their environmental impact and the need for proper disposal methods.
For example, the Accenture, 60% of consumers worldwide are willing to pay more for eco-friendly products, and 72% of consumers consider sustainability to be an important factor in their purchasing decisions.
The growth of the thermosets market is driven by factors such as increasing demand for lightweight and high-performance materials, expanding applications in emerging economies, and growing demand for composites in the aerospace and automotive industries.
Product And Technology Development: The market trend for thermosets is towards the development of more sustainable and environmentally friendly materials. Bio-based thermosets, for example, are being developed as an alternative to traditional petroleum-based thermosets. Additionally, there is a trend towards the development of thermosets with improved properties such as higher strength, better heat resistance, and enhanced toughness.
Customer Trend: Customers are increasingly demanding products that are lightweight, durable, and energy-efficient. Thermosets are being used in a variety of applications to meet these demands, such as in automotive components, wind turbine blades, and electronic devices. Additionally, customers are seeking products that are produced in a sustainable and environmentally responsible manner, leading to increased interest in bio-based thermosets and other green technologies.
Competition in the thermosets market is intense with a large number of key players operating in the market. The competition is primarily driven by innovation, quality, and price. Companies are investing heavily in R&D to develop new and improved thermoset-based materials that offer superior properties.