Impregnating Resins Market - Growth, Trends, COVID-19 Impact, and Forecasts (2023 - 2028)

Key Highlights

• The market is driven by the growing use of impregnating resins in the electrical and electronics sectors and the recovery of automotive production.
• The low efficiency of solvent-based resins acts as a restraint on the growth of the market.
• Increasing electric vehicle production is anticipated to offer various growth opportunities for the market.
• Asia-Pacific dominated the market studied, with India, China, and Japan recording major consumption.

Impregnating Resins Market Trends

Increasing Demand for Electrical and Electronics Components

• The resin impregnation of windings and copper wires provides better insulation and prevents vibration. It also increases resistance to stresses, temperature loads, and heat exchange during normal operation and reduces the risk of short circuits in the windings.
• Resins are used a lot in the electronics and electrical industries because they are good at keeping electricity from moving through them.They are the primary resin used for integrated circuits, transistors, and printed circuit boards.
• The market for impregnating resins could grow because the demand for smart consumer electronics is growing at an exponential rate around the world.According to the German Electrical and Electronic Manufacturers' Association (ZVEI), in 2021, the global electrical market reached USD 4.9 trillion.
• In 2021, the United States produced 123.9 billion pounds (USD 170.44 billion) of resin. High-density polyethylene (HDPE) was the most produced resin that year, with an output of 22 billion pounds. Linear low-density polyethylene (LLDPE) accounted for a similar production volume, at 21.7 billion pounds.
• According to the Plastic Soup Foundation, the amount of plastic that is produced in the world every year reached over 390 million tons in 2021. The expectation is that the production will reach about 1,480 million tons by 2050.
• Impregnating resins are used for the impregnation of starters and alternators in conventional vehicles and electric motors in electric vehicles. According to OICA, in 2021, global vehicle production reached 80.1 million units, an increase of 4% from the previous year’s production of 77.6 million units. The increasing production of vehicles owing to the growing need from consumers is the key factor driving the market's growth.
• Major companies are continuously investing in the manufacture of electric vehicles. For instance, in May 2021, Hyundai Motor Group (HMG), which includes Hyundai Motor Company and Kia Corporation, planned to invest USD 7.4 billion in the United States by 2025 to produce future EVs, enhance production facilities, and further its investments in smart mobility solutions. Hyundai Motor’s U.S. facility began EV production in 2022.
• Germany is considered one of the world's leading producers of generators, transformers, and electric motors. According to the statistics provided by the Statistisches Bundesamt, the revenue from the manufacture of electric motors, generators, and transformers in Germany will amount to approximately USD 19.51 billion by 2025, up from USD 18.5 billion in the previous year.
• According to the Semiconductor Sector Association (SIA), worldwide semiconductor industry sales totaled USD 49.7 billion in November 2021, up by 23.5% from USD 40.2 billion in the previous year.
• Due to such factors, the demand for electrical and electronic components is increasing, which may boost the demand for impregnating resins in the coming years.

Asia-Pacific to Dominate the Market

• Asia-Pacific is expected to dominate the market for impregnating resins during the forecast period. In countries like China, India, and Japan, due to growing electrical and automobile manufacturing facilities, the demand for and utilization of impregnating resins may increase the scope of the market during the forecast period.
• China is the largest base for electronics production in the world. Electronic products such as smartphones, TVs, wires, cables, portable computing devices, gaming systems, and other personal electronic devices recorded the highest growth in the consumer electronics segment.
• India has seen a big rise in the demand for electronic goods in recent years. This is because it is the world's second-largest maker of mobile phones and has a high internet penetration rate. The Indian government gives electronics hardware a lot of attention because it is one of the most important parts of the Make in India, Digital India, and Start-up India programs.
• In India, the electronics market witnessed a growth in demand, with market size increasing at a rapid rate. India’s electronic goods exports fetched USD 16.67 billion in December 2022, as compared to USD 10.99 billion in the same month of 2021. The growing electronics and appliances market in India and China may push market growth further in Asia-Pacific.
• The Japanese electrical and electronics industry is one of the world’s leading industries. According to JEITA (the Japan Electronics and Information Technology Industries Association), in November 2022, the total production of the electronics industry reached USD 7,098.34 million. Japan exported a total of USD 8,395.45 million in electronics in December 2022.
• Semiconductors are also used in the automotive industry. The demand for semiconductors used in the manufacture of electric vehicles is increasing with the growing number of electric vehicles sold worldwide, therefore positively impacting the demand for impregnating resins.
• The Korea Automotive Technology Institute (KAII) has collected data that shows the electric vehicle industry in South Korea is expected to grow quickly.In 2021, nearly 71,000 units of electric vehicles were sold in the country. South Korean sales of electric vehicles surged by 96% to 71,006 units in the first nine months of 2021.
• Semiconductors are now used in more electronic parts of cars because there are more people buying electric cars.According to data from EV Volumes, the total number of electric cars sold in 2021 was 6.75 million, up from 3.24 million the year before.
• So, Asia-Pacific is likely to be the biggest market for impregnating resins over the next few years because of the growing demand from different applications.

Impregnating Resins Industry Overview

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