Encapsulation Resins Global Market Report 2024

The encapsulation resins market size has grown steadily in recent years. It will grow from $4.26 billion in 2023 to $4.47 billion in 2024 at a compound annual growth rate (CAGR) of 5.0%. The growth observed during the historic period can be attributed to several factors. These include the expansion of the electronics industry, heightened utilization in automotive electronics, an increased adoption of encapsulation resins in renewable energy applications, and a growing demand within the aerospace and defense sectors. These combined elements significantly contributed to the development and proliferation of encapsulation resins during that period.

The encapsulation resins market size is expected to see steady growth in the next few years. It will grow to $5.3 billion in 2028 at a compound annual growth rate (CAGR) of 4.3%. The anticipated growth in the forecast period can be linked to several key factors. These include the expanding market for electric vehicles (EVs), the rising integration of encapsulation resins in 5G technology, the emergence and proliferation of the Internet of Things (IoT), increased usage in medical electronics, and a heightened emphasis on developing sustainable and eco-friendly formulations for encapsulation resins. Key trends expected during this period include a focus on product innovations within the encapsulation resin industry, a strong emphasis on environmentally friendly resin formulations, the adoption of UV-curable resins, a growing demand for high thermal conductivity resins, and a trend towards customization catering to specific application needs. These trends collectively indicate a progressive trajectory for the encapsulation resin market in the forecast period.

The anticipated increase in the use of electric vehicles is poised to drive the growth of the encapsulation resins market. Electric vehicles, characterized by electric motors drawing power from batteries and the ability to undergo external charging, rely on encapsulation resins to encapsulate electric motors. These resins play a crucial role by providing electrical insulation, thermal dissipation, and managing Noise, Vibration, and Harshness (NVH) levels. Notably, in September 2022, the International Energy Agency reported a 4% rise in electric vehicle sales in 2021, reaching 6.6 million and doubling from the previous year. This surge contributed to a total of 16.5 million electric vehicles on the roads, highlighting the significant impact of the increasing use of electric vehicles on the encapsulation resins market.

The escalating demand for electronic devices is expected to be a driving force behind the growth of the encapsulation resins market. Electronic devices, encompassing a diverse range of products utilizing electronic components, benefit from encapsulation resins that shield these components from environmental factors, such as moisture, dust, and contaminants. This protective measure prevents corrosion and degradation, contributing to the longevity and reliability of electronic devices. As of May 2023, the Japan Electronics and Information Technology Industries Association reported a total electronic device production value of $6,722 million (¥771,457 million), with consumer electronics device production increasing from $230.9 million (¥25,268 million) in May 2022 to $280 million (¥32,099 million) in May 2023. This growth underscores the rising demand for electronic devices, driving the encapsulation resins market forward.

A noteworthy trend gaining prominence in the encapsulation resins market is product innovation. Leading companies in this market are actively developing technological solutions to reinforce their market positions. In October 2021, Huntsman Corporation, a US-based chemical product manufacturer, introduced epoxy encapsulation and impregnation materials designed for the reliable insulation of electric drives. Tailored for 800-volt architectures, these materials address the specific requirements of electric drives, enhancing efficiency and durability in motors operating at higher voltages. The Araldite epoxy resins, known for their outstanding flow and impregnation capabilities, provide effective insulation in electric drives, offering resilience against aggressive chemicals and high temperatures. This innovation caters to diverse industries, including electronics, automotive, aerospace, and construction, responding to the growing demand for encapsulation resins with improved performance and reliability.


Prominent companies in the encapsulation resins market are strategically emphasizing product technologies, with a focus on innovations such as low-pressure molding technology for encapsulation purposes, to secure a competitive edge. Low-pressure molding technology stands out as a encapsulation method that utilizes polyamide adhesive molding compounds, finding applications across diverse sectors, including electronics, medical, and industrial automation. This technology offers economic benefits, precise process control, design flexibility, and environmental advantages. In a notable development, Henkel AG & Co. KGaA, a Germany-based consumer goods manufacturing company, introduced the Technomelt Low Pressure Molding technology in June 2021. Tailored to meet the evolving requirements for encapsulating electronics and medical components, Henkel's Low Pressure Molding technology utilizes Technomelt polyamide adhesive molding compounds. This technology is gaining traction across various sectors, including medical, electronics, power, industrial automation, HVAC, and lighting applications. Its key advantages, including economic efficiency, enhanced process control, design flexibility, and environmental benefits, set it apart from alternative systems such as potting with reactive resin systems and high-pressure injection molding.

In January 2021, Huntsman Corporation, a US-based chemical products manufacturer, acquired Gabriel Performance Products for a sum of $250 million. This acquisition bolsters Huntsman Corporation's capabilities by integrating key components in adhesive and coatings applications, enhancing its product offerings. Gabriel Performance Products, also based in the US, specializes in manufacturing specialty chemicals for the coatings, adhesives, and composite markets. The acquisition strategically aligns with Huntsman Corporation's growth objectives, positioning it to capitalize on emerging opportunities in the encapsulation resins market and related applications.

Major companies operating in the encapsulation resins market report are 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.

North America was the largest region in the encapsulation resins market in 2023. The regions covered in the encapsulation resins market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the encapsulation resins market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Italy, Spain, Canada.

The primary varieties of encapsulation resins include epoxy resins, polyurethane resins, silicone resins, and other variations. Epoxy resins, known for their exceptional electrical insulation properties, high chemical resistance, and robust mechanical strength, fall under the category of thermosetting resins. These resins find applications across various sectors, including transformers, sensors, switchgear, insulators, capacitors, relays and coils, adhesives and sealants, among others. They serve multiple industries such as building and construction, automotive, transportation, electrical and electronics, marine, and more.

The encapsulation resins market research report is one of a series of new reports that provides encapsulation resins market statistics, including encapsulation resins industry global market size, regional shares, competitors with a encapsulation resins market share, detailed encapsulation resins market segments, market trends and opportunities, and any further data you may need to thrive in the encapsulation resins industry. This encapsulation resins market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The encapsulation resins market consists of sales of urethane, acrylic, and polyester resins. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).


The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.