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The C5 resin market size is forecast to increase by USD 838.2 million, at a CAGR of 3.44% between 2023 and 2028. The global market for C5 resins is experiencing significant growth due to increasing demand from various industries. In the building and construction sector, C5 resins are extensively used as binders in the production of gypsum boards and asphalt shingles, driving market expansion. Additionally, the packaging industry's demand for adhesives and sealants, which often incorporate C5 resins, is on the rise due to the growing trend towards sustainable and eco-friendly packaging solutions. Furthermore, the increasing awareness and implementation of sustainable practices in manufacturing processes have led to a surge in demand for C5 resins as they are derived from renewable sources, making them an attractive alternative to traditional fossil fuel-based resins. Overall, these factors are contributing to the robust growth of the C5 resins market. The report provides market size, historical data, and future projections, all presented in terms of value in USD million for each of the mentioned segments.
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The market is primarily driven by the demand from various end-use industries such as paints, coatings, printing inks, rubber compounding, construction, hot-melt adhesives, and sealants. C5 resins, which include isoprene, pentene, and butadiene, are essential raw materials for manufacturing a wide range of products. In the paints and coatings industry, C5 resins are used as binders and plasticizers. In the printing ink sector, they serve as key ingredients for producing high-performance inks. The rubber industry uses C5 resins in the production of synthetic rubber, particularly butadiene rubber, which is extensively used in the manufacturing of automotive tires. The automotive industry is a significant consumer of C5 resins, with the growing sales of electric vehicles (EVs), battery-electric vehicles (BEVs), and plug-in hybrid vehicles (PHEVs) driving the demand for lightweight materials and components. C5 resins are used in battery packaging, adhesives, tapes, labels, and wires and cables in EVs. The crude oil price fluctuations impact the C5 resins market as they are derived from petroleum. The rising demand for crude oil for various applications, including the production of plastics and chemicals, can lead to a shortage of feedstock, thereby increasing the prices of C5 resins. Overall, the C5 resins market is expected to grow steadily due to the increasing demand from various end-use industries.
Increase in demand from building and construction industry is notably driving market growth. The construction industry plays a pivotal role in driving economic and social progress, with energy, transportation, electricity, and telecommunication being essential components of this development process. C5 resins, derived from aliphatic crackers through the reaction of isoprene with AlCl3, have found extensive applications in the industry. In paint formulations, these resins contribute to the enhancement of surface gloss and offer superior resistance to acid and alkali substances.
Moreover, in the production of asphalt modifiers, C5 resins are utilized for creating colored surfaces. The growing demand for sustainable infrastructure and the increasing adoption of electric vehicles are expected to influence the market dynamics of C5 resins. Additionally, factors such as viscosity and rubber blending are crucial considerations in the selection and application of C5 resins in residential and commercial construction projects. Thus, such factors are driving the growth of the market during the forecast period.
High demand from automotive industry is the key trend in the market. C5 resins, derived from aliphatic crackers through the reaction of isoprene with AlCl3, hold significant importance in various industries, particularly in the rubber sector. In the automotive industry, these resins are utilized extensively in tire rubber compounding due to their ability to enhance tire resistance to chipping and boost the compound's modulus. The petrochemical resins' compatibility with both natural and synthetic rubber makes them a preferred choice in rubber blending. Furthermore, in the tire and tube manufacturing process, c5 resins facilitate the even distribution of fillers during tire vulcanization, thereby augmenting demand. The automotive segment's growth is anticipated to escalate, especially in the Asia Pacific region, due to rising per capita income, enhanced road infrastructure, and increasing per capita vehicle ownership. Thus, such trends will shape the growth of the market during the forecast period.
Stringent and unproductive regulatory policies is the major challenge that affects the growth of the market. The production of C5 resins, which are derived from aliphatic crackers using isoprene and catalysts such as AlCl3, is subject to increasing regulatory scrutiny due to environmental concerns. Governments worldwide are implementing stricter policies to reduce hazardous emissions, making it crucial for manufacturers to adapt their processes accordingly. Failure to comply with these regulations can result in restricted entry into markets, particularly in regions like Western Europe. C5 resins cater to various market segments, each with distinct production facilities, challenges, and demands. Manufacturers must prioritize compliance with regulations while ensuring the viscosity and other properties of the resins meet the specifications of each market segment.
Moreover, regulations among industry stakeholders have led to a lack of uniform compliance routes, necessitating continuous adaptation to regulatory changes. In the context of the growing demand for electric vehicles and sustainable materials, the residential and commercial sectors are increasingly focusing on rubber blending and other applications that utilize C5 resins. Manufacturers must remain agile to meet these evolving demands while adhering to regulatory requirements. Hence, the above factors will impede the growth of the market during the forecast period
The market forecasting report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth analysis strategies.
Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
The market research and growth report also includes detailed analyses of the competitive landscape of the market and information about key companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The paintings and coatings segment is estimated to witness significant growth during the forecast period. The C5 resin market encompasses a wide range of applications, including paints, coatings, printing inks, rubber compounding, construction, hot-melt adhesives, and more. In the realm of paints and coatings, C5 resins, specifically aliphatic hydrocarbon resins derived from piperylene, play a crucial role in enhancing the performance and durability of these products. In the printing ink industry, C5 resins, particularly those derived from naphtha, are employed for their excellent adhesion properties. Rubber compounding is another significant application area for C5 resins.
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The paintings and coatings segment accounted for USD 1.68 billion in 2018. Major buyers of C5 resins include paint companies, printing ink manufacturers, and rubber producers. The demand for C5 resins is influenced by factors such as light vehicle sales, crude oil prices, and technological advancements in various industries. Overall, the C5 resin market is poised for growth, driven by its diverse applications and the increasing demand for high-performance materials in various industries.
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APAC is estimated to contribute 40% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. The C5 resin market encompasses a wide range of applications, including paints, coatings, printing inks, rubber compounding, construction, hot-melt adhesives, and more. In the realm of paints and coatings, C5 resins, particularly aliphatic hydrocarbon resins derived from piperylene, play a crucial role in enhancing the performance and durability of these products.
Further, the global EV outlook shows a positive trend with increasing sales of both battery electric vehicles (BEVs) and plug-in hybrid electric vehicles (PHEVs), leading to a growing demand for C5 resins. Major paint companies and printing ink markets are key buyers of C5 resins, ensuring a steady demand for this versatile material. The market for C5 resins is influenced by factors such as crude oil prices, supply and demand dynamics, and technological advancements in various industries. Overall, the C5 resin market is expected to grow significantly due to its wide range of applications and the increasing demand across various industries.
The market research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD Million" for the period 2024 to 2028, as well as historical data from 2018 to 2022 for the following segments
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The market is a significant segment of the larger petrochemicals industry, with applications spanning across various sectors such as paints, coatings, printing inks, rubber compounding, construction, hot-melt adhesives, and more. These resins, derived from the distillation of crude oil, play a crucial role in manufacturing a wide range of products. In the automotive industry, C5 resins find extensive use in the production of adhesives and sealants for electric vehicles (EVs) and hybrid vehicles (BEVs and PHEVs). The Global EV Outlook indicates a steady increase in EV sales, which is expected to drive the demand for C5 resins in the automotive adhesives market. In the construction sector, C5 resins are used in the production of paints and coatings, while in the rubber industry, they serve as essential raw materials for manufacturing synthetic rubber. In the printing industry, C5 resins are used in the production of printing inks, tapes, labels, and other related products.
Further, key players in the C5 resin market include Paari Chem Resources, which specializes in the production of aliphatic hydrocarbon resin, piperylene, and LDPE. Other notable players include those involved in the production of crude oil, such as oil companies and refineries, which are major suppliers of the raw material for C5 resin manufacturing. The market for C5 resins is diverse, with applications ranging from battery packaging in the electric vehicle industry to wire and cable production, and from paints and coatings to tapes, labels, and tires. Buyers of C5 resins include various industries, from automotive to construction, and from rubber compounding to printing inks. Naphtha is a key feedstock used in the production of C5 resins. The price of naphtha significantly influences the cost of C5 resins, making it an essential factor to consider in market analysis. Overall, the C5 resin market is expected to witness steady growth, driven by the increasing demand for its various applications across multiple industries.
Market Scope |
|
Report Coverage |
Details |
Page number |
144 |
Base year |
2023 |
Historic period |
2018-2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 3.44% |
Market growth 2024-2028 |
USD 838.2 million |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
3.18 |
Regional analysis |
APAC, North America, Europe, South America, and Middle East and Africa |
Performing market contribution |
APAC at 40% |
Key countries |
China, US, Japan, Germany, and Canada |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Arakawa Chemical Industries Co. Ltd., DuPont de Nemours Inc., Eastman Chemical Co., Exxon Mobil Corp., Henan Anglxxon Chemical Products Co. Ltd., Kolon Industries Inc., Lesco Chemical Ltd., Neville Chemical Co., Puyang Changyu Petroleum Resins Co. Ltd., Puyang Tiancheng Chemical Co. Ltd., Qingdao Bater Chemical Co. Ltd., Qingdao Higree Chemical Co. Ltd., Qingdao Reehua Yuanhai Biotech Co. Ltd., Ruisen Petroleum Resin Co. Ltd., Seacon Corp., Shanghai Jinsen Hydrocarbon Resins Co. Ltd., Sojitz Corp., TotalEnergies SE, Zeon Corp., and Zibo Luhua Hongjin New Material Group Co. Ltd. |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Application
7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Opportunity/Restraints
10 Competitive Landscape
11 Competitive Analysis
12 Appendix
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