Procurement Outlook
Epoxy resins are synthetic polymer composites derived from petroleum sources. It acts as a raw material for various chemicals used across paint and coatings, construction, electronics industries. Epoxy resins can be categorized into the following types:
- Bisphenol epoxy resins: This resin has the lowest molecular weight among other resins.
- Aliphatic epoxy resins: These resins have low levels of viscosity, good weather resistance, and low dielectric constants.
- Novolac epoxy resins: It has a relatively high level of adhesive strength compared to others.
- Halogenated epoxy resins: These types of resins are the most preferred options for flame resistance and electrical applications.
- Epoxy resin diluents: This resin is formed by the glycidylation of aliphatic alcohols or polyols.
- Glycidylamine epoxy resins: These epoxy resins have relatively high levels of functionality and a low-medium viscosity at room temperature, making them easier to process than epoxy phenol novolac (EPN) and epoxy cresol novolac (ECN).
Demand Outlook
The global epoxy resin market was valued at 3.6 million tons in 2020 and it is expected to grow at a CAGR of ~6% from 2020 to 2027 due to rising demand from the booming construction and electronics sector in APAC. APAC is also the largest geographic segment in the global epoxy resins market with more than 50% market share followed by North America and Europe. The liquid epoxy resin accounts for the largest share of the global epoxy resins market due to its wide range of applications. However, solid epoxy resin is the fastest-growing segment due to the high demand in powder coating applications. Paint and coatings are the largest end-user segment of the global epoxy resins market with more than 50% market share followed by the adhesive and sealants segment.
Grab your copy, or request for a free sample of the “Epoxy Resins Industry Procurement Intelligence Report, published by Grand View Research” for In-depth details regarding supplier ranking and selection, sourcing, and pricing criteria & strategies.Cost Drivers
Raw material costs are the major cost driver of epoxy resin production. Key raw materials include DGBEA (Bisphenol A and ECH), DGBEF (Bisphenol F and ECH), formaldehyde, phenols, aliphatic alcohols, Glycidylamine (Aromatic Amines and ECH). The cost of raw materials accounted for more than 50% of the overall cost of production followed by machinery, equipment, and labor costs. As the price of ECH is highly volatile, epoxy resins manufacturers outsource their production to low-cost labor countries like China to reduce cost and increase profitability.
Brief about Pipeline by Grand View Research:
A smart and effective supply chain is essential for growth in any organization. Pipeline division at Grand View Research provides detailed insights on every aspect of supply chain which helps in efficient procurement decisions.
Our services include (not limited to):
- Market Intelligence involving – market size and forecast, growth factors, and driving trends
- Price and Cost Intelligence – pricing models adopted for the category, total cost of ownerships
- Supplier Intelligence – rich insight on supplier landscape, and identifies suppliers who are dominating, emerging, lounging, and specializing
- Sourcing / Procurement Intelligence – best practices followed in the industry, identifying standard KPIs and SLAs, peer analysis, negotiation strategies to be utilized with the suppliers, and best suited countries for sourcing to minimize supply chain disruptions
Browse through Grand View Research’s collection of procurement intelligence studies:
- Drug Testing Industry Procurement Intelligence – The global drug testing market is expected to reach USD 11.2 million by 2027 having grown at a CAGR of 4.9% from 2020 – 2027. Stringent rules from the sports association have led to regular dope testing activities among players. In addition to this, the rising problem with drug abuse globally along with the fight against drugs has led to an increased number of drug testing among suspected offenders. Also, one of the rising markets for drug testing is the health testing done during employment. Several companies have taken drug testing and another health testing on a stride and this, in turn, has helped bolster the market for drug testing. North America is one of the largest markets for drug testing with urine samples being the largest sub-category under drug testing.
- Disposable Gloves Industry Procurement Intelligence – The raw material cost is the major cost driver of disposable gloves production. Major raw materials include nitrile, latex, vinyl, etc. The cost of raw materials accounted for more than 45% of the overall disposable gloves production cost. Other key cost components include machinery, labor, storage, and distribution cost. These cost components accounted for more than 35% of the overall cost of production. Many suppliers are outsourcing the production to South East Asian Countries due to the availability of raw materials and low labor cost.
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