Epoxy - Industry

Industry

As of 2006, the epoxy industry amounts to more than US$5 billion in North America and about US$15 billion worldwide. The Chinese market has been growing rapidly, and accounts for more than 30% of the total worldwide market. It is made up of approximately 50–100 manufacturers of basic or commodity epoxy resins and hardeners.

These commodity epoxy manufacturers mentioned above typically do not sell epoxy resins in a form usable to smaller end users, so there is another group of companies that purchase epoxy raw materials from the major producers and then compounds (blends, modifies, or otherwise customizes) epoxy systems from these raw materials. These companies are known as "formulators". The majority of the epoxy systems sold are produced by these formulators and they comprise over 60% of the dollar value of the epoxy market. There are hundreds of ways that these formulators can modify epoxies—by adding mineral fillers (talc, silica, alumina, etc.), by adding flexibilizers, viscosity reducers, colorants, thickeners, accelerators, adhesion promoters, etc.. These modifications are made to reduce costs, to improve performance, and to improve processing convenience. As a result a typical formulator sells dozens or even thousands of formulations—each tailored to the requirements of a particular application or market.

Impacted by the global economic slump, the epoxy market size declined to $15.8 billion in 2009, almost to the level of 2005. In some regional markets it even decreased nearly 20%. The current epoxy market is experiencing positive growth as the global economy revives. With an annual growth rate of 3.5 - 4% the epoxy market is expected to reach $17.7 billion by 2012 and $21.35 by 2015. Higher growth rate is foreseen thereafter due to stronger demands from epoxy composite market and epoxy adhesive market.