The global market for epoxy curing agents is expected to grow at a CAGR of around 5% The growing demand from the construction industry and new developments in lightweight composite materials are driving the market. But the COVID-19 pandemic has taken a massive toll on nearly everything.
HAS COVID-19 AFFECTED THE EPOXY RESIN MARKET?
The COVID-19 pandemic has carried with it a slew of new and unpredictable factors, many of which current emergency programs and teams were unable to deal with. The number of coronavirus cases is increasingly growing, resulting in the loss of many lives and affecting the global economic system.
This pandemic has caused many organizations to halt as the businesses had to stop operating. The offices were shut down, and this led to less or no productivity at all. Many large manufacturing firms have shut down plants and are considering layoffs to help stop the epidemic from spreading further and for a financial reason.
The COVID-19 pandemic has already posed several challenges for industrial manufacturing, especially those who rely on employees who cannot perform their jobs remotely. Although many organizations did adapt to the work-from-home schedule, some businesses could not be kept running because of the situation.
Many businesses had to shut down because of a few reasons. For starters, many industrial jobs are performed on-site and cannot be done remotely. Second, stagnant economic growth has reduced the demand for industrial goods around the world.
Uncertainty on how long these problems will last (or even whether they will worsen) makes it difficult to predict how the sector will rebound. Indeed, many struggling manufacturing businesses could be candidates for federal assistance.
Many organizations are now taking steps that will help them grow stronger from the pandemic. These business leaders respond to the crisis with a spirit of innovation, driving digital change, developing variable cost models, and introducing quick-thinking operations.
One industry that has been affected is the Epoxy Resin industry. The Epoxy resin industry was complicated by the ongoing circumstances in more than a few ways. Here are some of the key market trends due to Covid-19.
Increasing demand from the Electrical Industry
The usage of BPA epoxy resins in the electrical sector is expected to grow, and the market is likely to expand substantially throughout the forecast period. Electrical appliances or electrical components are well-insulated with HBPA epoxy resins. Epoxy curing agents are primarily used in the manufacturing of electrical composites and coatings because they have sufficient mechanical efficiency, electrical insulation, and thermal resilience. The growth of the HBPA epoxy resin market has been driven by increased demand from the electrical industry.
Epoxy curing agents are also used in primer and topcoat formulations for marine installations, bridges, and tanks. It is because of their outstanding adhesion to concrete, good impact strength, and hardness. It secures the structural fiber in place and is consistent with other reinforcement fibers such as glass and aramid. It also adds to the pressure vessels’ longevity and chemical tolerance.
However, as the coronavirus outbreak happened, the fundamental market dynamics were drastically affected. The pandemic worsened the automobile industry’s internal problems, causing sales to drop to their lowest level in a decade, affecting demand for epoxy resins in pressure vessels for alternative fuels. Epoxy primers are used in the automotive, marine, and aerospace industries to protect against corrosion.
Germany dominates the European automotive sector, accounting for one-third of total vehicle production. As one of the top automotive manufacturing bases, Germany is home to a diverse range of companies, including equipment manufacturers, material suppliers, and vehicle manufacturers. However, Germany manufactured 2.55 million cars and light commercial vehicles in the first nine months of 2020, down 32.6 percent from 3.79 million vehicles in the same period of 2019. Although the virus outbreak has hampered production, rising sales are likely to propel the market studied throughout the forecast period.
Asia-Pacific Region to Dominate the Market
Due to increased demand from countries such as India and China, the Asia-Pacific region is projected to dominate the market for epoxy curing agents during the forecast era. During the forecast period, the reasons mentioned above, combined with government funding, would increase demand for epoxy curing agents in the Asia-Pacific region.
The epoxy resin industry has been affected significantly by the current ongoing situation. The demand for the products has decreased as the clients have stopped working on almost all of their projects, leading to the organization’s stagnant profit. Moreover, manufacturing has also been affected badly. The manufacturers had to stop producing and also faced the downside of the pandemic like every other organization.
When something extraordinary like COVID-19 occurs, the ripple effect is enormous. It can also be seen in the epoxy resin market. In addition to its production activities, many of its major industrial clients, such as car factories and building sites, have temporarily shut down in many countries, resulting in a significant drop in demand. To get the best services to visit our website, Epoxy Trader