Thermoset molding compounds have gained popularity over the past few years, owing to their anti-corrosive and heat resistant properties, which help in increasing the product life cycle and efficiency in electrical applications. Although used in electrical, automotive, and aerospace sectors among others, thermoset molding compounds call for a high demand from the electrical sector, followed by the automotive sector, mainly due to their light weight and ability to increase the fuel efficiency. Due to its high demand, the global market for molding compounds is likely to witness significant growth over the coming years.
Current and Future Market Scenario
The value of the worldwide molding compound market by thermoset resin type which was estimated to be USD 8.04 Billion in 2015 is projected to reach USD 10.96 Billion by 2020, growing at a CAGR of 6.40% between 2015 and 2020. As of now, Asia-Pacific accounts for the largest market share, with China being the leading market among countries. This growth can be attributed to the developing economy, industrial developments, availability of low-cost labor, and increased demand for low-maintenance products. Among countries in the global market, China, the U.S., Japan, Germany, and Canada are the major markets for thermoset molding compounds. However, over the forecast period, the Brazilian market within the RoW region is anticipated to grow at the highest CAGR, owing to the industrial growth and improving financial conditions in this region.
Among application, the electrical segment is the fastest-growing application in this market, owing to its properties such as corrosion, resistance, thermal performance, and heat resistance when exposed to high temperatures. Following it is the automotive segment since they help in preventing rust and corrosion in vehicles. Based on types of resins, the phenolic-based compound holds the largest market share, and is also the fastest-growing segment in this market.
What is driving and restraining the market?
The growth of the global market for thermoset molding compounds can be majorly attributed to the growing need for corrosion and heat-resistant components in electricals, weight-saving advantages for automotive, and ease in manufacturing small and complex parts. Moreover, developments in green molding compounds and penetration of thermoset molding compounds in new application areas are likely to create an array of opportunities for the growth of this market. However, high investment costs and costs of raw materials are likely to restrain the growth of the market over the coming years. Moreover, production of low-cost products remains a key challenge for the leading players involved in this market.
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Who are the key vendors operating in this market?
The major manufacturers operating in the global market for thermoset molding compounds comprise Hexion Inc. (U.S.), BASF SE (Germany), Kyocera Chemical Corporation (Japan), Hitachi Chemical Co. (Japan), and Eastman Chemical Co. (U.S.), among others. Although high processing and manufacturing cost of thermoset molding compounds is a major obstacle, various developmental activities and strategies adopted by the companies will help them to sustain their position in the market as well as achieve substantial growth.
As per the researchers, the global thermoset molding compound market has been analyzed and predicted on the basis of following segmentation:
- Resin Type: Phenolic, Epoxy, Polyester, Other Resins
- Application: Electrical, Automotive, Aerospace, Others
- Geography: North America, Europe, Asia-Pacific, RoW