Global Molding Compounds Market 2024 – 2033

Reports Description

The global Molding compounds Market size was estimated at USD 11.0 billion in 2021 and is expected to reach USD 11.89 billion in 2022. is expected to hit around USD 18.186 billion by 2030, poised to grow at a compound annual growth rate (CAGR) of 6.53 % from 2022 to 2030.

Molding compounds are composite materials that exhibit epoxy resins, phenolics, pigments, polyester, and others. The molding compounds possess various attributes such as high strength, corrosion & heat resistance, and dimensionally stability. Owing to such functionalities, it is extensively used in various industries, including electrical, automotive, electronics, industrial, manufacturing, aerospace, and others.

The global molding compounds market is evolving, and companies are now focusing more on strengthening and consolidating R&D activities, thereby increasing the production capacity of molding compounds thus, driving the market growth by catering to the need for molding compounds in various end-use industries.

Growth Factors

The rising incidences of short circuits in electrical components have escalated the demand for molding compounds, which are extensively used in electronic components with good thermal stability and reduced overheating. This factor is anticipated to enhance the overall demand for molding compounds in the growing electronics industry. 

In addition, factors such as the growing manufacturing industry, availability of feedstock at reduced prices, and arrival of local players have led manufacturers to offer molding compounds at low prices. This factor is predicted to create remunerative opportunities for the future expansion of the molding compounds market. 

An Increase in awareness regarding hygiene-related activities has led to the growth of the packaging sector, where molding compounds are widely used for manufacturing films & wraps used for packaging a wide range of consumer goods. Moreover, increased investments in building infrastructure in countries such as the U.S., China, Japan, Mexico, and India have led the building & construction sector to witness significant growth where resin-based molding compounds such as epoxy, phenolic resins compounds are employed as insulating materials and cladding panels. These factors are predicted to contribute to global market growth.

Molding Compounds Market Segmentation

Molding Compounds Market, segmented by Product Type

Depending on the product type, the molding compounds market is segmented into polyester, epoxy, phenolic, and others. 

The phenolic segment dominated the market in 2021 and is expected to grow over the forecast period, and holds 39% of the total market share. This is attributed to the fact that the growing population, growth in consumer demand, and increase in demand for electrical and electronics-based devices have put more emphasis on manufacturers for the production of phenolic-based molding compounds, which it is used in combination with paper and fabrics as an insulation material in electrical and electronics components and circuit boards, owing due to its heat resistance property. These factors will increase the demand for molding compounds during the forecast period. 

Furthermore, epoxy and polyester molding compounds showed positive growth during the forecast period. Robust consumer demand for housing, a rise in building and construction activities, and an increase in disposable income among people has led to a rise in demand for epoxy-based molding compounds. It is used in household applications. It acts as a coating agent, owing to its chemical and heat resistance and strong adhesion properties. This is expected to propel the market’s growth of epoxy-based molding compounds. 

In addition, the exponential growth of the population and growing demand from the automotive sector has boosted the polyester-based molding compounds. Polyester fibers make ropes, carpeting, and molded carpets in cars, which have enhanced production capacities for polyester. This is anticipated to spur the molding compounds market.

Molding Compounds Market, the segment on the basisApplicationtion

BasedApplicationtion, the global molding compounds market is studied across the aerospace, automotive, electrical and electronics. It is expected that the global electrical and electronics segment to hold a dominant position during 2022 -2031 with a maximum share of 30%. 

The growth of the molding compounds market is driven by industrialization, urbanization, and disposable income, and demand for electrical and electronic devices has increased significantly. Molding compounds are used extensively, owing to their widespread functionalities, such as being reliable, dimensionally stable, and help prevent short circuits in electrical devices. This is expected to drive the market in the electrical and electronics segment. 

Furthermore, the aerospace and automotive industry has witnessed significant growth during the forecast period. This is attributed to the fact that the aerospace industry has accounted for one of the revenue-generating sectors in both developed and developing countries. In addition, the rise in international trade, expansion of domestic and international economies, and increase in the tourism industry have led to a rise in demand for molding compounds, which it is used in the manufacturing of different components such as wings, engine, and fuselage. It has good flexibility and can tolerate corrosion and heat; hence, it is widely used in the aerospace industry. 

An increase in transport and logistics activities has led to the growth of the automotive sector, where molding compounds are widely used to manufacture various inner and outer automotive parts. This is projected to drive the growth of the molding compounds market. 

Report Scope

Regional Insights

Region-wise, the market is studied across North America, Europe, Asia-Pacific, and LAMEA. 

Asia-Pacific is the dominant region and holds 43% of the total share in the molding compounds market. This region is anticipated to maintain its dominance throughout the forecast period. 

Countries such as China, Japan, India, and others significantly contribute to the growth of the molding compounds market in the region. Key factors such as the rising population, growing demand for electric vehicles and electronic components, and other end-use industry has surged the demand for molding compounds. Furthermore, the rise in automotive sectors that have enhanced the demand for molding compounds in the Asia-Pacific. The electric vehicle sector in China is increasing rapidly, which has forced molding compound manufacturers to produce high-quality molding compounds for use in sealing systems to enhance the aerodynamics of vehicles. These factors are escalating the potential sales of molding compounds in Asia-Pacific. 

In addition, countries such as Japan and Taiwan are constantly engaged in expanding their electrical & automation manufacturing output, where different types of molding compounds are widely employed as a protecting material in various electrical & electronic instruments. For instance, according to a report published by Hennessy Funds, Japan accounts for around 30% market for supplying factory automation products in the world. These factors are escalating the demand for molding compounds in the Asia-Pacific region. 

North America and Europe show considerable growth during the forecast period. The U.S. and Canada account for a major share of automotive, aerospace, electronics, building and construction, and many other products. Several manufacturing industries in Germany, the U.K., and other European countries have increased their production capacities for molding compounds used in various end-use industries.

Key Players 

• Hexion Inc.
• BASF SE
• Hitachi Chemical Co.
• Sumitomo Bakelite Co., Ltd.
• IDI Composites International
• CAPLINQ Corporation
• SBHPP
• Mar-Bal, Starfire Systems
• Henkel Adhesives Industry Co., Ltd.
• SPF Composites.
• Lubrizol
• PLEXIGLAS
• Evonik Industries AG 

COVID-19 Analysis

The novel coronavirus is an incomparable global pandemic that has spread to over 180 countries and caused huge losses to lives and the economy around the globe. 

The molding compounds market has had little impact due to the COVID-19 pandemic. Owing to the rise in cases of COVID-19, implementation of emergency protocols and shutdown of various operations and facilities have been observed during 2020.

Due to the spread of the coronavirus pandemic, the manufacturer has faced challenges in terms of operation and supply chain due to government restrictions during the lockdown.  

However, the molding compounds market faced several difficulties with material supply chain disruptions, and labor shortages, in 2020. 

Furthermore, to control the surge of novel coronavirus cases, there is a drastic shift of investments from other sectors toward the automotive sector. Also, several molding compound-based product manufacturing companies have shut down or shrunk their operations due to the risk of infection among the workforce. 

In the first quarter of the pandemic, there was a complete shutdown of building & construction activities, the manufacturing industry, and others. The strict imposition of lockdown has hampered the growth of the molding compounds market. 

In addition, as restrictions imposed due to lockdowns are being lifted in the fourth quarter of the pandemic, building & construction, automotive, aerospace, electronics, and manufacturing sectors are expected to recover, owing to the record of production units in both developed and developing economies. 

Key market segments 

By Resin Type

• Phenolic
• Epoxy
• Polyester
• Other  

By Application 

• Electrical and Electronics 
• Automotive
• Aerospace
• Others

On the basis of Geography

North America

• U.S.
• Canada
• Mexico
• Rest of North America

Europe

• Germany
• France
• U.K.
• Italy
• Spain
• Rest of Europe

Asia Pacific

• China
• Japan
• India
• New Zealand
• Australia
• South Korea
• Rest of Asia Pacific

The Middle East & Africa

• Saudi Arabia
• UAE
• Egypt
• Kuwait
• South Africa
• Rest of the Middle East & Africa

Latin America

• Brazil
• Argentina
• Rest of Latin America