Molding Compounds Market is Expected to Exhibit CAGR Of 6.53% During The Forecast Period

The Molding compounds Market are composed of a conductive material, a thermoplastic polyvinyl butyral terpolymer binder, and a glycol ether solvent and carbon particle infused into the ink. Due to its good conductive property is widely used in automotive, electronics, displays, switches, and many others.

Global Molding Compounds Market – Trends & Forecast (2023–2032)

Browse the full “Molding Compounds Market Market Size, Trends and Insights By Resin Type (Phenolic, Epoxy, Polyester, Other), By Application (Electrical and Electronics, Automotive, Aerospace, Others), and By Region – Global Industry Overview, Statistical Data, Competitive Analysis, Share, Outlook, and Forecast 2023–2032” Full

Market dynamics

1. Drivers

Escalation in demand from the packaging sector

The increase in population has led to a rise in demand for various consumer goods, propelling demand for molding compounds in the packaging sector as they are widely used for manufacturing films & wraps. For instance, according to a report published by the National Investment Promotion and Facilitation Agency, the packaging industry was worth over $917 billion in 2019 and is expected to reach $1.05 trillion by 2024, growing at a CAGR of 2.8%. These factors are anticipated to enhance the demand for molding compounds in the packaging market.

2. Restraints

Health concerns associated with molding compounds

However, exposure to molding compounds in manufacturing plants has adverse effects on health, such as eye irritation, cough, throat infection, and skin irritation. Additionally, the rise in prices of raw materials and the adoption of alternative substitutes over molding compounds are expected to hamper the market growth. 

3. Opportunities

The rise in building and construction activity

An increase in investments in the building and infrastructure industry in countries such as the U.S., China, Japan, Mexico, and India has 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 collectively witnessed high potential growth for molding compounds, thus, offering remunerative opportunities for the market.

4. Challenges

Availability of another substitute

Polyester resins release various toxic chemicals that, if exposed beyond the concentration limit, may cause several health-related issues such as health-related issues such as irritation in the eye, vision failure, respiratory problems, dizziness, genotoxic, cardiovascular, and gastrointestinal problems due to which manufacturer and consumer are shifting their preferences to other less toxic and sustainable molding compounds material. These factors may act as a challenging factor in the molding compounds market. 

Report Highlights

The molding compounds market is segmented by type: polyester, epoxy, phenolic, and others. 

1. Phenolic Segment Dominance (2021)

• Held 39% of the total market share.
• Expected to grow over the forecast period.

Factors contributing to growth

• Growing population.
• Increase in consumer demand.
• Higher demand for electrical and electronics-based devices.
• Phenolic-based molding compounds are used with paper and fabrics as insulation materials in electrical and electronics components and circuit boards due to their heat resistance property.

2. Application Segments

• Key segments: aerospace, automotive, electrical, and electronics.
• Global electrical and electronics segment expected to hold a dominant position during 2022-2031.
• Predicted to have a maximum share of 30%.

3. Market Growth Drivers

• Industrialization.
• Urbanization.
• Increased disposable income.
• Rising demand for electrical and electronic devices.

Extensive use of molding compounds due to their functionalities

• Reliability.
• Dimensional stability.
• Prevention of short circuits in electrical devices.
• Expected to drive the market in the electrical and electronics segment.

Regional Snapshots

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 have significantly contributed 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.

Prominent 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., and Others

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