Recyclable Epoxy Resin Market - Forecast(2024 - 2030)

Overview

The recyclable epoxy resin market size is forecast to reach USD 4,500 million by 2029, after growing at a CAGR of 13.8% during 2024-2029. Growing environmental concerns, stricter laws governing traditional epoxy resins, and an increased inclination for sustainable materials in a variety of industries have all contributed to the market's steady growth. The growing emphasis on sustainability and environmental responsibility by corporations, governments, and consumers is fueling the need for recyclable materials like epoxy resin. All throughout the world, governments are putting laws and policies into place to lessen their influence on the environment and encourage the use of recyclable materials. Recyclable epoxy resin is one of the eco-friendly options that these requirements frequently push industry to use.

The European Union (EU) tightened restrictions on the use of dangerous chemicals in consumer goods in response to growing environmental concerns. The EU placed limits on the sale of products made with epoxy resin that contained dangerous materials as part of this program. As a result, in order to address consumer demand for safer and more environmentally friendly options as well as regulatory requirements, producers in the region are turning to recyclable epoxy resin formulations. A $20 million fundraising round has been launched by investment firm Green Ventures to assist firms creating sustainable materials, such as recyclable epoxy resin solutions. The investment is intended to promote market expansion in important areas like electronics, automotive, and construction while expediting the commercialization of novel solutions. Benefiting from this investment are startups such as EcoResin, which is devoted to creating epoxy resins that are recyclable and bio-based.

Report Coverage

The report “Recyclable epoxy resin Market– Forecast (2024-2029)”, by IndustryARC, covers an in-depth analysis of the following segments of the recyclable epoxy resin market.

By Type of Resin: Water-based Epoxy Resin, Vitrimer Epoxy Resin, Solvent-based Epoxy Resin, Thermoset Epoxy Resin (TER), Recyclamine

By Recycling Method: Mechanical, Pyrolysis, Thermal

By End-User Industry: Automotive, Construction, Electrical and Electronics, Aerospace, Marine, Packaging

By Geography:  North America, South America, Europe, Asia-Pacific, RoW

Key Takeaways

·       In response to the European Union's Circular Economy Action Plan, corporations such as BASF and Huntsman Corporation have increased their efforts to create recyclable epoxy resin technology. BASF's collaboration with recycling firm Circulate Capital aims to create closed-loop solutions for epoxy resin products, in line with EU legislation and consumer demand for sustainable materials.

·       Consumer electronics companies such as Sony and Panasonic are pioneering the use of recyclable epoxy resin-based components. Sony's Xperia smartphones have circuit boards composed of recyclable epoxy resin, demonstrating the company's commitment to sustainability and meeting consumer demand for environmentally friendly electronics in the Asia-Pacific area.

·       Dow and 3M are working together in North America with recycling organizations and research institutes to promote recyclable epoxy resin technologies. Their collaboration aims to create cost-effective epoxy resin recycling technologies, while also encouraging innovation and promoting market growth for recyclable epoxy resin goods in the region and beyond.

By Type of Resin - Segment Analysis

Water-based Epoxy Resin (WBER) dominated the recyclable epoxy resin market in 2023. WBER is preferred because it has a lower environmental impact than solvent-based epoxy resins. It contains fewer volatile organic compounds (VOCs), which makes it safer for human health and the environment. With strict laws aimed at lowering VOC emissions and supporting sustainable practices, companies are increasingly using water-based epoxy resins to meet environmental criteria. WBER is a popular choice for coatings, adhesives, and composites since it is easy to apply and clean up afterward.

In keeping with global efforts to minimize environmental pollution, governments are rewarding the use of water-based epoxy resins through grants, subsidies, and regulatory support. For example, the United States Environmental Protection Agency (EPA) recently announced funding programs to promote the use of ecologically friendly coatings, such as water-based epoxy resins, in infrastructure projects. This program seeks to foster market expansion for WBER while also promoting sustainable development goals. This recent development emphasizes the growing acknowledgment of water-based epoxy resins as a sustainable alternative, as well as the importance that government initiatives play in encouraging their adoption across industries.

By Recycling Method - Segment Analysis

Mechanical Recycling dominated the recyclable epoxy resin market in 2023. In light of recent advancements, mechanical recycling has taken the lead in the recyclable epoxy resin market share since it is more affordable and has a less environmental effect than alternative processes. Products made of epoxy resin are mechanically broken down into tiny pieces or ground into a powder so that it can be melted and reformed into new materials. This technique is increasingly being utilized to epoxy resins and is commonly used for recovering thermoplastics.

The world leader in high-performance materials, Covestro, revealed a mechanical recycling technology breakthrough for epoxy resins in 2023. Their unique method makes it possible to separate and purify waste epoxy resin quickly and effectively, producing high-grade recycled materials that can be used in a variety of ways. This development supports the company's environmental objectives and represents a major advancement in mechanical recycling techniques for epoxy resins. Recently, the Japanese government implemented subsidies and incentives to promote the use of epoxy resins and other mechanical recycling methods in the plastics industry. In order to decrease plastic waste and expedite the shift to a circular economy, the government is sponsoring research and development in this area and offering financial support.

By End User - Segment Analysis

Strict guidelines, including the European Union's Restriction of Hazardous Substances (RoHS) directive, govern the use of hazardous materials in goods for the electrical and electronics industries. The industry is using recyclable epoxy resin compositions because they provide a sustainable and compliant substitute for conventional epoxy resins. There is an increasing market for electrical items made with eco-friendly materials as a result of consumers' growing environmental consciousness. Electronics producers are progressively utilizing recyclable epoxy resin-based components in order to satisfy consumer demands for environmentally friendly goods.

In order to integrate environmentally friendly components into their newest range of consumer electronics, Samsung Electronics stated in 2023 that they had formed a strategic alliance with a top provider of recyclable epoxy resin materials. This relationship is in line with Samsung's commitment to sustainability and attempts to lessen the environmental impact of the company's goods. Samsung wants to satisfy consumer demand for eco-friendly products while preserving its competitive advantage in the electronics industry by utilizing recyclable epoxy resin technology.

By Geography - Segment Analysis

Because of its strict environmental laws and the increasing emphasis that various businesses are placing on sustainability, Europe is at the forefront of the development of recyclable epoxy resin technologies. Europe's businesses are leading the way in creating and executing novel approaches for recyclable epoxy resin, motivated by the need to comply with regulations and meet consumer demand for environmentally friendly goods. A group of businesses in Europe, comprising DSM and BASF, announced the creation of a revolutionary recyclable epoxy resin formulation. With the help of the European Union's Horizon 2020 program, this innovative technology seeks to create a circular economy for epoxy resin products, propelling regional market expansion and environmental sustainability. With this initiative, Europe has further cemented its leadership in sustainable materials and innovation, and it will continue to dominate the recyclable epoxy resin market.

Drivers – Recyclable epoxy resin Market

·       Stringent Environmental Regulations

Recyclable epoxy resin is becoming more and more popular due to Europe's tough environmental laws, such as the REACH (Registration, Evaluation, Authorization, and Restriction of Chemicals) rules and the Circular Economy Action Plan. By restricting the use of dangerous chemicals and promoting the use of sustainable materials, these policies encourage industries to switch to recyclable alternatives. The Circular Economy Action Plan of the European Union, which was unveiled in 2023, has set high goals for raising recycling rates and cutting waste. The EU enacted laws as part of this strategy to encourage the use of recyclable materials, such as epoxy resins. In order to comply with these rules, businesses like Arkema, a world leader in specialty chemicals, are spending money on research and development. As an example of the industry's response to regulatory challenges and commitment to sustainability, Arkema recently unveiled a new range of recyclable epoxy resins that meet with EU requirements.

·       Growing Emphasis on Sustainability Across Industries

In Europe, business sustainability objectives, investor expectations, and consumer demand are driving an increasing emphasis on sustainability across industries. In an effort to lessen their impact on the environment and improve the reputation of their brands, businesses are progressively implementing sustainable processes and materials across their supply chains. European automakers are using more and more recyclable epoxy resin-based parts in their cars in response to consumers' increased desire for environmentally friendly products. For example, BMW declared that it will produce its electric automobiles using recyclable epoxy resin composites. BMW and Huntsman Corporation, a top producer of specialized chemicals, are working together to create sustainable and lightweight materials for use in automotive applications. This collaboration is a testament to the industry's dedication to sustainability and its understanding of recyclable epoxy resin as a crucial component of environmentally responsible automobile design.

Challenges – Recyclable epoxy resin Market

·       Technological Challenges in Recycling Processes

The creation of effective recycling procedures is one of the main issues facing the industry for recyclable epoxy resin. Thermosetting polymers used in traditional epoxy resins make it difficult to break down and reuse the material. For the epoxy resins business, developing scalable and affordable recycling methods is still a major challenge. A notable real-time development in Europe is the partnership between a research consortium and Evonik Industries to promote epoxy resin chemical recycling technologies. The specialty chemicals manufacturer Evonik is collaborating with academic institutions to create a revolutionary chemical recycling method that effectively disassembles epoxy resin compounds into their component parts. By working together, we hope to solve the technological obstacles in the way of recycling epoxy resin and open the door to more environmentally friendly material cycles in Europe.

·       Market Fragmentation and Lack of Standardization

To streamline the recyclable epoxy resin business and encourage broad use, standardization of recycling procedures and material requirements is crucial. The establishment of industry-wide standards, harmonization of legislation, and stakeholder participation are essential measures in tackling this issue and building a more unified and effective recycling ecosystem.

A recent European Chemicals Agency (ECHA) project seeks to resolve market fragmentation and encourage standardization in epoxy resin recycling. ECHA is creating recommendations for the recycling and reuse of epoxy resin materials in partnership with industry stakeholders. In order to facilitate market harmonization and hasten the adoption of recyclable epoxy resin products in Europe, these guidelines seek to create universal standards and best practices for epoxy resin recycling.

Market Landscape

Technology launches, acquisitions, and R&D activities are key strategies adopted by players in the recyclable epoxy resin market. Major players in the recyclable epoxy resin market are Covestro AG, BASF SE, Huntsman Corporation, Dow Inc., Hexion Inc., Aditya Birla Chemicals, Araldite (Huntsman Advanced Materials), Olin Corporation, Sika AG, DIC Corporation among others.

Developments:

Ø  In December 2023, Covestro announced a strategic partnership with a leading recycling company to advance the development of chemical recycling technologies for epoxy resins. This collaboration aims to address the challenges associated with epoxy resin recycling and accelerate the transition towards a circular economy for epoxy resin products.

Ø  In September 2023, BASF unveiled a new line of recyclable epoxy resin formulations designed to meet the growing demand for sustainable materials. This product launch aligns with BASF's commitment to sustainability and its efforts to offer innovative solutions that support circularity and resource efficiency.

Ø  In June 2023, Huntsman Corporation announced the acquisition of a leading recycling technology company specializing in epoxy resin recycling. This strategic acquisition enhances Huntsman's capabilities in sustainable materials and positions the company as a leader in the development of recyclable epoxy resin technologies.