Unsaturated Polyester Resin Market by Type (Orthophthalic Resin, Isophthalic Resin, Dicyclopentadiene, and Others), End-use Industry (Building & Construction, Electrical, Transport, Stones, and Others), and Region (North America, Europe, Asia-Pacific, and LAMEA): Global Opportunity Analysis and Industry Forecast, 2023-2032

Unsaturated Polyester Resin Overview

Unsaturated polyester resin (UPR) is a versatile liquid polymer that, when cured through cross-linking with styrene and specific organic peroxides known as hardeners, solidifies into a durable shape. This material is commonly used in combination with reinforcing materials such as glass fibers to create fiberglass (FRP), a composite material with exceptional strength and durability characteristics. UPR when used in liquid form offers several benefits such as poor linear shrinkage owing to which there is minimal change in the product dimensions during curing process, excellent wettability of fibers and charges that offer effective bonding with the reinforcing materials. In addition, UPR cures at room temperature with the use of hardeners and has thixotropic properties that minimize sagging of products.

Furthermore, after cross-linkage, UPR turns into solid form that offers various advantages such as excellent electrical insulation, strength, rigidity, excellent surface finish, water resistance, dimensional stability in varying temperature conditions, as well as excellent mechanical strength. Unsaturated polyester resin (UPR) has a wide range of applications in composite materials, wood paints, corrugated panels, flat laminated panels, gel coat for boats, automotive, and bathroom fixtures, construction materials & decorative elements such as quartz, marble, and artificial cement. Thus, the versatile properties of UPR make it a key component of several industries such as construction, watersports, automotive, and others.

Global Unsaturated Polyester Resin Market Analysis

The global unsaturated polyester resin market size was $9,962.2 million in 2022 and is predicted to grow with a CAGR of 6.2%, by generating a revenue of $18,144.7 million by 2032.

Source: Research Dive Analysis

COVID-19 Impact on the Global Unsaturated Polyester Resin Market

The global unsaturated polyester resin (UPR) industry faced significant challenges and disruptions as a result of the COVID-19 pandemic. UPR is widely used in the construction industry for applications such as laminating resins, gel coats, and adhesives. The global construction industry was majorly impacted due to lockdowns and travel restrictions resulting in decreased demand for UPR. Unsaturated polyester resins are used in the manufacturing of various automotive components, including body panels, interiors, and structural parts. With the automotive industry witnessing a downfall during the pandemic, the demand for UPR also dropped. UPR is a key material in the production of wind turbine blades. However, due to the increasing focus on renewable energy sources, including wind power, there was a surge in demand for UPR.

The post-COVID period witness increased focus on R&D in the chemical industry, including the development of new and advanced UPR formulations. The pace of recovery in different regions and countries influenced the overall demand for UPR. Economic stimulus packages, infrastructure development initiatives, and other recovery measures impacted the construction and manufacturing sectors, thereby influencing the UPR market.

Increasing Demand from the Construction, Infrastructure, and Automotive Industries to Drive Market Growth

Unsaturated polyester resin (UPR) is extensively used in construction applications such as pipes, tanks, and panels due to its favorable properties like corrosion resistance and durability. As global construction and infrastructure development projects expand, there is projected to be an increase in demand for UPR in various construction materials. The demand for UPR is driven by the surge in infrastructure projects worldwide. Infrastructure development, including the construction of bridges, buildings, and other civil engineering structures, contributes to the increased utilization of UPR-based products. The automotive industry's emphasis on fuel efficiency and sustainability is projected to lead to a rise in demand for lightweight materials. UPR, when used in composites, helps manufacturers produce lightweight yet durable components, contributing to the overall weight reduction of vehicles.

UPR is employed in the manufacturing of composite materials used in automotive parts. Composites, reinforced with UPR, offer a balance of strength and weight savings, making them attractive for applications where reducing vehicle weight is crucial. Furthermore, the adoption of UPR in electrical and electronics industry is growing at a rapid pace. Unsaturated polyester resin exhibits excellent electrical insulation properties, making it suitable for manufacturing components such as electrical enclosures and insulators. This is crucial in the electrical and electronics industry where insulation is essential to prevent electrical conductivity and ensure the safety and efficiency of electronic devices. All these are the major factors anticipated to drive the market revenue growth during the forecast period.

High Cost of Raw Materials to Hinder Market Revenue Growth

One of the primary challenges hindering the growth of the unsaturated polyester resin market is the high cost associated with UPR’s implementation. Unsaturated polyester resins are primarily derived from petrochemical feedstocks, such as styrene, maleic anhydride, and phthalic anhydride. Any disruptions or fluctuations in the production or supply of these petrochemicals can directly impact the availability and cost of unsaturated polyester resins. Since petrochemicals are derived from crude oil, the price volatility of crude oil directly affects the cost of feedstocks for unsaturated polyester resin production.

Sudden spikes or declines in crude oil prices can lead to unpredictable fluctuations in the overall production costs of unsaturated polyester resins. Economic factors on a global scale, such as geopolitical events, economic recessions, or natural disasters, can influence both the demand for crude oil and the overall availability of petrochemical feedstocks. These external factors are projected to create uncertainties in the unsaturated polyester resin market.

Advancements in Composite Materials to Create Several Growth Opportunities in the Market

Advancements in composite materials are poised to create new opportunities in the unsaturated polyester resin industry. The aerospace industry is constantly seeking lightweight materials to enhance fuel efficiency and overall performance. UPR can be a viable option for manufacturing lightweight composite components in aircraft, contributing to fuel savings and improved efficiency. Moreover, industries involved in manufacturing sports equipment, such as racing cars, bicycles, and sports gear, are also inclined towards materials that offer high performance and reduced weight. UPR's properties make it suitable for creating advanced composite materials in these applications.

Improvements in manufacturing processes for UPR can lead to cost reductions, making it more competitive compared to other materials. This is further expected to drive its adoption in various industries, particularly where cost-effectiveness is a critical factor. Advancements in manufacturing technology can facilitate the scalable and efficient production of UPR-based composite materials. This is crucial for meeting the increasing demand across industries without compromising on quality. The development of bio-based UPR formulations derived from renewable resources can align with the growing demand for environmentally sustainable materials. This can attract industries and consumers looking for eco-friendly alternatives, thereby projected to expand the market for UPR.

Global Unsaturated Polyester Resin Market Share, by Type, 2022

Source: Research Dive Analysis

The orthophthalic resin sub-segment accounted for the highest market share in 2022. Orthophthalic resin plays a pivotal role in the dynamic unsaturated polyester resin (UPR) industry. Mainly consisting of orthophthalic acid, this resin variant boasts a styrene content ranging from 35% to 45%, making it a versatile and cost-effective option for various applications. It is particularly prevalent in low-cost scenarios where extremely high temperature resistance, corrosion resistance, or exceptional mechanical properties are not significant.

Orthophthalic resins’ popularity in the marine sector is attributed to distinctive properties such as high flexibility and commendable tensile strength. These attributes make orthophthalic resins the preferred choice for applications that prioritize a balance between performance and cost-effectiveness. Beyond the marine industry, orthophthalic resins are used in adhesives, buttons, composites, pigment pastes, encapsulation, gel coats, filler pastes, polymer concrete, putties, castings, flooring materials, and tooling. This wide range of applications highlights the versatility of orthophthalic resins, positioning them as a favored resin type across various industries.

Global Unsaturated Polyester Resin Market Share, by End-use Industry, 2022

Source: Research Dive Analysis

The building & construction sub-segment accounted for the highest market share in 2022. Unsaturated polyester resins hold a crucial position in the construction sector, presenting a versatile and resilient solution for a diverse range of applications. In the construction sector, UPR is extensively used in the creation of flat and corrugated sheets, light domes, skylights, rain gutters, sewage water treatment plant covers, washbasins, shower cabins, dormer windows, and door ornaments. This wide range of products exemplifies the versatility of glass reinforced plastic (GRP), a composite material that incorporates UPR, as a construction material. UPR's application in the construction sector is marked by its capacity to offer design flexibility, high dimensional accuracy of products, and excellent compatibility with other construction materials. All these factors are anticipated to drive the segment growth during the forecast years.

Global Unsaturated Polyester Resin Market Size & Forecast, by Region, 2022-2032 ($Million)

Source: Research Dive Analysis

The Asia-Pacific unsaturated polyester resin market generated the highest revenue in 2022. This growth is majorly driven by the growing applications of unsaturated polyester resins in diverse manufacturing sectors across the region. Products such as sheet molding materials, gel coats, electrical wires, automotive body parts, marine components, artificial stone, and cement composites are witnessing an increase in demand, driving the regional market expansion.

The production of unsaturated polyester resin involves the condensation of various raw materials, including unsaturated polyols, anhydrides, and acids. Furthermore, the processing of these resins incorporates additional materials like fillers, surfactants, stabilizers, and initiators, contributing to improved stability and robust crosslinking properties in the final product. With strong chemical and heat resistance, good fatigue limits, and high tensile strength, unsaturated polyester resins are becoming integral in various sectors across Asia-Pacific, positioning them as key components in the evolving landscape of material applications.

Competitive Scenario in the Global Unsaturated Polyester Resin Market

Product launch, partnership, and business expansion are common strategies followed by major market players. For instance, in July 2023, BASF and Zhejiang Guanghua Technology Co.,Ltd. (KHUA) signed a Letter of Intent (LoI) for the supply of Neopentyl Glycol (NPG) from BASF’s Zhanjiang Verbund site to KHUA. This agreement marks a significant milestone in the long-term partnership between both parties.

Source: Research Dive Analysis

Some of the leading unsaturated polyester resin market players are INEOS Group, BASF SE, AOC, LLC, LERG SA, Orson Resins And Coatings Private Limited, U-PICA Company.Ltd., Polynt S.p.A., Eternal Materials Co., Ltd., UPC Technology Corporation, and Qualipoly Chemical Corp.