Epoxy Resin Market in Pressure Vessels for Alternative Fuels: Size, Share, Trend, Forecast, & Competitive Analysis: 2021-2026

Global Epoxy Resin Market in Pressure Vessels for Alternative Fuels is Projected to Grow at a Double-Digit CAGR of 12.2% over the Next Five Years to Reach US$ 38.3 Million in 2022

Market Insights

Epoxy resin is widely used for manufacturing composite pressure vessels for alternative fuels, due to its various benefits. Epoxy Resin provides extremely high strength to the hollow cylindrical pressure vessels. Due to its flexibility, the epoxy resin also provides pressure vessels the capability to absorb the strain produced due to the pressurization of vessel walls in all directions. It holds the structural fiber in its position and is compatible with other common reinforcing fibers including glass fiber and aramid fiber as well. It also contributes to the durability and chemical resistance of the pressure vessels. It exhibits excellent properties at a reasonably low cost.

Composite pressure vessels are fabricated through the filament winding process (both dry and wet) which offers a high degree of fiber orientation with high fiber loading. The process provides a high strength-to-weight ratio and excellent uniformity. Carbon fiber combined with epoxy resin matrix offers high strength and weight advantages and is one of the preferred materials of choice for developing pressure vessels.

Impact of COVID-19 on Epoxy Resin Market in Pressure Vessels for Alternative Fuels

The global epoxy resin market in pressure vessels for alternative fuels grew continuously from 2015 to 2019 and was estimated to maintain its upward growth trajectory in 2020 as well. However, the rapid spread of the pandemic has drastically changed the entire market dynamics. The pandemic worsened the existing challenges of the automotive industry, weakened the industry sales to its lowest figure of the decade, which, in turn, affected the demand for epoxy resins in pressure vessels for alternative fuels.

Analogous to the projected recoveries in the industrial estimates for the automotive industry, the study of market recoveries in previous downturns (The Great Recession) and primary interviews across the supply chain, Stratview Research’s estimates suggest that the market for epoxy resin in pressure vessels for alternative fuels is likely to commence rebounding from 2021 onwards, followed by maintaining sequential growth till 2026, ultimately reaching to the value of US$ 31.8 million by 2026.

Continuous rise in the demand for lightweight components in the automotive industry to achieve the fuel efficiency targets and growing focus of automakers towards alternative fuel options to reduce the carbon footprints are the factors suggesting healthy long-term growth opportunities in the epoxy resin market in pressure vessels for alternative fuels once the aftermath of the pandemic ends.

Segment Analysis

Epoxy Resin Market by Vessel Type

Based on the vessel type, type IV tank is likely to witness the fastest recovery in the market over the next five years, after the least hit in 2020 by the pandemic and so is the demand for epoxy resins in this vessel type. Type

IV tank incorporates a greater amount of carbon epoxy composites and offers maximum weight saving as compared to other pressure vessel types. There is increasing penetration of type IV tanks, particularly in mass transit buses and medium & heavy-duty vehicles. For medium & heavy-duty commercial vehicles, higher fuel density and lower mass of these vessels permit greater range and fuel efficiency, increased the operational interval between refueling stops, and reduced maintenance cost.

Epoxy Resin Market by Application Type

Based on application type, CNG vehicle alone accounted for more than 80% of the epoxy resin market in the pressure vessels for alternative fuels in 2019 and is expected to remain the largest application type over the next five years as well. Hydrogen vehicle currently generates a low demand for pressure vessels including epoxy resins, but it is plausible that there would be a spike in the production of hydrogen vehicles in the coming years as more than ten automakers have already released FCV demonstrators and test fleets. In short, CNG vehicle is projected to be the most affected segment by the pandemic coupled with an expected rise in the production of hydrogen vehicles.

Epoxy Resin Market by Vehicle Type

Based on the vehicle type, the epoxy resin market in pressure vessels for alternative fuels is segmented as light vehicles, M&HCV, and others. A light vehicle is likely to remain the most dominant user of the market in the coming years. All the vehicle type segments are expected to log a massive decline at the rate (20%+ YoY in 2020) in the wake of the pandemic.

After a severe hit by the pandemic, the light vehicle segment is expected to rebound at the fastest pace in the coming years. Natural gas vehicles are considered to be less pollutant than gasoline or diesel-based vehicles so there has been an increasing trend towards the usage of light vehicles powered with alternative fuels, such as CNG to curb carbon emissions.

Regional Insights

Despite being one of the worst-affected regions in 2020, Europe is projected to maintain its supremacy in the market over the next five years, driven by increased demand for alternative fuel vehicles incorporating composite pressure vessels. Major European automakers are launching new auto models with powertrains dependent on CNG to leverage the abundant shale gas resources. A majority of them are utilizing lightweight tanks to reduce vehicle's weight to achieve European carbon emission standards.