Encapsulation Resins Market Report 2026

The encapsulation resins market size has grown steadily in recent years. It will grow from $4.57 billion in 2025 to $4.79 billion in 2026 at a compound annual growth rate (CAGR) of 4.8%. The growth in the historic period can be attributed to expansion of electronics manufacturing, growth of automotive electrical systems, increasing use of PCBs in industrial equipment, rising demand for component protection, advancements in resin chemistry.

The encapsulation resins market size is expected to see strong growth in the next few years. It will grow to $5.86 billion in 2030 at a compound annual growth rate (CAGR) of 5.2%. The growth in the forecast period can be attributed to rising adoption of electric vehicles, increasing miniaturization of electronic components, expansion of renewable energy infrastructure, growing demand for long-life electronic insulation, increasing focus on high-reliability materials. Major trends in the forecast period include increasing use of high-performance epoxy encapsulation, rising demand for moisture-resistant resin systems, growing adoption in electric and electronic components, expansion of thermal management encapsulation solutions, enhanced durability of protective coatings.

The escalating demand for electronic devices is expected to be a driving force behind the growth of the encapsulation resins market. Electronic devices, encompassing a diverse range of products utilizing electronic components, benefit from encapsulation resins that shield these components from environmental factors, such as moisture, dust, and contaminants. This protective measure prevents corrosion and degradation, contributing to the longevity and reliability of electronic devices. As of May 2023, the Japan Electronics and Information Technology Industries Association reported a total electronic device production value of $6.72 billion (¥771,457 million), with consumer electronics device production increasing from $230.9 million (¥25,268 million) in May 2022 to $280 million (¥32,099 million) in May 2023. This growth underscores the rising demand for electronic devices, driving the encapsulation resins market forward.

Major companies in the encapsulation resins market are pursuing strategic partnerships to enhance their market reach and improve product offerings. Strategic partnerships involve companies leveraging each other's strengths and resources for mutual benefit and success. For example, in May 2023, Nanoco Technologies Limited, a UK-based company specializing in quantum dot technology for displays, lighting, and healthcare, formed a partnership with Guangdong Poly Optoelectronics Co. Ltd. (POE), a Chinese firm focused on high-performance optoelectronic products. This collaboration aims to supply CFQD® quantum dots to the Chinese market, emphasizing environmentally friendly alternatives to cadmium-based products. By leveraging POE’s proprietary resin and encapsulation technology, the partnership enhances offerings for major Chinese display manufacturers while ensuring compliance with environmental regulations like RoHS. This agreement marks a significant advancement for both companies in the optoelectronic sector, enabling them to innovate and provide a broader range of safe, eco-friendly solutions.

In October 2024, the Abu Dhabi National Oil Company (ADNOC), a UAE-based oil firm, acquired Coverto AG for $13.02 billion. This acquisition allows ADNOC to advance its smart growth and future-proofing strategy while working towards its vision of becoming one of the top five global chemicals companies. Coverto AG is a Germany-based manufacturer of polyurethanes, polycarbonates, and specialty chemicals utilized in construction, automotive, and electronics sectors.

Major companies operating in the encapsulation resins market are Henkel AG & Co. KGaA, 3M Company, H.B. Fuller Company, Sika AG, Dow Inc., Huntsman Corporation, Arkema S.A., Momentive Performance Materials Inc., Wacker Chemie AG, Shin-Etsu Chemical Co., Ltd., Solvay S.A., Evonik Industries AG, LORD Corporation, Permabond LLC, Master Bond Inc., Dymax Corporation, Panacol-Elosol GmbH, Wevo-Chemie GmbH, ELANTAS GmbH, Electrolube.

North America was the largest region in the encapsulation resins market in 2025. The regions covered in the encapsulation resins market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the encapsulation resins market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The encapsulation resins market consists of sales of urethane, acrylic, and polyester resins. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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