Encapsulation Resins Market Report 2025

The encapsulation resins market size has grown steadily in recent years. It will grow from $4.44 billion in 2024 to $4.63 billion in 2025 at a compound annual growth rate (CAGR) of 4.2%. The growth in the historic period can be attributed to the electronics industry growth, increasing use in automotive electronics, rise in renewable energy applications, and growing demand in aerospace and defense.

The encapsulation resins market size is expected to see strong growth in the next few years. It will grow to $5.69 billion in 2029 at a compound annual growth rate (CAGR) of 5.3%. The growth in the forecast period can be attributed to the expansion of electric vehicles (EVs), increasing use of 5g technology, the emergence of the Internet of Things (IoT), growth in medical electronics, focus on sustainable and eco-friendly formulations. Major trends in the forecast period include product innovations, focus on environmentally friendly resins, adoption of UV-curable resins, demand for high thermal conductivity resins, and customization for specific applications.

The growing adoption of electric vehicles is expected to drive the expansion of the encapsulation resins market in the coming years. An electric vehicle is defined as a car powered by an electric motor that draws energy from a battery and can be charged externally. In electric vehicles, encapsulation resins are used to encapsulate electric motors, providing electrical insulation, facilitating thermal dissipation, and managing NVH (Noise, Vibration, and Harshness) levels. For example, in May 2023, the World Economic Forum, a Switzerland-based non-governmental organization, reported that total EV sales reached 10.5 million in 2022, reflecting a 55% increase from 6.7 million in 2021. Furthermore, the market share of EVs grew from 8.3% in 2021 to 13% in 2022. Therefore, the increasing use of electric vehicles is propelling the growth of the encapsulation resins market.

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.

Product innovations are a significant trend gaining traction in the encapsulation resins market. Major companies in this sector are developing advanced technological solutions to maintain their competitive edge. For example, in November 2023, Induron Protective Coatings, a US-based coatings manufacturer, introduced a new novalac epoxy called Novasafe. This furfuryl-modified, thick film, ceramic-filled novolac epoxy is designed to endure the most extreme conditions found in treatment plants. Novasafe can resist exposure to sulfuric acid across all concentration ranges for prolonged periods. Additionally, it features a lower film thickness compared to polyurethane/polyurea, achieved through its unique resin and filler formulation.

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 include Hitachi Chemical Co. Ltd., Dow (The Dow Chemical Company), 3M Company, Henkel AG & Co. KGaA, BASF SE, Shin-Etsu Chemical Co. Ltd., Arkema Group, Huntsman International LLC, Givaudan SA, H.B. Fuller Company, ELANTAS GmbH, LORD Corporation, Momentive Performance Materials Inc., Dymax Corporation, Optics Balzers AG, Electrolube Ltd., Epoxy Technology Inc., NAGASE ChemteX Corporation, Panacol-Elosol GmbH, RBC Industries Inc., Robnor ResinLab Ltd., MG Chemicals Ltd., Coatema Coating Machinery GmbH, Master Bond Inc., Mereco Technologies Group Inc., ACCRAbond Corporation.

North America was the largest region in the encapsulation resins market in 2024. The regions covered in the encapsulation resins market report are Asia-Pacific, 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, Russia, South Korea, UK, USA, Italy, Spain, Canada.

Encapsulation resins are specialized materials and resin systems utilized to safeguard and insulate electronic components and printed circuit boards (PCBs). They create a protective layer that shields these components from moisture, chemicals, mechanical stress, and other environmental factors.

The primary varieties of encapsulation resins include epoxy resins, polyurethane resins, silicone resins, and other variations. Epoxy resins, known for their exceptional electrical insulation properties, high chemical resistance, and robust mechanical strength, fall under the category of thermosetting resins. These resins find applications across various sectors, including transformers, sensors, switchgear, insulators, capacitors, relays and coils, adhesives and sealants, among others. They serve multiple industries such as building and construction, automotive, transportation, electrical and electronics, marine, and more.

The encapsulation resins market research report is one of a series of new reports that provides encapsulation resins market statistics, including encapsulation resins industry global market size, regional shares, competitors with a encapsulation resins market share, detailed encapsulation resins market segments, market trends and opportunities, and any further data you may need to thrive in the encapsulation resins industry. This encapsulation resins market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

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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