Global thermoset molding compound market was valued at approximately USD 11.7 billion in 2023 and is expected to grow at a compound annual growth rate (CAGR) of 6.3% from 2024 to 2032, reaching a projected market size of USD 21.5 billion by 2032. Thermoset molding compounds are specialized materials composed of resins such as epoxy, phenolic, or melamine, which, when subjected to heat, undergo a chemical transformation, solidifying into an irreversible, hardened structure. These compounds are often reinforced with fillers and fibers, which enhance their mechanical properties, making them highly suitable for applications requiring high thermal stability, electrical insulation, chemical resistance, and dimensional stability. The key applications of thermoset molding compounds span across various industries, including automotive (for brake components and engine covers), electrical and electronics (such as circuit boards, connectors, and housings), and consumer goods (like handles and appliance parts).

The growing demand for thermoset molding compounds is largely driven by their expanding applications in the electrical and electronics sectors, where the need for lightweight, high-performance materials is increasingly critical. These compounds provide exceptional thermal stability, mechanical strength, and electrical insulation, making them ideal for components such as connectors, insulators, and circuit breakers. Their superior heat resistance is particularly beneficial in electrical applications where components are exposed to elevated temperatures during operation or processing. Phenolic and epoxy resins, known for their high thermal stability and flame retardancy, are particularly favored in applications such as motor and transformer components, where safety and reliability under thermal stress are paramount. Additionally, the ability of thermoset molding compounds to be molded into complex shapes and sizes through various processes further supports their widespread adoption in diverse electrical and electronic applications.

However, the market growth is hindered by the significant capital investment required to establish manufacturing facilities for thermoset molding compounds. The production process necessitates specialized equipment and infrastructure capable of managing the complex and energy-intensive curing processes. Manufacturers must invest in precise temperature and pressure control systems, as well as molds and tooling that can withstand the high temperatures and pressures involved in the molding process. These factors pose substantial barriers to market entry and expansion, particularly for smaller players.

On the other hand, the increasing focus on environmental sustainability is creating new opportunities for the thermoset molding compound market. As industries and consumers alike prioritize reducing dependency on fossil fuels and minimizing carbon footprints, there is a growing demand for bio-based thermoset resins derived from renewable sources such as plant-based oils or biomass. These bio-based materials offer performance characteristics comparable to traditional thermosets while providing the added benefit of a lower environmental impact throughout their lifecycle. This trend is expected to drive significant growth in the thermoset molding compound market during the forecast period.

The key regions considered in the global thermoset molding compound market study include North America, Europe, Asia Pacific, and the Rest of the World. North America is expected to dominate the market, driven by the increasing demand for composite materials and rising investments in the infrastructure and construction sectors. The United States, in particular, holds the largest market share within the region. Meanwhile, the Asia Pacific region is anticipated to experience the fastest growth, with China and India playing pivotal roles. The ongoing efforts by the governments of China and India to build smart cities and modern infrastructure are expected to significantly contribute to the expansion of the thermoset molding compound market in the region. Notably, China holds the largest market share in the Asia Pacific, while India is the fastest-growing market.

Major market players included in this report are:
BASF SE
SBHPP
HEXION INC.
Plastics Engineering Company (Plenco)
KYOCERA Corporation
Eastman Chemical Company
Huntsman International LLC.
Kolon Industries, Inc.
Rebling
Evonik Industries AG
The detailed segments and sub-segments of the market are explained below:
By Type:
Phenolic Resin
Epoxy Resin
Polyester Resin
Urea Formaldehyde
Melamine Formaldehyde
Others
By End-Use:
Automotive
Aerospace
Electrical and Electronics
Others
By Region:
North America
U.S.
Canada
Europe
UK
Germany
France
Spain
Italy
ROE
Asia Pacific
China
India
Japan
Australia
South Korea
RoAPAC
Latin America
Brazil
Mexico
RoLA
Middle East & Africa
Saudi Arabia
South Africa
RoMEA
Years considered for the study are as follows:
Historical year - 2022
Base year - 2023
Forecast period - 2024 to 2032
Key Takeaways:
Market Estimates & Forecast for 10 years from 2022 to 2032.
Annualized revenues and regional level analysis for each market segment.
Detailed analysis of geographical landscape with Country level analysis of major regions.
Competitive landscape with information on major players in the market.
Analysis of key business strategies and recommendations on future market approach.
Analysis of competitive structure of the market.
Demand side and supply side analysis of the market.