Report

Japan Thermoset Plastics Market size was valued at USD 5.4 billion in FY2023, which is expected to grow to USD 8.2 billion in FY2031 with a CAGR of 5.3% during the forecast period between FY2024 and FY2031. Increasing building and construction activities and the rising production activities associated with transportation products are the prime drivers accelerating the growth of Japan's thermoset plastics market size.
The prominent factors, such as increasing demand for larger living spaces, increasing investment in renewable energy projects, and others, boost Japan's building and construction activities. In addition, the rising adoption of electric cars, increasing research & development activities, recent innovations in autonomous vehicles, and others are spurring the automotive industry's growth. The booming automotive industry is spurring the demand for Japanese thermoset plastics to protect automotive components from corrosion. In addition, the new technological advancements for innovations in Japan's latest range of thermoset plastics propel market growth. Thus, the innovations in thermoset plastics by Japanese manufacturers, the rapidly increasing construction activities, and others are fostering market growth.
The Booming Automotive Industry
The key performance features of thermoset plastics include superior mechanical strength, corrosion resistance, and others. As a result, thermoset plastics are an ideal solution for automotive applications such as window frames, bumpers, battery casings, and others. The recently developed advanced infrastructure for increased automotive production, rising demand for highly compact automotive vehicles, and others are the key trends driving the automotive industry in Japan.
For instance, according to the Japan Automobile Manufacturers Association, Inc. (JAMA), in 2021 truck production in Japan was 11,54,054 units, and in 2022, it was 11,84,553 units. In 2022, the annual growth rate of global automotive production was 2.6% in comparison to 2021. Hence, the booming automotive industry in Japan is fueling the demand for thermoset plastics such as polyurethane, epoxy, and others to ensure superior resistance against heat. This, in turn, is driving the market growth in Japan.
Increasing Building & Construction Activities at the Global Level
Thermoset plastics are a type of polymer that offers superior properties, including superior efficiency, higher versatility, and excellent flexibility and mechanical properties. Thus, thermoset plastics are utilized in building & construction applications such as insulated panels, roof insulation, windows & door gap fillers, and others. The rising government investments in infrastructure development projects, increasing demand for larger commercial space, and others are some of the prominent aspects propelling the growth of building & construction activities in Japan.
For instance, in Q2 of 2023, the construction works commenced on Logi Square Kyotanabe two buildings. The development of Logi Square Kyotanabe will be completed by Q4 of 2026. As a result, the rise in building & construction activities in Japan is spurring the demand for thermoset plastics to ensure superior resistance against moisture, which is accelerating the market growth at the global level.
Increasing Demand for Phenol-Formaldehyde Resins in Japan
Phenol formaldehyde resins have superior electrical properties, dimensional stability, and resistance against moisture, among others. Thus, due to the above-mentioned properties, the adoption of phenol-formaldehyde resins is increasing in Japan for applications including paints & coatings, adhesives, and others.
For instance, according to the Japan Plastics Industry Federation (JPIF), in 2022, the share of phenol-formaldehyde resins was 35% of Japan's overall thermoset plastics consumption. Thus, Japan's increasing demand for phenol-formaldehyde resins to maintain superior adhesion properties drives market growth.
Rising Demand for Higher Durability Materials in the Electrical and Electronics Industry
In the electrical and electronics industry, deploying thermoset plastics is vital to ensure superior thermal resistance, often resulting in superior durability of electronics products. The favorable regulatory framework, increasing investment in new electronics manufacturing plants, and others are amplifying the growth of the electrical and electronics industry in Japan.
For instance, according to the Japan Electronics and Information Technology Industries Association (JEITA), in 2022, the production of the electrical and electronics industry in Japan registered an annual growth rate of 0.2%, reaching USD 83,997.76 million (Japanese YEN 1,09,77,229 million). Henceforth, it is evident from the above data the electrical and electronics industry is registering growth in Japan. As a result, the demand for higher-durable materials, including thermoset plastics, is increasing the functioning of electronics, thereby proliferating the market growth.
Impact of COVID-19
The COVID-19 restrictions in 2020 significantly declined the import-export of Japan thermoset plastics. For instance, according to the International Trade Centre (ITA), the imports of polyurethanes in primary form in Japan were USD 60,549 thousand, and in 2020, it was USD 54,299 thousand, a decline of 10.3%. Similarly, in 2019, the exports of polyurethanes in primary form in Japan were USD 232,115 thousand; in 2022, it was USD 229,921 thousand, a decline of approximately 1%. Thus, the decrease in the import and export of thermoset plastics in Japan resulted in a diminishing market revenue growth in 2020.
However, the ease of COVID-19-related regulation at the end of 2020 enhanced market conditions. Furthermore, in the long run, it is expected that the impact of the COVID-19 pandemic will be negligible, which will lead to the Japan thermoset plastics industry's outlook registering growth prospects during the projected forecast period.
Impact of Russia-Ukraine War
The supply chain constraint due to the Russia-Ukrane war impacted the production activities associated with automotive in Japan during the 1st quarter of 2022.
For instance, according to the Organisation Internationale des Constructeurs d'Automobiles (OICA), in 2021, passenger cars manufactured in Japan were 6,619,245 units, and in 2022, it was 6,566,356 units. In 2022, passenger cars manufactured in Japan registered a decline of 1% over 2021. Henceforth, the prolonged war between Russia and Ukraine is anticipated to impact the supply chain, materials pricing (thermosetting polymer), and others. This, in turn, may impact the growth rate of the Japan thermoset plastics market in the forecasted period.
Key Players Landscape and Outlook
The leading market players in Japan thermoset plastics include Mitsui Chemicals, Inc., KISCO LTD, NIPPON STEEL Chemical & Material Co., Ltd., INOAC CORPORATION, and others. The key players involved in the manufacturing of thermoset plastics in Japan are investing in strategies such as new product innovation, acquisitions, and others to increase their market share in the Japan thermoset plastics industry.
For instance, in July 2020, Daicel Corporation, a Japan-based manufacturer of the plastics market, acquired the engineering plastics business segment of Celanese Corporation for USD 1.58 billion. Daicel Corporation operates in the Japanese market through a subsidiary named Celanese Japan Limited. The acquisition targets Daicel Group to diversify into other advanced engineering plastics and develop new products. Therefore, the recent additions are boosting the market competition in the Japanese thermoset plastics industry.