Epoxy Diluents Market worth $1.86 billion by 2031 - Exclusive Report by MarketsandMarkets™

DELRAY BEACH, Fla., Nov. 6, 2026 /PRNewswire/ -- According to MarketsandMarkets™, the Epoxy Diluents Market is projected to reach USD 1.86 billion by 2031 from USD 1.42 billion in 2026, at a CAGR of 5.5%.

Browse 248 market data Tables and 54 Figures spread through 236 Pages and in-depth TOC on 'Epoxy Diluents Market - Global Forecast to 2031'

Epoxy Diluents Market Size & Forecast:

• Market Size Available for Years: 2021-2031
• 2026 Market Size: USD 1.42 billion
• 2031 Projected Market Size: USD 1.86 billion
• CAGR (2026-2031): 5.5%

Epoxy Diluents Market Trends & Insights:

• Demand for epoxy diluents is being fueled by the increasing use of epoxy products such as coatings, adhesives, composites, and electrical insulation materials in various sectors of construction, automotive, energy, and manufacturing. Also, the growth of infrastructure development programs and investments in wind energy triggers the demand for products that are durable, corrosion-resistant, and capable of providing excellent mechanical properties.
• Asia Pacific accounted for a share of 48.5% of the epoxy diluents market in 2025.
• Diglycidyl ether held the largest share of 31.1% of the epoxy diluents market, by product type, in 2025.
• Composites is the fastest-growing application with a CAGR of 6.7% during a forecast period.
• Building & construction dominate the epoxy diluents market by end-use industry.
• Westlake Corporation, Huntsman, Evonik Industries AG, were identified as some of the star players in the epoxy diluents market (global), given their strong market share and product footprint.
• LEUNA-Harze GmbH, Miwon Specialty Chemical Co., Ltd., and Royce Global have distinguished themselves among startups and SMEs by securing strong footholds in specialized niche areas.

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The growth of the epoxy diluents market is due to the growing popularity of protective coatings, adhesives, sealants, and composites in sectors ranging from construction to automobile manufacturing and the aviation industry. Rising infrastructure investments are contributing to the use of epoxy-based products for flooring and waterproofing applications. The growing need for lightweight composites in wind energy, transportation, and aerospace industries complements the growth of this market. Moreover, the need to reduce formulation viscosity has contributed to the wider use of reactive diluents. Moreover, technological advancements in bio-based diluents and low-emission formulations continue to give manufacturers the chance to meet the demands of sustainability requirements and changing industrial performance.

Diglycidyl ethers will hold the largest share of the epoxy diluents market, by product type, throughout the forecast period.

Diglycidyl ethers hold the largest share in the market for epoxy diluents due to their compatibility with epoxy resin systems. They are effective in lowering viscosity while preserving important functional properties. They could enhance flow, workability, and application efficiency, which makes them useful for protective coatings, sealants, adhesives, and composite materials. They take part in the curing process and help maintain the mechanical strength of the cured formulation, as well as ensuring high adhesion and resistance to chemicals in the cured products. Their widespread use in many industries like construction, automotive, and electrical & electronics manufacturing, together with wide availability on the market, facilitates their usage among formulators of epoxy products.

Protective coatings are likely to dominate the epoxy diluents market, by application, throughout the forecast period.

Protective coatings dominate the epoxy diluents market by application due to demand for corrosion-resistant, chemical-resistant, and durable surface coatings. Increased investments in the oil and gas industry and construction of oil and gas pipelines, marine structures, electric power units, and manufacturing facilities drive demand for epoxy-based coatings. Epoxy diluents decrease the viscosity of formulations and enhance application properties for perfect coverage. With compatibility with epoxy composition, epoxy diluents ensure and preserve bond strength, durability and resistance to extreme operating conditions.

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Electrical & electronics is expected to be the fastest-growing end-use industry in the epoxy diluents market between 2026 and 2031.

Electrical & electronics is the fastest-growing end-use industry in the epoxy diluents industry due to the rising need for materials that provide necessary insulation, encapsulation, and safeguarding to electronic equipment. Besides, rising investments in renewable energy sources, electric vehicles, electrical infrastructure, and consumer electronics make it an ideal market for epoxy-based products. The application of epoxy diluents has improved the manufacturing and processing techniques, resulting in the filling and coating of complex components while ensuring superior insulation, bonding, and resistance. There is a rising demand for specialized epoxy formulations because of the growth in industries engaged in the manufacture of semiconductors, printed circuit boards, transformers, and battery manufacturing.

Asia Pacific is expected to be the fastest-growing market for epoxy diluents during the forecast period.

Asia Pacific is the fastest-growing region in the epoxy diluents market due to rapid industrialization, increasing construction activities, and rising investments in manufacturing facilities. Countries like China, India, Japan, and South Korea are contributing significantly to this growth. These countries have developed chemical industries, plus there is demand for protective coatings, adhesives, and composite materials. Fast-growing infrastructure development such as roads, bridges, commercial buildings, and factories is promoting the use of epoxy products. Furthermore, the growth of other industries like automotive, electrical and electronics, and renewable energy is facilitating the demand for epoxy formulations. Lastly, the surge in electric vehicles, electronics production, and wind power production is leading to growth in the demand for specialized epoxy diluents. Significant development in chemical production will improve the regional supply capabilities of epoxy diluents.

Key Players

The key manufacturers epoxy diluents comprises such as Westlake Corporation (US), Huntsman (US), Evonik Industries AG (Germany), Olin Corporation (US), Aditya Birla Chemicals (India), Mitsubishi Chemical Corporation (Japan), KUKDO CHEMICAL CO., LTD. (South Korea), ITOCHU CHEMICAL FRONTIER Corporation (Japan), SACHEM Inc (US), PCC Group (Germany), EMS-CHEMIE HOLDING AG (Switzerland), KUMHO PETROCHEMICAL (South Korea), Atul Ltd (India), and Cardolite Corporation (US), among others.

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Investment and Funding

Investments in the production of epoxy and the enhancement of facilities are helping to provide enough epoxy diluents and related substances. In February 2024, DCM Shriram revealed a plan to invest about USD 120 million to create a greenfield plant for epoxy manufacturing in India, with the focus on manufacturing epoxy resins and additional substances, which are represented by reactive diluents, hardeners, and formulated resins. Atul Ltd. has sanctioned investments worth around USD 24 million to boost the production capacity of liquid epoxy resins by 50,000 tons in October 2024. After this investment, the total capacity would rise from 30,000 tons to 80,000 tons. The funds will enhance domestic production capabilities and availability of epoxy materials and bolster the supply chains used in the production of coatings, adhesives, composites, electrical applications, and wind energy.

Revenue Shift

Revenue in the epoxy diluents market is progressively changing towards high-performance products with low viscosity and specific applications to enable the creation of solvent-free formulations and the improved performance of the final products. The demand from the industrial coating, adhesive and sealant, electrical insulation, and wind energy sectors stimulates manufacturers to create special reactive diluents with enhanced performance and processing properties. Moreover, revenue opportunities are widening due to the use of multifunctional bio-based alternatives as customers are putting more emphasis on performance and sustainability. Asia Pacific is still an important revenue-generating zone due to its developed industrial base and increasing demand from market players.

Mergers and Acquisitions

Mergers/acquisitions in the epoxy diluents market for 2025 include Aditya Birla Chemicals (USA) Inc.'s acquisition of Cargill's 17-acre facility in Dalton, Georgia. These strategic moves strengthen geographic reach, supply chain, customer reach, and support growth across sustainable construction applications.

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