Delray Beach – November 06, 2026 -- The global epoxy diluents market will grow from USD 1.42 billion in 2026 to USD 1.86 billion by 2031, a CAGR of 5.5%, according to MarketsandMarkets. Asia Pacific already accounted for 48.5% of the market in 2025.
Diglycidyl ethers hold 31.1% share as the largest product type
Diglycidyl ethers led by product type in 2025 and are forecast to keep the largest share through 2031. Formulators favor them because they lower viscosity, are compatible with epoxy resin systems, and take part in curing, which helps preserve the mechanical strength, adhesion, and chemical resistance of the cured product.
Protective coatings dominate applications while composites grow at 6.7% CAGR
Protective coatings are the largest application, driven by demand for corrosion-resistant, chemical-resistant, and durable surfaces. Investment in oil and gas pipelines, marine structures, electric power units, and manufacturing facilities supports that demand. Composites are the fastest-growing application at a 6.7% CAGR over the forecast period, helped by the need for lightweight materials in wind energy, transportation, and aerospace.
Building and construction remain the dominant end-use industry. Electrical and electronics is expected to grow fastest between 2026 and 2031, supported by demand for insulation and encapsulation in semiconductors, printed circuit boards, transformers, and battery manufacturing.
Asia Pacific expands fastest on industrialization in China, India, Japan, and South Korea
Asia Pacific is also the fastest-growing region, driven by industrialization, construction activity, and manufacturing investment. Roads, bridges, commercial buildings, and factories are lifting epoxy use. Electric vehicle, electronics, and wind power production are adding demand for specialized diluents.
Westlake, Huntsman, and Evonik lead a field that includes Olin and Mitsubishi Chemical
MarketsandMarkets names Westlake Corporation, Huntsman, and Evonik Industries AG as star players based on market share and product footprint. Other manufacturers listed include Olin Corporation, Aditya Birla Chemicals, Mitsubishi Chemical Corporation, KUKDO Chemical, Kumho Petrochemical, Atul Ltd, and Cardolite Corporation. LEUNA-Harze GmbH, Miwon Specialty Chemical Co., Ltd., and Royce Global hold niche positions among startups and SMEs.
Atul and DCM Shriram add epoxy capacity in India
In February 2024, DCM Shriram announced a plan to invest about USD 120 million in a greenfield epoxy plant in India. The plant will make epoxy resins, reactive diluents, hardeners, and formulated resins. In October 2024, Atul Ltd. sanctioned about USD 24 million to add 50,000 tons of liquid epoxy resin capacity, lifting its total from 30,000 to 80,000 tons.
Revenue shifts toward low-viscosity, solvent-free and bio-based formulations
Revenue is moving toward high-performance, low-viscosity products that enable solvent-free formulations. Demand from industrial coatings, adhesives and sealants, electrical insulation, and wind energy is pushing manufacturers to develop specialized reactive diluents. Multifunctional bio-based alternatives and low-emission formulations give producers room to address sustainability requirements.
In 2025, Aditya Birla Chemicals (USA) Inc. acquired Cargill's 17-acre facility in Dalton, Georgia, extending its geographic reach and supply chain.