Phenolic resins are polymers that have excellent heat and electrical resistance properties. It is majorly used as molding materials, abrasives, adhesives, laminates, friction materials, and insulators materials. Phenolic resins can be classified into resol and novolac. Resol is produced under normal conditions, with excess formaldehyde, whereas novolac is created under acidic conditions by using excess phenol.
The global phenolic resins market is estimated to be valued at US$ 21,365.5 million in 2028 and is expected to exhibit a CAGR of 5.5 % over the forecast period (2021-2028).
Figure 1. Global Phenolic Resins Market Value (US$ Mn), by Region, 2020
High demand for phenolic from the automotive industry and thus growth in the automotive industry is projected to fuel the market growth. It is widely used in the single-vehicle due to its heat resistance, lightweight, fire retardancy, and impact resistance property. Increasing production of automobiles across the developing region is a prime factor propelling market growth. Thus, the growing demand for phenolic resins from the automotive industry is augmenting the market growth.
Increasing use of phenolic resin in impregnated materials due to growing strict rules and regulations for promoting energy efficiency is escalating market growth. Also, the growing demand for low-density materials that provide thermal insulation and outstanding durability is again propelling the market growth of the phenolic resin. Increasing use of this material in green building’ spaces for the commercial and residential sectors is also projected to foster market growth.
Robust growth in the construction industry in the United States is projected to offer immense growth opportunities over the forecast period. For instance, in 2020, the US federal budget allocates $200 billion for infrastructure priorities across a range of sectors, including water infrastructure. Also, increasing renovation and construction of new residential as well as commercial infrastructure is further anticipated to foster the market growth of the phenolic resins over the forecast timeframe.
The growing demand for phenolic resins from wood adhesives is projected to create enormous growth opportunities for the market over the forecast timeframe. Due to its exceptional water resistance, water diluting ability, excellent moisture resistance, and weather resistance property, it is widely used in the creation of wood adhesive. Thus, growing demand for wood adhesive from a wide range of end-user industries is expected to fuel the market growth of the phenolic resins in the near future.
|Base Year:||2020||Market Size in 2020:||US$ 13,899.37 Mn|
|Historical Data for:||2017 to 2019||Forecast Period:||2020 to 2028|
|Forecast Period 2021 to 2028 CAGR:||5.5%||2028 Value Projection:||US$ 21,365.5 Mn|
BASF SE, Chang Chun Plastics Co. Ltd., Georgia Pacific Chemicals LLC, Kolon Industries Inc., Prefere Resins, Mitsui Chemicals Inc., Sumitomo Bakelite Co., Ltd, Hitachi Chemical Co. Ltd., SI Group, Inc., and Momentive Specialty Chemicals, Inc.
|Restraints & Challenges:||
Eco-friendly phenolic resins are gaining traction in the market. For instance, in September 2020, allnex, the supplier of specialty chemicals, offering a broad range of coating resins, additives, and crosslinkers for use on wood, metal, plastic, and other surfaces has announced the launch of PHENODUR® PR 616/65B, a new, eco-friendly phenolic resin primarily for interior and exterior coatings. This product is claimed to have a very low free formaldehyde value of < 0.1%.
Repair and remodeling activities are gaining popularity across the Asia Pacific region. This is increasing the consumption of resole resins in the construction industry. The increasing population coupled with the growing disposable income of the consumers is again expected to drive the demand for phenolic resins and this is projected to foster the market growth over the forecast period.
Figure 2. Global Phenolic Resins Market Share, By Product Type, 2020
Key Takeaways of the Graph:
The fluctuating price of raw materials used in the manufacturing of phenolic resins is expected to hinder the market growth. Phenolic resins are petroleum-based products that is obtain through a reaction between benzene and propylene. Petroleum-based products are highly susceptible to price volatility which could increase the overall price of the products.
The unfavorable conditions arising due to the COVID-19 pandemic is expected to act as major challenges for the market growth of the phenolic resins.
In April 2019, Prefere Resins Holding has acquired Ineos’ melamine resins and paraformaldehyde activities for an undisclosed sum.
Phenolic resins phenolic formaldehyde or phenol resins are synthetic polymers obtained by the synthesis of phenolic or substituted phenol by formaldehyde. Typically used as a base for Bakelite, these chemical resistance resins were the very first commercial synthetic moisturizers. Used as a skin protective agent, these chemical-resistant resins have excellent skin protection properties and do not yellow easily. Formaldehyde is a colorless, odorless, and caustic chemical that is derived from natural gas and used in most of the artificial preservatives in food.
Increasing demand from the automotive industry and rapid growth in the construction sector is driving growth of the phenolic resins market. According to the India Brand Equity Foundation, India plans to spend US$ 1.4 trillion on infrastructure projects through the National Infrastructure Pipeline (NIP), from 2019 to 2023, to ensure sustainable development in the country.
However, the volatile price of raw materials is expected to restrict growth of the market.
Key features of the study: