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 using excess phenol.
Global phenolic resins market was valued at US$ 14605.0 Million in 2021 in terms of revenue, exhibiting a CAGR of 4.84 % during the forecast period (2022 to 2030).
High demand for phenolic resins from the automotive industry, and thus growth in the automotive industry is projected to fuel the market growth. It is widely used in vehicles due to its heat resistance, lightweight, fire retardancy, and impact resistance. The increasing production of automobiles across developing regions is a prime factor propelling the market growth.
Increasing use of phenolic resin in impregnated materials due to growing strict rules and regulations for promoting energy efficiency is escalating the market growth. Also, growing demand for low-density materials that provide thermal insulation and outstanding durability is propelling the phenolic resins market growth. Increasing use of this material in green building spaces for the commercial and residential sectors is also projected to foster the market growth.
Outbreak of the COVID-19 pandemic had challenged the growth of the phenolic resins market as several manufacturing plants along with end users had stopped operating in order to decrease the virus transmission. However, with the ease of lockdowns and trade restrictions, the demand for phenolic resins is expected to grow at a significant pace, which in turn will drive the market growth.
Figure 1. Global Phenolic Resins Market Value Share (%), By Region, 2021
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 obtained 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.
|Base Year:||2021||Market Size in 2021:||US$ 14605.0 Mn|
|Historical Data for:||2017-2020||Estimated Year:||2022|
|Forecast Period 2022 to 2030 CAGR:||4.84 %||Forecast Period:||2022-2030|
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, announced the launch of PHENODUR R 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. Increasing population coupled with the growing disposable income of consumers is 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 Value Share (%), By End User, 2021
On the basis of End User segment, the resole segment held a slightly more dominant position than novolac in 2021, accounting for 24.62%.
Major players operating in the market include 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.
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 resistant 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.
Phenolic resins have been widely adopted since the early twentieth century and are considered the first class of synthetic polymers to attain commercial success. According to Coherent Market Insights, robust growth in the construction industry in the U.S. is projected to offer immense growth opportunities over the forecast period. For instance, in 2020, the U.S. federal budget allocated US$ 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 phenolic resins market growth over the forecast timeframe.
Growing demand for phenolic resins for application in wood adhesive 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-use industries is expected to fuel the market growth in the near future.
According to Coherent Market Insights in 2020, nano-modification of phenolic resins through nanotechnology is expected to bring favorable market opportunities over the forecast period. This helps in offering more thermal stability and makes it suitable for high-temperature applications. Also, increasing use of this materials in fire-resistant platforms, deluge pipes, and other instruments for offshore drilling activities is propelling the market growth. Thus, the nano-modification of phenolic resins will favor the market growth in the near future.
Key features of the study:
“*” marked represents similar segmentation in other categories in the respective section.