Coherent Market Insights

Phenolic Resins Market is estimated to be valued at USD 13.31 Bn in 2024

Phenolic Resins Market is estimated to be valued at USD 13.31 Bn in 2024 - Coherent Market Insights

Publish In: Mar 14, 2024

The Phenolic Resins Market is estimated to be valued at USD 13.31 Bn in 2024 and with CAGR of 4.4% over the forecast period 2024-2031. The growing demand for automotive and construction materials along with the increasing adoption of lightweight materials across various end-use industries are driving the growth of the global phenolic resins market. Furthermore, phenolic resins offer properties such as heat resistance, fire resistance and insulation which makes it suitable for application in electrical equipment, laminates, and molding compounds.

Market Dynamics:

The phenolic resins market is primarily driven by growing demand from the automotive and construction industries. Phenolic resins are increasingly being used in automotive interior parts such as dashboards, door panels and decklids owing to their heat resistance, mechanical stability and electrical insulation properties. Additionally, increasing repair and remodelling activities are fueling the demand for phenolic resins in applications such as plywood, laminates and molding compounds in the construction industry. Moreover, the rising adoption of lightweight materials across various end-use industries in order to improve fuel efficiency is also boosting the phenolic resins market. Phenolic resins offer properties such as high strength-to-weight ratio which makes them suitable for manufacturing lightweight automotive and electrical components.

Market Drivers

Growth of construction industry driving demand for phenolic resins

The construction industry has seen significant growth over the past few years globally. Phenolic resins find wide application in various construction materials like laminates, adhesives, insulation, roofing products etc. due to their heat resistance and ability to bind various materials together effectively. As infrastructure development and new construction activities increase around the world, the demand for construction materials incorporating phenolic resins is rising as well. Several countries in Asia Pacific and Middle East are focusing on aggressive infrastructure growth which is fueling the phenolic resins market.

Increasing use of phenolic resins in automotive components

Phenolic resins have excellent heat resistance properties making them suitable for use in engine parts, brake pads and other components in automotive. With automotive production on the rise in developing nations, the market for phenolic resins is gaining traction. They are gaining preference over conventional materials in automotive due to their light weight and ability to withstand high temperatures without degradation. The growing environmental regulations regarding fuel efficiency are also encouraging increased use of lighter weight materials like phenolic resins in vehicles.

Market Restraints

Volatility in raw material prices

Phenol and formaldehyde are the key raw materials used in production of phenolic resins. Fluctuating prices of crude oil from which these raw materials are derived can negatively impact the profit margins of phenolic resin manufacturers. Uncertainty over raw material supply and prices poses a major challenge. Any increase in phenol or formaldehyde costs puts pressures on the overall costs of phenolic resins.

Growing preference for bio-based substitutes

With rising environmental awareness, many end-user industries are shifting towards bio-based and sustainable alternatives to petroleum-derived resins. Natural fiber composites, vegetable oil-based resins and other bio-materials are emerging as alternatives to phenolic resins in certain applications like automotive, construction etc. This is a major restraint for the phenolic resins market in the long run.

Market Opportunities

Growth in wind energy sector

Phenolic resins have significant use in wind turbine blades due to their excellent strength, heat and corrosion resistance properties. With global focus growing on renewable sources of energy, investments in wind farms are increasing rapidly providing major opportunities. Phenolic resins can help enable lighter, stronger and more durable wind turbine components. Governments across countries are supporting expansion of wind energy infrastructural which will positively impact demand.

Rising demand from marine industry

Phenolic resins are used widely in ships, boats and offshore oil rigs due to their water and fire resistance. They are ideal for manufacturing decking, insulation panels and other marine components. With international trade and fishing industry on the rise, demand from marine sector is emerging as new opportunity area. Countries with longer coastlines are investing heavily in port infrastructure and coastal security which will further augment the phenolic resins market.

Link -

Key Development

  • That strategic acquisition by DIC Corporation of Guangdong TOD New Material Co., Ltd. in July 2022 is a significant move to bolster its phenolic resins capacity in the region. This acquisition is poised to enable DIC Corporation to operate at nearly full production capacity in Asia, positioning them to meet the increasing demand for phenolic resins effectively. By expanding its capabilities through this acquisition, DIC Corporation is not only enhancing its production capacity but also strengthening its market position in the industry. This strategic decision aligns with their goal of meeting market demands and solidifying their presence in the competitive landscape of coating resins.
  • The acquisition of SI Group's industrial resins business by ASK Chemicals Group in November 2022 marks a significant milestone for the company. This strategic purchase encompasses resin manufacturing facilities in key regions like Brazil, India, and South Africa, along with licensed technology and tolling agreements. By integrating these assets into its portfolio, ASK Chemicals is not only enhancing its presence in the foundry market but also making a notable entry into the phenolic industrial resin sector. This move underscores ASK Chemicals' commitment to expanding its capabilities, diversifying its product offerings, and solidifying its position as a key player in the industry.
  • The acquisition of Phenolic Specialty Resin, Hexamine, and the European-based Forest Products Resins businesses from Hexion, Inc. by Black Diamond and Investindustrial in September 2020 marks a strategic move in the industry. Black Diamond, known for manufacturing equipment for climbing, skiing, and mountain sports, along with Investindustrial, a global private equity firm specializing in mid-market company buyouts, have expanded their portfolio by acquiring these businesses.
  • The development of a solid novolac phenolic resin by Sumitomo Bakelite in September 2020 using nonedible lignin as raw material represents a significant advancement in resin technology. This innovative resin not only showcases the company's commitment to sustainability by utilizing nonedible lignin but also opens up new possibilities for commercial production. With its wide utility in auto applications, especially in electric vehicles, this novel resin is poised to play a crucial role in enhancing the performance and sustainability of automotive components.

Key Players

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., Momentive Specialty Chemicals, Inc., Romit Resins Pvt. Ltd., RIECO Industries, Saraf Resin and Chemicals Pvt. Ltd., Kaydee Corporation, ABR Organic Limited, Revex Group, Uniform Synthetics, Polyols And Polymers

Need a Custom Report?

We can customize every report - free of charge - including purchasing stand-alone sections or country-level reports

Want to Buy a Report but have a Limited Budget?

We help clients to procure the report or sections of the report at their budgeted price. Kindly click on the below to avail


Reliability and Reputation

DUNS Registered
DMCA Protected


Reliability and Reputation


Reliability and Reputation


Created billion dollars of revenue impact on thousands of clients

trusted clients logo
© 2024 Coherent Market Insights Pvt Ltd. All Rights Reserved.