Phenolic resins belong to a class of polymers and are produced by repetitive linkages between monomers and aldehyde chemicals under the pressure of heat. They have excellent chemical and physical properties such as electrical resistance, heat resistance, high tensile strength, lightweight, moldability, and lower smoke. They are widely used across wood, electronics, laminates, aviation, foundry materials, mass transit, and power generation industries.
The global phenolic resins market is expected to surpass US$ 21,365.5 Mn in terms of value by the end of 2028.
The growing demand for a tire is accelerating the market growth of the phenolic resins. They are widely used in the production of tire for different applications such as curing, tackifying, reinforcing, bonding, and adhesives. According to the Coherent Market Insights analysis, the consumption of phenolic resin ranges between 2 to 12 units per 100 units of natural rubber, depending upon the end-use of the tires. Thus robust growth in the tire industry is projected to foster the market growth of the phenolic resins.
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 again propelling the market growth. Thus, the nano-modification of phenolic resins will favor market growth in the near future.
Global Phenolic Resins Market: Recent Developments
Strict environmental regulations as formaldehyde which is a key component of phenolic resins is a VOC and this VOC has been known to have carcinogenic in nature by National Toxicology Program in the US in 2011. Thus, growing strict environmental rules and regulations is projected to hinder the market growth of the phenolic resins over the forecast period.
Global Phenolic Resins Market - Impact of Coronavirus (Covid-19) Pandemic
The Covid-19 outbreak has had an adverse impact on various industries around the globe. Due to the strict rules and regulations undertaken by government to curb the spread of the infection, companies are looking to function remotely.orbp. Moreover, various companies are looking to implement strict measures to operate at minimum risks. Additionally, various companies had shutdowns their manufacturing units which had an adverse impact on phenolic resins market.
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Figure 1. Global Phenolic Resins Market Share, By Application, 2020
Increasing R&D expenditure in order to meet the evolving demand for the product. The expansion of the chemical industry due to the production of chemicals is further projected to foster market growth. Manufacturers are focusing on developing the innovative and low-cost products with enhanced properties in order to cater to growing demand. Thus, technological advancement and growing R&D expenditure by manufacturers is projected to escalate the market growth of the phenolic resins over the forecast period.
Increasing production capacity of the phenolic resins is a growing trend in the market. For instance, in November 2019, US-based Hexion has announced its plan to add phenolic resin capacity at its facility in Brimbank, Australia, to expand its adhesives and binders business. The expansion of the phenolic capacity is expected to meet the increasing demand for phenolic resins for several applications, including fire-resistant cladding material for commercial, residential, and institutional properties.
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