The Global Phenolic Resin Market is expected to grow at a CAGR of YY% to reach a market value of USD YY million by 2026.
Phenol-formaldehyde resins (PF) or phenolic resins are synthetic polymers obtained by the reaction of phenol or substituted phenol with formaldehyde. Used as the basis for Bakelite, PFs were the first commercial synthetic resins (plastics). They have been widely used for the production of molded products including billiard balls, laboratory countertops, and as coatings and adhesives
The global Phenolic Resin market is primarily driven by the rapid growth of the end-user industries, including consumer electronics, construction, and automotive. Phenolic resins are oligomers, which are formed on repeatedly linking phenolic monomers with aldehyde chemicals. The global market is anticipated to be driven by the development of unique impregnated materials, such as laminates, fabrics, and oil & fuel filters, along with expanding wood adhesive applications that are presenting new avenues for growth across the globe.
Phenolic resins are one of the most adaptive materials with diverse application scope. Its properties, including sustainability, porosity, high heat and chemical resistance, flexibility, and sliding properties are anticipated to promote its demand in automotive, aerospace, and construction sectors. Increasing product usage in laminates is expected to be a major growth driver for the phenolic resins market.
However, volatility in raw material prices is a major challenging factor for the growth of the phenolic resins market.
By type, the global Phenolic Resin Market is segmented into Resol Resin, Novolac Resin, and Others. In 2018, Resol Resin accounted for the majority share in the market, owing to its widespread usage in the wood adhesive application. Besides, its excellent properties, including superior heat resistance, high flexibility, mechanical strength, moldability, and excellent friction properties, will further result in significant growth if global phenolic resin market during the forecast period.
By end-user industry, the global Phenolic Resin Market is segmented into Automotive, Building & Construction, Furniture, Electrical & Electronics, Industrial, and Others. In 2018, the automotive end-user segment accounted for the majority share in the market. Moreover, the growing automobile industry and a simultaneous increase in demand for various molded products in the automotive industry, such as brake linings clutch facings and brake pads will contribute to the demand for phenolic resins. Additionally, phenolic resin compounds reduce the weight and fuel consumption of the vehicle. Therefore, the increasing demand for phenolic resins in the automotive industry to be one of the primary growth factors for the segment.
By geography, the global Phenolic Resin market is segmented into North America, Asia-Pacific (APAC), Europe, South America, and the Middle East and Africa (MEA).
In 2018, APAC was the largest market in the Global Phenolic Resin Market, mainly due to like rapid economic development in the region. Rapidly growing automotive production with a shift of automobile plants in China and India, the continuous shift of manufacturing base of the electrical & electronics industry, and growing building & construction sector are the major growth drivers of the Asia-Pacific’s market. North America and Europe also offer sizeable growth opportunities, owing to the recovery of the building & construction industry in both of the regions.
The U.S. construction industry is rising at a rapid pace with annual expenditures of over (US)$1,231 billion.
Similarly, in Canada, Residential and mixed-use projects are dominating the local construction industry. It is expected that increased infrastructure spending will trigger additional activity, as more than 300 high-rise buildings projects are up for development.
Furthermore, Kuwait, one of the fastest growing economy in the MEA region, continues to provide attractive opportunities to corporates and construction sector mainly through government initiatives.
The overall residential market is currently undersupplied, with the demand for the government-funded housing units likely to reach 175,000 units by 2020. Kuwait’s residential market primarily includes properties built under the government housing program and administered by the Public Authority for Housing Welfare (PAHW). Kuwait has a large housing deficit and a young population.
Phenolic Resin market is highly competitive, and thus, manufacturers continuously focus on developing new strategies to grab more number of customers across the globe. Over the coming years, companies are expected to focus on potential growth markets for Phenolic Resin. To that end, besides expanding their presence, companies are expected to formulate effective distribution strategies to make their presence felt in the upcoming markets for Phenolic Resin. Merger, acquisition, and product development are key strategies adopted by leading players.
The major players include Hexion Inc., Hitachi Chemical Co., Ltd., Sumitomo Bakelite Co., Ltd., BASF SE, and SI Group, Inc. Other prominent players in the market are DIC Corporation, Kolon Industries, Inc., Shandong Laiwu Runda New Material Co., Ltd., Dujodwala Paper Chemicals Ltd., and Geogria-Pacific Chemicals LLC.
In 2019, Hexion introduced a range of new products for automotive, aerospace, wind energy, and construction applications at JEC World 2019, March 12 through March 14 in Paris. For instance, Sheet Molding Compound (SMC)-based phenolic resin systems for stronger and more heat and fire resistant battery boxes in electric vehicles. In addition to enhancing safety, these systems can provide weight savings of up to 30 percent versus metal enclosures, helping to increase vehicle driving range.
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