The global phenolic resins market size was valued at USD 12.98 billion in 2018 and is anticipated to grow at a CAGR of 5.4% from 2019 to 2026. Phenol-Formaldehyde is the scientific name for phenolic resin and being a thermosetting plastic finds growing use in wide choice of applications. The uses vary from molding compounds, forest products and abrasives that comprises the major applications for phenolic resins.
Phenolic resin has been credited with being the first synthetic polymer to be commercialized and has attracted the title of a very important industrial polymer. There lies a demand for phenolic resins even in the low-down sectors, finding use as a raw material for these resins. Existing phenol plants were operational in 2017 with delayed capacity additions.
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Construction, automotive, furniture and electrical and electronics industry are the primary market-bearers to growth of phenolic resins. The diverse growth in these industries will recount favorable growth to phenolic resins. From as diverse an application in molding industry comprising billiard balls to coatings and adhesives, phenolic resins have made an impact in other marquee industries as well. By mixing resins with other polymers, the applications treble over to corrosion coatings and adhesives. Expanding woodworks and furniture sectors in Asia Pacific are expected to contribute to the market by giving manufacturers key opportunities.
The molded applications in phenolic resins market have a growing demand and increasingly find their way in automotive and aerospace industries contributing to growth of phenolic resins during forecast period. The market is bubbling over with growth of wood-adhesive rapidly rising, due to spectacular growth of real estate market in emerging economies of Asia Pacific. The contribution of these resins in nanotechnology will also drive growth of phenolic resins during forecast period. Molding Applications will emerge as the fast-growing market in forecast period.
Wood adhesives and molding compounds are the most enhanced market for phenolic resins. Wood adhesives are witness to high market rankings on account of increased consumption of laminated veneer, plywood and other wood composites. Growing demand for aesthetic and modern furniture and fittings and decors has led to the increased consumption of wood, adhesives and phenolic resins. Phenolic resins have attracted market growth with uses extending to wood adhesives where phenolic resins are bonding adhesives. The qualities on witness are high performance and high durability.
Technological prowess has paved the way for innovative applications such as Heat-Shield manufactured for Space-X dragon capsule using a phenolic impregnated carbon ablator. Major companies are trying to adopt phenolic into their products for a far-reaching outlook and performance. They are gaining an entry into the value chain with strategic alliances or manufacturing the product themselves. Stringent regulatory framework are considered to hamper growth.
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Novolac and Resol are two uppermost resin types and other types belong to phenolic resins, cresol and a few more. Phenols, formaldehyde and other cross-linking agents are processed using catalysts to obtain two major products such as novolac and resols which differ greatly in their properties and applications. Novolac is the outstanding product type for the market. This type of resin is manufactured in both batch type and continuous process with outcome as solids or liquids. Resols are witnessing copious growth ostensibly so due to their presence in abrasives, fiber bonding and foamed plastics.
Construction industry has widespread use for resins. They are used largely due to application-centric qualities including excellent thermal behavior, high strength level, mechanical and high thermal stability, excellent smoke, fire and low toxicity attributes running into superior electrical and thermal insulating capabilities with far better cost-performance comparatives on display.
Due to their ever-increasing demand from various industries, the global phenolic resin market is poised for high growth over forecast period.
Restraints for the market include a strong regulatory body that could hamper growth giving access to bio-based substitutes. Resins are primarily derivatives of phenol with material input source being petrochemical products which are known to have an environmental impact. Contemporary Organizations such as REACH, the European Phenolic Resins Associations (EPRA) and the U.S. Environmental Protection streamlining the organizational value chain through raw material procurement to manufacturing processes.
Asia Pacific has been attributed with having highest consumption rates for phenolic resins. This is due to rapidly expanding construction industry and electrical and electronics industry in and around the region. The consumption of wood and laminates are fiercely dependent on the construction industry which in turn drives growth in phenolic resins market. Hence Asia Pacific has higher growth rates.
North America and Europe fall behind Asia Pacific but are a diverse market for fibrous and granulated wood products and plywood which winds up in phenolic resins. So markets in North America and Europe are vastly prepared markets and steeped in technological ad materials developments.
The key industrial player in phenolic resin market include BASF SE, Momentive Specialty Chemicals, Hitachi Chemical Co. Ltd., SI Group, Mitsui Chemical Inc., DIC Corporation and Sumitomo Bakelite Co. Ltd.