Phenolic resins, also known as phenol–formaldehyde resins, are synthetic polymers that are produced from the reaction of phenol or substituted phenol with formaldehyde. They are thermosetting resins and are excellent electrical insulators with high heat resistance. Phenolic resins are commonly used as wood adhesives in the manufacturing of laminated products such as plywood, particle board, and fiberboard. They are also used in molding compounds, insulation, abrasive products, friction materials, and noise reduction materials. The global phenolic resins market is estimated to be valued at US$ 16052.98 Mn in 2023 and is expected to exhibit a CAGR of 5.9% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Dynamics:
The growing demand from the construction industry is expected to drive the growth of the phenolic resins market over the forecast period. Phenolic resins have extensive usage in wood adhesive applications for the manufacturing of oriented strand board (OSB), plywood, laminated veneer lumber (LVL), and finger-jointed lumber. According to the United States Census Bureau, total construction spending in the United States increased from US$ 1,367.2 billion in 2020 to US$ 1,457.3 billion in 2021, indicating recovery from the COVID-19 pandemic. Furthermore, increasing government investments in infrastructure development projects across developing countries such as India, China, Brazil, and South Africa are also augmenting the demand for construction materials, thereby propelling the phenolic resins market growth.
The phenolic resins market is also driven by the growing demand from the automotive industry. Phenolic resins are extensively used in automotive brake pedals, brake rotors, bushings, clutch plates, cylinder head covers, spark plug boots, and spark plug insulators due to their heat resistance and mechanical strength properties. According to the International Organization of Motor Vehicle Manufacturers, global motor vehicle production increased from 84.6 million units in 2020 to 88.0 million units in 2021. Thus, rising automotive production is fueling the demand for phenolic resins in the automotive sector.
Segment Analysis
The global phenolic resins market is dominated by the molding segment which holds around 38% of the total market share. Phenolic resins have excellent mechanical and physical properties such as high thermal resistance, dimensional stability and high compressive strength. Due to these properties, molding compounds made from phenolic resins are widely used in industries like automotive, aerospace and electronics for components requiring heat resistance and dimensional stability. The laminates segment is the second largest sub-segment, accounting for around 30% share. Phenolic resin laminates are used as an alternative to wood panels in applications where fire retardancy is required such as office partitions and furniture.
PEST Analysis
Political: Trade restrictions imposed by US on Chinese imports are affecting the supply chain of phenolic resins since China is a major producer. However, new plants are increasingly coming up in other regions to overcome political risks.
Economic: Growth of the automotive and construction industries is driving the phenolic resins market. Asia Pacific holds the largest construction market worldwide which is a key demand generator. Recovery of aerospace industry post pandemic is also fueling demand.
Social: With increasing awareness about fire safety and indoor air quality, the use of formaldehyde free resins is on the rise in applications like particle boards and plywood. However, cost of green resins remains a challenge for wider acceptance.
Technological: Researchers are working on developing bio-based phenolic resins from raw materials like vegetable oils or lignin. These resins exhibit similar properties as oil-based resins but have lower carbon footprint. 3D printing technology also offers opportunities for resin producers to develop customized product solutions.
Key Takeaways
The Global Phenolic Resins Market Size is expected to witness high growth on account of rising construction activities and recovery of end-use industries globally. The global Phenolic Resins Market is estimated to be valued at US$ 16052.98 Mn in 2024 and is expected to exhibit a CAGR of 5.9% over the forecast period 2024 to 2031.
The Asia Pacific region currently dominates the market and is expected to maintain its leading position over the forecast period. China, India and other southeast Asian countries are witnessing massive construction of residential and commercial projects which is fueling resin demand from applications like plywood, laminates and molding compounds. The Asia Pacific phenolic resins market accounted for over 45% of the global volume in 2021 led by China, India, Indonesia and other developing nations. With increasing disposable incomes and growing population, the region’s construction industry is booming which is a key growth driver.
Key players:
Key players operating in the phenolic resins market are ABB Ltd, Schneider Electric SE, Siemens AG, and Eaton Corporation plc. These players are focusing on expanding their production capacities and bringing innovations to cater to the rising demand from end-use sectors.
*Note:
1.Source: Coherent Market Insights, Public sources, Desk research
2.We have leveraged AI tools to mine information and compile it
Ravina Pandya, Content Writer, has a strong foothold in the market research industry. She specializes in writing well-researched articles from different industries, including food and beverages, information and technology, healthcare, chemical and materials, etc. With an MBA in E-commerce, she has an expertise in SEO-optimized content that resonates with industry professionals.