Urea formaldehyde is widely used in building materials like wood adhesives, insulation, and particleboard. It offers advantages like moisture resistance, high strength and low cost. The growing construction industry globally is driving increasing demand for these building materials and the urea formaldehyde market. The global Urea Formaldehyde Market is estimated to be valued at US$ 17521.61 Bn in 2023 and is expected to exhibit a CAGR of 22% over the forecast period 2024 to 2031, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
The surging demand from building industry sectors is one of the major trends propelling the Global Urea Formaldehyde Market Size. Urea formaldehyde finds extensive application in manufacturing of wood adhesives used for plywood, particleboard, and fiberboard. With rapid urbanization worldwide, the construction sector is witnessing considerable growth. Subsequently, the demand for wood adhesives from the industry has increased substantially over the years. Wood adhesive constituted the largest application segment in 2021. Thus, the expanding construction activities are fueling consumption of urea formaldehyde-based wood adhesives and boosting the market.
SWOT Analysis
Strength: Urea formaldehyde is cost effective compared to other resins and has good mechanical and electrical properties. It provides high strength and stiffness to end products.
Weakness: Urea formaldehyde emits toxic formaldehyde gases during production and while curing. Exposure to these gases can cause health issues. The resin is also not heat and water resistant.
Opportunity: Growing demand for wood adhesives from furniture and building industries offers market opportunities. Also, development of low emitting urea formaldehyde resins can reduce toxicity.
Threats: Strict environmental regulations around formaldehyde emissions act as a threat. Alternatives like phenol formaldehyde and isocyanates also compete in the market.
Key Takeaways
The global urea formaldehyde market is expected to witness high growth during the forecast period of 2024 to 2031. The market size is projected to reach US$ 17521.61 Bn by 2031, expanding at a CAGR of 22%.
Regional analysis: Asia Pacific dominates the market and is expected to maintain its leading position during the forecast period. Countries like China, India, and Indonesia have extensive wood panel and furniture manufacturing industries which drives the urea formaldehyde demand.
Key players: Key players operating in the urea formaldehyde market are Taiwan Semiconductor Manufacturing Company, Ltd., MonolithIC 3D Inc., XILINX, Inc., Elpida Memory, Inc. (Micron Technology, Inc.), The 3M Company, Ziptronix, Inc., STATS ChipPAC Ltd., United Microelectronics Corporation. These players are focused on developing new low emitting resin formulations.
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1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it