by Market Overview:
Phenolic resins refer to synthetic polymers obtained by the reaction of phenol or substituted phenol with formaldehyde. They are commonly known as phenol-formaldehyde resins. The resins find wide usage as adhesives, abradants, insulators, and molding compounds due to their heat resistant and fire retardant properties. In the construction industry, phenolic resins are used in applications such as paneling, roofing shingles, claddings, and insulation. In automotive industry, they are utilized in engine components, brake pads, clutch plates, and bearing shells owing to their ability to withstand high temperatures.
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:
Increasing construction activities globally are expected to be a major driver for the phenolic resins market growth over the forecast period. Rapid urbanization coupled with rising disposable income has augmented infrastructure development projects across both commercial and residential sectors. Additionally, stringent norms regarding fuel efficiency and emission levels in automobiles have bolstered the demand for lightweight components. Phenolic resins owing to their heat resistant nature and lower weight compared to metals are increasingly being used in automotive engine components and brake pads. However, volatility in raw material prices may hinder the market growth. Fluctuations in prices of phenol and formaldehyde which are key raw materials for production of phenolic resins may negatively impact the profit margins of manufacturers. Also, growing environmental concerns regarding toxic emissions from phenol-formaldehyde resins during production and disposal may challenge the market growth in the long run.
Segment Analysis
The Phenolic resins market is segmented on the basis of type which includes resoles and novalacs. Resoles segment dominates the market as it finds wide application in wood adhesives, molding compounds and laminates. Resoles exhibit higher heat resistance, strength and solubility in alkalis which makes it suitable for applications requiring durability and heat resistance.
PEST Analysis
Political: The growth of construction and automotive industries globally drives the phenolic resins market. Supportive government policies and regulations regarding infrastructure development and renewable energy further boost the market growth.
Economic: Growth in disposable incomes in developing countries increases demand for construction and durable goods. This boosts the application areas of phenolic resins in wood panels, laminates, and molding compounds.
Social: Rising nuclear families and urbanization increase the demand for residential construction and furniture. Growing demand for lightweight and durable materials in automotive interiors also benefits market growth.
Technological: Developments in bio-based phenolic resins help reduce dependence on fossil fuels. New production technologies lower manufacturing costs and environmental impact.
Key Takeaways
The Global Phenolic Resins Market Size is expected to witness high growth, exhibiting CAGR of 5.9% over the forecast period, due to increasing demand from construction and automotive industries.
– Regional analysis: Asia Pacific dominates the market and is expected to witness fastest growth owing to rapid infrastructure development and rising automotive production in China, India. Growth in GDP and disposable incomes drives construction activities in the region.
– Key players: Key players operating in the Phenolic resins market are BASF SE, Chang Chun Plastics Co. Ltd., Georgia Pacific Chemicals LLC, Kolon Industries Inc., Prefere Resins, Mitsui Chemicals Inc., Sumitomo Bakelite Co., Ltd, Hitachi Chemical Co. Ltd., SI Group, Inc., and Momentive Specialty Chemicals, Inc. BASF SE dominates the market with wide product portfolio and global presence.
– Market size: The global Phenolic resins market size was valued at US$ 16052.98 Mn in 2023 and expected to reach over US$ 25000 Mn by 2030 at a CAGR of 5.9%.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
