Home > Industry News > Grand View Research: Global Phenolic Resin Market $11.14 Billion in 2018
Grand View Research: Global Phenolic Resin Market $11.14 Billion in 2018
In its report, “Phenolic Resins Market Size, Share & Trends Analysis Report By Application (Laminate, Molding, Insulation, Wood Adhesive, Paper Impregnation, Coating), By Product (Resol, Novolac), By Region, And Segment Forecasts, 2019 – 2025,” Grand View Research valued the global phenolic resins market size at $11.14 billion in 2018. The global phenolic resin market is expected to register a CAGR of 5.3% over the forecast period.
The market is anticipated to be driven by the rapid growth of the end-use 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.
Rising preference for phenolic laminates owing to their properties including structural strength, moisture-resistance, and high dielectric strength is expected to boost product demand further. The automotive industry is among the key end users, where the phenolic resins are widely used in the raw materials for both interior and exterior components.
However, volatility in raw material prices and limitations pertaining to formaldehyde emissions may hinder market development. For instance, in October 2018, the final amendments of National Emission Standards for Hazardous Air Pollutants (HAP): Manufacture of Amino/Phenolic Resins Risk and Technology Review Reconsideration were announced. The amendment aimed at reducing organic HAP emissions from major sources, such as formaldehyde, methanol, phenol, xylene, and toluene.
Wood adhesives application accounted for the largest share of 28.0%, in terms of volume, in 2018. The bonding ability of phenolic resins with wood materials and their resistance towards moisture, makes them applicable for outdoor applications in high humidity areas. Molding application holds significant importance in the global market due to increasing growth of the end-use industries. Phenolic molding compounds provide design flexibility and help in achieving weight reduction and cost savings. Due to this, these are used in home appliances and transportation industries
Coatings application is anticipated to expand at a CAGR of 5.2% from 2019 to 2025, in terms of revenue, owing to increasing demand for high-performance coatings. Manufacturers focus on new product development to cater to the growing demand for eco-friendly products. For instance, in April 2017, Hexion Inc. introduced new Bakelite phenolic resin with ultra-low-free-formaldehyde content for coatings. It has less than 0.1% formaldehyde content and free phenol levels below 0.5%. These are specifically designed for anticorrosive and powder coatings.
Asia Pacific held the largest revenue share in 2018 and is estimated to expand further at the highest CAGR over the forecast years. In 2018, North America was the second-largest contributor to the market with a revenue share of 34.5% in 2018.