Furan Resins Market

Market Overview

The global furan resins market size was valued at USD 17.9 billion in 2022. It is estimated to reach USD 28.8 billion by 2031, growing at a CAGR of 5.43% during the forecast period (2023–2031). Furan resins are extensively used in the construction industry, and the growing construction industry boosts the global market. In addition, these resins also find application in the automotive industry to manufacture lightweight components, thereby boosting market expansion. Moreover, there has been a paradigm shift towards sustainability in recent years, which has increased the demand for furan resins as they are produced from agricultural byproducts. This is anticipated to create opportunities for furan resins market expansion.

Furan resins are a class of thermosetting polymers generated from furfuryl alcohol. Furan resins are distinguished by their exceptional resistance to heat and chemicals and their exceptional strength. These polymers find widespread application in the fabrication of high-performance composite materials and foundry cores and molds, among other industrial products.

Furfuryl alcohol polymerization is a step in the production of furan resin. Furfuryl alcohol is produced through the conversion of furfural. The polymerization process induces the formation of a three-dimensional network structure in the furfuryl alcohol molecules via cross-linking. An acid typically facilitates this reaction of cross-linking. Furan resins are classified as thermosetting since their polymer structure is irreversibly solidified during curing. Curing can be accomplished by applying diverse curing compounds or employing thermal exposure.

Market Dynamics

Global Furan Resins Market Drivers

Growing Demand from Construction Sector

Furan resins are frequently employed as binders in the construction industry's concrete protection and repair systems. They offer exceptional adhesion to concrete surfaces and chemical, abrasion, and water resistance. These resins fabricate corrosion-resistant and long-lasting coatings for concrete structures, safeguarding them against severe environmental conditions. Furan resins are also incorporated into mortars and grouts that reinforce and connect construction materials.

The construction sector experienced significant expansion globally. For instance, the US Census Bureau projected construction expenditures at a seasonally adjusted annual rate (SAAR) of USD 1,639.9 billion in December 2021. This figure represents an increase of 0.2% over the revised November estimate of USD 1,636.5 billion. Further, construction expenditures reached USD 1,589.0 billion in 2021, representing an 8.2% increase compared to USD 1,469.2 billion in 2020. This rise in expenditures generated a greater demand for furan resins in construction. Thus, expansion in the construction sector is expected to expedite the growth of the global market.

Rising Demand from Automotive Industry

Furan resins can serve as matrix materials in fabricating lightweight composite structures. These composite materials can be employed in automotive applications to decrease the vehicle's overall weight. Growing environmental concerns and stringent regulations related to pollution control have led automotive manufacturers to enhance technologies and develop vehicles with lower emissions. The vehicle's overall weight is one of the most important aspects affecting fuel efficiency and vehicular pollution. Weight reduction drastically increases fuel efficiency and, in turn, reduces vehicular pollution.

Furthermore, the automotive manufacturing sector is among the most extensive industries on a global scale. In 2021, the global market for automotive manufacturing was valued at approximately 2.86 trillion U.S. dollars. In 2022, the market is expected to reach approximately USD 2.95 trillion U.S. dollars. The automotive industry contributes approximately 3% of the global GDP, which is much higher in emerging markets such as China and India; this proportion is even higher at 7%. Thus, all these factors contribute to market growth.

Global Furan Resins Market Restraint

Fluctuating Raw Material Prices 

Furan resins are synthesized from agricultural feedstocks. Any fluctuations can significantly influence the cost of furfuryl alcohol in the pricing of agricultural commodities, which can impact the overall production cost of furan resins. The fluctuation in costs might provide difficulties for producers in accurately forecasting and effectively managing production expenditures.

In the event of a substantial increase in raw material prices, producers have the potential to transfer the augmented costs to customers, resulting in elevated prices for final goods. Consequently, these factors might significantly influence the total market demand for furan resins, particularly within companies prioritizing cost considerations. Thus, it is anticipated that these factors will impede market expansion.

Global Furan Resins Market Opportunities

Rising Demand for Sustainable Resins

Furan resins may be manufactured using renewable raw materials, including lignocellulosic substances like corncobs, sugarcane bagasse, or furfuryl alcohol from agricultural byproducts. As a consequence, they are also generally biodegradable. The production of furan resins may result in comparatively minimal emissions compared to other resins. In comparison to the utilization of polymers derived from fossil fuels, the incorporation of bio-based feedstocks can additionally serve to mitigate greenhouse gas emissions.

In recent years, consumers are increasingly engaging with a sustainability approach. A whopping 75% of millennials and 66% of all respondents consider sustainability while making purchases, according to a survey by McKinsey & Co. In light of this, the global market for bio-based resins is anticipated to expand at a CAGR greater than 16% over the forecast period. Environmental protection conventions at the international level, such as the Kyoto Protocol, also aim to reduce GHG emissions. All these factors are anticipated to generate opportunities for market growth.

Regional Analysis

Asia-Pacific Dominates the Global Market

Based on region, the global furan resins market is bifurcated into North America, Europe, Asia-Pacific, Latin America, and the Middle East and Africa.

Asia-Pacific is the most significant market shareholder and is expected to expand substantially over the forecast period. The furan resins market in the Asia-Pacific region is witnessing significant expansion, driven by the rapid development of the industrial sector, notably in emerging economies such as China and India. The rising population, increasing demand for housing units, and growing investments in several projects like 5G networks, artificial intelligence, IoT, and data centers are augmenting the rapid growth of the construction industry in the region, which further drives the demand for furan resins in the region.

Furthermore, several nations, including China, Japan, India, Vietnam, and Indonesia, have adopted various emission control measures. In 2016, the government of India declared that it would forgo the Bharat Stage V emission regulations and instead implement the Bharat Stage VI emission standards by 2020. In 2020, the Supreme Court rendered a verdict that prohibited the sale and registration of automobiles adhering to BS-IV standards in the nation, effective from April 1, 2020. This, in turn, is expected to provide a huge growth opportunity to the lightweight materials market in automotive production in India, which is further expected to boost the furan resins market.

In North America, the surging focus on environmental sustainability and the stringent adherence to regulatory rules influences the market. The use of furan resins derived from renewable biomass significantly influenced this phenomenon due to their recognized eco-friendly character. Similarly, the North American automobile sector will attract significant investments throughout the forecast period. Stringent environmental regulations enforced by regional governments will also encourage vehicle manufacturers to invest extensively in R&D initiatives. For instance, manufacturers such as Ford Motors (the US) and General Motors (the US) have invested over USD 34.5 billion in R&D projects. These projects will support the development of lightweight automotive materials, increasing the demand for furan resins in the region.

Europe is expected to expand substantially over the forecast period. The new construction and renovation demand constitutes a large market for furan resins. In 2019, the European construction industry witnessed a growth of 3.9%, while the renovation sector grew gradually at around 2%. Moreover, the European Commission has also proposed to invest USD 13.8 billion in transport projects. Thus, the investment proposal and several upcoming projects are expected to accelerate the demand for furan resins in European countries.

Segmental Analysis

The global furan resins market is segmented by type and application.

Based on type, the global furan resins market is divided into furfuryl alcohol resin, furfural resin, bran ketone resin, branone formaldehyde resin, and others. 

The furfural resin segment dominates the global market. Furfural resin is a resin variant obtained from the chemical conversion of furfural. Furfural is synthesized via pentose dehydration, wherein pentoses, a class of five-carbon sugars present in various biomass sources, serve as the precursor. The furfural resin is commonly classified as a thermosetting polymer, which implies that it experiences a chemical transformation upon curing, forming a rigid, interconnected network. This particular resin is renowned for its high thermal resistance, favorable electrical insulating characteristics, and exceptional chemical resistance. Furfural resins are utilized in diverse industrial sectors, including the fabrication of foundry cores and molds for metal casting and the production of brake linings, friction materials, and abrasives.

Based on application, the global furan resins market is segmented into paints and plastics, the foundry industry, automotive, adhesives and sealants, and others. 

The foundry industry segment owns the highest market share. Furan resins are frequently employed in the foundry sector to fabricate sand molds and cores. Due to their exceptional strength and dimensional stability, sand molds and cores constructed with furan resins are appropriate for various casting applications. The utilization of these compounds is vital to the fabrication of intricate and complex metal castings. These resins are also compatible with an extensive range of sand varieties, enabling foundries to modify their procedures by distinct casting specifications. They apply to the casting of both ferrous and non-ferrous metals.

Furthermore, the rapid curing of these resins enables foundries to conduct production processes more efficiently. This gives rise to notable benefits in the context of high-volume casting operations. Compared to other binder systems, they are frequently regarded as economical, balancing performance and economics in foundry operations. As the foundry industry expands with the industrial and manufacturing sectors, these factors have supported a steady demand for furan resins.

Recent Developments

• November 2023- Airtech introduced Dahltram T-100GF recycled-grade resin.
• November 2023- LANXESS, a manufacturer of specialty chemicals, created a novel mixed-bed resin designed to utilize ultrapure water to fabricate semiconductors.