The Total Addressable Market (TAM) for Melamine was valued at USD 1.62 billion in 2022 and is estimated to reach an expected value of USD 2.31 billion by 2031, growing at a CAGR of 4% from 2023 to 2031. Strong demand from the construction industry with an increase in DIY is expected to drive the growth in the market studied. Increasing consumer concerns about formaldehyde emission from melamine-based molding compounds, along with the availability of substitutes, are expected to hinder the market's growth. The increasing trend of melamine-based foams will likely offer growth opportunities for the market studied over the forecast period.
Melamine is a thermosetting plastic used in manufacturing a wide range of products, such as kitchenware, laminates, specialized paints, flame-retardant textiles and apparel, particleboards, floor tiles, and flexible urethane foam for insulation in the construction industry.
Melamine is also used in construction as sulfonated melamine formaldehyde (SMF) for high-resistance concrete. Using SMF in concrete reduces the water requirement and increases the workability and fluidity of the concrete required during handling and pouring. Additionally, melamine-based insulation foams are used in commercial spaces, such as offices, restaurants, and educational institutions. These foams are used as acoustic solutions for room dividers, hanging baffles, ceiling tiles, and wall-mounted absorbers.
Asia-Pacific dominates the commercial construction applications market, owing to significant investments by countries like India and China, where the construction of multi-screen cinemas is rising at a steady pace. According to the ICRA, the cinema exhibition sector in India witnessed significant consolidation in recent years. The country had over 3,200 multiplex screens at the end of 2020, which is expected to increase post-COVID-19 further, positively impacting melamine demand. In the United Kingdom, the government announced an investment of GBP 1 billion for the construction of 50 new schools, GBP 560 million for the redevelopment of the existing schools, and GBP 200 million for colleges. The construction of these projects is expected to start in September 2021, likely impacting the demand for melamine positively. Hence, the growth of the construction industry is expected to drive the demand for melamine during the forecast period.
Melamine has high flame retardancy properties because of the presence of very high nitrogen content. As a result, melamine is an excellent alternative to halogen-based flame retardants (FR). Hence, it finds applications in specialized paints, textile products like firefighting apparel, flexible urethane foam used in the furniture and bedding industry, and electronics products.
Melamine resins can be used to formulate highly durable coatings. These find applications in the automotive industry, where melamine-formaldehyde resins are used in surface coatings of automobiles and to make decorative laminates for automobile interiors. Additionally, melamine foams have excellent sound absorption, flame retardancy, heat insulation, moisture and heat stability, hygienic safety, and secondary sound processing. These properties make it ideal for use in vehicle construction.
Due to the excellent acoustic characteristics and fire safety features of melamine, foams can be used in the wall and roof support and the decorative interior trim of the laminate in rail vehicles. Such properties of melamine make it ideal to suit various applications from household to automotive and transportation. The demand from these end-user industries is expected to drive the market studied.
In recent years, consumer awareness has increased regarding the ill effects of formaldehyde emissions from melamine-based compounds used in wood composites and laminates. Organizations, such as the US Environmental Protection Agency (EPA) and Eurofins, have specified specific emission standards and limits regarding formaldehyde emissions in different applications.
Exposure to formaldehyde emissions can lead to short-term and long-term health effects. This can lead to skin, eyes, nose, and throat irritation and even a few cancers. There have also been increasing concerns, such as asthma, and neurological impairment among the consumers, due to the formaldehyde emissions from laminate wood flooring in houses. This can be attributed to the immediate chemical changes undergone by formaldehyde after absorption. Scientists from the National Cancer Institute (NCI) have reported that increased exposure to formaldehyde emissions in industrial spaces might increase the risks of causing myeloid leukemia to workers. All such factors hamper the market growth.
Melamine-based polyurethane foams are known to have higher dimensional stability and lower water-absorbing capacity when compared to other foam types. Moreover, compared to traditional polyurethane foams, melamine-based polyurethane foams are self-extinguishing and have higher thermal stability (even up to 200°C).
In almost all modern industries, polyurethane foams are among the most widely used polymeric foams. Rigid and flexible polyurethane foams are widely used as insulators in the appliance industry. Rigid polyurethane foams are extensively used in the construction of walls for buildings and cold storage warehouses, vessels for refrigerated cargo, lightweight products used in construction and automotive applications, pipelines, fabrication of steel-faced building panels, and cryogenic wind tunnels. Due to their relatively high insulation, these foams are preferred over conventional materials, such as fiberglass and mineral wool.
Polyurethane has been replacing polystyrene and polystyrene foam applications in various industries, such as construction, consumer goods, electronics, packaging, and others. However, the replacement rate remains low, owing to its higher price than polystyrene. With the increasing demand from various end-user industries, the consumption of melamine-based polyurethane foams is likely to increase during the forecast period,
By application, the global melamine market is segmented into laminates, wood adhesives, molding compounds, paints and coatings, and other applications (flame retardants, textile resins, etc.). The laminates segment accounted for the largest market share and is estimated to grow at a CAGR of 4.9% during the forecast period. Melamine laminated sheet is in a multilayer structure, including surface paper, decoration paper, and bottom paper. The surface paper protects the decorative paper's patterns and designs, makes the surface brighter, stronger, and harder, and improves its wear-resistance and corrosion resistance. Melamine laminated sheet is composed of thermosetting plastic, so it possesses superior heat resistance and does not soften, crack, or bubble at temperatures above 100°C. It is also well resistant to ironing and fire. They are commonly applied to the surface decoration projects of walls, columns, tabletops, furniture, suspended ceilings, etc. The growth in the global construction industry, especially in Asia-Pacific and Europe, is expected to boost the consumption of melamine-laminated sheets during the forecast period. The increasing presence of foreign companies in the Asia-Pacific region has also created a demand for new offices, buildings, production houses, etc., thereby driving market growth.
The wood adhesives segment is the second largest. Melamine or melamine/urea resins are among the most used adhesives for exterior and semi-exterior wood panels and the preparation and bonding of both low- and high-pressure paper laminates and overlays. Because of their excellent water resistance, melamine-containing resins are preferred for manufacturing structural beams, truck and railcar flooring, laminated lumber, exterior doors, marine plywood, toilet seats, and school furniture. The rising demand for new furniture from emerging countries, such as India, Mexico, Indonesia, South Africa, and the United Arab Emirates, is estimated to boost the demand for wood adhesives. The increasing demand for furniture, owing to the rising commercial construction activities, coupled with the increasing furniture exports from the countries mentioned above, is fueling the market demand in these countries.
Based on region, the global melamine market is segmented into North America, South America, Asia-Pacific, Middle East & Africa, and Europe.
Asia Pacific accounted for the largest market share and is estimated to grow at a CAGR of 4.7% during the forecast period. China accounts for more than one-fourth of the global coatings market presently. According to the China National Coatings Industry Association, the industry has registered a growth of 7% in recent years. At least eleven big coatings investment projects in China were reported to be under construction in 2019. Nippon has capitalized on this market condition by modernizing its coatings manufacturing process in its new Chinese facilities. DuPont invested approximately USD 30 million to construct a new manufacturing facility in the adhesives industry in Zhangjiagang, Jiangsu Province, East China. The new facility would produce adhesives for the transportation industry, primarily supporting two mega-trends: vehicle electrification applications and lightweight. The facility is anticipated to be active by the beginning of 2023. The robust construction industry, coupled with the growing production of motor vehicles and the expanding electrical & electronics industry, is expected to support the domestic demand for melamine, which is a positive factor for market growth in the coming years.
Europe is the second largest region. It is estimated to grow at a CAGR of 4.3% during the forecast period. Germany is the largest market for furniture in the European region. According to the Association of the German Furniture Industry (VDM), the turnover for the furniture industry decreased to Euro 17.2 billion in 2020, declining by 3.7% compared to 2019 due to the pandemic. Furthermore, according to VDM, German furniture exports increased by 17% Y-o-Y and reached 6.2 billion euros (7 billion U.S. dollars) in the first nine months of 2021. The German wood industry witnessed five years of continuous growth. Approximately 7% of the total German consumer goods market comprises the furniture market, making it an important sector of the economy. Since 2010, the sector's revenue has increased by more than 9 percent, placing it in a group of growing industries in the country. Currently, there are over 22,000 furniture manufacturers across the country. This, in turn, increases the demand for the market over the forecast period. Germany has the most significant electronic industry in Europe. According to the Germany electrical and electronic association, the country’s electric and electronic production declined by 2.4 % in 2019 to about EUR 190 billion. The industrial electric output accounts for 11% of the total industry output in the country, and it accounts for 3% of the gross domestic product (GDP). Basf SE and Borealis are the major companies involved in melamine operations in the country. The aspects mentioned above are expected to affect the Melamine market in Germany during the forecast period.
North America is the third largest region. The United States furniture market is the largest in the world, with more than 39,644 domestic and foreign companies. In addition, the increase in disposable income permitted a more significant number of consumers to purchase new household furniture instead of readily available pre-owned products. Ashley Furniture Industries, Ikea, Williams-Sonoma Inc., HNI Corporation, and Herman Miller are among the largest furniture manufacturers in the United States. With the shift toward smart homes and increased demand for high-end furniture, technology is a critical trend for the future, offering market opportunities for laminates and wood adhesives. The United States automotive and electrical electronics industries are also significant end-users of melamine for various applications. The United States electronics market is the largest in the world and is one of the leading potential zones for the market studied.
Furthermore, it is expected to remain the leading market over the forecast period due to the usage of advanced technology, increased R&D centers, and rising consumer demand. There is a significant demand for newer and faster electronic products due to the rapid pace of innovation, the advancement of technology, and R&D activities in the electronics industry. There is a considerable rise in the number of manufacturing plants and development centers in the United States, primarily due to the focus on developing high-end products. All such factors depict that the United States is set to nurture a growing melamine market during the forecast period.
Key companies in the global melamine market are
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