The global phenolic resins market size was valued at USD 12.92 billion in 2021. It is projected to reach USD 21.17 billion by 2030, growing at a CAGR of 5.64% during the forecast period (2022–2030). The expanding metal fabrication, automotive, and industrial machinery industries will raise the demand for abrasive tools for grinding, polishing, and other applications. Molded components made from phenolic resin enhance fire safety and overall vehicle performance. In addition, the continued expansion of the global electronics and power industries is projected to enhance the demand for circuit boards, which are required to assemble transformers and electronic devices. However, reliance on petroleum feedstock and environmental concerns connected to producing phenolic resins are anticipated to limit the growth of the worldwide phenolic resins market. Petroleum is the primary raw material source for phenolic resin production. Increasing environmental contamination and the depletion of fossil fuels have compelled the industry to search for sustainable alternatives to petroleum-based raw resources.
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Superior Characteristics of Phenolic Resin to Impede the Market Growth
Due to its increased qualities, such as intense heat resistance, high moldability, mechanical strength, low toxicity of smoke, and ability to combine with polymers, phenolic resins are extensively utilized in various industries. Due to their water resistance, phenolic resins are used as a durable binder and adhesive in structural wood panels and a binder in mineral wool insulation. Due to their excellent thermal stability and fire resistance are used in the automotive and construction industries for brake linings, insulating foams, foundry binders, and composites.
Increasing Understanding of Usage and Applicability to Drive Market
The growing need for lightweight, energy-efficient, and eco-friendly synthetic structures stimulates the market for phenolic resins. Molded components made from phenolic resins serve as a safety platform and enhance the cars' overall performance, increasing market efficiency. Regarding the stringent regulations for energy-efficient products, using phenolic resin in impregnated materials stimulates market growth. During the projected period, demand for the product is anticipated to be driven by a rise in application awareness. In addition, the increasing demand for eco-friendly, lightweight synthetic constructions is driving up the demand for phenolic resin. However, the unpredictable cost of raw materials, such as petroleum-based goods, is anticipated to impede market expansion throughout the forecast period.
Environmental Regulations to Restrict Market Growth
Phenolic resins are colorless, explosive, and pungent gas at room temperature. For their manufacturing, formaldehyde and phenol are the critical essential components. Composite wood goods (hardwood, plywood, particleboard, and medium-density fiberboard), building materials and insulation, paints, and paper products are produced using phenolic resins. Phenol is toxic if inhaled, swallowed, or absorbed by the human body. Consequently, formaldehyde and phenol use is strictly regulated, particularly in North America and Europe. Under the Toxic Substances Control Act, the Environmental Protection Agency (EPA) controls the use of formaldehyde to produce resins.
Growing Need for Fuel-Efficient and Lightweight Automobiles to Spur Market Opportunities
Continuous advancements in the automotive and transportation industries have generated substantial demand for fuel-efficient, lightweight automobiles. Companies use lightweight materials, such as aluminum, steel, composites, and polymers, to make autos lightweight and fuel-efficient. In a car, adhesives reduce the need for fasteners such as welds, rivets, and bolts. Adhesives and composites reduce the additional weight that metal vehicle bodies and fasteners would add. Utilizing superior materials and adhesives enhances the crush and impact resistance of automobiles. These factors are anticipated to increase demand for phenolic resins.
The global Phenolic Resins market is segmented by product and application
Based on product, the market is divided between novolac and resole.
Novolac resins will dominate the market and are in high demand because of their superior solvent, hardness, and heat resistance. In addition, resole resins are predicted to be the fastest-growing product during the projection period, with a CAGR of approximately 4.2%. The growing economies, such as Asia-Pacific, are investing heavily in building, likely to propel the market's expansion over the forecast period. Maintenance and remodeling activities are also gaining momentum and driving the demand for resale resins in the developed world's construction industry. Innovative products incorporating newly discovered qualities will likely satisfy evolving consumer needs, accelerating market expansion.
Based on applications, the market is segmented into wood adhesives, molding, insulation, paper impregnation, and laminates.
The category of molding resins is regarded as one of the fastest-growing applications due to China's rapidly expanding petrochemical industry, which is boosting the demand for molding in Asia-Pacific markets. In addition, the industry is seeing high volumes of trading and manufacture of petrochemical derivatives due to cheap crude oil prices, which will stimulate market growth during the forecast period.
The global Phenolic Resins market is segmented into North America, Europe, Asia-Pacific, and LAMEA.
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Asia Pacific is predicted to grow at a CAGR of 4.4% due to the rapid expansion of end-use sectors such as consumer goods, automotive, construction, and aerospace. In addition, this region is projected to see the development of bio-based feedstock for the production of phenolic resins shortly, which is anticipated to improve the dynamics of this industry. Along with rising construction spending in Asia-Pacific, the rise of the furniture and consumer goods industries is anticipated to fuel product demand over the projection period. In addition, the rising automotive industry in Asia-Pacific is projected to create several prospects for Novolac manufacturers and suppliers.
Automobile production is projected to increase in developed economies such as Europe and North America. In addition, prominent market participants are boosting their R&D spending, which is expected to drive market growth. The market for phenolic resins in North America comprises two powerful nations: The United States and Canada. The United States dominated the regional market for phenolic resins due to significant demand from numerous critical end-use sectors, including construction, automotive, and electrical & electronics. In addition, an open investment policy, a highly skilled labor population, modern infrastructure, and government incentives for manufacturing activities all contributed to the expansion of phenolic resins in the United States.
The global Phenolic Resins market’s major key players are