Phenolic Resins Market Size, Share and Industry Analysis Report, Regional Outlook, Growth Potential, Competitive Market Share & Forecast, 2021 – 2027
Report ID: GMI3851
Phenolic resins market size will substantially expand from 2021 to 2027 due to increasing advancements in the automotive vertical and surging need for rubber and friction materials. The rapid growth of the transportation sector has made way for the higher adoption of tires. The growing penetration of aesthetically driven and innovative wood products has triggered the preference for wood adhesives. Rising deployment of new nanotechnology coupled with soaring requirements for durable and lightweight phenolic compounds will act as significant contributors to the industry expansion.
Phenolic resins are primarily synthetic polymers that are extensively used in manufacturing circuit boards. The rise in the number of environmental regulations pertaining to formaldehyde emissions will pose a challenge to the overall market progression.
Based on product, the resole phenolic resin market is expected to show notable proceeds through 2027 owing to the higher expenditure on construction activities, mainly in the Asia Pacific. Apart from offering high heat resistance, and tensile strength, these resins impart physical and chemical properties that make them apt for offshore applications. In addition, the resole phenolics are used in chemical-resistant coatings, paper strengthening, textile sizing, foams, leather processing, and plywood. Increasing adoption on account of excellent moldability, oil drilling, and friction will further drive the product demand spurt.
Adoption of phenolic resins in molding applications is set to gain momentum driven by growing utility in friction linings, abrasive grinding wheels, and refractory products. There is a surging requirement for molding components in household appliances and automotive commutators as well as in the production of electrical equipment and kitchenware. The increase in the number of repair and remodeling activities has also increased the acceptance of resole resins across the construction sector. The proliferating need for replacing ceramics and metals across the automotive sector will contribute to the market growth.
Asia Pacific is set to emerge as a lucrative revenue pocket for the phenolic resins industry owing to the flourishing transportation & automotive sector and the rising motor vehicle production rate. Factors such as the booming population size and fast-growing economic conditions, particularly in India have stirred the demand for electrical and domestic appliances. The growing utility of adhesives and insulation along with rise in number of construction activities has led to increasing adoption of phenolic resins across the building and construction sector. Significant advancements in consumer goods, construction, automotive, and aerospace as well as the surging requirement for furniture will promulgate the regional market expansion.
Inorganic strategic team-ups, including partnerships, acquisitions, along with R&D activities, novel product developments, and capacity expansions are some of the prominent measures adopted by phenolic resins market players to strengthen and enhance their global footprint.
For instance, in September 2020, Sumitomo Bakelite developed a solid novolac phenolic resin by using nonedible lignin as raw materials to produce it on a commercial basis. The novel resin has wide utility in auto applications, particularly in electric vehicles.
Some of the other phenolic resins industry participants include Olympic Panel Products, BASF SE, Shandong Laiwu Runda New Material Co., Ltd., Owens Corning, Momentive Specialty Chemicals, Arizona Chemical Company (AZ Chem A.B.), DIC Corporation, SI Group Inc., Kolon Industries Inc., Georgia Pacific Chemicals (Georgia-Pacific LLC), Hitachi Chemical (Showa Denko, Hitachi), Ashland Inc., Hexcel Corp., and Arclin (Arclin, Inc.).
Impact of the coronavirus pandemic on the phenolic resins industry outlook
Apart from significantly impacting the global economy, the coronavirus outbreak was responsible for the abrupt closure of a massive number of businesses worldwide. The manufacturing activities across the building & construction and oil & gas sectors were also halted due to the lack of workforce and raw materials. However, the gradual recovery of most industries, such as the transportation & automotive industry is expected to add momentum to the industry forecast in the coming years.
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