According to a new research report by Global Market Insights Inc., the Formaldehyde Market size is set to surpass USD 6,160 million by 2027.
Formaldehyde is an organic compound mainly produced from the catalytic oxidation of methanol in the presence of a metallic silver catalyst or molybdenum-iron. It is a strong-smelling colorless gas used to produce building materials and household products. It is used in pressed-wood products, which include particleboard, plywood, fiberboard, paper product coatings, permanent-press fabrics glues, adhesives, and a variety of insulation materials.
Formaldehyde is mainly utilized in the furniture, construction, and automotive markets. Formaldehyde is normally manufactured near the point of utilization or consumption as they are easy to produce and cannot be shipped from one place to another owing to storage issue. It can develop stability-associated problems during transportation owing to this the global trade of formaldehyde is less.
The major downstream demand for formaldehyde across the globe is in the manufacturing of thermosetting resins. Among these, the major group is the amino resins, which are manufactured by condensing melamine or urea with formaldehyde. Increasing consumption of methanol for the production of various ethers, such as dimethyl ether and Methyl Tert-Butyl Ether (MTBE), which are utilized as an alternative source for gasoline is likely to foster the formaldehyde market demand.
Increasing demand for UF resins in the adhesives and coating industry is expected to drive the formaldehyde market growth
The global UF resins derivative market surpassed USD 2,500 million in 2020. Urea Formaldehyde (UF) resin, also known as urea methanal, is a type of amino resin and a major derivate product of formaldehyde. UF resins are majorly used in the manufacturing of adhesives and coatings as they cure quickly, are low priced, and produce boards with smooth finishes. A large proportion of UF resins are consumed by the wood industry owing to their high strength, cost-effectiveness, easy use, versatility, low cure temperature, excellent thermal properties, resistance to mold formation, rigidity, and excellent water solubility. UF resin is also used to manufacture high-performance automotive interior & fuel system parts, which is likely to augment the formaldehyde market share owing to the rising automotive industry.
Browse key industry insights spread across 300 pages with 247 market data tables and 43 figures & charts from the report, “Global Formaldehyde Market, By Derivative (PF Resins, UF Resins, MF Resins, Polyoxymethylene/Polyacetal, Methylene Diphenyl Diisocyanate, Pentaerythritol, 1,4 Butanediol, Paraformaldehyde, Hexamine), By End-use Applications (Resins, Textile, Plasticizers, Paints, Elastic Fibers, Synthetic Lubricants, Polyurethane Foams, Vulcanization Accelerators, Household/Electronic Appliances, Pesticides), Regional Outlook, Industry Analysis Report, Price Trend, Competitive Market Share & Forecast, 2021– 2027” in detail along with the table of contents:
Increasing demand for resins in the automotive industry is anticipated to stimulate the formaldehyde market growth
The formaldehyde market from resins end-use applications is expected to exceed USD 1,335 million by 2027. Resins are viscous substances of plants or synthetic origin that are mainly converted into polymers. They are mixtures of organic compounds and are valued for their superior chemical properties, which make them an important element in the production of adhesives, plastics, and other products.
The rising popularity of lightweight passenger vehicles with higher fuel efficiency has boosted the demand for high-performance additives in adhesive formulations, driving the adhesives market growth. Adhesives eliminate the risk of corrosion, do not produce any deformation in the materials or substrates, and significantly reduce product weight, which are key attributes that will augment the formaldehyde market growth.
Increasing vehicle production in the region is expected to drive the market growth
The Asia Pacific formaldehyde market is expected to exceed USD 3,770 million by 2027. The rising automobile industry owing to changing consumer perceptions on safety will boost the market share as formaldehyde is widely used to manufacture fireproof and durable bumpers.
A shift in consumer preferences toward comfort, high-performance vehicles, and rising disposable incomes will be a key impetus for automotive industry growth, in turn, boosting the demand for formaldehyde. China is witnessing high vehicle production in the last few years owing to rapid industrialization and urbanization trends. This factor is increasing the demand for formaldehyde in the region as it is widely utilized in the manufacturing of high-performance and fireproof bumpers for automobiles as it imparts high mechanical flexibility and strength.
Formaldehyde-based bumpers have tensile strength and are prone to environmental susceptibilities, such as moisture, dust, and water, under high-stress conditions. It is also utilized to manufacture fuel pumps, transmission pads, and brake pads as the addition of formaldehyde imparts flexibility and increases temperature tolerance.
Significant wealth expansion has changed the consumers’ purchase behavior, particularly in the luxury vehicle segment, which is likely to boost the formaldehyde market. Increasing consumer concerns over vehicle quality, effective fuel efficiency, and cutting-edge technological advancements in numerous vehicle segments will fuel the overall the formaldehyde market value. Significant demand in the commercial vehicle segment is driven by improved economic conditions in India, China, Indonesia, Japan, and Malaysia.
The formaldehyde industry is competitive and includes various players such as Dynea Oy, Bayer AG, Huntsman Corporation, Chemanol, BASF SE, Balaji Formalin, Celanese Corporation, Perstorp, Chemique Adhesives, Hexion Inc., Georgia-Pacific Chemicals, LLC., Ercros S.A, Foremark Performance Chemicals, LyondellBasell, and Alder S.p.A. Companies are focusing on expansion strategies by increasing their production capacity to increase their consumer base and market share. These expansion strategies will also help them in meeting the demand-supply gap and sustaining in the market for a longer period.