The phenolic resins market is expected to grow at a CAGR of 5.92% to reach a market size of US$17.384 billion in 2025 from US$12.313 billion in 2019. Phenolic resins are synthetic polymers that are widely used in molding compounds, wood adhesives, and laminates. The growing construction industry is one of the major drivers of the phenolic resins market. Stringent emission regulations are promoting the utilization of lightweight composites in the automotive sector, further fueling the market growth during the forecast period. Wide application of phenolic resins in various end-use industry verticals including automotive, electrical and electronics, and aerospace industries and many more are propelling the market growth in the forecast period. Furthermore, companies worldwide are investing in research and development for the development of innovative phenolic resins. For example, Hexion Inc., in May 2017, announced the expansion of the company’s technology center in Edmonton, Alberta. The expanded R&D facility is poised to focus on the development of advanced resin chemistry for the production of panels to be complemented with the company’s existing EcoBind™ lower-emitting resin technology. The lab is focused on the emerging phenolic resin technology substituting phenol with bio-based raw materials like lignin. Such bio-based materials are present in abundance and have strong potential to serve as an adhesive substitute in wood panel production.
On the basis of geography, North America and Europe are expected to hold a significant market share due to the adoption of early innovations. The construction spending in the North American region, the market is projected to propel in the forecast period. On the other hand, the Asia Pacific region will witness a high market growth rate and is assumed to be the fastest-growing region during the forecast period due to the presence of a large consumer base especially in the emerging economies of India and China. The rising investments in infrastructural development in APAC countries leading to the increasing construction activities at home, hospitality, and commercial and industrial sector, and the growing disposable income are further providing an impetus for boosting the growth of the global phenolic resins market in the forecast period. This is due to the fact that with the growing urbanization, a huge demand for phenolic resins is widely being realized. Also, the growing electronics industry and the growing automotive industry with the purchase of new vehicles is further propagating the market growth in the forecast period.
The growing electronics industry is fueling the market demand in the forecast period.
The market is expected to fuel with the growing adoption of electronic products among a wide range of customers worldwide. The growth is majorly driven due to the increase in the penetration of mobile phones, consumer electronics, IT and office automation products, this has further raised the interests of many players to either set up new manufacturing facilities or expand their production capacities at the global level. Examples of the major market players in the global electronics include Samsung, Motorola, and Cisco among others. In addition, the booming demand for electronics is attributed to the growing miniaturization trend and the advent of surface mount technology (SMT). Modern devices like tablet PCs, display panels, and mobile phones are manufactured utilizing SMT.
The Asia Pacific is expected to show a high market growth in the global electronics industry owing to be among the fastest-growing region among all the regions of the world. According to NITI Aayog, the Government of India estimates the total hardware production in the year 2014-2015 accounted for an estimated value of USD 32.46 billion. Segments include consumer electronics, electronic components, industrial electronics, computer hardware, communication and broadcast equipment, and strategic electronics, further showing favourable growth prospects during the forecast period. In addition, the adoption of electric household appliances, especially in the emerging economies of the world such as the Asia Pacific region is further propelling the market growth owing to the rising disposable income and increasing middle-class population coupled with the rise in family income. Also, the manufacturers of these appliances are working on providing smart and automatic devices to their customers by the integration of electronics with intelligent sensors and machine programming, thus reducing the human work and providing superior home care.
Additionally, the United States from the North American region has been an early technology adopter and one of the leading countries in the electrical and electronic industry, thus, it is projected to have a significant potential for phenolic resins in the forecast period. The successful market growth here is attributed to the strict regulations by US Federal Agencies for use of electrical and electronic equipment in addition to successful business models. Also, the high tech-savvy population adopting smart electrical and electronic devices for carrying out their daily activities is further contributing to a stable electronics market growth in the United States by the end of the forecast period.
With the growing air traffic, there is an increasing demand for new aircrafts, hence, the evolving air travel industry is further propagating the market demand over the next five years.
The rise in number of air passengers rose from 3.048 billion in 2013 to 4.233 billion in 2018 (source: The World Bank). This has further given rise to the need for the manufacturing of new aircrafts, further providing strong market potential during the forecast period. The growing demand of new aircrafts is primarily attributed to rising disposable income and adoption high living standards especially in the emerging economies of the world in comparison to the developed economies of the world. Additionally, the availability of cheap air tickets is propelling the increasing use of flights as a regular means of transport.
Furthermore, growing tourism and globalization is also supporting the need for the development of new aircrafts with the growing number of air passengers, augmenting the market growth during the forecast period. The growing middle-class population, increasing consumer spending on air services, evolving business airline models in order to bring more value to passengers and keep pace with the evolving air travel industry is further providing an opportunity for the market to thrive in the forecast period. According to the Airports Council International, the passenger traffic worldwide is expected to increase to 20 billion by 2039 with a CAGR of 4.1 percent during the period 2017-2040.