The phenolic resins market is expected to grow at a CAGR of 6.09% to reach a market size of US$18.637 billion by 2027, up from US$12.319 billion in 2020.
Phenolic resins are synthetic polymers that are widely used in moulding compounds, wood adhesives, and laminates. The growing construction industry is one of the major drivers of the phenolic resin market. Stringent emission regulations are promoting the utilization of lightweight composites in the automotive sector, further fueling the market growth during the forecast period. The wide application of phenolic resins in various end-use industry verticals, including automotive, electrical and electronics, aerospace industries, and many more, is 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 to produce panels to be complemented by the company’s existing EcoBind™ lower-emitting resin technology. The lab is focused on emerging phenolic resin technology, substituting phenol with bio-based raw materials like lignin. Such bio-based materials are present in abundance and have a strong potential to serve as an adhesive substitute in wood panel production.
The rising investments in infrastructural development in APAC countries, leading to the increasing construction activities at home, hospitality, and commercial and industrial sectors, 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 growing urbanization, a huge demand for phenolic resins is widely realized. Also, the growing electronics industry and the growing automotive industry with the purchase of new vehicles are further propagating the market’s growth in the forecast period.
The growing electronics industry is fueling the market demand in the forecast period.
The market is expected to fuel the growing adoption of electronic products among a wide range of customers worldwide. The growth is majorly driven by 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 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 using SMT.
Increase in the market for Phenolic Resins market in the Asia Pacific region
The Asia Pacific region is expected to show strong market growth in the global electronics industry owing to being among the fastest-growing regions in the world. According to NITI Aayog, the government of India estimates the total hardware production in the years 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’s growth owing to the rising disposable income and an 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 human work and providing superior home care.
The United States has a high potential for the market for Phenolic Resins
Additionally, the United States of the North American region has been an early technology adopter and one of the leading countries in the electrical and electronic industries 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 the 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 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 aircraft. Hence, the evolving air travel industry is further propagating the market demand over the next five years.
The rise in a 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 aircraft, further providing strong market potential during the forecast period. The growing demand for new aircraft is primarily attributed to rising disposable income and the adoption of 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 are also supporting the need for the development of new aircraft 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, and evolving business airline models in order to bring more value to passengers and keep pace with the evolving air travel industry are further providing an opportunity for the market to thrive in the forecast period. According to the Airports Council International, passenger traffic worldwide is expected to increase to 20 billion by 2039, with a CAGR of 4.1 per cent during the period 2017-2040.
September 2020: Allnex announced the launch of PHENODUR PR 616/65B. They are the leading supplier of speciality chemicals, offering a broad range of coating resins, additives and crosslinkers for use on wood, metal, plastic and other surfaces. This is a new, eco-friendly phenolic resin for interior and exterior can coatings with a very less amount of free formaldehyde as per an article published by the Allnex and GC company.
Various industries across the globe have been halted due to the outbreak of COVID-19, resulting in a severe decline in the demand for phenolic resins. During the early months of 2020, supply shortages, lockdowns, and production suspensions affected the building and construction industries. As a result of lockdowns and restrictions to prevent the spread of the virus, new vehicles were in short supply in pandemic-affected countries. The transportation and automotive industry segment accounts for the largest share of the phenolic resin market. Approximately 50 million vehicles were produced globally in the third quarter of 2020, a significant decrease from 65 million vehicles produced in the third quarter of 2019 as per the 2020 report by Organisation Internationale des Constructeurs d'Automobiles., a French association. The COVID-19 pandemic has forced several manufacturing plants and end-users to cease operations as there was no labour available. In spite of these restrictions, the demand for the product is expected to grow significantly due to the ease of lockdowns and trade restrictions.
|Market Size Value in 2020||US$12.319 billion|
|Market Size Value in 2027||US$18.637 billion|
|Growth Rate||CAGR of 6.09% from 2020 to 2027|
|Forecast Unit (Value)||USD Billion|
|Segments Covered||Type, Application, End-Use Industry, And Geography|
|Regions Covered||North America, South America, Europe, Middle East and Africa, Asia Pacific|
|Companies Covered||BASF SE, The Chemical Company, Hexion, Prefere Resins Holding GmbH, INEOS Capital Limited, SI Group, Inc., DIC Corporation, Sumitomo Bakelite Co., Ltd., Ashland, Bakelite Synthetics, KOLON Industries, Inc.|
|Customization Scope||Free report customization with purchase|
Frequently Asked Questions (FAQs)
Q1. What will be the phenolic resins market size by 2027?
A1. The phenolic resins market is expected to reach a market size of US$18.637 billion in 2027.
Q2. What are the growth prospects for the phenolic resins market?
A2. The global phenolic resins market is expected to grow at a CAGR of 6.09% over the forecast period.
Q3. What is the size of the global phenolic resins market?
A3. Phenolic Resins Market was valued at US$12.319 billion in 2020.
Q4. What factors are anticipated to drive the phenolic resins market growth?
A4. The growing construction industry is one of the major drivers of the phenolic resin market.
Q5. Which region holds the largest market share in the phenolic resins market?
A5. North America is expected to hold a significant share in the phenolic resin market due to the adoption of early innovations.
1.1. Market Overview
1.2. COVID-19 Scenario
1.3. Market Definition
1.4. Market Segmentation
2. Research Methodology
2.1. Research Data
3. Executive Summary
3.1. Research Highlights
4. Market Dynamics
4.1. Market Drivers
4.2. Market Restraints
4.3. Porter’s Five Forces Analysis
4.3.1. Bargaining Power of Suppliers
4.3.2. Bargaining Power of Buyers
4.3.3. Threat of New Entrants
4.3.4. Threat of Substitutes
4.3.5. Competitive Rivalry in the Industry
4.4. Industry Value Chain Analysis
5. Phenolic Resins Market Analysis, by Type
6. Phenolic Resins Market Analysis, by Application
7. Phenolic Resins Market Analysis, by End-Use Industry
8. Phenolic Resins Market Analysis, by Geography
8.2. North America
8.2.1. United States
8.3. South America
8.5. Middle East and Africa
8.5.1. United Arab Emirates
8.5.3. Saudi Arabia
8.6. Asia Pacific
8.6.4. South Korea
9. Competitive Environment and Analysis
9.1. Major Players and Strategy Analysis
9.2. Emerging Players and Market Lucrativeness
9.3. Mergers, Acquisitions, Agreements, and Collaborations
9.4. Vendor Competitiveness Matrix
10. Company Profiles
10.1. BASF SE
10.2. The Chemical Company
10.4. Prefere Resins Holding GmbH
10.5. INEOS Capital Limited
10.6. SI Group, Inc.
10.7. DIC Corporation
10.8. Sumitomo Bakelite Co., Ltd.
10.10. Bakelite Synthetics
10.11. KOLON Industries, Inc.
The Chemical Company
Prefere Resins Holding GmbH
INEOS Capital Limited
SI Group, Inc.
Sumitomo Bakelite Co., Ltd.
KOLON Industries, Inc.
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