Formaldehyde is a colorless gaseous substance with a pungent smell. Formaldehyde is an important feedstock component for production of many chemicals and materials. The major use of this substance is for production of urea-alkyd resins. The resins provide wide applications in industry, mainly for the output of binding materials for medium density plywood and particle boards. Other resins are used for laminated flooring boards, constructions industry, aircraft construction and automobile industry as well. In the European markets, a major part of formaldehyde is used for domestic purposes. Accordingly, its prices are set for every quarter and vary from country to country. Its pricing is similar to that of methanol. It is widely used in various industries such as plywood, automobile, construction, etc. The key drivers of formaldehyde market are the growth of its application in various industries such as construction,automobileand textile industry.
As the demand for furniture and automotive rises, simultaneously the demand for this substance goes up and vice versa. Similarly, growth of the global construction industry has resulted in increased usage of formaldehyde for various reinforcement and component application purposes. Production of formaldehyde is done close to the consumption area, as it cannot be transported over long distance, though it’s very easy to be produced. A major factor identified in restricting the growth of formaldehyde in the global market includes increasing health issues, as formaldehyde is very toxic in nature and special safety measures need to be implemented during its storage, handling and transportation.The EPA (US) has issued major guidelines to be followed to ensure safety of workforce and avoid damage caused by formaldehyde that includes lungs, nose, skin, reproductive systems problems and also cancer. Apart from regulatory restrictions, fluctuations in the price of raw materials have been responsible for slowing the growth of this market.
PF resins, UF resins, MF resins, polyacetal resins, pentaerythritol, 1,4-butanediol, and methylenebis are seven application segments prevalent in the market. PF resins are expected to dominate the overall market majorly on account of its high consumption rates and demand in industrial and consumer oriented products. PF resins being water and fire resistant are widely used in construction and automotive industry as insulation foams, binders, and composites. The usage of PF resins has also been increasing in the oil industry. Another major application segment of formaldehyde is phenolic formaldehyde PF resins; it is water resistant in nature, which is used as adhesive and durable binders. Fire resistant variants are widely used in automobile industries and construction industries. Growing UF resins preference is further expected to drive formaldehyde market growth owing to its chemical, arc and flame resistant and color retentionproperties along with the ability to be applied in aqueous suspension.
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End User Insights
The major end user segment of formaldehyde is the construction industry where resins are used for making cabinet doors, laminator countertops, medium density fiberboard and insulation. It enables to manufacturing of long lasting furniture at reduced costs as compared to wood. Resins allow recycling of older furniture to provide high quality recycled wood products which help in reducing the negative impact on environment as well. Growing automotive market uses formaldehyde in the form of resins and other materials for use as varying car components possessing properties of high strength and abrasion resistance.
The recovering North American market is steady in its demand for formaldehyde in various segments. Asia Pacific is expected to contribute to formaldehyde market growth with its emerging construction and automotive markets. Other regions such as Europe and Latin America displayed significant formaldehyde demand for supporting their ongoing manufacturing operations,
The global formaldehyde market comprises of players such as Dynea Oy, Bayer AG, Celanese Corporation, BASF SE, Perstorp Formox AB, Georgia Pacific Corporation, Momentive Specialty Chemical Inc., Huntsman Corporation, etc.
Key questions answered by the report
- What was the size of the formaldehydemarket in 2013; what are the expected growth trends and market forecast for 2014 to 2020
- Which companies were the leaders in 2012
- What opportunities are available to these and other contenders in this space
- What were the barriers and opportunities in the formaldehydemarket
- Which were the top-performing application segments in 2013? How will these segments perform in 2020
- Which were the top-performing regional markets in 2013? How will these markets perform in 2020
- Which were the top-performing end user segments in 2013? How will these segments perform in 2020