The global phenolic resins market size was valued at USD 11.17 billion in 2018 and is expected to expand at a CAGR of 5.3% over the forecast period, 2019 to 2025. In the transportation sector, there is a rise in demand for rubber and friction materials which has generated interest in durable phenolic compounds and lightweight, which is driving the growth.
The development of a heat shield for the SpaceX’s Dragon Capsule, which is a Phenolic Impregnated Carbon Ablator (PICA), is one of the most momentous technological innovations in the industry. It enables to reuse of capsules for future missions because, the raw material allows to return of cargo, crew, and the spacecraft to Earth safely, despite the high temperatures.
The market in the U.S. promises exceptional growth avenues due to the presence of highly developed industries, application technologies, and advanced processing, which is leading to an acceleration in R&D initiatives and compelling new product launches. U.S. is home to many automotive manufacturers who are heavily inclined towards new domestic cost advantages by shifting the production facilities to the U.S. from other developed economies.
The recovery of the automotive market in the U.S. and the upsurge in the sales of passenger cars have increased the consumption of novolac resins. The manufacturers completely rely on composites that are lighter in weight and bonding agents to witness the strict emission guidelines. Novolac resins are extensively used in abrasives, adhesives, carbon binder,s, and insulation, which is boosting its demand in the end-use industries.
Domestic manufacturing of wall panels, cabinets, and furniture is witnessing growth owing to the rise in residential housing that utilizes engineered wood products. The economic recovery in the U.S. is expected to put forth lucrative opportunities for these laminates. Additionally, phenolic resins are extensively used to produce industrial and decorative laminates for the construction industry.
The prices for phenolic resins have been under downward pressure because of the oversupply from emerging nations such as China, which is limiting the progress of the market in recent years. However, phenolic resins help in reducing the weight of the vehicles, and this leads to control in the emission of CO2, which further accelerates the demand for phenolic resins in foams and other car products.
Based on the application, the phenolic resins market is split into wood adhesives, molding, insulation, paper impregnation, laminates, and others. Wood adhesives application exhibit exceptional water resistance, water diluting ability, excellent moisture resistance, and weather resistance, which is creating a hype of wood adhesives in various end-use industries. Owing to the rise in disposable income, the Asia Pacific is expected to be the largest market for wood adhesives.
Furthermore, the molding components are utilized extensively in numerous end-user industries such as household applications, automotive commutators, and electrical & electronics. Owing to the excellent dimensional stability, the compounds find applications in manufacturing electrical equipment and kitchen-ware, which will further increase the demand for molding resins in near future.
The molding resins segment is considered to be one of the fastest-growing applications because of the rapidly growing petrochemical industry in China, which is accelerating the demand for molding in the markets of the Asia Pacific region. Along with this, the market is experiencing bulk trading and production of petrochemical derivatives due to low crude prices, which in turn will foster the growth of the market in the forthcoming years.
In addition to this, many prominent companies operating in the phenolic resins industry have started adopting various strategies to sustain the annual growth and minimize the impact of lowered oil prices on profit margins. This trend is expected to boost the performance of phenolic resins and will also propel the demand for numerous molding activities in the coming years.
The market is bifurcated into novolac and resole. Resoles have been further bifurcated into solid and liquid resins. Novolac resins led with 49.95% of the market volume and are expected to witness heavy demand owing to superior properties of the product such as solvent resistance, hardness, and heat. The escalation in the electrical and electronic industry in the countries in North America is also driving growth.
Furthermore, resole resins are anticipated to emerge as the fastest-growing product with a CAGR of around 4.2% over the forecast period. The developing economies such as the Asia Pacific are spending massively on construction, which is expected to drive the growth of the market during the forecast timeframe.
Additionally, repair and remodeling activities are gaining traction and are lifting the consumption of resole resins in the construction industry in developed regions. The innovative products that are implemented with newly discovered properties are likely to meet the transitioning consumer requirements, which will gather pace and boost the growth of the market.
The inherent nature of phenolic resins helps in providing an impermeable shield to protect numerous substrates from the corrosive effects of chemicals. Additionally, other phenolic resins consist of cyanate ester resins, modified resins, benzoxazine resins, and spray-dried resins, which are majorly used in structural composites and printed wiring boards, which will hype the demand and growth of the market.
Geographically, Asia Pacific is expected to expand at the fastest CAGR of over 4.4% during the forecast period owing to the rapid expansion of end-use industries such as consumer goods, automotive, construction, and aerospace. Additionally, this region is anticipated to foresee the development of bio-based feedstock for the production of phenolic resins, which is expected to boost the dynamics of this industry in near future.
Developed economies such as Europe and North America are also likely to witness a revival in the production levels of automobiles, which will foster the demand for phenolic resins in numerous applications such as abrasives, adhesives, coatings, and insulation. Along with this, the key participants and increasing the R&D expenditure, which is anticipated to drive the growth of the market in the forthcoming years.
Wide-ranging R&D initiatives are also being raised and undertaken in the MEA market, which has made this region the fastest-growing to meet the burgeoning domestic needs that will lead to a positive impact on the market. Additionally, technological innovations and a rise in the disposable income of the consumers will also be responsible for the market’s growth shortly.
In recent days, Latin America has also experienced better political stability, which has led to a sound economy for investments and is expected to remain the fastest-growing region over the forecast period. The countries of this region are investing in various developed sectors such as consumer electronics and construction to meet the export demand. Phenolic resins are projected to benefit from all the dynamics, along with the availability of low-cost technologies and labor.
The market consists of major key players who are inclined towards identifying raw materials derived from natural products or byproducts and are majorly resulting from biomass feedstock. These companies are investing huge amounts in R&D activities and innovations to gain traction and to create lucrative growth opportunities during the forecast period.
The key participants operating in the market are Owens Corning; Arclin Inc.; Olympic Panel Products LLC; Ashland Inc.; DIC Corporation; Hexcel Corp.; Arizona Chemical Company LLC; Georgia Pacific Chemicals; Kolon Industries Inc.; Momentive Specialty Chemicals; Sumitomo Bakelite Co. Ltd.; BASF SE; Hitachi Chemical Co. Ltd.; and SI Group Inc.
BASF SE has recently modernized and enlarged its production plant in Korea which will boost the production capacity of phenolic resins to nearly double the existing amount in Ludwigshafen. Other companies are also looking forward to expanding their reach to various developed economies which will help the industry to grow massively during the forecast period.
Report Attribute |
Details |
Market size value in 2020 |
USD 12.7 billion |
Revenue forecast in 2025 |
USD 16.04 billion |
Growth Rate |
CAGR of 5.3% from 2019 to 2025 |
Base year for estimation |
2018 |
Historical data |
2014 - 2017 |
Forecast period |
2019 - 2025 |
Quantitative units |
Volume in kilotons, revenue in USD million and CAGR from 2019 to 2025 |
Report coverage |
Volume & revenue forecast, company share, competitive landscape, growth factors and trends |
Segments covered |
Product, application, region |
Regional scope |
North America; Europe; Asia Pacific; Latin America; Middle East & Africa |
Country scope |
U.S.; Canada; Germany; France; Italy; Spain; UK; Turkey; China; India; Japan; Mexico; Brazil |
Key companies profiled |
Arclin Inc.; Olympic Panel Products LLC; Ashland Inc..; Momentive Specialty Chemicals; Sumitomo Bakelite Co. Ltd.; BASF SE; Hitachi Chemical Co. Ltd.; SI Group Inc. |
Customization scope |
Free report customization (equivalent up to 8 analysts working days) with purchase. Addition or alteration to country, regional & segment scope. |
Pricing and purchase options |
Avail customized purchase options to meet your exact research needs. Explore purchase options |
This report forecasts revenue growth at global, regional, and country-level and provides an analysis of the latest industry trends in each of the sub-segments from 2014 to 2025. For this study, Grand View Research has segmented the global phenolic resins market report based on product, application, and region:
Product Outlook (Volume, Kilo Tons; Revenue, USD Million, 2014 - 2025)
Novolac
Resol
Liquid Resol
Solid Resol
Others
Application Outlook (Volume, Kilo Tons; Revenue, USD Million, 2014 - 2025)
Wood Adhesives
Molding
Insulation
Laminates
Paper Impregnation
Coatings
Others
Regional Outlook (Volume, Kilo Tons; Revenue, USD Million, 2014 - 2025)
North America
The U.S.
Canada
Europe
Germany
France
Italy
Spain
U.K.
Turkey
Asia Pacific
China
India
Japan
Southeast Asia
Latin America
Mexico
Brazil
Middle East & Africa
b. The global phenolic resins market size was estimated at USD 12.1 billion in 2019 and is expected to reach USD 12.7 billion in 2020.
b. The global phenolic resins market is expected to grow at a compound annual growth rate of 5.3% from 2018 to 2025 to reach USD 16.6 billion by 2025.
b. The Asia Pacific dominated the phenolic resins market with a share of 41.16% in 2019. This is attributable to the rapid expansion of end-use industries such as consumer goods, automotive, construction, and aerospace.
b. Some key players operating in the phenolic resins market include Owens Corning; Arclin Inc.; Olympic Panel Products LLC; Ashland Inc..; Momentive Specialty Chemicals; Sumitomo Bakelite Co. Ltd.; BASF SE; Hitachi Chemical Co. Ltd.; and SI Group Inc.
b. Key factors that are driving the phenolic resins market growth include phenolic resins application for rubber and friction materials in the transportation sector, and its application for insulation, paper impregnation, laminates, and others.
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