Phenolic Resins Market Size, Share & Trends Analysis Report By Application (Laminate, Molding, Insulation, Wood Adhesive, Paper Impregnation, Coating), By Product (Resol, Novolac), By Region, And Segment Forecasts, 2019 - 2025

Industry Insights

The global phenolic resins market size was valued at USD 11.14 billion in 2018 and is expected to register a CAGR of 5.3% over the forecast period. The market is anticipated to be driven by the rapid growth of the end-use industries including consumer electronics, construction, and automotive. Phenolic resins are oligomers, which are formed on repeatedly linking phenolic monomers with aldehyde chemicals. The global market is anticipated to be driven by the development of unique impregnated materials, such as laminates, fabrics, and oil & fuel filters, along with expanding wood adhesive applications that are presenting new avenues for growth across the globe.

Phenolic resins are one of the most adaptive materials with diverse application scope. Its properties inclding sustainability, porosity, high heat and chemical resistance, flexibility, and sliding proeperties are anticipated to promote its demand in automotive, aerospace, and construction sectors. Increasing product usage in laminates is expected to be a major growth driver for the phenolic resins market.

Rising preference for phenolic laminates owing to their properties including structural strength, moisture-resistance, and high dielectric strength is expected to boost product demand further. Laminates are widely used in the construction industry and growing infrastructural developments and activities across the globe are anticipated to fuel the product consumption in laminates.

Automotive industry is amongst the key end users, where the phenolic resins are widely used in the raw materials for both interior and exterior components. For instance, they have application in rubber reinforcements that are used in making tires. Growing sales of tires for both Original Equipment Manufacturers (OEMs) and aftermarket is expected to boost the market growth over the forecast period.

However, volatility in raw material prices and limitations pertaining to formaldehyde emissions may hinder market development. For instance, in October 2018, the final amendments of National Emission Standards for Hazardous Air Pollutants (HAP): Manufacture of Amino/Phenolic Resins Risk and Technology Review Reconsideration were announced. The amendment aimed at reducing organic HAP emissions from major sources, such as formaldehyde, methanol, phenol, xylene, and toluene.

Application Insights

Wood adhesives application accounted for the largest share of 28.0%, in terms of volume, in 2018. The bonding ability of phenolic resins with wood materials and their resistance towards moisture, makes them applicable for outdoor applications in high humidity areas. In addition, increasing construction activities and infrastructural developments further aid the demand for wood adhesives, thus driving the market growth.

Molding application holds significant importance in the global market due to increasing growth of the end-use industries. Phenolic molding compounds provide design flexibility and help in achieving weight reduction and cost savings. Due to this, these are used in home appliances and transportation industries. In the transportation industry, they are used in powertrains, motors, chassis, interior/exterior, and fuel pumps. In 2017, global automotive production increased by more than 2 million units than in 2016. Thus, growth of the automotive industry is anticipated to drive the demand for phenolic molding compounds over the forecast period.

Coatings application is anticipated to expand at a CAGR of 5.2% from 2019 to 2025, in terms of revenue, owing to increasing demand for high-performance coatings. Manufacturers focus on new product development to cater to the growing demand for eco-friendly products. For instance, in April 2017, Hexion Inc. introduced new Bakelite phenolic resin with ultra-low-free-formaldehyde content for coatings. It has less than 0.1% formaldehyde content and free phenol levels below 0.5%. These are specifically designed for anticorrosive and powder coatings.

Product Insights

Based on products, the global market is segmented into novolac, resol, and others. Resol resins are utilized in a wide range of applications, such as fiber bonding, foamed plastics, and abrasives. This segment is expected to register the fastest CAGR over the forecast period due to increasing spending on construction activities in developing economies and repair and remodeling activities in developed countries.

Resol product segment is further classified into liquid and solid. Solid resins constitute a largest share and are used in distinct wood bonding applications like particleboard and waferboard. Rising demand for particleboards owing to their low cost and uniformity is expected to propel its production, thus, increasing the consumption of phenolic resins.

Others segment includes modified and spray dried resins. Their key applications include printed wiring boards and structural composites. The overall expansion of the wood panel industry is propelling the product demand owing to its various uses, such as adhesives, laminates, and paper impregnation.

Regional Insights

Asia Pacific held the largest revenue share in 2018 and is estimated to expand further at the highest CAGR over the forecast years. Growing infrastructural developments and automotive production in the region are boosting the demand for phenolic resin-based products. High demand is forcing manufacturers to increase their production capacities. For instance, in 2016, Panasonic started a new production line in Thailand for heat-resistant phenolic molding compounds, especially for automotive parts. The new line intended to cater to the growing demand for automotive products in Southeast Asia.

In 2018, North America was the second-largest contributor to the market with a revenue share of 34.5% in 2018. Growing demand for phenolic resins in the region has led to increased production of phenol. For example, in 2018, INEOS Group, increased the phenol production capacity at their plant in Alabama by 850 thousand tons a year. The expansion intends at meeting the growing product demand in the region. The makret in Europe is projected to register a heathy CAGR over the forecast period.

Rapid expansion of the construction industry and increased automotive production are anticipated to fuel the market growth in the region. According to Fellowship of Independent Evangelical Churches (FIEC), the total construction output in the European Union was USD 1,547.85 billion in 2017, with Germany and U.K. being the largest markets. Europe is the second-largest producer of vehicles in the world. New plants, supportive policies, and constant innovations are boosting the production, which, in turn, is expected to have a positive impact on phenolic resin-based materials used in vehicle production.

Phenolic Resins Market Share Insights

Key companies in the market include Hexion, Inc.; DIC Corp.; BASF SE; and Sumitomo Bakelite Co., Ltd. Companies are focusing on expanding their reach by increasing their application scope and target customers to strengthen their market positions. Manufacturers are expanding their product portfolio, investing in R&D, and acquisitions & strategic partnerships to increase their market presence. For instance, in June 2018, SK Capital acquired SI Group, manufacturer of performance additives and chemical intermediates. The acquisition was aimed at strengthening SI Group’s market position in different regions.

Report Scope

Segments Covered in the Report

This report forecasts revenue and volume growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2014 to 2025. For the purpose of this study, Grand View Research has segmented the global phenolic resins market report on the basis of product, application, and region:

• Product Outlook (Volume, Kilotons; Revenue, USD Million, 2014 - 2025)

  • Novolac

  • Resol

    • Liquid

    • Solid

  • Others

• Application Outlook (Volume, Kilotons; Revenue, USD Million, 2014 - 2025)

  • Wood Adhesives

  • Molding

  • Insulation

  • Laminates

  • Paper Impregnation

  • Coatings

  • Others

• Regional Outlook (Volume, Kilotons; Revenue, USD Million, 2014 - 2025)

  • North America

    • U.S.

    • Canada

    • Mexico

  • Europe

    • Germany

    • France

    • Italy

    • Spain

    • U.K.

  • Asia Pacific

    • China

    • India

    • Japan

    • Southeast Asia

  • Central & South America

    • Brazil

  • Middle East & Africa

    • Saudi Arabia