Phenolic resins, also known as phenol–formaldehyde resins, are synthetic polymers obtained by the reaction of phenol or substituted phenol with formaldehyde. They are primarily used in manufacturing molding compounds and laminates, owing to their ability to adhere strongly to diverse surfaces and provide excellent electrical insulation. Bakelite and phenolic molding compounds are two of the most widely used products associated with the phenolic resins market. Bakelite can be molded into various household items and industrial products like kitchen utensils, electrical switches, ornaments, and pipe stems. Phenolic molding compounds find application in automotive and electrical components on account of their heat resistance, dimensional stability, and mechanical strength.
The global Phenolic Resins Market is estimated to be valued at Us$ 16052.98 Mn in 2023 and is expected to exhibit a CAGR Of 5.9% over the forecast period 2023 To 2030, as highlighted in a new report published by Coherent Market Insights.
Market Dynamics:
Rapid growth of the bakelite and phenolic moulding compounds industry is anticipated to propel the phenolic resins market over the forecast period. Bakelite and phenolic molding compounds have wide industrial as well as consumer applications owing to their heat resistant and insulating properties. Growing automotive and electronics industries where these products are extensively utilized will continue driving demand for phenolic resins in the upcoming years. Another key factor boosting the market includes increasing utilization of phenolic resins as a bonding and insulating agent in the construction industry. In addition, the lightweight and fire retardant characteristics of phenolic resins have augmented their use in aviation and aerospace components.
Segment Analysis
The global phenolic resins market is segmented into Novolac resins and Resol resins. Resol resins dominates the market with around 60% share due to its wide application in wood adhesives and laminates. It provides high heat resistance and strength which makes it suitable for applications requiring high bonding strength like laminates, wood adhesives, molding compounds, etc.
PEST Analysis
Political: Stable political policies regarding forestry and agro-based industries in major economies is positively impacting the phenolic resins market.
Economic: Rising construction activities along with increasing demand for lightweight composites from automotive industry is driving the economic growth of phenolic resins market.
Social: Increasing awareness regarding environmental protection and sustainable products is influencing consumers to opt for eco-friendly phenolic resins.
Technological: Developments in resin formulation to enhance productivity, reduce VOC emissions and improve shelf-life of the products are helping key players to strengthen their market position.
Key Takeaways
The Global Phenolic Resins Market Demand is expected to witness high growth on account of rapid urbanization and industrialization in developing regions of Asia Pacific and Central & South America.
Regional Analysis:
The Asia Pacific region is poised to remain the fastest growing as well as dominating regional market during the forecast period attributed to rising construction spending, expanding automotive industry and growing demand from electrical & electronics sector in major economies like China and India.
Key players operating in the phenolic resins market are ABB Ltd, Schneider Electric SE, Siemens AG, and Eaton Corporation plc. Key players are focusing on capacity expansion, new product launches and collaborations to strengthen their foothold in the global market. For instance, in January 2022, Siemens AG announced plans to build a new phenolic resins plant in Poland to cater to the rising demand from electric vehicle and wind turbine industries in Europe.
Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
Money Singh is a seasoned content writer with over four years of experience in the market research sector. Her expertise spans various industries, including food and beverages, biotechnology, chemical and materials, defense and aerospace, consumer goods, etc.