Phenolic resins are synthetic polymers that are thermally cured polymers made by reacting phenol or substituted phenol with formaldehyde. They are commonly used as wood adhesives in the manufacturing of engineered wood products such as plywood, laminated veneer lumber, insulation products, and molding compounds. They are known for their excellent heat resistance and dimensional stability.

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:
One of the key drivers propelling the growth of the phenolic resins market is the rising application of these resins in wood adhesives. Phenolic resins are highly preferred for manufacturing wood adhesives due to their excellent qualities such as high heat resistance, dimensional stability, and water resistance. They are widely used as an adhesive in wood products such as plywood, laminated veneer lumber, particleboard, and medium density fiberboard. The global wood adhesives market has witnessed huge growth over the past few decades, owing to the growing woodworking and furniture industries. According to statistics, wood adhesives accounted for over 35% of total phenolic resin consumption in 2020. The growth in wood adhesives demand is directly influencing the growth of the phenolic resins market.

SWOT Analysis

Strength: Phenolic resins have strong binding properties and provide excellent thermal insulation and resistance to heat, chemicals and moisture. They offer durability and are easy to mold into complex shapes. They can also be modified to suit a variety of application requirements.

Weakness: Phenolic resins emit toxic fumes when heated and can cause skin and respiratory irritation during production. They may breakdown or discolor over time when exposed to sunlight. Phenol, the primary raw material used in resin production, is a hazardous chemical.

Opportunity: Rising usage of phenolic resins in automobile and construction industries due to their properties such as heat resistance and compression strength provide growth opportunities. Growing demand for eco-friendly resins from end-use industries also presents an opportunity for innovation in green resin formulations.

Threats: Stringent environmental regulations regarding resin production and disposal pose threats. Substitutes such as epoxy and melamine resins also threaten market growth in some application areas. Volatility in crude oil and phenol prices affects resin production costs.

Key Takeaways

The Global Phenolic Resins Market Size is expected to witness high growth. 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.

Asia Pacific dominates the global phenolic resins market and is expected to remain the largest and fastest growing regional market during the forecast period. This can be attributed to increasing construction activities, robust growth of the automotive industry and rising electrical and electronics manufacturing in China, India and other Asia Pacific countries.

Key players operating in the Phenolic Resins market are ABB Ltd, Schneider Electric SE, Siemens AG, and Eaton Corporation plc. These companies are focusing on new product development and capacity expansions to meet the growing demand for phenolic resins from end-use industries. For instance, in 2023, ABB Ltd plans to commission a new resin production plant in India to cater to the Asian market.

The global Phenolic Resins market is dominated by large international players. Mergers and acquisitions are common strategies adopted by key players to gain footprint in diverse application industries and geographical regions. For example, in 2022, Siemens AG acquired C&S Electric, an Indian switchgear company, to strengthen its position in the fast growing Indian power sector.

For More Insights, Read: https://www.newsstatix.com/phenolic-resins-market-demand-growth-and-regional-outlook-by-2030/