Product Code: 69492
The Global Phenolic Resin Market is projected to register a CAGR of 4% during the forecast period (2021-2026).
Due to COVID-19, manufacturing activities were stopped affecting the building and construction industry thus decreasing the demand for phenolic resin insulations in the short term. The COVID-19 pandemic has affected the oil and gas sector due to the temporary lockdown in almost all countries. The consumer electronics furniture industries are also hindered due to difficulties in continued operations due to shortages of workforces and practical difficulties in many social distancing cases. The situation is expected to recover, which is expected to restore the market's growth in the forecast period. The transportation and automotive industry also faced a decline in production and sales due to the travel bans and restrictions and thus affected the phenolic resin market. According to OICA, global production of vehicles in the third quarter of 2020 is around 50 million a significant decrease compared to the production in the third quarter of 2019 which is around 65 million. Owing to all these factors, the phenolic resin market is hindered by the impact of COVID-19.
- Over the medium term, the major factor driving the growth of the market is the increasing demand from the construction and transportation industries.
- On the flip side, the unfavorable conditions arising due to the COVID-19 outbreak are anticipated to impede the growth of the market studied.
- Asia-Pacific is expected to be the largest market due to the increasing consumption of phenolic resin in the end-user industries in the region.
Key Market Trends
Increasing Demand for Molding Applications Driving the Phenolic Resin Market
- Phenolic resins are utilized for their properties, including fire resistance, high elasticity, surface hardness, chemical resistance, and electrical insulation.
- Molding applications are projected to be the quickest developing business sector, due to the chemical resistance provided by phenolic resins in high temperatures or aggressive environments.
- The increasing demand for molding applications of phenolic resins for various purposes, including abrasive grinding wheels, friction linings, and refractory products, due to properties, like high elasticity, heat resistance, and dimensional stability, is driving the market's growth.
- Molding components are widely used in a variety of end-user industries, including household appliances, automotive commutators, and electrical and electronic components. The compounds are used in the manufacture of electrical equipment and kitchenware, which will increase the demand for molding resins shortly due to their excellent dimensional stability.
- The United States is one of the key markets in the phenolic resins market accounting for the demand from the electrical and electronics industry. According to US Census Bureau, the industry revenue of electrical equipment, appliances, and components in the United States in the year 2017 was around USD 122.36 billion and is forecasted to 2024 with a projected value of USD 119.19 billion.
- Government support to cultivate local assembling exercises is driving interest for phenolic resins in the building and construction sector. Moreover, these resins are widely used in household applications, electrical and electronics, compression, and injection molded parts for the oil and gas industry.
- All the aforementioned factors are expected to drive the phenolic resin market during the forecast period.
Asia-Pacific Region to Dominate the Market
- Asia-Pacific is expected to witness the highest growth rate, due to the high consumption of phenolic resins from end-users such as consumer electronics, transportation, furniture, building and construction, and oil and gas in China and India.
- The transportation and automotive industry segment accounts for the largest share of the phenolic resin market. Transportation business across the Asia-Pacific drives the rubber industry thus driving the demand for the market studied.
- India, owing to its emerging economy and increasing population, the electrical and domestic appliances market is increasing thus increasing the demand for phenolic resins market. India's industry revenue of the manufacture of electrical equipment, according to the Ministry of Statistics and Program Implementation (MOPI), in the year 2017 was around USD 4.11 billion and is forecasted to estimated revenue of USD 4.81 billion in the year 2024. Also, the domestic appliances industry revenue in the year 2017 was USD 5.1 billion and is forecasted to the anticipated value of USD 6.01 billion in the year 2024.
- Furthermore, the increasing applications in adhesives and insulation increase the demand for phenolic resins in the building and construction end-user industry. Increasing construction activities in countries such as China and India increases the demand for the market in the region.
- Increasing population and increasing construction increase the demand for furniture in China. According to the National Bureau of Statistics of China, the retail sales of furniture in China in January and February 2021, amounted to approximately 22.3 billion yuan. This equated to around 58.7 percent of the revenue generated in the same period of the previous year.
- Thus, the rising demand from various industries is expected to drive the phenolic resin market in the region during the forecast period.
The phenolic resin market is fragmented. Some of the players in the market include DIC CORPORATION, KANGNAM CHEMICAL, Sumitomo Bakelite Co., Ltd, BASF SE, and SHANDONG LAIWU RUNDA NEW MATERIAL CO.,LTD.
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TABLE OF CONTENTS
- 1.1 Study Assumptions
- 1.2 Scope of the Study
2 RESEARCH METHODOLOGY
3 EXECUTIVE SUMMARY
4 MARKET DYNAMICS
- 4.1 Drivers
- 4.1.1 Increasing Demand from Construction and Transportation Industries
- 4.1.2 Other Drivers
- 4.2 Restraints
- 4.2.1 Unfavorable Conditions Arising Due to COVID-19 Outbreak
- 4.2.2 Other Restraints
- 4.3 Industry Value Chain Analysis
- 4.4 Porter's Five Forces Analysis
- 4.4.1 Threat of New Entrants
- 4.4.2 Bargaining Power of Buyers
- 4.4.3 Bargaining Power of Suppliers
- 4.4.4 Threat of Substitute Products
- 4.4.5 Degree of Competition
5 MARKET SEGMENTATION
- 5.1 Product Type
- 5.1.1 Novolac
- 5.1.2 Resol
- 5.2 Application
- 5.2.1 Molding
- 5.2.2 Adhesive
- 5.2.3 Insulation
- 5.2.4 Other Applications
- 5.3 End-user Industry
- 5.3.1 Automotive and Transportation
- 5.3.2 Consumer Electronics
- 5.3.3 Building and Construction
- 5.3.4 Oil and Gas
- 5.3.5 Furniture
- 5.3.6 Other End-user Industries
- 5.4 Geography
- 5.4.1 Asia-Pacific
- 220.127.116.11 China
- 18.104.22.168 India
- 22.214.171.124 Japan
- 126.96.36.199 South Korea
- 188.8.131.52 Rest of Asia-Pacific
- 5.4.2 North America
- 184.108.40.206 United States
- 220.127.116.11 Canada
- 18.104.22.168 Mexico
- 5.4.3 Europe
- 22.214.171.124 Germany
- 126.96.36.199 United Kingdom
- 188.8.131.52 France
- 184.108.40.206 Italy
- 220.127.116.11 Rest of Europe
- 5.4.4 South America
- 18.104.22.168 Brazil
- 22.214.171.124 Argentina
- 126.96.36.199 Rest of South America
- 5.4.5 Middle-East and Africa
- 188.8.131.52 Saudi Arabia
- 184.108.40.206 South Africa
- 220.127.116.11 Rest of Middle-East and Africa
6 COMPETITIVE LANDSCAPE
- 6.1 Mergers and Acquisitions, Joint Ventures, Collaborations, and Agreements
- 6.2 Market Share/Ranking Analysis**
- 6.3 Strategies Adopted by Leading Players
- 6.4 Company Profiles
- 6.4.1 BASF SE
- 6.4.2 Changshu South-East Plastic Co., Ltd
- 6.4.3 DIC CORPORATION
- 6.4.4 Georgia-Pacific Chemicals
- 6.4.5 Hexcel Corporation
- 6.4.6 KANGNAM CHEMICAL
- 6.4.7 Kolon Industries, Inc.
- 6.4.8 Mitsui Chemicals India Pvt. Ltd.
- 6.4.9 Prefere Resins Holding GmbH
- 6.4.10 SHANDONG LAIWU RUNDA NEW MATERIAL CO.,LTD
- 6.4.11 SI Group, Inc.
- 6.4.12 Sumitomo Bakelite Co., Ltd
7 MARKET OPPORTUNITIES AND FUTURE TRENDS