New York, July 26, 2023 (GLOBE NEWSWIRE) -- The global phenolic resin market size is predicted to grow at a CAGR of over ~5% from 2023 to 2035. The market is projected to garner a revenue of USD 14 billion by the end of 2035, up from a revenue of ~USD 9 billion in the year 2022. The major factor boosting the growth of the market is the growth in the production of rubber. In 2022, the production of rubber in the world increase by about 0.4% over the forecast period which amounted to approximately 30 million tons up from about 28 million tons produced in 2021. Hence, the demand for phenolic resin is growing. These resins boost the rubber goods' durability against abrasion, initial tear strength, rigidity, and toughness, as well as their resistance to heat, oil, and solvents. They also decrease residual compression set. Altered phenolic resins make up the majority of the reinforcing phenolic resins utilized by the rubber industry.
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Moreover, the construction of buildings is also growing. However, the traditional materials used in buildings are replaced with phenolic resin. This could be owing to its energy capability. Phenolic resins possess outstanding characteristics that result in overall energy savings since they provide good thermal insulation, which helps to reduce CO2 emissions. This represents one of the main environmental benefits of phenolic resins in the built environment. Additionally, less trash is generated as a consequence of the items' long-term durability (up to 60 years). In addition, various governments all across the world are working on reducing the consumption of energy. For instance, to encourage energy efficiency, the Indian government has launched the Energy Audit Scheme. The advantages will be enjoyed by businesses and establishments. This program demands the organization's annual energy bill be at least USD 300 Billion and that the energy audit encompasses at least 10% of the total amount of energy consumed.
Phenolic Resin Market: Key Takeaways
- Market in the Asia Pacific region to propel the highest growth
- The Novolac segment to garner the highest growth
- Market in North America region to grow at a notable rate
Growing Demand for Light Weight Vehicles to Boost the Growth of Global Phenolic Resin Market
A key initiative in the growth of the automotive industry is the development of lighter cars. In April 2023, the sale of lightweight vehicles increased to about 85 mn units, globally. Hence, owing to this the demand for phenolic resin is also set to grow. The use of phenolic resin molding compounds as a lightweight alternative to metals in automotive applications is gaining popularity. If the automobile is excessively heavy, the tire's life is going to be cut short, and the brake pads will be damaged. Therefore, it is going to be expensive every time we fix an automobile. With lighter cars, this issue would arise less frequently. Hence, this factor is anticipated to boost the growth of the market.
Phenolic Resin Market: Regional Overview
The global phenolic resin market is segmented into five major regions including North America, Europe, Asia Pacific, Latin America, and the Middle East and Africa region.
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Growing Demand for Electricity to Boost the Growth of the Market in Asia Pacific
The market for phenolic resin in Asia Pacific is set to have the largest growth by the end of 2035. This growth could be owing to the growing demand for electric vehicles. About 5 million electric cars were sold in China in 2022, the country with the largest sales in the Asia-Pacific. In New Zealand in 2022, there were comparatively over 27,000 electric car sales. Electric vehicles contain batteries hence they are more prone to catch fire, Therefore, to make electric vehicles fire resistive the use of phenolic resin. Additionally, the market for phenolic resins is developing as a result of the expanding population and industrialization in the Asian area, which raised demand for these goods.
Rising Construction Activities to Influence the Growth of the Market in North America
The North America phenolic resin market is projected to have notable growth over the forecast period. This growth of the market in this region could be attributed to rising construction activities. Public residential construction investments in the US experienced a considerable rise in value between 2002 and 2021. In 2021, the public sector invested around USD 10 billion in residential development projects. Furthermore, for these resins, particularly in impregnation applications, technological developments exhibited new growth opportunities in this region. A significant component supporting industry expansion is also the increasing replacement of the raw ingredient phenol with bio-based substitutes such as lignin.
Phenolic Resin, Segmentation by Type
- Resol
- Novolac
The novolac segment is anticipated to generate the highest revenue by the end of 2035. The major factor driving the growth of the segment is the growing demand for electronics. In the past three years, worldwide consumer electronics sales of computers (about +33%) and TV sets (approximately +12%) have increased far more than those of cellphones (about +1%) — most likely as a result of COVID-19 restrictions and an increase in time spent working and studying from home. All these electronic products contain novolac phenolic resin.
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Phenolic Resin, Segmentation by End-Use Industry
- Electrical & Electronic
- Automotive
- Lumber
- Building & Construction
The building & construction segment is set to have significant growth over the forecast period. The major factor influencing this growth is the growing construction of buildings. A seasonally adjusted annual rate of 1,491,000 privately owned dwelling units was authorized by building permits in May in the United States. The revised April rate of 1,417,000 is 5.2 percent higher than this, but the May 2022 rate of 1,708,000 is 12.7 percent lower. Further, it is stated that the residential sector consumes a large rate of energy. Hence, with this growth in the segment, the market is also anticipated to grow.
A few of the well-known market leaders in the global phenolic resin market that are profiled by Research Nester are Arclin Inc., Arizona Chemical Ltd, Asahi Kasei Corporation, Ashland Inc., BASF SE, Changchun group, DIC Corporation, DYNEA AS, Georgia Pacific LLC, GUN El Chemical Industry, and others.
Recent Development in the Market
- Arclin Inc., a chemistry-based manufacturer of engineered goods for the building, transportation, agricultural and other industries, announced earlier this year that it had signed an exclusive agreement with INSERCO Industrie Service GmbH for the support and growth of Arclin's South American business. This new partnership would support Arclin's expansion and presence in South American markets by utilising INSERCO's understanding of the sector. The terms of the arrangement were kept private.
- Asahi Kasei Asaclean Americas ("AKAC"), a provider of the most popular purging compounds and concentrates globally, and Asahi Kasei Plastics North America ("APNA"), a top global compounder of innovative engineered polymers and polypropylene, will unite as of April 1, 2023. The United company would operate as APNA, with its headquarters in Fowlerville, Michigan.
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