[162 Pages Report] The phenolic resin market size is estimated to be USD 11.30 billion in 2016 and is projected reach USD 15.01 billion by 2021, at a CAGR of 5.8% between 2016 and 2021. Phenolic resin is a synthetic polymer obtained by the reaction of phenol or by substituting phenol with formaldehyde. It is a class of thermosetting resins. Phenolic resin is mainly categorized as resol resin, novolac resin, and others (bio-phenolic resins, cresol novolac, and formaldehyde-free phenolic resins). The areas of applications can broadly be categorized into wood adhesives, foundry, molding, laminates, insulation, and others (abrasives, friction materials, foam, and printing ink). The growing automotive industry mainly drives the phenolic resin market. The increase in demand for tires is also contributing to the growth of the market. Environmental regulation regarding formaldehyde emission is the key restraint to the growth of the phenolic resin market. Adoption of new nanotechnology created various opportunities for phenolic resin manufacturers.



Automotive to be the largest end-use industry during the forecast period.



Based on end-use industry, the phenolic resin market has been segmented into automotive, building & construction, furniture, electrical & electronics, and others (aerospace, marine, metallurgical, and rubber end-use industries). The increasing use of phenolic resin in applications such as brake pads, drum linings, clutch facing, and disc brake is driving the market in the automotive segment. In the automotive end-use industry, phenolic resin is mainly used in disk brake caliper piston, brake linings, clutch facing, automotive felts, brake pads, drum linings, oil filters, and under-the-hood parts (engine, transmission, and brake parts). Phenolic resin is widely used in the automotive industry to improve reinforcement, vulcanization, and formability. It offers superior heat resistance, high friction resistance, and adhesive performance, making it suitable for use in brake linings, clutch plates, and disc brake pads. The growth of the automotive industry drives the phenolic resin market, globally. The growing demand for tires and lightweight vehicle parts is also driving the market in the automotive industry.

Wood adhesives to be the largest application during the forecast period.



Based on application, the phenolic resin market has been segmented into wood adhesives, foundry, molding, laminates, insulation, and others (abrasive, friction materials, foam, and coatings). The demand for phenolic resin in the wood adhesives application is primarily due to the growing construction industry. The plywood subsegment holds the maximum share of the market in the wood adhesives segment.



Resol resin to be the largest type during the forecast period.



On the basis of type, the phenolic resin market has been segmented into resol resin, novolac resin, and others. The resol resin segment is projected to lead the market during the forecast period. This dominance is expected to continue during the forecast period owing to its advanced properties such as high heat resistance, high tensile strength, and excellent moldability. In addition, its physical and chemical properties make it suitable to be used for niche applications such as offshore oil drilling and friction, fueling the growth of the phenolic resin market.



APAC is the largest phenolic resin market globally. APAC is the largest phenolic resin market, globally. It is projected to register the highest CAGR between 2016 and 2021 due to strong economic development, followed by substantial investment in industries such as automotive, building & construction, furniture, and electrical & electronics. Asia-Pacific is the most promising market and is expected to be the same in the coming years. The continuous rise in the manufacturing of products for use in the region and exports drives the demand for phenolic resin. With economic contraction and saturation in the European and North American markets, demand is shifting to the Asia-Pacific region. Phenolic resin manufacturers are targeting this region, as it is the strongest regional market. China is the leading producer and consumer of phenolic resin in the region.

Market Dynamics

Advanced properties of phenolic resin

The key factor driving the phenolic resin market is its advanced properties. Phenolic resin is increasingly being used in various industries owing to its enhanced properties such as high heat resistance, high moldability, mechanical strength, low toxicity of smoke, and ability to blend with polymers. For instance, phenolic resin is extensively used in automobile and electrical switches due to its property of high heat resistance. The low thermal conductivity of phenolic resin makes it suitable to be used as insulation materials. Phenolic resin is water resistant, hence used as durable binders and adhesives in structural wood panels and as binders in mineral wool insulation. Furthermore, its high thermal stability and fire resistant properties make it suitable to be used in the automotive and construction industries for application such as brake linings, insulation foams, foundry binders, and composites.

Properties of phenolic resin can be modified to suit any application by altering the catalysts used during manufacturing. Thereby, superior properties boost the demand for phenolic resin, globally. Thus, it is widely used in various industries owing to its advanced properties, driving the phenolic resin market.

Growing automotive industry in Asia-Pacific

The growing automotive industry in Asia-Pacific drives the phenolic resin market. Phenolic resin is mainly used in brake pads, drum linings, disc brake, and clutch facing among others. The increasing demand for automobiles can be attributed to the growing disposable income and industrial growth in this region. There has been a consistent rise in the number of vehicles used in this region since the past decade.

The demand for automobiles is mainly increasing in major economies such as China, India, and Japan. Hence, the growing automotive industry is propelling the growth of the phenolic resin market in the Asia-Pacific region. The key countries contributing to the growth in this region include China, India, Japan, and Indonesia. India was the sixth-largest motor vehicle/car producer globally in 2013. During 2014�2015, there were 2.6 million units of passenger vehicles sales registered in India, with 0.65 million commercial vehicles, 16.0 million two-wheelers, and 0.53 million three-wheelers. Companies such as GM, Tata Motors, VW Group, Toyota, Honda, and Hyundai are expanding their production capacities. In 2014, the motor vehicle production in Japan increased by 1.5%. Also, the demand for the passenger as well as the commercial vehicles grew by 3.5% in the same year. Hence, this high growth in the automotive sector is fueling the demand for phenolic resin.

Increasing demand for phenolic resin from tire industry

Phenolic resin is widely used in the tire industry. It is employed in tires made for passenger cars, trucks, aircraft, and other vehicle components such as belts and hoses. It is widely used in tire manufacturing for tackifying, reinforcing, curing, bonding, and adhesives. Various companies are also manufacturing environmentally friendly coating resins and additives for the tire industry. For instance, Allnex produces a broad range of technical resin such as ALNOVOL and CYREZ for the tire industry. The product is environmentally friendly, lowers adhesion systems, and also helps in removing odor issues. Thus, the growing demand for phenolic resin in the tire industry is contributing to the growth of the phenolic resin market, globally.

Environmental regulations

Environmental regulations regarding formaldehyde emission are one of the key factors restricting the growth of the phenolic resin market. It is a colorless, flammable gas at room temperature and has a strong odor. Formaldehyde and phenol are the primary raw materials used for the production of phenolic resin. It is utilized in the manufacture of composite wood products (hardwood plywood, particleboard, and medium density fiberboard), building materials & insulation, paints & coatings, and paper products among others. However, exposure to it may cause adverse health effects. Phenol is corrosive to body tissue, and poisoning can occur from inhalation, ingestion, or absorption. As a result, the use of formaldehyde and phenol is heavily regulated, especially in North America and Europe. Environmental Protection Agency (EPA), under the Toxic Substances Control Act (TSCA), monitors the use of formaldehyde for the production of phenolic resin. Under the Clean Water Act (CWA) in the U.S., EPA has implemented pollution control programs that restrict the discharge of formaldehyde or related pollutants into the water.

Also, environmental emission regulations about formaldehyde can hinder the growth of the industry owing to significant investments required to comply with emission standards.

Adoption of nanotechnology



Increasing adoption of nanotechnology in the manufacturing of phenolic resin is expected to enhance its functional and structural characteristics. Adoption of nanotechnology would also expand its potential application during the forecast period. Nanotechnology is being incorporated into the production process of the phenolic resin product to improve its functional and structural attributes. Thus, advancements in nanotechnology in phenolic resin are expected to bring opportunities for the growth of the market.



Growing need for fuel-efficient and lightweight vehicles



Increasing need for lightweight and fuel-efficient vehicles offers lucrative opportunities for phenolic resin manufacturers. Continuous developments in the automotive and transportation industries have created a huge demand for lightweight and fuel-efficient vehicles. For making automobiles lightweight and fuel-efficient, companies have to use dissimilar lightweight materials such as aluminum, steel, composites, or plastics to provide it the best light weighting opportunity. Use of adhesives enables less use of fasteners, such as welds, rivets, or bolts, in a vehicle. Adhesives and composites help in decreasing the extra weight that these metal bodies and fasteners would add to vehicles. The use of these high-quality materials and adhesives increases the crash and impact resistance of vehicles, making them much safer in the event of an accident. These opportunities would create a high demand for phenolic resins during the forecast period.



Scope of the Report

This report categorizes the global phenolic resin market based on type, application, end-use industry, and region.

On the basis of type, the phenolic resin market has been segmented as follows:

Resol resin Liquid Resol resin Solid Resol resin

Novolac resin

Others (Bio-phenolic resin, cresol resin, free-formaldehyde phenolic resin)

On the basis of application, the phenolic resin market has been segmented as follows:

Wood adhesives

Foundry

Molding

Laminates

Insulation

Paper Impregnation

Coatings

Others

On the basis of end-use industry, the phenolic resin market has been segmented as follows:

Automotive

Building & construction

Furniture

Electrical & electronics

Others

On the basis of region, the phenolic resin market has been segmented as follows:

Middle East

Europe

North America

Asia-Pacific

Africa

South America

Major strategies identified in the global market include the following:

Expansions

Joint venture

Key Market Players

Key Questions Addressed by the Report

Who are the major market players in the phenolic resin market?

What are the regional growth trends and the largest revenue-generating regions for the phenolic resin market?

Which are the significant regions for different industries that are projected to witness remarkable growth for the phenolic resin market?

What are the major types of phenolic resin that are projected to gain maximum market revenue and share during the forecast period?

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