According to a new report published by Transparency Market Research "Phenolic Resins (Resol, Novolac and Others) Market for Wood-adhesives, Molding Compounds, Laminates, Insulation and Other Applications - Global Industry Analysis, Size, Share, Growth,Trends and Forecast, 2013 - 2019", the global demand for the phenolic resins was valued at USD 9.19 billion in 2012 and is expected to reach USD 13.36 billion in 2019, growing at a CAGR of 5.6% between 2013 and 2019.
Demand from the automotive sector is one of the primary drivers of the phenolic resins market. Molding compounds are in demand from the automotive sector, as they amplify vehicle efficiency , and promotes fire-safety. Molding compounds are employed to manufacture various parts in an automotive such as suspension, seats and bottom plate. Automotive industry also accounts for the indirect demand of phenolic resins derived from the tire industry. However, the volatility of crude oil price remains a thorn in the flesh for this market, as it is dependent on crude oil for its feed-stock. Moreover environmental regulations regarding formaldehyde emissions is a restraint to this industry, and investments have to be made to conform to environmental emission standards.The revival of construction industry in the US, along with the growth in the Asia-pacific region is an opportunity for the market, as phenolic resins are extensively used in the wood-adhesive market as well as the laminates market which are directly related to the construction industry growth. New technologies such as nano-technology has the ability to expand applications for phenolic resins by improving the structural and functional attributes of phenlic resins
The growing demand for phenolic molding compounds from automotive industry has been a major driving factor for the growth of the phenolic resins market. The demand for compact and fuel efficient, utility vehicles in emerging economies as well as the developed economies have driven phenolic resins consumption in this sector.
Resol resins was the largest product segment for optical coatings accounting for over 48% of the overall demand for phenolic resins. Novolac resins was a close second in terms of global demand. The demand for resol resins is high owing to its application in the wood-adhesives and laminates industry.
Wood-adhesive was the largest application segment for phenolic resins in 2012 and accounted for over 34% of the global demand for phenolic resins. The industry is likely to account for the highest share of phenolic resins consumtion in future. However laminates and molding compounds are the fastest growing application segments of phenolic resins.
Asia Pacific followed by the North America region dominated the global demand for phenolic resins in 2012. The trend is expected to continue during the forecast period. Asia Pacific is expected to exhibit strong growth owing to the presence of manufacturing economies with increasing human development index. Rest of the World segment on the other hand is expected to display the fastest growth rate, owing to the enormous growth opportunities and limited market share.
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