Phenolic Resin Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

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, as there were shortages of workforces and practical difficulties in many social distancing. The situation is expected to recover, which is likely to restore the market 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, thus affecting the phenolic resin market. According to OICA, global production of vehicles in the third quarter of 2020 was around 50 million, a significant decrease compared to the production in the third quarter of 2019, which was around 65 million. Overall, the phenolic resin market has been hindered by the impact of COVID-19.

Key Highlights

• 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.

Key Market Trends

Increasing Demand for Molding Applications is 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 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 the US Census Bureau, the industry revenue of electrical equipment, appliances, and components in the United States in 2017 was around USD 122.36 billion, and it is expected to reach USD 119.19 billion by 2024.
• Government support to cultivate local assembling exercises is driving the 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.

The 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 businesses across Asia-Pacific drive the rubber industry, in turn driving the demand for the market studied.
• Due to its emerging economy and increasing population, the Indian electrical and domestic appliances market is growing, thus increasing the demand for phenolic resins. India's industry revenue in the manufacture of electrical equipment, according to the Ministry of Statistics and Program Implementation (MOPI), in 2017 was around USD 4.11 billion, and it is forecast to witness a revenue of USD 4.81 billion by 2024. Additionally, the domestic appliances industry's revenue in 2017 was USD 5.1 billion, and it is anticipated to value at around USD 6.01 billion by 2024.
• Furthermore, the increasing application in adhesives and insulation increases the demand for phenolic resins in the building and construction end-user industry. The increasing construction activities in countries such as China and India increase 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% 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.

Competitive Landscape

The phenolic resin market is fragmented. Some players in the market include DIC CORPORATION, KANGNAM CHEMICAL, Sumitomo Bakelite Co. Ltd, BASF SE, and SHANDONG LAIWU RUNDA NEW MATERIAL CO. LTD.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support