Phenolic Panel Market - Forecasts from 2022 to 2027

The phenolic pump market was valued at US$1.415 billion in the year 2020 growing at a CAGR of 5.62% reaching the market size of US$2.075 billion by the year 2027. Phenolic panels have been gaining popularity as a choice of material in the last couple of years on account of their ability to offer enhanced aesthetic appeal. Moreover, the panels are designed in a way that ensures that the surface does not offer the necessary conditions for microbial growth. Furthermore, panels based on phenolic material are significantly superior in terms of their resistance to scratches, water, etc., thus, offering relatively better durability. As such, the market demand for phenolics has been witnessing an upwards trajectory in the last couple of years, with the growth projection anticipated to be extremely attractive as well. Moreover, phenolic panels are considered to be relatively more environmentally friendly in comparison to their immediate substitute, which further makes them more attractive. However, the significant availability of a variety of substitutes is likely to impact the market's ability to reach its entire potential.

RISING INVESTMENT IN INFRASTRUCTURE DEVELOPMENT

Investment in the development of infrastructure is expected to increase, more specifically, in emerging and developing countries like India, China, and Vietnam, among others. For instance, India and China have been growing at above 6% per annum for the last couple of years, which is indicative of the development of infrastructure and growing urbanization.

Moreover, in the United States, non-residential construction spending has increased from US$535,686,322 million in 2011 to US$814,195 million in 2019 (source: United States Census Bureau), while a similar trend has been noticed in Europe. Thus, the growing investment in the development of infrastructure is expected to continue to drive the growth of the phenolic panels market during the forecast period.

Globally, investment in the construction of commercial infrastructure has been increasing. As indicated in the figure below, the construction of offices, schools, and universities has surged in recent years in Great Britain as the focus on improving human capital and reducing unemployment continues.

Moreover, despite the threat of e-commerce, the preference of individuals to continue with in-store shopping is expected to increase the investment in the construction of malls. It can be reflected from the fact that the China shopping development index rose by 1.3 points to reach 66.1 in the second quarter of 2018, indicating sound market vitality (source: Ministry of Commerce). Similarly, growing tourism arrivals in India are driving the construction of hotels and restaurants, which is further anticipated to drive the market growth.

Rapid urbanization in developing and emerging economies is creating significant revenue opportunities for phenolic panel manufacturers. Moreover, there is a growing trend of shifting manufacturing facilities from the developed region to the Asia-Pacific, more specifically, in countries like India, China, Vietnam, and the Philippines, among others, on account of the ability to offer skilled and relatively inexpensive labour and cheap electricity, thus, attracting, and significant investment in the construction of manufacturing plants. In fact, the amount of buildings started in the manufacturing industry of Japan has increased from 6,826 thousand square meters in 2010 to 11,147 thousand square meters in 2018 (source: Statistics of Japan). In September 2017, the new government of France presented its investment plan (Grand Plan d’Investissement) for the next five years of EUR 57.1 billion, out of which EUR 20 billion will be dedicated to the construction sector. Moreover, the region has also shown an increase in construction activity during recent years. According to the data by the Organization for Economic Co-operation and Development on Total Dwellings and Residential Buildings by Stage of Construction, which started in France, the trend has seen a constant rise since 2014. In France, the area under the shopping space has increased over the years. In fact, the expansion and redevelopment of the established sites have led to an increase in the shopping center floor space, with approximately 300,000 sqm of area delivered in 2016 (source: HCSF, French macroprudential authority). However, the political and economic uncertainty have led to a slowdown in the shopping center development pace in the last couple of years, with a significant number of projects in the pipeline. The anticipated improvement in the political environment over the course of the forecast period is expected to push the development pace. This increase in the number of construction activities has been instrumental in increasing the demand for phenolic panels in the country. Simultaneously, the economic environment in Italy has been difficult recently. However, the structural reforms undertaken by the government are expected to push the employment rate and disposable income higher. The anticipated improvement in disposable income is expected to increase the demand for various products in the country and is likely to attract more investment over the years. For example, Starbucks will open its first store in Italy in 2018, while Xiaomi will open its first store in May 2018, indicating the growing optimism in the government's reforms, which are expected to increase spending on commercial infrastructure.

The demand for phenolic panels in the Middle East and Africa is projected to increase in the next couple of years. Israel recently hosted the Annual Green Building and Smart Cities Conference in September 2016. Furthermore, the country is also going through a booming phase in the construction industry, with the region experiencing a strong demand for homes, which has resulted in a shortage and increased prices. To counter this, the government is implementing reforms to increase construction activity, in the region, which would thus result in an increase in the demand for phenolic panels in the coming years. The government has also taken up the planned construction of 40,000 new dwelling houses under their 2016-2020 five-year plan, and several foreign housing companies are also projected to enter the Israel market in the coming years (Source: OECD Economic Survey, March 2018). This rising construction activity in the region will be the key driver for the increasing demand for phenolic panels in Israel during the forecast period. In an attempt to adapt to the new situation, Saudi Arabia, which has been known for its abundant oil reserves, plans to shift its economic dependence on non-petroleum sectors by investing in other industries like construction and manufacturing - which eventually can be considered a step towards achieving the Saudi Arabian Vision 2030. The demand for phenolic panels in the region will be mainly driven by the growing construction activities in the country. Increasing government initiatives toward the development of green buildings in the country are expected to drive the growth of the phenolic panels market during the forecast period. The country's investment in green buildings is currently the third biggest investment of its kind in the world, and the country is set to become the industry's global leader. Currently, there are multiple projects under construction that are either LEED-certified or LEED registered. According to the Saudi Green Building Forum (SGBF), currently, there are around 30 million sq. ft. of LEED-certified space in the country. All such factors, events, and initiatives are expected to widen the growth opportunities for the market of phenolic panels in the coming years. In the United Arab Emirates, increasing government initiatives and investment towards the adoption of sustainable and green building are expected to drive the growth of the phenolic panels market during the forecast period. The focus on sustainability is considered one of the biggest trends in the GCC's building sector, and this is supported by Dubai's being ranked third in the list of cities in the world with the highest number of green-certified buildings, with over 550 projects under LEED certification and the implementation of the estidama framework in Abu Dhabi vision 2030.

Key Development

• Xtratherm completes the acquisition of Ballytherm's UK and Ireland operations on September 13,2021.
• The K112 Framing Boards and the K107 Pitched Roof Board have been added to the Kingspan Group's Kooltherm K100 line. With their thin thickness, these insulation boards provide low U-values.
• Fletcher Building Ltd. sold Cincinnati-based Formica Group to Broadview Holding. Broadview Holding has increased its reach within North America, Europe, and Asia as a result of this transaction.

Impact of COVID-19

COVID-19 has caused phenolic panel costs to rise and the economy to continue to collapse. Furthermore, shortages in spare parts supply and demand, as well as a lack of investment, have hindered the expansion of the globe during the Pandemic. However, things are gradually improving, which is encouraging market recovery. Exports and imports have been easier in recent months, and important competitors are releasing new products to the market that will help fuel market growth.

SEGMENTATION

By Application

• Interior
• Exterior

By Installation

• Replacement
• New Installation

By End-User

• Residential
• Commercial and Industrial

By Geography

• North America
• United States
• Canada
• Mexico
• South America
• Brazil
• Argentina
• Europe
• Germany
• United Kingdom
• France
• Italy
• Middle East and Africa
• Saudi Arabia
• United Arab Emirates
• Asia Pacific
• Japan
• China
• India
• South Korea