According to The Brainy Insights, the global phenolic resin market is projected to grow from USD 11.1 billion in 2021 to USD 15.5 billion by 2030, at a CAGR of 3.8% during the forecast period 2022-2030. Asia Pacific region emerged as the largest market for the global phenolic resin market with a 41.3% share of the market revenue in 2021. The Asia Pacific region currently dominates the phenolic resin market due to the rising investment in the construction and building sector. This region is the strongest is targeted by key manufacturers and also phenolic resins are widely used in the transportation and automotive industry which is also driving the growth of the market in the region.
Phenolic Resin Market Size by Product Type (Resol and Novolac); By Application (Adhesives & Binding, Foundry, Molding, Laminates, Coatings, Foam, and Others), and by End User (Electrical & Electronics, Automotive, Lumber, Building & Construction, Others), Region, Global Industry Analysis, Share, Growth, Trends, and Forecast 2022 to 2030
Leading companies in the industry include Gunei Chemical Industry Co., Ltd, Allnex GMBH, Kolon Industries Inc., Asahi Yukizai Corporation, Kraton, Prefere Resins Holding GmbH, Sumitomo Bakelite Co. Ltd., ASK Chemicals, Seiko PMC Corporation, and Bakelite Synthetics among others which are offering greater opportunities and are continuously focused on new product developments and venture capital investments to obtain market share.
The product type segment of the phenolic resin market is divided into Resol and Novolac. The resol segment dominated the market with a market share of around 63% in 2021. The resol segment is growing owing to the cost-effectiveness of the resol resins so that they can be used in most applications. The application segment of the phenolic resin market is divided into adhesives & binding, foundry, molding, laminates, coatings, foam, and others. Over the forecast period, the adhesives & binding segment is expected to grow at the fastest CAGR of 6.3%. The adhesives & binding made from phenolic resins are water and moisture-resistant which makes it good to be used in household applications that drive segmental growth. The end-user segment of the phenolic resin market is divided into electrical & electronics, automotive, lumber, building & construction, and others. In 2021, the automotive segment dominated the market, accounting for around 32% of the global market share and a market revenue of 3.5 billion. There are several innovations in the automotive industry which make use of phenolic resins as they are fire-resistant and make lightweight adhesives to be used in metal-made vehicles.
The rising demand for fire resistance and electrical insulation in making electrical appliances is driving the market growth. Phenolic resins in the transportation sector are being used for manufacturing rubber and friction materials as they are durable and lightweight. However, the outbreak of Covid-19 challenged the growth of the market as several manufacturing sites were put on hold during the risk of virus contamination among workers. Nevertheless, the market started growing rapidly when the lockdown was eased and trade restrictions were removed.