The North America and Europe phenolic resin market was valued at $4.4 billion in 2021, and is projected to reach $7.0 billion by 2031, growing at a CAGR of 4.7% from 2022 to 2031.
The phenolic resins are one of the most popular and versatile high-volume resin systems. Although they were developed at the very beginning of the polymer era, they have been developed for an increasing number of applications. Phenolic resin is manufactured using phenol and formaldehyde. Phenolic resins are often dark-colored from yellow to dark red and have an excellent price/performance profile.
Novolacs and resoles are the two main categories of phenolic resins. Both phenolic resins are highly water & chemical resistant and have high-temperature stability up to 300° to 350° C. Furthermore, they have outstanding dimensional stability, high resistance to creep at elevated temperatures, low humidity absorption, high dielectric strength, and an excellent price/performance characteristic.
Furthermore, it provides excellent mechanical characteristics such as flame resistance, flexibility, affordability, high thermal stability, and resistance to water and chemicals. Its several desirable characteristics have made it the ideal material in a variety of sectors, including automotive, aerospace, construction, electronics, industrial equipment, paints, and coatings. Phenolic resins are used to make laminates, insulation panels, laminated paper, and waterproof adhesives & paints.
There are numerous drivers for the North America and Europe phenolic resin market. The expansion of phenolic resins is dependent on the rise in demand for coatings and abrasives in the automobile industry. The North America and Europe phenolic resin market is also driven by an increase in demand from the electronics and power industries for phenolic laminate.
It is anticipated that demand for transformers and electronic appliances will rise as a result of population growth and industrialization. This means more phenolic resins are used for producing laminates. In automotive end uses, phenolic resins are also used in making automotive tires, metal coatings, and seals. Furthermore, it is anticipated that the use of phenolic resin-based components in electric vehicle designs in the future would create new opportunities for market expansion. However, due to issues about the manufacturing of phenolic resins' impacts on the environment and human health, the phenolic resin production is anticipated to be hindered. On the other hand, the introduction of alternative eco-friendly and sustainable feedstock for phenolic resins replaces the need for petroleum feedstock in phenolic resin synthesis. This is anticipated to minimize environmental pollution and reduce production-related health and safety risks.
The Europe region has dominated the phenolic resins market, and it is anticipated to grow at a highest CAGR from 2022 to 2031. This growth is attributed to a variety of factors, including the expansion observed in the construction and automotive industries as well as the rising consumption of molding compounds in countries like Germany and France. Also, legislations issued in several countries of the Europe region to construct energy efficient buildings has complimented the overall demand of phenolic resins, thereby resulting in the rapid progression of the phenolic resins market.
Due to the rising use of composites in mass transit, aerospace, and the marine industry, the market for phenolic resin is anticipated to grow further. Due to the limited mechanical strength and durability of new products, research is still needed to replace conventional raw materials with clean materials. Therefore, the development of bio-based phenolic resins has lucrative potential for the expansion of the phenolic resins market in the North America and Europe regions.
Furthermore, The growing metal packaging industry is a major end-use industry of phenolic coatings and will benefit the segmental growth during the forecast period. Metal packaging has a wide range of end uses such as food, beverages, cosmetics, and industrial. In the processed food industry, food cans are coated with phenolic resins. Oil or alkyd resins modified with 25-100% of resol or Novolac resins form basis of anti-corrosive undercoats for both sea and land transport. Modified phenolic resins are also used in antifouling marine paints in combination with chlorinated rubber coating systems. All such applications drive segmental growth.
Rise in demand for abrasive and friction materials
Growth in metal fabrication, automotive and industrial machinery industry across the globe is expected to increase demand for abrasive tools for grinding, polishing, cutting, and other tasks. This is expected to increase the demand for grinding wheels based on phenolic resin coatings. Phenolic resin bonds are still used in production of grinding wheels and big saran wheels among other tool-room applications. It is also used in other bonded and coated abrasives. Novolac resins enhance performance of abrasive materials and improves its shelf life. Toughness and elasticity of coated abrasives is further enhanced with modified phenolic resins. All such factors positively influence the North America and Europe phenolic resin market.
Increase in demand from automotive sector for coatings and parts
The North America and Europe phenolic resin market is driven by the growing global automotive industry in regions of Europe and North America. The growth has increased demand for automotive components that make use of phenolic resins. Phenolic resins are blended with other materials to form a modified phenolic adhesive that is used in the automotive industry. Both Resol as well as Novolac class of phenolic resins will be used in adhesive applications during the forecast period, owing to high durability and dimensional stability.
In automotive end uses, phenolic resins are also used in making automotive tires, metal coatings, and seals. Phenolic resin-based molded components improve fire safety and overall performance of a vehicle. Moreover, phenolic resins improve vulcanization and formability in automotive tires. Moreover, the future use of phenolic resin-based components in electric vehicle designs will also offer fresh opportunities for market growth.
The North America and Europe phenolic resin market is segmented on the basis of type, application, end-use industry, and region. By type, market is divided into resol and novolac. By application, it is divided into friction, adhesives & binding, coatings, felt bonding, foam, abrasives, substrate saturation, foundry, and others. On the basis of the end-use industry, the market is divided into electrical & electronics, automotive, lumber, building & construction, and others. Region-wise, it is analysed across North America and Europe.
Key players engaged in development and production of phenolic resins are Akrochem Corporation, Allnex GMBH, Ashland Global Holdings Inc, ASK Chemicals GmbH, Bakelite Synthetics, BASF SE, Georgia-Pacific Chemicals, Hexcel Corporation, Kraton Corporation, and Prefere Resins Holding GmbH.
North America and Europe phenolic resin market, by type
On the basis of type, the Novolac resin segment accounted for the largest market share in 2021, and is expected to maintain its dominance during the forecast period. This is owing to the growth of the global electronics industry is expected to benefit growth of this segment during the forecast period.
Novolac in North America and Europe Phenolic Resins is projected as the most lucrative segment.
North America and Europe phenolic resin market, by application
By application, it is divided into friction, adhesives & binding, coatings, felt bonding, foam, abrasives, substrate saturation, foundry, and others. The adhesives & binding segment accounted for the largest revenue share in the North America and Europe phenolic resin market in 2021 as phenolic resins are considered as a very important class of adhesives as they are quite inexpensive and are available in both liquid formulations and films. While friction segment is expected to grow at the highest CAGR during the forecast period owing to it offers many benefits such as superior heat resistance and adhesive performance.
Adhesives and Binding North America and Europe Phenolic Resins is projected as the most lucrative segment.
North America and Europe phenolic resin market, by end-use industry
On the basis of end-use industry, the electrical & electronics segment accounted for the largest share in 2021 owing to the high demand for phenolic resins for photoresists and circuit board applications. While lumber segment is expected to grow at the highest CAGR during the forecast period as the high demand for phenolic resins is plywood, laminated veneer lumber (LVL), oriented strand board (OSB), and other structural wood products.
By End-use Industry
Electrical and Electronics End-use is projected as the most lucrative segment.
North America and Europe phenolic resin market, by region
Region-wise, Europe accounted for the largest market share in the market and is projected to grow at a CAGR of 4.9% during the forecast period. An increase in construction and automotive markets in countries such as France and Germany has benefited the North America and Europe phenolic resin market.
Europe is projected as the most lucrative market.
Impact Of Covid-19 On The Phenolic Resin Market
The COVID-19 pandemic led to temporary long-term halting of manufacturing and construction activities in major economies such as the U.S., Canada, and Germany. A similar economic decline was witnessed in other countries as well. This decline in manufacturing output and postponing of construction projects deeply hampered the North America and Europe phenolic resin market.
Europe is a key supplier of phenolic resins, thus restrictions put on European countries to contain and minimize spread of the virus reduced demand for adhesives, coated abrasives, laminates, coatings, and other phenolic resin-based products. Furthermore, the automotive industry was one of the worst-hit sectors globally, with production rates plummeting, coupled with a drastic reduction in consumer demand for new vehicles. This also hit the phenolic resins market. However, with people spending more time at home, there was a jump in remodeling and demand for DIY wood products, thereby increasing the use of phenolic resin coatings and adhesives.
Key Benefits For Stakeholders
- The report provides an in-depth analysis of the North America and Europe phenolic resin market trends along with the current and future market forecast.
- This report highlights the key drivers, opportunities, and restraints of the market along with the impact analyses during the forecast period.
- Porter’s five forces analysis helps analyze the potential of the buyers & suppliers and the competitive scenario of the phenolic resin industry for strategy building.
- A comprehensive North America and Europe phenolic resin market analysis covers factors that drive and restrain the market growth.
- The qualitative data in this report aims on market dynamics, trends, and developments.
North America and Europe Phenolic Resin Market Report Highlights
By End use industry
By KEY MARKET PLAYERS
According to leading CXOs, industries such as electronics, wood, automotive, construction, and aerospace are expected to propel demand for phenolic resins during the forecast period. There are various grades of phenolic resins currently supplied by key players. Moreover, high demand for phenolic resin demand from the electronics and power industry for phenolic laminates and a rise in demand for abrasive and friction materials. These are the key factors driving the North America and Europe phenolic resin market
Modified phenolics is one such new product. Additionally, owing to its excellent thermal and fire resistance, it is perfect for applications involving building insulation. As the construction rate rises in Europe region, the demand for insulation boards based on phenolic resins is expected to increase. Key players are focusing on developing and launching phenolic resins based on bio-based feedstock and look to strengthen the North America and Europe phenolic resins market.
Furthermore, the industry is characterized by a high number of new market entrants that are seeking to tap lucrative opportunities in the North America and Europe market while existing players are entering into strategic collaborations to increase capacities & expand their reach into emerging markets. Joint venture, merger, and acquisition activities in the industry have increased significantly over the past decade. Companies constantly seek to establish long-term contract agreements with trusted partners for sustainable business operations in North America and Europe regions.