Phenolic Resins or phenol formaldehyde resins (PF) are synthetic polymers produced by the reaction of phenol and formaldehyde. They have high chemical, water, and temperature stability. They are used in many commercial applications such as electronic circuits, automotive tires, and other automotive parts. Phenolic resins are known for their excellent thermal stability and fire resistance, which makes them a popular choice for applications in high-temperature environments.
The Novolac segment dominates the phenolic resins market and is expected to grow significantly over the forecast period. Increasing awareness regarding novolac properties such as lightweight, high thermal stability, along improved heat resistance properties in end-use industries including marine and construction is expected to increase the demand for Phenolic Resins in the forecast period.
In terms of Phenolic resin demand by application, Wood Adhesives dominates the market and is expected to do so over the forecast period due to increasing demand for wood in furniture items. Further, the rising awareness regarding wood adhesive properties such as moisture and water resistance and others in the end-use industries is expected to create growth opportunities for the Phenol Resins market.
The increasing demand for consumer electronics and electrical products is expected to boost the Phenolic Resins demand in the forecast period as they are used to manufacture Oriented Strand board (OSB) owing to their heat resistance and other properties. Phenolic resins have good electrical insulating properties, which make them suitable for use in electrical and electronic applications. They are relatively inexpensive compared to other high-performance materials, which makes them an attractive option for a wide range of applications.
Phenolic resins can emit formaldehyde, which is a potential carcinogen. As a result, there are increasing concerns about the environmental impact and health risks associated with these materials. The Environmental Protection Agency (EPA) has declared to control the use of formaldehyde to produce resins. Under the Clean Water Act (CWA), the EPA has implemented several pollution control programs that will restrict the discharge of formaldehyde or any related pollutants in water.
Asia Pacific is the largest market for Phenolic Resins due to the rapidly increasing end-use industries in the region. The automotive and electrical & electronics industries are boosting in countries like China and India due to the shift of manufacturing bases in these countries. The construction industry is also seeing a boost due to the increasing investments in the building and construction sector. North America and Western Europe are also seeing growth opportunities, owing to the increasing building & construction industry in both regions.
Due to the COVID-19 pandemic, the Phenolic resin market saw a decline owing to the shutdown of manufacturing plants and a decline in demand from the end-use industries. With the ease of lockdowns and trade restrictions, the demand for Phenolic Resins is expected to grow at a steady pace, which in turn will drive the Phenolic Resins market growth.
Kanoria Chemicals & Industries recently announced the commencement of a Phenolic resin plant at Ankleshwar, Gujarat. Bakelite Synthetics is a leading producer of phenolic resins has recently announced a new technology BREAKTHRU™, which is a ground-breaking technology that will reduce the formation of residual formaldehyde content in phenolic resins.
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