North America and Europe phenolic resin market Expected To Reach $7 billion by 2031—Allied Market Research.

According to a new published report by Allied Market Research titled, “North America and Europe Phenolic resin Market by Type, Application and End-use Industry: Regional Opportunity Analysis and Industry Forecast, 2022–2031,”

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.

Phenolic resins are thermoset polymers as they cure in an altered form from their uncured state and cannot be re-melted in the manner of thermoplastics. Thermoplastics are generally recyclable for this reason, while thermosets are not. Phenolic resins are some of the oldest of the thermosetting resins other than polyester, urethane, melamine, and epoxy. Phenolic resin has become a widely used additive in products including insulating panels, paints, varnishes, circuit boards, and building materials. This trend is anticipated to continue over the projection period as resin is a logical fit for many industrial applications owing to its superior mechanical and thermal qualities.

Phenolic resins are used in many applications both alone and as additives. Their high heat resistance makes them useful as binders in the friction materials of clutch discs and brake pads, as well as in abrasive cut-off wheels and the like. The resins are used as tack enhancers to improve the manufacture of vulcanized products such as tires. They are combined with sand to create metal casting molds. They serve as binding agents in the manufacture of refractory brick.

Phenolic resin found its largest industrial application in the timber industry, where it is utilized as an adhesive in the production of particle boards and plywood. With the introduction of new aesthetic designs and patterns, the furniture industry is always changing. This increases the demand for furniture raw materials, of which wood constitutes the majority contribution. Furthermore, Phenolic resins are the principal binders used in the manufacturing of modern friction materials such as disc pads, brake linings, and clutch facings. Phenolic resins for the friction industry are available as liquids or as powders blended with a cross-linking agent. The properties of these resins may be enhanced by incorporating other polymeric or chemical modifiers. However, non-modified phenolic resins are widely used, owing to their excellent balance of low cost and high performance.

Resin binder is the major organic component of most automotive friction material formulations and may represent between 8% and 20% of the composite by volume, depending on type of friction material.

On the other hand, present price fluctuation in fuel prices and the rise in focus on minimizing health issues caused, owing to phenolic resin products increases a concern among consumers. This hampers use of phenolic resins during the forecast period. Although, this concern could be sorted by development of bio-based feedstock that use sustainable materials such as Lignin for phenolic resin production. Phenolic resins have been produced from bioresources and are used as adhesives in the wood industry. Natural chemicals can significantly reduce harmful impacts on environment and human health.

Increase in demand for phenolic resins in a variety of applications.

Phenolic resins have a wide variety of applications such as molding powders, laminating resins, adhesives, binders, surface coatings, and impregnates. Phenolic resins are good for high-temperature applications where parts must meet fire safety standards. Phenolic resins are used in a wide range of applications, including electronics, ballistics, mine ventilation, offshore water pipe systems, aerospace, rail, and mass transit. Their key properties are low density, low thermal conductivity, excellent corrosion and chemical resistance, a high strength-to-weight ratio, better design flexibility, cost-effective production of complex 3D structures, excellent fatigue, and impact properties, improved acoustic performance, radar/sonar transparency, and low maintenance.

Furthermore, phenolic resins are mainly used in the production of board such as PCB and others. In electrical equipment, it is needed in manufacturing caps, handles, buttons, radio cabinets, furniture, knobs, vacuum cleaner, cameras, ash trays, and engine ignition equipment. It is also used in laminated material such as laminated sheets, rods and tubes are made from fabric, paper, wood veneers impregnated with phenolic. This increase in demand for phenolic resins from a wide number of applications is expected to drive the market growth during the forecast period.

The North America and Europe phenolic resins market is segmented on the basis of type, application, end-use industry, and region. By type, market is divided into resol and novolac. By type, the Novolac resin segment accounted for the largest market share in 2021, owing to its wide range of end use applications in electronics, construction, automotive, and paints. 

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 resins market in 2021. Phenolic resin-based adhesives and binders have a wide spectrum of applications such as in automotive, rubber, furniture, aerospace, and machine tools.

By end-use industry, the electrical & electronics segment accounted for the largest share in 2021, owing to use of phenolic resins for photoresists and circuit board applications.

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. Increase in construction and automotive markets in countries such as France and Germany has benefited the North America and Europe phenolic resin market. 

Key players engaged in development and production of phenolic resins include 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. 

Key Findings Of The Study

• By type, the Novolac segment accounted for the largest market share in 2021, and is expected to grow at a CAGR of 4.8%.
• By application, the adhesives & binding segment accounted for the largest market share in 2021, and is expected to grow at CAGR of 5.4%.
• By end-use industry, the electrical & electronics segment accounted for the largest market share in 2021, and is expected to grow at CAGR of 4.9%.
• On the basis of region, Europe accounted for the largest market share in 2021.

Impact Of Covid-19 On The North America And Europe Phenolic Resin Market

• The COVID-19 pandemic led to the 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.
• 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 remodelling and demand for DIY wood products, thereby increasing the use of phenolic resin coatings and adhesives.