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Global Formaldehyde Market was Valued at US$ 9.2 Bn in 2019 and it is Expected to Reach More than US$ 13.49 Bn by 2028, Likely to Grow with the CAGR of 4.3% During the Forecast Period.
Formaldehyde is a chemical compound produced by the oxidation of methanol. It offers high bonding properties, superior physical & chemical properties which find applications in glues & adhesives, coatings, fiberboard, and certain insulation materials. The extensive use of Formaldehyde in various industries such as plywood& furniture, automobile, textile, and construction is likely to drive the market.
Increasing Demand From Various End-Use Industries is Anticipated to Drive the Demand for Formaldehyde Market
Formaldehyde is extensively employed in various end-use industries such as building & construction, chemical, agriculture, personal care & cosmetics, health care, and automotive.
The formaldehyde is one of the important chemicals for building blocks in the manufacturing furniture, and construction sector, due to its strength and moisture resistance. Formaldehyde-based resins also provide better dimensional stability and mold resistance. The increasing demand from all these sectors is expected to drive the formaldehyde market during the forecast period.
Furthermore, the automotive industry requires long-lasting adhesive solutions to ensure that the vehicle offers high performance and provides effective abrasion resistance. Formaldehyde derivatives such as MF resins and UF resins are high thermosetting adhesives that offer cost-effectiveness and effective thermal stability. In addition, these products are also used in speaker grills, sunroof systems, window winders and mirrors as they contribute to the low weight of the vehicles. This will boost the demand for formaldehyde over the forecast period.
However, the growing concerns over the adverse effects of the product on human health have prompted regulatory bodies to impose restrictions on its usage. Furthermore, fluctuation in raw material pricing, main methanol are expected to be key challenges for industry participants.
Urea Formaldehyde Resins Segment Held the Significant Share in Global Formaldehyde Market In 2019
Urea-formaldehyde resin derivative segment is expected to hold an over 22% market share in terms of revenue. The Urea-formaldehyde resins are widely used in industry as binders for the production of bonded wood products, particularly particleboard, plywood, and various fiberboards are increasingly gaining traction in the wood industry due to their cost-effectiveness and robust strength. As it offers properties such as scratch resistance, high tensile strength, high heat distortion temperature, high surface hardness, elongation at break, and volume resistance urea-formaldehyde resins are used as adhesives in various end-use industries, these resins are gaining prominence as a key wood adhesive.
The Resins Application Segment is Expected to Witness Highest Growth in the Formaldehyde Market Across the Globe
In terms of volume, the resins application segment held a major share of the formaldehyde it is anticipated to expand at the highest growth rate of 5.1% during the forecast period. The rise in global consumption of formaldehyde resins on a large scale for construction and remodeling activity and furniture production. Due to the excellent thermal and chemical resistance, resins are being used in manufacturing airplane and automobile parts boost the demand for a resin over the forecast period.
Asia Pacific Region is Expected to Dominate the Formaldehyde Market During the Forecast Period
The Asia-Pacific formaldehyde market had over 40% of the market share value in 2019. The market has grown considerably during the past few years and is expected to grow at a more rapid pace during the forecast period. Currently more than half of the total global market is part of the manufacturing adhesives sector, because of its property of high reactivity, wonderful performance, and low price. China is the largest consumer of formaldehyde resin in Asia-Pacific, having a consumption share of more than 70% of the total Asia-Pacific demand in 2019. The emerging construction and automotive markets. The growing demand for automobiles across emerging economies of the globe has prompted the demand for formaldehyde in the automotive industry. The Asia Pacific is expected to contribute significantly to the global building & construction industry, in terms of value sales growth, thereby propelling the formaldehyde market.
While Europe and North America cumulatively held a market share of more than 30% of the market in 2019. The North American market has shown signs of steady demand in various segments.
The formaldehyde market is fragmented, with the presence of a few large-sized players and a large number of small players operating in China. The formaldehyde market is dominated by Hexion Inc., PJSC Metafrax, BASF SE, and Ercros S.A.These four companies cumulatively accounted for more than a 20% share of the formaldehyde market in 2019.
The prominent players in the global formaldehyde market are Bayer AG, Celanese Corporation, Dynea Oy, BASF SE, Perstorp Formox AB, Georgia Pacific Corporation, Huntsman Corporation, and more. Hexion Inc., Momentive Specialty Chemical Inc., PJSC Metafrax, and Ercros S.A.
Formaldehyde Market Key segments:
Formaldehyde Market, by Derivative
- Urea-formaldehyde Resin
- Phenol Formaldehyde Resin
- Melamine Formaldehyde Resin
- Methylene Diphenyl Diisocyanate
- Others (including Trimethylol Propane and Neopentyl Glycol)
Formaldehyde Market, by Application
- Drying Agents
- Other Chemical Intermediates (including Amino and Phenolic Resins)
Formaldehyde Market, by End Use
- Building & Construction
- Personal Care & Cosmetics
- Others (including Photography)
Formaldehyde Market, By Region
- North America
- Asia pacific
- Middle east and Africa
- Latin America