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Automotive market drives global phenolic resin demand

Demand from the automotive sector is one of the primary drivers of the phenolic resins market according to a new report published by Transparency Market Research (Albany, NY). "[Phenolic] molding compounds are in demand from the automotive sector as they amplify vehicle efficiency, and promote fire-safety," says the consulting firm.

PlasticsToday Staff

August 12, 2014

1 Min Read
Automotive market drives global phenolic resin demand

Demand from the automotive sector is one of the primary drivers of the phenolic resins market according to a new report published by Transparency Market Research (Albany, NY). "[Phenolic] molding compounds are in demand from the automotive sector as they amplify vehicle efficiency, and promote fire-safety," says the consulting firm. "Molding compounds are employed to manufacture various parts in an automotive such as suspension, seats and bottom plate." Demand for compact and fuel efficient, utility vehicles in emerging economies as well as the developed economies is also said to be driving phenolic resins consumption in this sector.

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Auto industry is driving demand for phenolic molding compounds.

The report, "Phenolic Resins (Resol, Novolac and Others) Market for Wood-adhesives, Molding Compounds, Laminates, Insulation and Other Applications - Global Industry Analysis, Size, Share, Growth, Trends and Forecast, 2013 - 2019", pegs global demand for phenolic resins at a value of $9.19 billion in 2012 with a forecast compound annual growth rate of 5.6% between 2013 and 2019 expanding the market to $13.36 billion in 2019.

On the minus side, environmental regulations governing formaldehyde emissions is an inhibitor for the phenolic resin industry, with investments required to conform to tougher environmental emission standards.

Asia Pacific followed by North America dominated global demand for phenolic resins in 2012. The trend is expected to continue during the forecast period. Asia Pacific is expected to exhibit strong growth owing to the presence of manufacturing economies with increasing human development indices.

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