Growing production levels in the automotive industry globally has continued to pose significant challenges in terms of innovation and developments for the leading manufacturers. As the automotive production level is shifting back to high gear, the leading manufacturers are focusing on integrating leading technological features. In addition, growing need to manufacture various components in the aviation and construction industry is expected to contribute towards the growth of the global formaldehyde market significantly.
According to Transparency Market Research (TMR), the global formaldehyde market is expected to represent 36.6 million tons by 2026 end.
Demand to Remain High in Automotive and Aviation Industry
As growing demand for automotive products equipped with leading technology continues to remain high, leading manufacturers are increasingly opting for specialty chemicals in order to develop cutting-edge technological solutions. Demand for formaldehyde is expected to gain significant momentum with the growing need for integrating specialty chemicals during the production process in the automotive industry. In addition, increasing demand for resins during the production of various components in the automotive industry is further expected to fuel demand for formaldehyde significantly. In order to integrate innovative technological solutions during the production process, manufacturers are increasingly witnessing demand for specialty chemicals such as formaldehyde.
Manufacturers are focusing on incorporating strategies to boost sales and gain a competitive edge over the other market players. In order to equip the automotive and aviation products with better mileage, performance and efficiency, manufacturers are increasingly concentrating on integrating various advanced features such as water-proof and weather-proof components. Increasing application of specialty chemical products such as formaldehyde is expected to improve the manufacturing quality.
Construction Industry to Impact Global Market Growth Significantly
As the need to manufacture the interiors, runners, car exteriors, dashboards, windshields, seats, electronics, lights and windshield continue to increase, demand for the producing plastics is expected to remain high among the aviation and automotive manufacturers. Increasing requirement of airbags, films, insulation for noise abatement, coolants, tires and batteries will also continue to rev up demand for the specialty chemicals such as formaldehyde in the aviation and automotive industry during the forecast period.
Besides the automotive and aviation industry, demand for formaldehyde will continue to remain concentrated in the construction industry. As the requirement of constructing commercial, government and residential building arise, constructors increasingly prefer opting for integrating specialty chemicals such as formaldehyde. Demand for specialty chemicals such as formaldehyde continues to increase attributed to growing need for constructing the strand boards, cabinet doors and fiberboards. In addition, production of the insulation binders and foams in the construction and oil and gas industry is further expected to rev up demand for specialty chemicals such as formaldehyde. These factors are expected to impact the growth of the global formaldehyde market during the forecast period.
Formaldehyde to Find Largest Application in Production of Resins
In terms of the application of formaldehyde, resins are likely to gain maximum traction in the market. By 2026 end, resins are projected surpass 14,700’000 units. Formaldehyde is used on a large scale in the production amino resins such as melamine-formaldehyde resin, urea-formaldehyde resin and urea-melamine formaldehyde resin. These resins are being used on a large scale in furniture and construction industries owing to its resistance to moisture and incredible adhesive strength.
The construction industry is likely to emerge as the largest user of formaldehyde between 2017 and 2026. The construction industry is projected to exceed 16,100’000 units by 2026 end. Formaldehyde-based resins are used on a large scale to produce wood products that are used in cabinetry, shelving, flooring, etc. these resins also provide better bonding strength in lesser quantity.
Urea Formaldehyde (UF) resins and concentrates are likely account for nearly half of the volume share by 2017 end. UF resins are increasingly used as adhesives in various industries because it is not only cheaper but also possess exceptional strength and moisture resistant properties. It is also used as an anticaking agent for urea fertilizer production and also as a disinfectant for crops and soil.
Asia Pacific Excluding Japan (APEJ) is likely to be the largest region in the global market for formaldehyde between 2017 and 2026. Owing to the increasing use of formaldehyde in various industries including automotive, construction, furniture, etc.
Leading market players operating in the global formaldehyde market include Foremark Performance Chemicals, Johnson Matthey Process Technologies, Momentive Specialty Chemical Inc., Huntsman International LLC, Alder S.p.A, Dynea AS, Perstorp Orgnr, Georgia-Pacific Chemicals LLC, BASF SE, and Celanese AG.
Global Formaldehyde Market- Overview
Formaldehyde is a simple chemical compound made of oxygen, hydrogen, and carbon. It is extensively used in manufacturing building materials and various household products. Formaldehyde is also finding application in the production of amino resins and these resins are cheap than conventional adhesives and also possess outstanding strength and moisture resistant properties. Hence, the demand for these resins is increasing in the construction and furniture industry.
Being strong and flammable, formaldehyde is witnessing increasing use in fuel production. This trend is also resulting in the significant growth of the market. Various research and development activities are being done as many countries are looking for new and cheap alternatives to oil. Many companies in China have also started testing formaldehyde to be used as a chemical intermediate for producing fuel. This is also expected to result in the significant growth of the global formaldehyde market.
Global Formaldehyde Market- Research Methodology
The report on the global formaldehyde market provides in-depth analysis of the market taking into account the data obtained from primary and secondary research. The report has used top-down and bottom-up approach to provide estimated market size. The report also offers insights into all the key factors playing an important role in the growth of the market. The report also includes trends, market opportunities, factors driving the global market and challenges.
The market experts from basic and related industries were also interviewed to get a clear picture of the market and the answers and opinions received were crosschecked with the available data sources. Both micro-economic and macro-economic factors were also taken into account to provide vital information on the global as well as regional formaldehyde market.
The report also provides segment-wise analysis, country-wise analysis and key companies operating in the market. SWOT analysis along with Porter’s five force analysis and market attractiveness analysis is also included in the report. The data in the report was also gathered with the help of secondary sources such as investor presentations and annual reports. Incremental opportunity is also provided in the report in order to analyze various market opportunities.
The report also offers competitive analysis on the key companies operating in the global formaldehyde market. Various opportunities and challenges faced by the companies are also given in the report. The report enlightens on the types of products being offered, and long-term and short-term strategies of the key companies. The report also provides details on the regulations imposed on the market by various regulatory bodies across the globe. All the information on the market provided in the report can help companies in planning future business strategies in order to remain competitive in the market.
Global Formaldehyde Market- Segmentation
The global market for formaldehyde is segmented on the basis of derivatives, application, end use vertical, and region. Based on the derivatives, the market segmentation includes Urea Formaldehyde (UF) Resins & Concentrates, Phenol Formaldehyde (PF) Resins, Polyoxymethylene/ Polyacetal (POM), Pentaerythritol, Methylene Diphenyl Diisocyanate (MDI), 1,4 Butanediol (1,4 BDO), Paraformaldehyde, Hexamine, Melamine Formaldehyde (MF) Resin, and other derivatives.
Based on the application, the market is segmented into fibers, solvents, plasticizers, drying agents, resins, and other chemical intermediaries. By end use vertical, the segment includes consumer goods, automotive, healthcare, construction, and others.
Region-wise the global formaldehyde market is segmented into Latin America, North America, Europe, Asia Pacific Excluding Japan (APEJ), the Middle East and Africa (MEA), and Japan.
The report offers a detailed profile of all the leading market players in the global formaldehyde market such as BASF SE, Celanese AG, Perstorp Orgnr, Georgia-Pacific Chemicals LLC, Alder S.p.A, Dynea AS, Momentive Specialty Chemical Inc., Huntsman International LLC, Foremark Performance Chemicals, and Johnson Matthey Process Technologies.