The global formaldehyde market size is expected to grow from US$ 8.2 Billion in 2021 to US$ 13.5 Billion by 2030 and growing at a CAGR of around 5.8% during the forecast period 2022 to 2030.
Formaldehyde is an important feedstock component used for the production of urea-alkyd resins, which find applications as binding materials for the medium density particle boards and plywood. Formaldehyde is widely used in various industries such as automobile, plywood, construction, and healthcare. Formaldehyde is typically synthesized from methanol which is principally used in the synthesis of resins. Furthermore, it is also used as a solvent, plasticizer, and drying agent.
Growth in construction and infrastructure spending has led to an increase in formaldehyde demand for various components and reinforcement applications. Currently, formaldehyde is gradually being used to manufacture resins, paper,and fertilizers. Some of the most key end-use industries of formaldehyde include automotive, building & construction, agriculture, cosmetics, and chemical. Growth in these industries since the last few years is expected to boost the formaldehyde market in the coming years.
Formaldehyde based composites are also gaining popularity due to its various properties as it significantly improves the rate of wood utilization and minimizes wood waste. However, stringent regulations and growing concerns for safety and health regarding human life as well as the environment are expected to be key challenges for the formaldehyde industry participants.
Based on derivatives, the market is divided into Urea Formaldehyde (UF) resins, Phenol-Formaldehyde (PF) resins, MF resins, polyacetal resins, 1,4-butanediol, pentaerythritol, and methylenebis. PF resins are anticipated to observe the fastest growth during the forecast period due to the high demand and consumption rate for laminate, plywood, and wood processing. Furthermore, it is also used in the aerospace and automobile industry due to its highly stable molding processing ability, optimum mechanical properties, and low cost. Market players are investing in the R& D activities and engage in the development of PF resin-based composite to increase its mechanical properties. However, UF resins dominate the market by considering its value and market share. This can be attributed to its widening application in the production of textiles, paper, rayon, blends, and wrinkle-resistant fabric. UF resins have favorable properties such as economical pricing, high reactivity, and high in performance.
Based on the application, the market is segmented into fibers, solvents, plasticizers, drying agents, resins, and other chemical intermediaries. By application, the resins segment accounted for the maximum share of the market in 2018 and is expected to maintain its dominance during the forecast period. Formaldehyde is used extensively in the manufacturing of phenol formaldehyde resin, urea formaldehyde resins, and melamine formaldehyde resin. These resins are highly utilized in the construction sector due to its properties such as high surface hardness, scratch resistance, low water absorption, high tensile strength, and low cost.
Based on the end-use of formaldehyde, the global formaldehyde market has been divided into consumer goods, automotive, healthcare, construction, and others. In 2018, the construction sector held the maximum share of the market and is anticipated to maintain its dominance during the forecast period. This can be attributed to the usage of formaldehyde in the making process of laminator countertops, cabinet doors, medium density fiberboard, and insulation.
The global formaldehyde market has been segmented into North America, Europe, Asia Pacific, Latin America, and Middle East & Africa. The Asia Pacific region accounted for the maximum share of the market in 2018 and is expected to maintain its dominance during the forecast period. This can be attributed to the high demand for formaldehyde in various industries specially from the automotive and construction sector in the emerging countries such as China, India, and Indonesia. With the growing urbanization in the region, there is an increase in the residential and non-residential projects and the necessity of cars and lightweight vehicles grows. All these factors are responsible for the formaldehyde market growth in the region. North America and Europe are anticipated to observe the steady growth in various sectors during the forecast period.
The market research study on “Formaldehyde Market – Global Industry Analysis, Market Size, Opportunities and Forecast, 2022 – 2030”, offers a detailed insight on the global formaldehyde market entailing insights on its different market segments. Market dynamics with drivers, restraints, and opportunities with their impact are provided in the report. The report provides insights into the global formaldehyde market, its derivative, application,end-use, and major geographic regions. The report covers basic development policies and layouts of technology development processes. Secondly, the report covers global formaldehyde market size and segment markets by derivative, application,end-use, and geography along with the information on companies operating in the market. The formaldehyde market analysis is provided for major regional markets including North America, Europe, Asia Pacific, Latin America and Middle East and Africa. For each region, the market sizes for different segments have been covered under the scope of the report.
Key players operating in the formaldehyde market are Alder S.p.A, BASF SE, Bayer Crop Science, Celanese AG, Dynea AS, Foremark Performance Chemicals, Georgia-Pacific Chemicals LLC, Huntsman International LLC, Johnson Matthey Process Technologies, Momentive Specialty ChemicalInc., and PerstorpOrgnr. Mergers, acquisitions, partnerships, and innovative product launch are the key strategies adopted by the industry players to enhance market share. Research and development activities of the universities and companies are finding alternatives to formaldehyde free products due to toxicity associated with it. Hence, this may negatively impact market growth.
Market By Derivative
Middle East & Africa
Formaldehyde is used for the production of urea-alkyd resins, which find applications as binding materials for the medium density particle boards and plywood.
Formaldehyde is widely used in various industries such as automobile, plywood, construction, and healthcare.
The global formaldehyde market size accounted for US$ 8.2 Billion in 2021.
The formaldehyde market is anticipated to grow over 5.9% CAGR during the forecast period 2022 to 2030.
Asia Pacific held maximum share in 2018 for formaldehyde market.
Alder S.p.A, BASF SE, Bayer Crop Science, Celanese AG, Dynea AS, Foremark Performance Chemicals, Georgia-Pacific Chemicals LLC, and Huntsman International LLC are the top players operating in the formaldehyde market.
Fibers, solvents, plasticizers , drying agents, resins and other chemical intermediaries are the applications of formaldehyde market.