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The formaldehyde market is estimated to grow at a CAGR of 6.86% between 2022 and 2027. The size of the market is forecast to increase by 10.15 million tons. The growth of the market depends on several factors, including the growth in the construction industry, the high production and consumption of formaldehyde in China, and the growth in the automotive industry.
This report extensively covers market segmentation by derivative type (urea formaldehyde, phenol formaldehyde, melamine formaldehyde, polyoxymethylene, and others), end-user (construction and furniture, automotive, and others), and geography (APAC, North America, Europe, South America, and Middle East and Africa). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.
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Technavio categorizes the global formaldehyde market as a part of the global specialty chemicals market. The parent global specialty chemicals market covers companies engaged in the manufacturing of various types of products under organic and inorganic chemicals. The global specialty chemicals market covers products and companies engaged in high-value-added chemicals used in the manufacture of a wide variety of products, including, but not limited to, fine chemicals, additives, advanced polymers, adhesives, sealants, specialty paints, pigments, and coatings. Our research report has extensively covered external factors influencing the parent market growth during the forecast period.
The growth in the construction industry is notably driving the market growth, although factors such as the fluctuating price of methanol may impede the market growth. Our researchers analyzed the data with 2022 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
Key Formaldehyde Market Driver
The growth in the construction industry is the key factor driving the global formaldehyde market growth. Formaldehyde is mainly used in the production of resins, which find use in the construction industry. Resins like urea formaldehyde, phenol formaldehyde, and melamine formaldehyde are used for manufacturing building materials. The construction industry is the major end-user of formaldehyde globally, with a share of more than 65%. Hence, the growth of the construction industry, which is driven by emerging economies, a growing population, and increasing disposable income, largely drives the global formaldehyde market.
According to the United States Census Bureau, China had the largest construction market in 2020 and is expected to remain the largest construction market globally by 2025. Growing opportunities in the residential construction segment remain a major driver for the global construction industry. The increasing spending on construction activities will raise the demand for formaldehyde products, which will drive the growth of the global formaldehyde market during the forecast period.
Key Formaldehyde Market Trend.
The advances in technology are the primary trend in the global formaldehyde market. Formaldehyde is produced from methanol, which is the primary raw material, by two processes: based on the silver catalyst and based on the metal oxides catalyst. Hence, the fluctuating prices of methanol pose difficulty for the manufacturers of both methanol and formaldehyde. With the increasing demand for formaldehyde and increasing concerns about methanol price, it is important to develop new production technologies for formaldehyde that do not use methanol.
One of the key vendors of the global formaldehyde market, BASF, along with Heidelberg University, LMU, Munich, planned a joint research project for developing catalyst systems that will allow the selective hydrogenation of carbon dioxide to formaldehyde. Another new technology in formaldehyde production is the turbocharger concept by Johnson Matthey. The advances in technologies pertaining to formaldehyde production methods are emerging trends in the global formaldehyde market.
Key Formaldehyde Market Challenge
The fluctuating price of methanol is a major challenge to the global formaldehyde market growth. Methanol is the key raw material of formaldehyde. Hence, the price fluctuations of methanol directly impact the price of formaldehyde, which, in turn, affects the profit margins of manufacturers as well. Methanol Gulf Coast benchmark price showed sudden fluctuations in 2017-2018. The price observed a steep fluctuation till April 2020.
The price fluctuation of methanol can be attributed to two reasons, such as price fluctuation of natural gas impacts methanol price, as it is the key raw material for methanol production. Similarly, the mismatch in the demand-supply of methanol is another reason for the fluctuating price of methanol. The tighter supply of methanol does not fulfill the demand for methanol. Thus, the fluctuation in methanol prices is one of the major challenges faced by the global formaldehyde market.
Key Formaldehyde Market Customer Landscape
The report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Global Formaldehyde Market Customer Landscape
Vendors are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
akzonobel.com - The company offers formaldehyde solutions for construction applications.
The report also includes detailed analyses of the competitive landscape of the market and information about 15 market vendors, including:
Qualitative and quantitative analysis of vendors has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize vendors as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize vendors as dominant, leading, strong, tentative, and weak.
Based on derivative type, the market is segmented into urea formaldehyde, phenol formaldehyde, melamine formaldehyde, polyoxymethylene, and others. The market share growth by the urea formaldehyde segment will be significant during the forecast period. Urea formaldehyde is also known as urea methanol. It is formed by reacting urea and formaldehyde in the presence of some mild base, such as pyridine. It is a thermosetting synthetic resin. It is mainly used as a resin and adhesive in various end-user applications such as plywood, particle boards, coatings, decorative lubricants, and molding compounds. Urea formaldehyde is used as an adhesive, as it is highly reactive, shows great performance, and is cost-effective.
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The urea formaldehyde segment was valued at 8.62 million tons in 2017 and continue to grow by 2021. Urea formaldehyde is mainly used in particle boards but is expected to grow rapidly in the adhesives and coatings sector. It is used to glue wood together in furniture or other wood materials. Thus, the increasing penetration of urea-formaldehyde in the automobiles and electrical appliances industries is expected to drive the global formaldehyde market during the forecast period.
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APAC is projected to account for 69% of the global market share growth by 2027. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.
APAC accounted for the largest share of the global formaldehyde market in 2020. The high demand for formaldehyde in the construction, furniture, and automotive industries in China, India, South Korea, Japan, and Singapore is contributing significantly to the growth of the formaldehyde market. The increasing focus on development, rapid industrialization, and the growing automotive industry, especially in China and India, are expected to drive the demand for formaldehyde in the region.
This report forecasts the contribution of all the segments to the growth of the market. In addition, we have included the COVID-19 impact and the recovery strategies for each segment. COVID-19 led to an upsurge in the demand for APAC. However, most APAC countries lifted lockdown restrictions in Q3 of 2020, and mass vaccination drives and government funding for small and mid-size enterprises (SMEs) further led to the normal operation of various sectors such as construction and automobile would proliferate the demand for formaldehyde in the region during the forecast period. Therefore, the recovery of the market is expected to propel the demand for formaldehyde during the forecast period.
The report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027. The market has been segmented by Derivative Type (Urea formaldehyde, Phenol formaldehyde, Melamine formaldehyde, Polyoxymethylene, and Others), End-user (Construction and furniture, Automotive, and Others), and Geography (APAC, North America, Europe, South America, and Middle East and Africa).
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Formaldehyde Market Scope |
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Report Coverage |
Details |
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Page number |
182 |
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Base year |
2022 |
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Historic period |
2017-2021 |
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Forecast period |
2023-2027 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 6.86% |
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Market growth 2023-2027 |
10.15 million t |
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Market structure |
Fragmented |
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YoY growth (%) |
6.01 |
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Regional analysis |
APAC, North America, Europe, South America, and Middle East and Africa |
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Performing market contribution |
APAC at 69% |
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Key countries |
US, China, India, Russia, and Germany |
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Competitive landscape |
Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks |
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Key companies profiled |
Akzo Nobel NV, Ashland Inc., BASF SE, Bitrez Ltd., Celanese Corp., Dynea AS, Ercros SA, GEO Specialty Chemicals Inc., Hexion Inc., Hindustan Organic Chemicals Ltd., INEOS Group Holdings SA, Koch Industries Inc., Lanxess AG, LCY Chemical Corp., Methanol Chemicals Co., Perstorp Holding AB, Polisan Holding AS, and Thermo Fisher Scientific Inc. |
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Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and Market condition analysis for the forecast period. |
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Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Derivative Type
7 Market Segmentation by End-user
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
Research Framework
Technavio presents a detailed picture of the market by way of study, synthesis, and summation of data from multiple sources. The analysts have presented the various facets of the market with a particular focus on identifying the key industry influencers. The data thus presented is comprehensive, reliable, and the result of extensive research, both primary and secondary.
INFORMATION SOURCES
Primary sources
Secondary sources
DATA ANALYSIS
Data Synthesis
Data Validation
REPORT WRITING
Qualitative
Quantitative
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