Formaldehyde: Key market research findings
- Demand for formaldehyde resins drives the market
- Construction segments accounts for the majority market share
- Key vendors—BASF, Bayer, Celanese, Dynea, and Perstorp
Technavio’s market research analysts estimate the global formaldehyde market to grow at a CAGR of almost 6% between 2016 and 2020. The market is primarily driven by the surging demand for formaldehyde resins. Cheaper than the conventional adhesives, formaldehyde resins possess outstanding adhesive strength and moisture resistant properties due to which they are used extensively in furniture and construction applications including the production of particle board and wood panels. Currently, the APAC region accounts for around 62% of the overall market share and dominates the global formaldehyde market. The high demand for formaldehyde from emerging countries due to economic growth, industrial development, and rapid growth of the automotive and plastics industries is expected further fuel growth of the market in this region by 2020.
The new market research report from Technavio presents a breakdown and analysis of the formaldehyde segments by end-user.
“The use of formaldehyde for fuel production in an upcoming trend in the market, especially in China. Formaldehyde is being tested by various companies in China as it can be used as a chemical intermediate for producing fuel from coal. The development and application of this process is projected to have a significant impact on the growth of the market if commercialized successfully during the forecast period,” says Chandrakumar Badala Jaganathan, Lead Analyst, Chemicals & Materials, Technavio Research.
Of late, the construction sector occupies over 65% of the overall market share to dominate the global formaldehyde market. Formaldehyde-based resins are used to produce engineered and composite wood products that are used in countertops, cabinetry, furniture, moldings, shelving, stair systems, wall sheathing, and flooring. This segment of the market is expected to flourish due to the growth of the global construction industry, augmented by rapid increase in population, industrialization, and urbanization.
The key vendors in the global formaldehyde market are BASF, Bayer, Celanese, Dynea, and Perstorp. The global formaldehyde market is highly regulated due to the presence of several global and regional vendors. The level of vendor competition is expected to intensify due to the presence of well-established international vendors in this market.
A more detailed analysis is available in the Technavio report, Global Formaldehyde Market 2016-2020.
We can customize reports by other regions and specific segments upon request.
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