Formaldehyde is a vital feedstock element for the production of urea-alkyd resins. It is widely utilized across end-users like construction, automobiles, plywood, and fabrics. Rising demand across the aforementioned sectors propels the formaldehyde market. Ecological and health concerns regarding formaldehyde are some of the factors, hindering the market.
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Along with these, volatility in the costs of raw materials also negatively impacts the market. Formaldehyde is manufactured near the area of consumption, due to transportation problems across long distances. The EPA in the United States has issued strict directives regarding professional safety and human damage prevention.
Optimistic overviews on construction and rising infrastructural investments have raised demand for the formaldehyde market. The market is trifurcated into applications, end-users, and regions. Applications comprise UF resins, PF resins, MF resins, methylenebis, pentaerythritol, polyacetal resins, and 1, 4-butanediol.
PF resins are projected to lead the market due to their high consumption. They are resistant to fire & water and broadly utilized in the sectors of automotives and construction. Preference for UF resins due to their colour retention; and arc, chemical, & flame resistance features is also driving the formaldehyde market.
End-users have been mentioned above. Construction is an important sector. Here, resins are utilized to make laminator countertops, cabinet doors, and medium density fibreboards. A significant portion of demand also arises from automobiles. Asia Pacific, Europe, North America, and rest of the world are the four regions of the formaldehyde market.
North America is recovering has given demand indications across different sectors. Asia Pacific would grow due to demand from its automotives and construction sectors. Latin America and Europe will experience stable demand in the years ahead.
The worldwide formaldehyde market is hugely fragmented and has multiple players.
It is projected to attain a size of around USD 21.1 billion by 2020, in terms of revenues. Four major players held less than 15 % of the overall incomes in 2013. Some of the prominent ones include Georgia Pacific Corporation, Celanese Corporation, Bayer AG, Huntsman Corporation, and BASF SE.
These players adopt various strategies to occupy significant shares and improve their market foothold in comparison to others.
Information Source: Grand View Research