In terms of revenue, the Global Formaldehyde Market is expected to reach by 2030, growing at a CAGR (Compound Annual Growth Rate) of 5.4% from 2023 to 2030.
For the creation of urea-alkyd polymers, Formaldehyde is a crucial ingredient. It is an odorless, flammable chemical substance created when methanol is oxidized. It is used as a binding substance in plywood and medium-density particle boards, which are used to make a variety of furnishings and home goods. Particleboard, plywood, fiberboard, permanent-press textiles, and paper product coatings are a few of its many application areas. It is primarily used in the plywood, automotive, healthcare, and construction sectors. Additionally, Formaldehyde has uses as a solvent, plasticizer, and dehydrating agent. Formaldehyde-based resins create interior molded components and engine-related parts that must endure high temperatures.
There has been a significant increase in the use of products that require Formaldehyde for various uses, including reinforcements, due to rising infrastructure and construction spending. Growth in the industry above will significantly expand the market. Because it can successfully decrease wood wastage and increase the rate of wood utilization, it is a common practice in residential construction. These factors propel the market on a promising path throughout the forecast period. The primary driver of market growth is the expanding construction industry and rising infrastructure spending. It is employed to produce numerous resins, chemicals, and even paper. The market is growing due to the expanding use of resin in multiple uses, including pulp, plastics, and wood products, among others. However, Formaldehyde may have adverse health effects, and there are strict governmental guidelines for the protection of factory employees. These variables may hamper the market's growth.
Key Highlights from the Report
- Based on the Derivatives, the Urea Formaldehyde (UF) segment is anticipated to dominate the Formaldehyde market. The segmental development will be aided by rising utilization in several end-use sectors, including textiles, electrical appliances, foundry sand, paper, agriculture, and wood glue.
- The Building & Construction sub-segment, from the segmentation End Uses, accounted for the largest market share. This segment is likely to flourish owing to the escalating usage due to a rise in tensile strength.
- Asia Pacific held the market share and is anticipated to be the most profitable market during the forecast period due to the quickly expanding automotive and furniture industries.
Due to the extensive Formaldehyde consumption in building, remodeling, and furniture manufacturing, the construction industry dominates the market. However, for many other home furnishings and structures, including moldings, furniture, countertops, cabinets, shelving, steps, wall sheathing, support beams, flooring, and trusses, Formaldehyde-based resins are used to produce composite and engineered wood products. For instance, Shell Australia Pty Ltd (Shell Australia) and its joint venture partner, SGH Energy, approved the development of the Crux natural gas field, off the shore of Western Australia, in May 2022. Crux will supply more natural gas to the current Prelude floating liquefied natural gas (FLNG) plant. The project began in 2022, and the first gas is anticipated to be delivered in 2027.
The United States also has a massive building industry vital to developing infrastructure, energy, utilities, and the commercial, industrial, institutional, and residential sectors. Additionally, Germany leads Europe in terms of its building sector. The country's construction industry has been expanding slowly, primarily due to increased residential construction operations. During the forecast period, there are anticipated substantial growth prospects for non-residential and commercial buildings in the nation. Lower interest rates, rising real disposable incomes, and numerous investments from the European Union and the German government are all expected to contribute to the development.
On the other hand, the major factor impeding market growth is Formaldehyde's high level of toxicity. Its use in the personal care and cosmetics industry has decreased due to its danger. Companies are educating their customers about the benefits and requirements of using the product in accordance with regulatory requirements to raise the consciousness of this problem.
In terms of region, the Asia Pacific region is predicted to dominate the global Formaldehyde market. The region's influence is expected to grow in many industries, including electrical and electronic products, cars, furniture, and adhesives. Additionally, the region's market will expand sustainably as Formaldehyde becomes more and more common due to its lower cost, higher reactivity, and higher performance quality. The incremental market development will be sparked by rising demand from developing nations like China and India. However, during the forecast period, increasing urbanization and improved facilities in the area will drastically alter the growth of the Asia Pacific Formaldehyde market.
The Global Formaldehyde Market is Segmented as follows
- Urea Formaldehyde (UF)
- Phenol Formaldehyde (PF)
- Melamine Formaldehyde (MF)
- 14 Butanediol
- Hexamethylenetetramine (HMTA)
- Other Derivatives
- End Uses
- Building & Construction
- Oil & Gas
- Water Treatment
- Cleaning Products
- Other End Uses
- North America
- Asia Pacific
- Latin America
- Middle East & Africa
List of the Key Players of the Global Formaldehyde Market is
Foremark Performance Chemicals (U.S.), Hexion (U.S.), Georgia-Pacific Chemicals (U.S.), Celanese Corporation (U.S.), BASF SE (Germany), Capital Resin Corporation (U.S.), Evonik Industries AG (Germany), DuPont (U.S.), Alfa Aesar (U.S.), Ashland (U.S.), Perstorp (Sweden), LRBG Chemicals Inc. (Canada)
The Global Formaldehyde Market Scope can be Tabulated as below
|Market Size Provided for Years||2017 - 2030|
|Historic Years||2017 - 2021|
|Forecast Years||2023 - 2030|
|Regions & Counties Covered||
|Report Coverage||Market growth drivers, restraints, opportunities, Porter’s five forces analysis, PEST analysis, value chain analysis, regulatory landscape, technology landscape, patent analysis, market attractiveness analysis by segments and North America, company market share analysis, and COVID-19 impact analysis|