The phenol market is expected to register a CAGR of over 4% during the forecast period. Growing demand for Bisphenol-A is driving the market. On the flip side, a ban on BPA in the United States and Europe is hindering the growth of the market.
- The largest single market for phenol is in the production of Bisphenol-A (BPA), which is manufactured from phenol and acetone. BPA is, in turn, used to manufacture polycarbonate (the largest and fastest-growing use for BPA) and epoxy resins. Both polycarbonate and epoxy resins are used in many different industries and in countless items that we encounter every day.
- The Asia-Pacific region is expected to dominate the global phenol market and is also forecasted to be the fastest-growing region over the forecast period.
Key Market Trends
Bisphenol-A Product Type to Drive the Market
- Bisphenol-A (BPA), a colorless crystalline solid organic compound, is used primarily as a strengthener in polycarbonate plastics and epoxy resins. Additionally, it is used for unsaturated polyester, polysulfone, and polyetherimide.
- Increasing demand for polycarbonate and epoxy resins in various end-user industries, such as paints and coatings, adhesives, electrical and electronics, packaging, and other end-user industries, is one of the major factors responsible for the growth of Bisphenol-A (BPA) market, thereby, for the growth of phenol market.
- Epoxy resins are created by mixing BPA and epichlorohydrin (ECH). Owing to their versatility, high resistance to chemicals, durability, adhesion, toughness, high electrical resistance, strong durability at both low and high temperatures, and ease they offer while pouring on cast without forming any bubbles, epoxy resins are becoming an integral part of various commercial and industrial sectors.
- One of the major applications of epoxy resins is in the paints and coatings industry. Epoxy paints and coatings include anti-corrosive primers, primer tie coats, fire-resistant coatings, and heat-resistant coatings. They are commonly used for construction (including flooring), shipbuilding, water and sewage treatments, as well as home appliances.
- By the year 2023, it is forecasted that the volume of polycarbonate market will reach 6,141.32 kilo metric tons while that of epoxy resin market will reach 4,639.94 kilo metric tons.
- Thus, growing application of epoxy resins is likely to increase the demand of Bisphenol-A and that is in-turn driving the market for phenols.
Asia-Pacific Region to Dominate the Market
- Asia-Pacific region represents the largest market for phenol due to its extensive use of BPA which finds its application in manufacturing polycarbonates and epoxy resins. The BPA market is anticipated to be driven by automobiles and the construction industry during the period.
- Urbanization, increasing consumer spending on comfort, aesthetic appearance, and functionality coupled with the rising disposable income has resulted in an increased demand for furniture, automobiles, household & industrial appliances, and agricultural equipment, which is expected to boost the regional market share growth.
- Phenol’s largest producer and consumer in the world has been China from the Asia-Pacific region. Furthermore, advantages like low operating costs, cheap labor, etc. are expected to further boost China’s phenol market.
- A total of 300 major construction projects in Beijing have been announced, in 2019. These 300 projects included 100 infrastructure projects, 100 projects focusing on the improvement of people's livelihoods, and 100 projects for high-end technological industries. The investment of the projects is expected to reach USD 35 billion.
- Hence, the rising demand from various industries in the region is expected to drive growth of the phenol market during the forecast period.
The Global Phenol Market is fragmented. Some of the players in the market include Royal Dutch Shell PLC, Solvay, Mitsubishi Chemical Corporation, Mitsui Chemicals Inc., and Cepsa.
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