Urea Formaldehyde Is Estimated To Witness High Growth
Market Overview:
Urea formaldehyde is an important thermosetting resin used in a variety applications including particleboard, plywood, and medium density fiberboard (MDF). It is used as an adhesive in woodworking, carpentry and adhesive applications. It provides high strength, thermal resistance and moisture resistance properties at economical price.
Market Dynamics:
The urea formaldehyde market is expected to witness significant growth over the forecast period owing to rising construction activities across the globe. For instance, according to International Monetary Fund (IMF), the global construction market size was valued at US$ 7.8 trillion in 2021 and is expected to reach US$ 15 trillion by 2030, expanding at a compound annual growth rate (CAGR) of 6%. This rapid growth in the construction industry is prompting increased demand for wood panel products such as particleboard, plywood, and MDF boards, which in turn is supporting growth of urea formaldehyde market. Additionally, expanding automotive industry is also contributing to market growth as urea formaldehyde is used in manufacturing of auto components. However, stringent environmental regulations regarding formaldehyde emissions may hamper market growth over the forecast period.
The global Urea Formaldehyde Market Share is estimated to be valued at US$ 15,209.73 Mn in 2023 and is expected to exhibit a CAGR of 3.2% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
SWOT Analysis
Strength: Urea formaldehyde provides excellent thermal insulation and moisture resistance. It is also cost effective as compared to other adhesives and has high bond strength. The product exhibits good mechanical properties and improved durability.
Weakness: Urea formaldehyde emits toxic fumes of formaldehyde when heated, which can cause several health issues. Strict environmental regulations in developed regions regarding formaldehyde emissions may hamper the market growth.
Opportunity: Growth in construction industry worldwide due to rising infrastructure development projects is expected to drive the demand. Increasing application in manufacturing of particleboards and fiberboards for furniture and building materials industry offers lucrative opportunities.
Threats: Availability of substitutes like phenol formaldehyde and methanolamine affects the sales of urea formaldehyde. Volatility in raw material prices may increase the overall production cost.
Key Takeaways
The global urea formaldehyde market is expected to witness high growth, exhibiting CAGR of 3.2% over the forecast period, due to increasing infrastructure development worldwide. Growing construction of commercial and residential buildings drives the consumption.
Regional analysis
Asia Pacific accounts for the largest share in the global market and is expected to maintain its dominance during the forecast years. This is attributed to rapid industrialization and urbanization in India and China. North America is anticipated to grow at a significant rate due to rising construction spending in the US.
Key players
Key players operating in the urea formaldehyde market are Hexion, BASF SE, Georgia-Pacific Chemicals, Hexza Corporation Berhad, Metadynea, Jiangsu sanmu group Co. Ltd, Ashland, ARCL Organics Ltd., Kronoplus Limited, Advachem, Qafco, Sabic, Acron Group, Asta Chemicals, Melamin KemiÄna Tovarna D.D. KoÄevje, and Arclin Inc.
Read More: https://blogger-veritas.blogspot.com/2023/11/adhesives-are-fastest-growing-segment.html
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