The global formaldehyde market is prognosticated to expand at a moderate rate of CAGR 4.8% over the forecast period 2017 to 2026, states an upcoming report by Transparency Market Research (TMR).
The global formaldehyde market is expected to reach the sales value up to 36.6 mn tonnes. The rapid industrialization is boosting the demand for building constructions, thus, may aid in the growth avenues of the global formaldehyde market.
The global formaldehyde market is segmented into fibre, solvents, drying agents, plasticizers, and resins. Among all these, resin segment is anticipated to boost the sales due to as formaldehyde is used extensively in resin production such as melamine formaldehyde resins, urea melamine formaldehyde resins, and urea formaldehyde resins. All these resins are being used by construction and furniture sectors due to their capabilities to offer good adhesive strength and moisture resistance.
Automotive Sector to Fuel Formaldehyde Market
Formaldehyde market is used as a raw material in automotive industry; this might help in pushing the global formaldehyde market.
While considering manufacturing of vehicles the automotive companies must consider all the properties such as durability, aesthetics, safety, light weight, and better efficiency. All these factors can be taken care by formaldehyde.
Formaldehyde is used in making of molded interior which makes the vehicle light weight and enhances the fuel efficiency, thus may help the global formaldehyde market grow in the forecast period.
Further, formaldehyde is used in exterior primer, brakes pads, clear coat paints, and fuel components. The use of formaldehyde make the vehicles not just light weight but highly durable, owing to the growth in the global formaldehyde market in the upcoming years.
Here, the automotive manufacturing companies replace the metal with polyoxymethelene which is a plastic derived from formaldehyde. Since metal cannot take various forms and shapes that a vehicle would need, the automotive industry uses polyoxymethelene. Thus, there are possibilities of grand growth avenues in the global formaldehyde market.
Almost 3000 thermo plastic components are derived out of formaldehyde and these are used in making various parts of vehicles. Thus, might provide growth opportunities to the global formaldehyde market. Technological advances have led to increasing adoption of formaldehyde market and may continue to grow in the next few years.
Rising concerns over its impact on the environment may dampen the growth in the global formaldehyde market. However, its use in oil and gas equipment as insulation is expected to contribute to expansion of the global formaldehyde market in the upcoming years.
Asia Pacific to be Ahead in Global Formaldehyde Market
The global formaldehyde market is anticipated to be led by Asia Pacific during the forecast period. The growth can be attributed to rapid industrialization that is leading to numerous constructions. Also, swift urbanization has led to increase in demand for public and private transport, owing to increasing demand for cars and other light weight vehicles. These factors are expected to play a role in the growth avenues of the global formaldehyde market during the forecast period.
Some noteworthy players operating in the global formaldehyde market are Huntsman International LLC, Momentive Specialty Chemical Inc., Georgia-Pacific Chemicals LLC, Foremark Performance Chemicals, BASF SE, Dynea AS, Johnson Matthey Process Technologies, and Celanese AG. These companies are looking forward to introduce innovative and sustainable solutions that are not hazardous to the environment. Such strategies may help them in gaining a foothold in the competitive global formaldehyde market.