Formaldehyde Market

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The Global Formaldehyde Market is valued at USD 7.9 Billion in 2022 and is projected to reach a value of USD 11.4 Billion by 2030 at a CAGR (Compound Annual Growth Rate) of 5.4% over the forecast period.

Formaldehyde is a naturally occurring organic compound with the formula CH2O and a chemical structure H−CHO. The pure compound is pungent and colorless that can polymerize spontaneously into paraFormaldehyde. The global Formaldehyde market is expected to grow significantly due to rising utilization within various sectors, including building and construction, automotive, furniture, textile, healthcare, oil and gas, agriculture, water treatment, and cleaning products. Factors such as increased utilization of Formaldehyde in manufacturing disinfectants, vaccines, and personal care products. Additionally, these products are used for producing mouthwash and toothpaste owing to their antibacterial properties. Rising demand for these products during the forecast period is expected to increase the footprint of the Formaldehyde market during the forecast period.

The global demand for Formaldehyde is expected to surge owing to demand from various end-use industries. Formaldehyde offers excellent performance and is a solid bonding agent at an affordable rate. Rising demand for adhesives and glues owing to a budding construction application will increase the footprint of the global Formaldehyde market. Furthermore, Formaldehyde comes in various forms, including molecular Formaldehyde, trioxane, paraFormaldehyde, and methanediol. Rising demand from the painting and coating industry combined with a growing automotive industry within the Asia Pacific region is expected to contribute to the global market's scope.

Rising advancements in the paints sector are being developed to offer a superior coat within architecture, automotive, and electronic applications will drive the growth of high-performance paints and coating. Formaldehyde derivates, including paraFormaldehyde, are used in manufacturing paints and coats. These factors will contribute to the global Formaldehyde market during the forecast period. However, the higher toxicity exhibited by Formaldehyde will cause hindrances to the growth of the global market. Due to its hazardous nature, Formaldehyde applications have become extremely limited within the personal care and cosmetic sector. These factors are expected to constrain the growth of the global Formaldehyde market during the forecast period.

Economic Insights

A global recession is anticipated to begin in 2023, according to the Center for Economic and Business Research (CEBR) and several other organizations. Several advanced economies are predicted to contract due to rising borrowing costs to combat inflation. The annual World Economic League Table published by the British consultancy estimated that the world economy was worth more than USD 100 trillion. Since February 2014, Russia and Ukraine have been at war (together with different Russian separatist elements within Ukraine). The situation changed when Russia began an all-out assault on the Ukrainian peninsula by advancing soldiers and firing artillery. As Russia started building up a significant military force close to the border with Ukraine, several observers foresaw this continuing strike.

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1. Rising Technological and Developments to Propel Market Growth: The research and technological developments (RTD) related to various applications of Formaldehyde derivates for treating an organic fraction of municipal solid waste (OFMSW) will create opportunities for the global Formaldehyde during the forecast period. Prominent players are also focused on developing a wider product portfolio to catering a wider consumer base. Manufacturers are continuously increasing efforts to ensure mission-critical projects are running smoothly.

2. Catalytic Oxidation Systems: An ongoing trend of catalytic oxidation systems is increasing as they help manage Formaldehyde by-products. These equipment providers are working with Formaldehyde manufacturers to examine various pollution control remedies. This has led to the increasing popularity of catalytic oxidation systems for managing VOC control.

3. Increased Spending in Building & Construction Sector to Widen Market Growth: The forecast period will witness an increased utilization of Formaldehyde within the building and construction sector. The growing infrastructure and construction sector has been witnessed on a global scale. The rising popularity of in-home construction projects is on the rise. These help in effectively reducing wood wastage and increasing the utilization of wood.

4. Widening Applications: Formaldehyde is used to manufacture various resins, fertilizers, and paper. Increased usage of Formaldehyde in various applications such as pulp, plastics, and wood products is expected to increase the global market's footprint.

Market Segmentation

The global Formaldehyde market can be categorized on the following: Derivates, End-Use, and Regions. By derivates, the market can be segmented across urea Formaldehyde (UF), phenol Formaldehyde (PF), melamine Formaldehyde (MF), polyacetal resins, pentaerythritol, 1,4 butanediol, methylenebis, hexamethylenetetramine (HMTA), and others. In terms of end-use, the market can be fragmented across building & construction, automotive, furniture, textile, healthcare, oil & gas, agriculture, water treatment, cleaning products, HVAC, and others. Likewise, based on region, the market is segmented into North America, Europe, Asia Pacific, Latin America, and Middle East & Africa.

Based on Derivatives

Urea Formaldehyde (UF) Will Dominate Maximum Share Owing to Rising Utilization Within the Textiles and Foundry Sector

The urea-Formaldehyde (UF) segment is expected to account for the largest market share for the global Formaldehyde market during the forecast period. Increased utilization within several end-use industries, including textiles, foundry sand, paper, electrical appliances, agriculture, and wood glue, will add to the segmental growth. These derivates are growing in volume owing to a higher tensile strength, flexural modulus, lower water absorption, and a higher distortion of temperature range will increase the footprint of the UF segment. Additionally, factors include rising UF integration for enhancing wrinkle and shrink resistance. It is used within the agricultural sector to produce nitrogen fertilizer. The melamine Formaldehyde (MF) segment will grow with the fastest growing CAGR during the forecast period due to increasing demand for moisture resistance, thermal stability, flame retardant, and increased strength and hardness.

Based on Application

Building & Construction Sector to Register Largest Market Share Owing to Growing Utilization Owing to Increased Tensile Strength

During the forecast period, the building and construction sector will occupy the largest market share in the application segment. Formaldehyde is utilized at a larger volume in the building and construction sector as it imparts higher tensile strength and toughness. Additionally, a budding construction sector on a global scale combined with the increasing development of residential development is expected to contribute to segmental growth. Increased government focus towards affordable housing facilities and rising focus of global manufacturers towards developing high-performance and glossy paints within automobiles will add towards sustainable market growth. The furniture segment will grow with the fastest growing CAGR during the forecast period owing to the integration of Formaldehyde within various furniture products such as bed frames, couches, desks, and stools.

Based on Region

Asia Pacific to Fuel Largest Market Share Owing to Rapidly Growing Automotive and Furniture Sector

The global Formaldehyde market is expected to be dominated by the Asia Pacific region in terms of growth and sales. The region is expected to expand its presence in various sectors, including adhesives, automobiles, furniture, and electrical and electronics. Additionally, the rising popularity of Formaldehyde due to its lower price, higher reactivity, and higher quality of performance will add to sustainable market growth in the region. Increasing demand from emerging economies such as China and India will trigger incremental growth of the market. Increasing urbanization and improving infrastructure within the region will overhaul the growth of the Asia Pacific Formaldehyde market during the forecast period.

Europe is expected to grow with the fastest growing CAGR during the forecast period owing to rising demand for Formaldehyde from various industries such as furniture, cosmetics, healthcare, photography, paint, and food. Factors include rising demand for Formaldehyde for producing fiberglass mats for building and construction applications.

Competitive Landscape

The global Formaldehyde industry is expected to be a highly competitive space due to the presence of many dominant players present in the market. Additionally, prominent players are integrating digitization into the industrial and operational aspects of the business to gain a competitive edge. Manufacturers are looking to increase their production capacity to meet the demand of the market.

The key players in the global Formaldehyde market include - 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) among others.

Recent Market Developments:

· July 2022: Hexion announced that they were switching towards sustainable growth goals by using bio-based methanol to produce Formaldehyde. This move is expected to increase the strategic impact of the company in the competitive landscape.

· July 2022: Foremark Performance Chemicals announced that they were announcing an increase in Formaldehyde by 0.020 USD/lb for Formaldehyde Solution 50% and 0.015 USD/lb for Formaldehyde Solution 37%.

· May 2022: Shell Australia Pyt Ltd (Shell Australia) and their joint venture partner, SGH Energy, developed the Crux Natural Gas field off the coast of Western Australia. The current Prelude floating liquefied natural gas (FLNG) facility is expected to receive additional natural gas supplies from Crux.

· April 2019: PJSC Metafrax announced they were signing a contract with Dynea AS to set up a new 55% formalin production plant worth USD 81.54 million in Russia. The new plant is expected to be completed by 2021. It is expected to be integrated with the company's paraFormaldehyde production facility under the technology platform of the GEA group of economies.

Segmentation of the Global Formaldehyde Market