by Urea formaldehyde is an amino plastic that is commonly used as a thermosetting plastic and adhesive. It is commonly used as a binding agent in the manufacture of construction materials such as fiberboard, particle board, and plywood due to its cost effectiveness and strength properties. Urea formaldehyde resins find major applications in the manufacture of household goods, electrical goods, automotive components, and industrial parts. The global urea formaldehyde market is estimated to be valued at US$ 17521.61 Bn in 2024 and is expected to exhibit a CAGR of 22.% over the forecast period 2024 to 2031, as highlighted in a new report published by Coherent Market Insights.
Market Dynamics:
Growing construction activities: The rapid expansion of construction industry especially in emerging economies is one of the major factors driving the growth of urea formaldehyde market. Urea formaldehyde resins are widely used in the manufacture of medium density fiberboards and particleboards that find major applications in flooring, doors, furniture, and other construction materials. According to data released by United Nations, the global construction output is expected to grow by 85% to reach US$ 15.5 trillion by 2030.
Increasing demand from manufacturing industries: Urea formaldehyde is commonly used as an adhesive in the manufacturing of variety of wood composite panels, laminates, electrical components, and automotive parts. The rapidly growing manufacturing sector especially in Asia Pacific is augmenting the demand for cost-effective and high strength adhesives like urea formaldehyde. For instance, according to International Trade Administration, the manufacturing sector in China is estimated to reach US$ 5 trillion by 2020.
Segment Analysis
The Global Urea Formaldehyde Market Size is dominated by the adhesives and binders segment which accounts for over 55% share of the total market. Urea formaldehyde is widely used in the production of adhesives for wood products such as plywood, particle board, and medium density fiberboard due to its low cost. Urea formaldehyde resins offer high bond strength and water resistance making it ideal for use in adhesives for wood working applications.
PEST Analysis
Political: Changes in environmental regulations regarding the use of formaldehyde in various products is a key factor impacting the market. Stringent regulations in Western countries have led to a shift towards low-emitting alternatives.
Economic: Growth of the construction and wood industries drives demand for urea formaldehyde adhesives and binders. Emerging economies witnessing rapid urbanization and infrastructure growth acts as an opportunity.
Social: Concerns over health effects of formaldehyde emissions have led consumers and industries to prefer green building materials and sustainable wood products.
Technological: Continuous R&D towards developing formaldehyde-free and low-emitting resin systems helps alleviate health concerns and facilitates market expansion into regulated regions.
Key Takeaways
The global urea formaldehyde market is expected to witness high growth during the forecast period.
The Asia Pacific region currently dominates the market and is expected to maintain its lead due to high growth of the construction industry and manufacturing activity in countries like China and India.
Key players operating in the urea formaldehyde market are Taiwan Semiconductor Manufacturing Company, Ltd., MonolithIC 3D Inc., XILINX, Inc., Elpida Memory, Inc. (Micron Technology, Inc.), The 3M Company, Ziptronix, Inc., STATS ChipPAC Ltd., United Microelectronics Corporation, and Tezzaron Semiconductor Corporation. The market is highly consolidated with the top players holding major shares. Taiwan Semiconductor Manufacturing Company is the global leader with over 15% revenue share.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
