by Market Overview:
Urea formaldehyde is a thermosetting plastic material that is derived from urea and formaldehyde. It is widely used in construction industry as an adhesive for various building materials and also for manufacturing of particleboards, medium-density fiberboards, molding compounds and laminates.
Market key trends:
The demand for urea formaldehyde resins from building and construction sector has been rising owing to rapid urbanization and industrialization worldwide. Urea formaldehyde finds extensive use in manufacturing of adhesives, binders and other formulations that are used for bonding various types of building boards and panels. The Asia Pacific region accounts for over 50% of the global demand led by China, India and other developing countries in the region where construction activities are witnessing strong growth. Stringent environmental regulations regarding formaldehyde emissions may hamper the market growth to some extent during 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 has high strength and superior thermal resistance making it suitable for applications that require strength and heat resistance like pressed wood products. It also has low cost of production.
Weakness: Urea formaldehyde emits harmful formaldehyde gases which are carcinogenic in nature. Strict environmental regulations regarding formaldehyde emissions pose challenges.
Opportunity: Growing construction industry and increasing spending on infrastructure development is driving the demand for construction materials like particleboards and MDF boards where urea formaldehyde is used. Rapid urbanization in developing countries also opens new opportunities.
Threats: Stringent regulations regarding formaldehyde emissions and toxic effects can restrict the use of urea formaldehyde in some end use industries and regions. Development of formaldehyde-free alternatives also poses competitive threats.
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 construction activities worldwide. Rapid urbanization and growing population is boosting infrastructure development in developing regions of Asia Pacific and Latin America.
Regional analysis
Asia Pacific dominates the global urea formaldehyde market and is expected to continue its dominance during the forecast period. Presence of emerging economies with high population like China and India where construction industry is growing rapidly drives the market in the region. China accounts for over 40% of the global demand for urea formaldehyde due to large production of wood panels in the country.
Key players operating in the urea formaldehyde market are Hexion, BASF SE, Georgia-Pacific Chemicals, Hexza Corporation Berhad, Metadyena, 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. Major players are focusing on expanding their production capacities and global footprint through mergers and acquisitions to meet the growing demand for urea formaldehyde globally.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
Money Singh is a seasoned content writer with over four years of experience in the market research sector. Her expertise spans various industries, including food and beverages, biotechnology, chemicals and materials, defense and aerospace, consumer goods, etc.
