The global formaldehyde market was valued at USD 18 billion in 2023 and grew at a CAGR of 4% from 2024 to 2033. The market is expected to reach USD 26.64 billion by 2033. The rising automotive and building and construction sector will drive the growth of the global formaldehyde market.
Methylene is an organic compound officially known as formaldehyde, a colourless gas that is highly inflammable and has a pungent smell. It is one of the simplest aldehyde compounds with the molecular formula CH2O. It exists in very small amount in the environment and is formed naturally during the metabolism of life forms and combustion processes. Industrially, it is produced by the catalytic oxidation of methanol thus becoming a major chemical used in different sectors of manufacturing. The largest use of formaldehyde is in the manufacture of resins. Urea-formaldehyde and phenol-formaldehyde are used in adhesives, laminates, and particle board, and as coatings for paper, converted paper products and textiles. These resins are used essentially in the manufacture of composite wood products such as plywood, particle board and medium density fibre board which are widely used in furniture and construction. Furthermore, formalin keeps bacteria off by killing them and it also used in laboratories and mortuaries as a preservative. It is also used in the manufacture of textiles. It is incorporated as a material for shrink-proofing as well as for helping textiles keep their colours. In the automotive industry, it is in aspects like the auto parts and elements which add to the product’s sturdiness. The chemical is useful in the production of numerous drugs and antibiotics, and as an active ingredient in disinfectants and other solutions.
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The increasing applications of formaldehyde across diverse industries – Formaldehyde is in large demand, especially in construction and housing industry as it is essentiality plays a vital part in the production of engineered timber products such as plywood and particle-board. When countries develop and people move to cities, construction rises, particularly in emerging markets, so does the demand for cost-effective construction materials, which enhances formaldehyde usage. In the automobile industry, formaldehyde is used widely as a raw material in creating lightweight and high-strength material. Global automotive production is on the rise as a result of increasing car sales and improvements in technology and automotive manufacturing, there is a similar strong demand for the chemical in automotive manufacturing. Also, formaldehyde plays a vital role in manufacturing of articles of general use like in the textile industries. The chemical industry also increases the demand for formaldehyde since it is a reagent in the synthesis of the several chemicals used in the production of plastic, foam, and resins among others. Finally, in the medical field, this chemical is used for specimen preservation, and as a disinfectant, again underlining its significance particularly in labs and hospitals. Therefore, the increasing applications of formaldehyde in diverse industries will contribute to the market’s growth.
Supply chain uncertainties – The volatility of prices of methanol, which is the primary ingredient in the production formaldehyde, due to political issues, shift in the prices of energy, and overall market tendencies will hamper the market’s growth. For example, where the price of oil an important feedstock in the production of methanol goes up, it is likely also that cost of production of methanol would go up in turn exerting pressure on the formaldehyde manufacturers, causing them to increase their production costs. Further, unpredictable events such as natural calamities like hurricanes or earthquake that may impair production sites or transport routes also hinder the market’s growth. The global outbreak of COVID-19 highlighted the aspect of how global health risks affect supply networks. Such interruptions not only hamper production capabilities but can also impact inventory that decreases availability of formaldehyde and its derivatives, thereby hindering the global formaldehyde market’s growth.
Regulatory environment – Market demands for both formaldehyde and its uses are highly determined by regulatory adjustments in combination with concerns towards sustainability. Tighter controls in relation to indoor air quality and emissions help improve labelling accuracy and drive manufacturers to lower formaldehyde emissions by producing low-formaldehyde and no-formaldehyde products. It also improves protection for the consumers as well as encourages development in the industry. At the same time, concerns for sustainability have impacted the trends of the market. More and more consumers and manufactures are in the search of the sustainable products and technologies. Such concerns have led firms to channel their resources into research that seeks to develop superior green formaldehyde-based products, like bio-based resins. Furthermore, the circular economy idea focuses on recycles and reuse materials, which in turn, has an impact on the application of formaldehyde in manufacturing. Therefore, stringent regulatory environment contributes towards the development of better products and drive the market’s growth.
The regions analyzed for the market include North America, Europe, South America, Asia Pacific, the Middle East, and Africa. North America emerged as the most significant global formaldehyde market, with a 38% market revenue share in 2023.
United States and Canada have higher demand for formaldehyde products mainly because of good construction and automotive industry. Another factor is the well-developed market in North America with its established key manufacturers and innovators in the sphere of formaldehyde production. Also, the EPA standards set in North America mandate high requirements of emission standards and product safety which has spurred manufacturers to come up with more efficient technologies. This proactive approach not only increases the consumer’s confidence but will also shift North American manufacturers as leaders in sustainable formaldehyde market. Housing, automotive, and the consumption industries are continually advancing within the region and are anticipated to continue growing, therefore the demand for formaldehyde will remain high.
North America Region Formaldehyde Market Share in 2023 - 38%
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The application segment is divided into building and construction, automotive, furniture and cabinetry, textiles, health and personal care, and agriculture. The building and construction segment dominated the market, with a market share of around 37% in 2023. The largest application area of the formaldehyde is the building and construction field that has driven this market mainly through demand for production of engineered woods and resins. Formaldehyde-based resins including urea-formaldehyde and phenol-formaldehyde which are needed in the formulation of composites including plywood, particleboard, and medium-density fibre-board. These components are commonly used in construction. The growth in the urban population and disposable income in developing countries pushes up the demand for housing and construction, which will support the strong development of the formaldehyde market. The performance characteristics of construction materials is improved by incorporating formaldehyde. It helps in reducing warping, raises the moisture resistance level and increases durability.
The product type segment is divided into urea-formaldehyde resins, phenol-formaldehyde resins, melamine-formaldehyde resins, polyoxymethylene (POM), and formaldehyde solutions. The urea-formaldehyde resins segment dominated the market, with a market share of around 34% in 2023. urea-formaldehyde resins hold the largest share of the formaldehyde market because of its use in the manufacturing of composite wood products and adhesives. Highly valued for their low costs, these resins are widely applied in the production of particle boards, ply boards and medium density fibre boards (MDFs) which are core products for the furniture and construction industries respectively. Also, flexibility in formulating UF resins is possible, which makes it possible to develop end products with required performance characteristics or to conform to set legislation standards. Furthermore, owing to rising strict environmental standards, there have been improvements in the formulations of urea-formaldehyde resins to low emission ones. This move towards versatility has positioned UF resins as a popular product with manufacturers who are in search of functionality together with sustainability. Since construction is fast growing across the world and especially in developing countries, requirement of urea-formaldehyde resins is likely to remain high.
The end user industry segment is divided into construction, automotive, wood products, consumer goods, and healthcare. The automotive segment dominated the market, with a market share of around 35% in 2023. Automotive Industry is one of the largest segments of end users of formaldehyde primarily because of its importance in production of a number of automotive parts. A large amount of formaldehyde is used to manufacture numerous resins, adhesives and composites that are necessary for the production of lightweight and long-term vehicle components. Manufacturers are keen on creating compounding materials with high strength to weight ratios in a bid to deliver lighter and efficient automobiles without having to reduce on mechanized safety and power output. Formaldehyde helps achieve this. Furthermore, the transition towards electrification of vehicles such as electric vehicles and hybrid vehicles is presenting new opportunities for application of formaldehyde. The robustness of the automotive industry coupled with continuous research and development in the sector continues to make formaldehyde essential in the production of automobiles.
Report Description:
Attribute | Description |
---|---|
Market Size | Revenue (USD Billion) |
Market size value in 2023 | USD 18 Billion |
Market size value in 2033 | USD 26.64 Billion |
CAGR (2024 to 2033) | 4% |
Historical data | 2020-2022 |
Base Year | 2023 |
Forecast | 2024-2033 |
Region | The regions analyzed for the market are Asia Pacific, Europe, South America, North America, and Middle East and Africa. Furthermore, the regions are further analyzed at the country level. |
Segments | Application, Product Type and End User Industry |
As per The Brainy Insights, the size of the global formaldehyde market was valued at USD 18 billion in 2023 to USD 26.64 billion by 2033.
Global formaldehyde market is growing at a CAGR of 4% during the forecast period 2024-2033.
The market's growth will be influenced by the increasing applications of formaldehyde across diverse industries.
Supply chain uncertainties could hamper the market growth.
This study forecasts revenue at global, regional, and country levels from 2020 to 2033. The Brainy Insights has segmented the global formaldehyde market based on below mentioned segments:
Global Formaldehyde Market by Application:
Global Formaldehyde Market by Product Type:
Global Formaldehyde Market by End User Industry:
Global Formaldehyde Market by Region:
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