Urea Formaldehyde Market Set for Exponential Growth Owing to Rising Construction Activities
Urea Formaldehyde Market Demand |
The urea formaldehyde market has witnessed substantial
growth in recent years owing to increasing construction activities across the
globe. Urea formaldehyde is mainly used for manufacturing particleboard and
medium density fiberboard which finds major applications in flooring,
furniture, and cabinetry in residential and commercial construction. The
product provides advantages such as affordability, moisture resistance, and
ease of working over substitute materials. With growing urbanization and rising
disposable incomes, the global construction industry has expanded rapidly
thereby driving the demand for wood composite panels and subsequently urea
formaldehyde resins.
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.
Key Takeaways
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. These players are focusing on capacity expansion and new product
launches to strengthen their market position.
The major opportunities in the Urea
Formaldehyde Market Demand include rising demand for eco-friendly wood
adhesives and increasing penetration in the emerging economies of Asia Pacific
and South America. The key players are expanding their manufacturing facilities
in these regions to tap the growth opportunities.
Globally, the market is witnessing increasing mergers and acquisitions as major
companies look to expand their geographic presence. Large players are also
investing heavily in research & development to develop bio-based and low
emitting urea formaldehyde resins.
Market drivers: Rapid urbanization and growing construction of residential and
commercial buildings are the major market drivers. Increase in disposable
income is also contributing to the growth of the wood panel and furniture
industry.
Market restraints: Stringent environmental regulations regarding Urea
Formaldehyde Market Size And Trends emissions from wood composite
panels and concerns over health issues associated with urea formaldehyde may
hinder the market growth. Additionally, availability of substitutes like phenol
formaldehyde and methylene diphenyl diisocyanate (MDI) is a challenging factor.
Segment
Analysis
Urea formaldehyde resin is the dominating sub segment owing to its wide use in
particleboard and medium density fiberboard due to its cost effectiveness. Urea
formaldehyde is used to develop strong bonds between wood fibers and particles
in manufacturing wood-based panels such as particleboard, fiberboard, and
laminated products.
Adhesive & binders hold the largest market share currently as urea
formaldehyde resin is commonly used as an adhesive in the production of
particleboard, medium-density fiberboard, and as a binder in softwood plywood.
Urea formaldehyde resin is economical and has good water-resistance making it
ideal for use in woodworking and other construction applications.
Global Analysis
The Asia Pacific region currently dominates the urea formaldehyde market due to
high consumption of wood panels in construction in developing nations such as
China and India. Countries like China, India, Japan and South Korea are major
contributors to the growth of the regional market due to rapid industrialization,
growing infrastructure and construction activities. Easy availability of raw
materials and cheap labour costs provide added advantages for manufacturers
based in the region. North America and Europe are other major markets driven by
the recovering construction industry and renovation activities in these
regions.
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Insights on- Urea
Formaldehyde Market
About
Author:
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, chemical and materials, defense and aerospace, consumer goods,
etc. (https://www.linkedin.com/in/money-singh-590844163)
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