Phenolic Boards Market Trends

Growth Drivers

• Growth in the Construction Industry with Rising Disposable Income of People - The ever-evolving construction industry is exploring novel ways of utilizing phenolic boards in various functions as well as aesthetic applications such as partition walls, false ceilings, cladding, and insulated units. It was estimated that the market size of the U.S. construction sector valued at around USD 1.6 trillion in 2021.
• Demand for Environment-friendly and Sustainable Materials with Rising Concern of People - There has been a gradual awakening of environmental consciousness among the elite and the educated population which is looking for eco-friendly materials that can be recycled or repurposed to reduce the global impact on the environment. Various surveys conducted across the globe in 2021 collectively revealed that 40 to 55% of adults are more mindful of their impact on the environment. Moreover, over 80% of people believe that major companies should integrate environmental concerns into their products.
• Growing Scientific Research and Development Activities Increasing the Need for Buildings - As per the data from the World Bank, in 2020, 2.63% of the global GDP was spent on research activities.
• Growth in Transportation Industry Across the World – Phenolic boards are used for flooring in trucks and buses. In 2021, more than 11 million light trucks, and some 0.45 million heavy-duty trucks were sold in the United States.

Challenges

• Moderately Toxic in Nature - The use of petroleum and natural gas during the production process of phenolic boards. During this time the phenolic boards produce chlorofluorocarbons that are released into the atmosphere. Additionally, the increasing use of phenolic boards rises the use of natural gas and petroleum reserves making them less available. All these factors are considered to be the reason for the limitation of market growth. 
• Need for Skilled Labor in Handling
• Expensive When Compared to Traditional Plywood