Phenol Derivatives Market Leaders & New Revenue Pockets

The global phenol & its derivatives market is projected to reach USD 19.78 billion by 2026, at a CAGR of 4.6% from 2016 to 2026. The growing demand from major end-use industries such as, automotive and electrical and electronic goods, and other industrial applications in emerging economies, are driving the global phenol & its derivatives market.

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Expansions was the key growth strategy adopted by industry players in the global phenol & its derivatives market. This strategy accounted for a share of 38%, between 2011 and 2015, of all the growth strategies adopted by market players. Besides expansions, companies are venturing into agreements to expand their phenol & its derivatives portfolios across the world. The agreement strategy accounted for a 31% share of all the development strategies between 2011 and 2015. Companies are also focusing on the acquisitions strategy which accounted for a 19% share between 2011 and 2015. The Asia-Pacific region was the most active region from 2011 to 2015, in terms of strategic initiatives, and expansions was one of the preferred strategies.

Major manufacturers such as Compañía Española de Petróleos S.A.U. (CEPSA) (Spain), LG Chem (South Korea), Honeywell International, Inc. (U.S.), Ineos Group Limited (Switzerland), Mitsui Chemicals, Inc. (Japan), Royal Dutch Shell plc (Netherlands), The Dow Chemical Company (U.S.), Saudi Basic Industries Corporation (SABIC) (Saudi Arabia), Kumho Petrochemical Co., Ltd. (South Korea), and PTT Global Chemical Public Company Limited (Thailand) are profiled in this report. These companies have adopted both, organic and inorganic growth strategies.

Compañía Española de Petróleos S.A.U. (CEPSA) (Spain), LG Chem (South Korea), Honeywell International Inc. (U.S.), Ineos Group Limited (Switzerland), and Mitsui Chemicals, Inc. (Japan) are among the most active players in the global phenol & its derivatives market.

Compañía Española de Petróleos S.A.U. (CEPSA) (Spain) is the most active player in the phenol & its derivatives market. It accounted for the largest share of all the developmental activities undertaken in the phenol & its derivatives market. As a part of its strategy, the company focuses on expanding its phenol & its derivatives business by venturing into agreements, acquisitions, and expansions. In December 2015, The Dow Chemical Company (U.S.) and DuPont (U.S.) announced a merger with a definitive agreement under which the companies combined in an all-stock merger of equals. The combined company was named DowDuPont. In April 2015, Cepsa (Spain) has inaugurated a new chemical plant in China. The new facility has an annual production capacity of 250,000 tons of phenol, 150,000 tons of acetone and 360,000 tons of cumene.

Another company that has established a strong foothold in the global phenol & its derivatives market is LG Chem (South Korea). The company is focused on expansions and agreements. LG Chem started its new phenol/acetone plant in Daesan, in February 2013. This new plant has a capacity of 300,000 tons/year of phenol and 180,000 tons/year of acetone.

The global phenol & its derivatives market is projected to reach USD 19.78 billion by 2026, at a CAGR of 4.6% from 2016 to 2026. The Asia-Pacific region is the leading market for phenol & its derivatives, in terms of value, and the trend is projected to continue till 2026. Countries in this region such as, China, India, Japan, South Korea, and Taiwan are witnessing a gradual increase in the use, as well as production of phenol.

The Asia-Pacific region is the largest as well as the fastest growing market for phenol & its derivatives. China is leading in the Asia-Pacific region due to the increase in population which is creating a high demand for automotive and electronic & electrical goods in the growing economy. China is evolving as a hub for the manufacture of electronic goods, which is creating a high demand for the polycarbonate and epoxy resins made from bisphenol-A, a major derivative of phenol. This industry will also grow in the coming future and create a high demand for bisphenol-A used in the production of polycarbonates and epoxy resins, and this is expected to drive the market during the forecast period. China is also projected to be the fastest-growing phenol & its derivatives market in the Asia-Pacific region. South Korea is the second largest market for phenol in the region after China. Rapid expansions by the phenol producers in major economies, namely, China, India, Japan, South Korea, and Taiwan is driving the demand for phenol. Also, with the growing demand from the sustainable renewable energy sector such as, wind energy is also expected to contribute in driving the market in long term.

Growth in the global phenol market is mainly due to the increasing demand for phenol in various manufacturing industries across the world. Bisphenol-A has the largest share of the overall phenol & its derivatives market. Bisphenol-A is used to produce polycarbonates and epoxy resins which find applications in many day to day products. Polycarbonates and epoxy resins produced with the use of bisphenol-A are almost unbreakable, can repel heat and chemical reactions, and have high mechanical strength, which makes bisphenol-A a widely used derivative of phenol.

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