Novolac resins are among the most dominant types of phenolic resins. Novlac resins are produced by the reaction of phenol and formaldehyde in the presence of an acidic catalyst. Phenols employed in the production process typically include resorcinol, cresol or bio-based products such as nutshell of cashew. Hexamine is commonly used as a source of formaldehyde in the production process.
With increasing number of regulations to promote energy efficient structures and machineries, demand for novolac resins for insulation applications is expected to drive the market growth during the forecast period. Novolac resins are suitable for off shore oil drilling activities which is among the major emerging application segment for novolac resins. Increasing research and development activities and higher degree of customization to meet specific needs of these niche application segments is expected to offer huger growth opportunity for the novolac resin market in the near future.
Asia Pacific dominates the global demand for novolac resin both in terms of production and consumption and the trend is expected to continue during the forecast period. Increasing industrial investments in the developing economies of India and China is among the foremost driver for the demand of novolac resins in the region. High GDP growth rate and increasing disposable income in these developing economies has led to growth in several end user industries such as wood adhesives, automotive and construction among other. High economic growth in these regions is expected to drive market growth in the near future.
Novolac resin market is characterized by high degree of competition and major players compete on the basis of innovation to meet application specific demand of end consumers. High growth opportunity and low capital investment in the Asia Pacific region has been driving investment in the region. Major players in the novolac resins market include Georgia Pacific Chemicals LLC, BASF SE, Mitsui Chemicals Inc. and Sumitomo Bakelite Co., Ltd.