Formaldehyde is a colorless, flammable chemical compound with a pungent smell produced by methanol oxidation and is an essential component for making urea-alkyd resins. According to BlueQuark Research & Consulting, the global Formaldehyde market is expected to witness a significant growth rate during the forecasted period. Factors such as the growing infrastructure and construction spending have been a sharp increase in the usage of products that require Formaldehyde for various applications, including reinforcements, which are expected to drive the global Formaldehyde market in the forecasted period. Further, synthesized Formaldehyde has several medical uses, and it is in high demand in various applications and is expected to drive the global Formaldehyde market in the forecasted period. Furthermore, the growing use of resin in multiple applications such as automotive is expected to drive the global Formaldehyde market in the forecasted period. However, the harmful and carcinogenic nature of Formaldehyde and strict regulations employed by several authorities towards formaldehyde emission is likely to hinder the growth of the global market.

Formaldehyde is used as a precursor to formulating chemical compounds and essential industrial materials. It is used in textile finishing and manufacturing resins that act as binders & adhesives in products such as pulp, plastics, wood products, paper, coatings, paints, varnishes, and various industrial chemicals. It is mainly used in plywood, automobile, healthcare, and construction.

The construction industry is the dominating segment due to the large-scale consumption of Formaldehyde for construction and remodeling activities and furniture production. The development of the construction and building industry and continuous demand for Formaldehyde in the furniture sector is driving the global melamine formaldehyde market. Formaldehyde is primarily worn to produce wood panels and adhesives. Due to their robust adhesive strength and moisture resistance properties, formaldehyde-based resins are utilized in construction and furniture. Formaldehyde-based resins create composite and engineered wood products in moldings, countertops, cabinetry, shelving, furniture, stairs, wall sheathing, support beams, flooring, and trusses, among many other household furnishings and structures. It is popular in-home construction because it can effectively reduce wood wastage and increase the rate of wood utilization. The resins are utilized in wood products, allowing for the sustainable usage of forestry resources and minimum waste. Formaldehyde-based glues have exceptional bonding agents that provide superior performance and are highly cost-effective. Composite wood panels are usually composed of recovered wood waste that would be burned or disposed of in a landfill. Formaldehyde is used to produce various building materials, especially wood-pressed components such as particleboard, plywood, and others. For instance, particleboards are used in various construction and furniture applications like panels, floor decking, industrial storage systems, and others. Thus, the growing construction activities and a surging number of infrastructure projects are expected to increase the need for Formaldehyde in the forecasted period.

The Asia Pacific region stands to be the dominant market for the automotive and construction industry. Factors such as good adhesive strength and moisture resistance properties of formaldehyde-based resins and continuous demand from the furniture sector are likely to drive the market growth. Formaldehyde also has several applications in the automotive industry. It can make vehicles lighter in weight and makes them more energy efficient. Formaldehyde-based resins are employed to make interior molded components and other engine parts required to withstand high temperatures. The resins are also essential for producing durable exterior primers, tire-cord adhesives, brake pads, fuel system components, and transparent coat paints. Formaldehyde resins manufacture under-the-hood components, including fuel pumps, transmission parts, and brake pads. Other applications include decorative laminates of car interiors, engine lubricants, vulcanized rubber tires, and lightweight polyurethane foams for automobile door insulation. Formaldehyde produces methylene bis (diphenyl diisocyanate), a building block for polyurethane foams. Methylene bis (diphenyl diisocyanate) applications include the rigid, lightweight foams found in automobile doors for insulation and the semi-flexible foams that provide excellent support and comfort in the car seats. Polyurethane coatings made with MDI are also utilized as finishes and sealants for car doors and windows and adhesives to secure spoilers, bumpers, and interior panels. Formaldehyde consists of hydrogen, oxygen, and carbon. It is extensively known for its antibacterial and preservative properties. It provides excellent performance and acts as a bonding agent in end-use applications while providing an affordable price. It also finds application in dyes, cellulose esters, glass mirrors, and artificial silk, organic chemicals, explosives as an industrial disinfectant, as a preservative, storage houses, utensils, clothes, etc., a fungicide in agriculture, tanning industry, waterproofing of fabrics, preserving & coagulating rubber latex, as embalming fluids, in the manufacture of photographic materials, antiseptics, in pulp & papers treatment, in cosmetics, fuels, mouth wash, in surgical instruments sterilization and germicidal soap, etc. Formaldehyde is used in interior designing, electronic systems, molds, and under-the-hood designing of vehicles, which helps reduce weight essential for VOC emission. Hence, all such market trends are predicted to drive the demand for the melamine formaldehyde market in the region during the forecasted period.

Some of the market's key players are Celanese Corporation, Georgia Pacific Corporation, Hexion Inc., PJSC Metafrax, and Ercros SA.

In August 2021, Georgia-Pacific Chemicals successfully tested to have decreased free Formaldehyde in phenolic fiber-reinforced plastic resins to below 1000ppm. This will surpass the standard phenolic resin performance at lower residual monomer levels for water and solvent-soluble resins.

In February 2021, Hexion announced to resume its operations at its Montenegro, Brazil, producing site to meet the demand for wood adhesives. The Montenegro plant is strategically located to supply large regional customer plants that use urea-formaldehyde resin to produce engineered wood panels such as particleboard, interior-grade plywood, and medium-density fiberboard. These engineered wood materials, in turn, are used in various applications, including the production of furniture, cabinetry, and other wood products.

This report provides an overview of the competitive landscape with profiles of prominent companies and their market shares, including critical trends shaping development, ownership, and financing. Our Global Formaldehyde Market report provides vital insights into the current and future state of the market across various regions. Also, the study comprehensively analyzes the formaldehyde market by segmenting based on geography and by derivative (Urea Formaldehyde Resins, Phenol-Formaldehyde Resins, Melamine Formaldehyde, Methylene Diphenyl Diisocyanate and Others (Hexamine, Paraformaldehyde, etc.)) and by end-use (Building & Construction, Healthcare, Consumer Products, Automotive and Others (Packaged Food, Textile, etc.)). The report examines the market drivers and restraints that influence growth in detail. The study also covers emerging market size, trends, developments, opportunities, and challenges in the industry.