Urea Resin Market Size, Share, Opportunities, And Trends By Application (Particle Board, Wood Adhesives, Plywood, Medium Density Fiberboard, Other Applications), By End-user Industry (Automotive, Electrical Appliances, Agriculture, Building and Construction, Other End-user Industries), And By Geography - Forecasts From 2024 To 2029

The urea resin market is expected to grow at a compound annual growth rate (CAGR) of 4.12% during the forecast period. 

The urea resin market is the main component of the amino resin technology. It is used for resilient stability, high strength, cost-effectiveness, versatility, etc. These resins have various applications, such as wood composites, wet-laid fiberglass mats, air filtration, coated and bonded abrasives, plywood, medium-density fiberboard, etc.

The major driving factor for urea resin would be expanding the building and construction industry in major parts of the world. This industry has large-scale applications for medium-density fiberboard, particleboard, etc. The growing economies of Asia and Africa, and the demand for affordable housing in the developed countries would increase the supply of urea resin for the manufacturing of wooden material for housing construction materials. Further, the growth of the automotive industry would increase the demand for urea resin as automotive parts manufacturing requires urea resin.

• At the end of 2022, there were around 43.4 million apartments in Germany. According to the Federal Statistical Office, this was 0.7% or 2,82,800 apartments more than at the end of 2021. There are 22.0 million apartments in 3.3 million apartment buildings across Germany.
• The number of free housing completed was 84,091 in 2021, 79,935 in 2022, and 80,473 in 2023. These houses were built to tackle the growing challenges of homelessness, the increasing number of migrants, and the rising prices of residential houses.
• The financial year ending March 2023 shows that 2,10,320 dwellings were completed in the UK. By country, there were 174,600 in England, 5,790 in Wales, 23,510 in Scotland, and 6,420 in Northern Ireland.

UREA RESIN MARKET DRIVERS:

• Increasing demand for medium-density fiberboard

Urea-formaldehyde resin is used in fiberboard production. Fiberboard can be produced with sustainable and environmentally friendly materials. Different new technologies are applied for the production of medium-density fiberboard. For example, in August 2023, Greenply Industries Limited produced the first fibers with its new high-performance pressurized refining system from ANDRITZ at its MDF (medium-density fiberboard) production facility in Vadodara, Gujarat, India. This is an energy-saving and environment-friendly production process.

Further, in July 2023,  Anlagentechnik GmbH, a German company, and DIEFFENBACHER, a leading manufacturer of press systems and complete production plants for the wood-based panels industry,  collaborated with the Egyptian EPC contractor to supply an eco-friendly plant for the manufacture of high and medium-density fiberboard (HDF/MDF) from date palm fronds to Egypt’s National Service Projects Organization (NSPO). These developments imply the demand for medium-density fiberboard and the relative application of urea resin in the production process.

• Rising demand for particle boards

Urea-formaldehyde resin is used in the manufacturing of particle boards. Particle boards are applied in manufacturing cabinets, dressers, tabletops, wardrobes, bookshelves, shoe racks, and beds. These are used in flooring, ceilings, walls, roofs, countertops, door cores, shelving, stair treads, store fixtures, prefabricated housing, freight cars, and ships. The need for particle boards is increasing with the enlarging building and construction market.

Moreover, in May 2024, Kronospan announced the acquisition of Woodgrain’s particleboard facility. Kronospan is a leading producer of wood panel products. In June 2024, the company produced particleboard using 100% recycled wood. This showcased significant manufacturing capabilities, environmental responsibility, and resource optimization. This development indicates the growing need for particle board materials and urea resin to manufacture these goods.

• Growing construction industry

As the world is growing, it is urbanized, and sustainable development depends upon the growing infrastructure and construction activities that are sustainable. The industry’s growth would not only increase employability in the manufacturing industry but also the overall demand for raw materials in the sector, including wooden materials. The demand for urea resin will rise in the coming time due to construction sector demand.

The booming population growth is estimated by the United Nations to reach 8.5 billion by 2030 and 9.7 billion by 2050. These factors along with the growing migration crisis and urbanization led to the increase in demand for more construction projects and materials. The application of the urea resin would likely expand with demand for particle board, wood adhesives, plywood, and medium-density fiberboard in the market.

Urea Resin Market Geographical Outlook

• The Asia Pacific region will dominate the urea resin market during the forecast period.

The Asia-Pacific region is dominated by major economies like China, Japan, India, and South Korea. Some of the fastest-growing emerging economies, such as ASEAN countries, are from this region. India and China are the region's major growing economies.

The Indian furniture market is anticipated to be  Rs. 1.20 lakh crore (US$14.41 billion) by FY28.  India is the world's second-largest producer of lumber and the sixth-largest producer of natural rubber. The trend suggests that people prefer modern, useful, and versatile modular designs for furniture. The consumption of particle boards, wood adhesives, plywood, etc., will increase in the forecast period.

Urea-formaldehyde resin is also used in fiberboard production, which is used in the automotive industry. According to OICA (International Organization of Motor Vehicle Manufacturers), China produced 30,160,966 automobiles in 2023, with a 12% growth from the previous year. This number is the highest compared to other major global players such as Japan, the United States, and Germany.

Urea resin market restraints:

• The release of formaldehyde is a health hazard regarding urea-formaldehyde resins, which is a major challenge in the market growth. Further, due to large brittleness, it is easy to cause cracks during the curing process. These are major challenges in the expansion of the market.

Urea Resin Market Segment Analysis

• End-user industries like automotive and building & construction would have the major demand for urea resin.

The automotive industry worldwide is showing significant growth due to several factors, such as the growing demand for electric vehicles, surging demand from the developing economies of Asia Pacific and Africa, and easy financial availability for purchase. According to the OICA (International Organization of Motor Vehicle Manufacturers), global automotive production increased from 2022 to 2023 by 10%, numbering 9,35,46,599 in 2023. The major producers were China, India, the USA, Mexico, Brazil, and Germany.

Further, the major market driver is from the building and construction industry. According to Eurostat, for newly built dwellings, the number of transactions increased in Slovenia by 46.9% and Ireland by 4.9%. For existing dwellings, it increased in Poland and Bulgaria. The increase in the number of dwellings in Europe is due to the increased migration crisis and rising prices of housing, the region is developing new cheaper homes for the settlement.

Urea Resin Market Scope:

Report Metric	Details
Growth Rate	CAGR of 4.12% from 2024 to 2029
Study Period	2019 to 2029
Historical Data	2019 to 2022
Base Year	2024
Forecast Period	2024 – 2029
Forecast Unit (Value)	USD Billion
Segments Covered	Application End-User Industry Geography
Companies Covered	ACHEMA ADVACHEM Acron Group Ashland Asta Chemicals
Regions Covered	North America, South America, Europe, Middle East and Africa, Asia Pacific
Customization Scope	Free report customization with purchase

 

The urea resin market is segmented and analyzed as follows:

• By Application
  • Particle Board
  • Wood Adhesives
  • Plywood
  • Medium Density Fiberboard
  • Other Applications
• By End-user Industry
  • Automotive
  • Electrical Appliances
  • Agriculture
  • Building and Construction
  • Other End-user Industries
• By Geography
  • North America
    • USA
    • Canada
    • Mexico
  • South America
    • Brazil
    • Argentina
    • Rest of South America
  • Europe
    • United Kingdom
    • Germany
    • France
    • Italy
    • Spain
    • Rest of Europe
  • Middle East and Africa
    • Saudi Arabia
    • UAE
    • Rest of the Middle East and Africa
  • Asia Pacific
    • China
    • India
    • Japan
    • South Korea
    • Taiwan
    • Thailand
    • Indonesia
    • Rest of Asia-Pacific

1. INTRODUCTION

1.1. Market Overview

1.2. Market Definition

1.3. Scope of the Study

1.4. Market Segmentation

1.5. Currency

1.6. Assumptions

1.7. Base and Forecast Years Timeline

1.8. Key benefits for the stakeholders

2. RESEARCH METHODOLOGY  

2.1. Research Design

2.2. Research Process

3. EXECUTIVE SUMMARY

3.1. Key Findings

3.2. Analyst View

4. MARKET DYNAMICS

4.1. Market Drivers

4.1.1. Increasing demand for medium-density fiberboard

4.1.2. Rising demand for particle boards

4.1.3. Growing construction industry

4.2. Market Restraints

4.2.1. Release of formaldehyde

4.3. Porter’s Five Forces Analysis

4.3.1. Bargaining Power of Suppliers

4.3.2. Bargaining Power of Buyers

4.3.3. The Threat of New Entrants

4.3.4. Threat of Substitutes

4.3.5. Competitive Rivalry in the Industry

4.4. Industry Value Chain Analysis

5. UREA RESIN MARKET BY APPLICATION 

5.1. Introduction

5.2. Particle Board

5.3. Wood Adhesives

5.4. Plywood

5.5. Medium Density Fiberboard

5.6. Other Applications

6. UREA RESIN MARKET BY END-USER INDUSTRY

6.1. Introduction

6.2. Automotive

6.3. Electrical Appliances

6.4. Agriculture

6.5. Building and Construction

6.6. Other End-user Industries

7. UREA RESIN MARKET BY GEOGRAPHY

7.1. Global Overview

7.2. North America

7.2.1. United States

7.2.2. Canada

7.2.3. Mexico

7.3. South America

7.3.1. Brazil

7.3.2. Argentina

7.3.3. Rest of South America

7.4. Europe

7.4.1. United Kingdom

7.4.2. Germany

7.4.3. France

7.4.4. Italy

7.4.5. Spain

7.4.6. Rest of Europe

7.5. Middle East and Africa

7.5.1. Saudi Arabia

7.5.2. United Arab Emirates

7.5.3. Rest of the Middle East and Africa

7.6. Asia-Pacific

7.6.1. China

7.6.2. India

7.6.3. Japan

7.6.4. South Korea

7.6.5. Taiwan

7.6.6. Thailand

7.6.7. Indonesia

7.6.8. Rest of Asia-Pacific

8. COMPETITIVE ENVIRONMENT AND ANALYSIS

8.1. Major Players and Strategy Analysis

8.2. Market Share Analysis

8.3. Mergers, Acquisitions, Agreements, and Collaborations

8.4. Competitive Dashboard

9. COMPANY PROFILES

9.1. ACHEMA

9.2.  ADVACHEM

9.3. Acron Group

9.4. Ashland

9.5. Asta Chemicals

9.6. Arclin Inc.

9.7. BASF SE

9.8. Hexion

9.9. Hexza Corporation Berhad

9.10. Kronoplus Limited

9.11. Melamin kemicna tovarna d.d. Kocevje

9.12. Metadynea Metafrax Group

9.13. SABIC

9.14. QAFCO

9.15. PT INTANWIJAYA INTERNASIONAL Tbk.

9.16. Bakelite

9.17. Sunshield Chemicals Ltd,

9.18. Synpol Products Private Limited.

9.19. Chemanol

9.20. Winlong

ACHEMA

 ADVACHEM

Acron Group

Ashland

Asta Chemicals

Arclin Inc.

BASF SE

Hexion

Hexza Corporation Berhad

Kronoplus Limited

Melamin kemicna tovarna d.d. Kocevje

Metadynea Metafrax Group

SABIC

QAFCO

PT INTANWIJAYA INTERNASIONAL Tbk.

Bakelite

Sunshield Chemicals Ltd,

Synpol Products Private Limited.

Chemanol

Winlong