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The chlorine market size is estimated to grow by USD 7.44 billion, at a CAGR of 3.77% between 2023 and 2028. The expansion of the market relies on various factors, including increased utilization within the pharmaceutical sector, heightened demand for wastewater treatment services, and widespread application of PVC in the construction sector. These elements collectively shape the trajectory of market growth, reflecting a convergence of industrial requirements and material versatility. The growing adoption of PVC in pharmaceutical applications underscores its efficacy and suitability for diverse medical needs. Simultaneously, the escalating demand from the water and wastewater treatment sector highlights the effectiveness of PVC in addressing environmental challenges. Additionally, its extensive use in construction underscores PVC's versatility and durability in building materials. Thus, the interplay of these factors delineates the landscape for the envisioned expansion of the market across multiple sectors.
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The EDC/PVC segment is estimated to witness significant growth during the forecast period. EDC is a result of the chlorination of ethylene by either of the two processes such as direct chlorination using pure chlorine and ethylene, and oxychlorination in which ethylene reacts with chlorine in HCl. Many EDC or vinyl chloride monomer (VCM) employ a combination of chlorination and oxychlorination to consume the by-product of HCl from the cracking of EDC to VCM.
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The EDC/PVC segment was the largest segment and was valued at USD 11.27 billion in 2018. The construction industry is highly dependent on PVC, which reflects fluctuations in world economies. New resin grades and compounds are replacing conventional materials such as metal, wood, and glass with PVC. Polyvinyl chloride (PVC) continues to experience growing demand for various applications due to its versatility, cost effectiveness, and unique properties, which will drive the market during the forecast period.
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APAC is estimated to contribute 61% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. Due to the continuous demand in the construction and chemical industries, APAC led the global market. The rapid growth can be attributed to the rising demand for PVC and increased expenditure in the construction industry in China, India, Indonesia, and Thailand.
Furthermore, APAC is anticipated to witness price fluctuations due to imbalances in the supply and demand and caustic soda. Besides, huge demands from various end-user industries, such as PVC and pulp, and paper, located in China, India, and Vietnam, have enhanced the regional market. Hence, such factors are expected to drive market in this region during the forecast period.
The market plays a crucial role in various industries, from pharmaceuticals to agrochemical industries. Used in ethylene dichloride (EDC) production and disinfection bleaching, chlorine is vital for pharmaceutical manufacturing and wastewater treatment projects. Through brine electrolysis, sodium chloride is converted into chlorine, serving as an oxidizing agent in metal separation and pulp & paper industries. With applications in solvents and inorganic chemicals, chlorine is indispensable in agricultural chemicals and chronic disease prevention. Chlorine is also a key component in water and wastewater treatment chemicals, essential for disinfecting and purifying water to ensure it meets safety and quality standards. Its role in chlorinated aromatics production underscores its significance in modern manufacturing processes and environmental sustainability efforts.
The extensive use of PVC in the construction industry is the key factor driving market growth. PVC has been used largely in a wide range of construction products for more than half a century. The characteristics of PVC, such as its strength, lightweight, durability, and versatility, make it ideal for many applications. Moreover, the construction industry is one of the major drivers for the PVC market due to a wide range of applications in the commercial, household, and industrial sectors.
In addition, enhancing infrastructure and housing conditions in emerging economies is expected to retain the demand for PVC. The long-term demand for PVC depends on the revival of the construction markets in the urbanized economies, thereby driving the market during the forecast period.
Market consolidation through M&As is the primary trend shaping market growth. Mergers and acquisitions (M&A) in the global market are expected to continue or build on their strong run as both strategic and private equity buyers seek opportunities. Market factors that are driving this activity are strong corporate balance sheets, readily available financing at attractive rates, and underpinning high deal valuations.
For instance, in October 2022, INEOS Enterprises announced the acquisition of ASHTA Chemicals, a North American chlorine and potassium hydroxide manufacturer. Hence, the increasing number of M&As will boost the growth of the global market during the forecast period.
Logistic problems related to hazardous chemicals is a challenge that affects the market. Lucrative growth in the chemical industry has led to an increase in the safety concerns of chemical logistics due to the steep increase witnessed by freight traffic. The lack of untrained professionals for handling the packaging and transportation of hazardous chemicals and the lack of awareness about new and emerging trends and technologies are some of the major issues faced worldwide.
Furthermore, pilferage is another major concern. Expensive chemicals are carefully replaced with certain cheap substances, with truck drivers being the major culprits. Consequently, the quality of raw materials is compromised. In addition, poor infrastructure for storage, which includes inadequate warehousing facilities and inadequate security, may hamper the global market during the forecast period.
The market research report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their strategies.
Global Market Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
The research report also includes detailed analyses of the competitive landscape of the market and information about 20 market companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD Billion" for the period 2024 to 2028, as well as historical data from 2018 to 2022 for the following segments.
The market remains integral to various sectors such as polyvinylchloride (PVC) production, water treatment and sanitation, and electronics manufacturing. Robust water disinfection methods combat waterborne diseases and ensure safe and clean drinking water, addressing concerns about antibiotic-resistant bacteria. In agriculture, chlorine is used in pesticides and herbicides, while in electronics manufacturing, it is crucial for bonding components and protecting sensitive parts. Additionally, chlorine derivatives like polyurethane foams find applications in furniture, mattresses, and automotive parts. However, fluctuations in chlorine prices and a slump in product sales challenge market stability, despite its importance in addressing chronic diseases and maintaining respiratory and gastrointestinal health. Further, the market encompasses Chloromethanes and other chemicals and materials crucial in various industries. Chlorine, known for its electronegative properties and ions, is integral in the production of chloromethanes and other compounds used extensively in manufacturing processes. Its versatility spans applications in water treatment, pharmaceuticals, and plastics production.
In addition, the market remains a cornerstone in various industries, particularly ethylene dichloride/polyvinylchloride production, providing essential materials for packaging films, agrochemicals, and insulation. It is vital in bleaching agents and cleaning products for sanitation needs, while its derivatives like isocyanates & Oxygenates and ketones serve as fuel additives and chemical intermediates. Chlorine-based disinfectants play a crucial role in water disinfection, safeguarding against waterborne diseases and ensuring safe medical & healthcare practices. Despite concerns about respiratory infections and non-communicable diseases, chlorine's role in maintaining hygiene and sanitation through bleaches and water disinfectants remains indispensable across industries, from paper and pulp to textile production.
Market Scope |
|
Report Coverage |
Details |
Base year |
2023 |
Historic period |
2018-2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 3.77% |
Market Growth 2024-2028 |
USD 7.44 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
3.45 |
Regional analysis |
APAC, North America, Europe, South America, and Middle East and Africa |
Performing market contribution |
APAC at 61% |
Key countries |
US, Japan, Germany, France, and UK |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Aditya Birla Management Corp. Pvt. Ltd., Akzo Nobel NV, Banner Chemicals Ltd., BASF SE, Covestro AG, ERCO Worldwide, Ercros SA, Formosa Plastics Corp., Hanwha Corp., INEOS Group Holdings SA, Kemira Oyj, Nouryon Chemicals Holding BV, Occidental Petroleum Corp., Olin Corp., Tata Chemicals Ltd., Tosoh Corp., Vizag Chemical International, Vynova Beek BV, Westlake Corp., and Gujarat Alkalies and Chemicals Ltd. |
Market dynamics |
Parent market analysis, Market forecasting, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and market condition analysis for the market forecast period. |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this market research report to meet your requirements.
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Application
7 Market Segmentation by End-user
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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