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The vinyl chloride monomer (VCM) market size is estimated to grow by USD 12.25 billion at a CAGR of 3.69% between 2023 and 2028. The surge in demand from the building and construction industry remains the primary driver of market growth for Vinyl Chloride Monomer (VCM). VCM, a vital component in PVC production, experiences pricing dynamics influenced by VCM prices and volatile feedstock prices, particularly ethylene feedstock costs.
Despite cost pressures, downstream PVC processing industries benefit from lower feedstock Ethylene costs, enhancing downstream momentum. Consumer sentiments, alongside an economic recovery, fuel consumer buying enthusiasm, further stimulating housing segment demand. Offshore trading activities drive exports in the global Vinyl Chloride Monomer (VCM) market, impacting inventories and commodity prices. Negotiable freight charges play a role in price elevations, while direct chlorination remains a primary method in VCM production, complementing the ethylene feedstock route via EDC in VCM dynamics.
The market share growth by the polyvinyl chloride segment will be significant during the forecast period. PVC is a thermoplastic polymer that is used in a wide variety of applications, such as building and construction. It is the third most widely produced plastic in the globe, after polyethylene and polypropylene. PVC's is made by polymerizing vinyl chloride monomer, which is a gas. The polymerization process is carried out in a variety of ways, including suspension, emulsion, and bulk polymerization.
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The polyvinyl chloride segment accounted for USD 45.64 billion in 2018. PVC is widely used in the building and construction industry. PVC's is used to make pipes, windows, doors, siding, and roofing. PVC is also used in the automotive industry to make car parts such as bumpers, dashboards, and seats. In addition, PVC is used in a variety of other applications, including packaging, furniture, and toys. The rising use of PVC in various applications will further drive the growth of the PVC-segment of the global market during the forecast period.
The building and construction segment held the largest share of the global market in 2023. The key factor driving the growth of the building and construction segment is the strong government focus on infrastructural development and megacity construction projects, majorly in emerging nations such as India and China. According to the data from the India Brand Equity Foundation (IBEF), the Indian government, in the Union Budget 2022-2023, allocated USD 130.57 billion to increase the growth of the infrastructure sector. Such initiatives by the government will increase the adoption of cost-effective and durable PVC in the building and construction sector, which, in turn, will fuel the demand for VCM products during the forecast period.
APAC is estimated to contribute 56% 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.
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The construction industry is the largest end-user of VCM in the APAC region. The increasing demand for PVC-pipes and fittings from the residential and commercial construction sectors is driving the growth of the regional market. The rising demand for VCM cables from the telecommunications and power sectors is boosting the growth of the regional market. The healthcare industry is also using VCM in a variety of applications, such as medical tubing, intravenous bags, and surgical gloves.
In addition, the rising demand for these products from hospitals and clinics is driving the regional market. Furthermore, the rising demand from the construction industry, increasing demand from the electrical industry, growing demand from the healthcare industry, and rising adoption of PVC-recycling are expected to drive the regional market during the forecast period.
The Vinyl Chloride Monomer (VCM) market is experiencing growth, primarily driven by the expansion of the building and construction industry, which fuels the demand for PVC-products. A notable trend in this market is the increasing preference for lightweight materials, driven by the need for efficiency and sustainability in construction projects. However, the industry faces challenges due to the high cost of production associated with PVC manufacturing, exacerbated by volatile feedstock prices and cost pressures.
Despite these challenges, the surge in demand from the construction sector and housing segment remains a primary factor in shaping VCM dynamics. To navigate the market, stakeholders monitor VCM prices, downstream momentum, and commodity prices while adapting to changing economic conditions and consumer sentiments. Additionally, advancements in ethylene feedstock routes and PVC production processes offer opportunities for growth and innovation in the global VCM market.
Growth in the building and construction industry is the key factor driving market growth. PVC is a broadly used thermoplastic material that is used in a variety of applications, including building and construction, automotive, packaging, and healthcare. The building and construction industry is the largest consumer of VCM.
Moreover, VCM is used in a wide range of building and construction applications, including window frames, pipes, flooring, roofing, and siding. As the global population continues to grow, the demand for new housing and infrastructure is increasing, which is expected to drive market-growth and trends during the forecast period.
Growing demand for lightweight material is one of the major market trends. The automotive industry has embraced PVC-plastics due to its lightweight and durability. PVC has properties such as good flexibility, flame resistance, good thermal stability, high gloss, and low-to-nil lead content. Depending on the several plasticizers used in PVC, a variety of either rigid or flexible products can be manufactured using extruded, injection molding, compression molding, and blow molding methods. It finds use in instrument panels, sheathing of electric cables, pipes, and doors.
In addition, PVC is also used in the making of interior parts of aircraft and packaging owing to its lightweight and easy design flexibility. Thus, the weight-to-strength ratio of PVC is expected to drive the growth of the market during the forecast period.
The high cost of production of PVC is a challenge that affects market growth. The cost of producing PVC is high due to various factors, such as the main raw materials used in the production of PVC are VCM and chlorine. The price of VCM and chlorine is volatile and can fluctuate significantly, which can impact the cost of producing PVC, which requires a significant amount of energy.
In addition, the cost of energy is a major factor in the overall cost of producing PVC. The production of PVC can generate harmful emissions. To comply with environmental regulations, PVC-producers need to install pollution control equipment, which can increase the cost of production. Thus, such factors are expected to impede the market during the forecast period.
Companies are implementing various strategies by analyzing factors such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product or service launches, to enhance their presence in the market.
The market research and growth report also includes detailed analyses of the competitive landscape of the market and information about 15 market companies, including:
AGC Inc., Braskem SA, Ercros SA, Formosa Plastics Corp., Hanwha Corp., INEOS Group Holdings SA, Kaneka Corp., KURARAY Co. Ltd., Occidental Petroleum Corp., Olin Corp., Reliance Industries Ltd., Shin Etsu Chemical Co. Ltd., SP Chemicals Pte Ltd., Tokuyama Corp., Vizag Chemical International, Vynova Beek BV, Wacker Chemie AG, Westlake Corp., and Zhengzhou Meiya Chemical Products Co. Ltd.
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. This Market forecasting report includes data that 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 plays a crucial role in the production of polyvinyl chloride (PVC), serving as the primary factor driving growth in the PVC production sector and downstream PVC processing industry. VCM is cracked to produce PVC, with by-product hydrogen chloride being recycled in the oxychlorination process.
As a chemical intermediate and precursor, VCM is vital for manufacturing PVC, which finds extensive use in various applications such as building materials, packaging materials, and electrical wiring due to its corrosion resistance, moisture resistance, and excellent electrical insulating properties.
In the medical sector, PVC is utilized for containers, flexible bags, and medical tubing due to its compatibility with sterilization methods. Moreover, PVC is extensively used in automotive applications for interior materials, wire coatings, and seals, as well as in consumer goods like clothing, footwear, and inflatable structures.
The global demand for PVC continues to rise due to population growth, urbanization, and advancements in infrastructure construction. Governmental initiatives, along with both domestic and foreign investments in industrial units, malls, multiplexes, hotels, and the IT sector, further drive the growth of the PVC market, contributing to socio-economic infrastructure development and planned projects worldwide.
The market growth and forecasting report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2018-2028.
Vinyl Chloride Monomer (VCM) Market Scope |
|
Market Report Coverage |
Details |
Page number |
160 |
Base year |
2023 |
Historic period |
2018-2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 3.69% |
Market Growth 2024-2028 |
USD 12.25 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
3.51 |
Regional analysis |
APAC, North America, Europe, South America, and Middle East and Africa |
Performing market contribution |
APAC at 56% |
Key countries |
US, China, India, Germany, and France |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
AGC Inc., Braskem SA, Egyptian Petrochemicals Co., Ercros SA, Formosa Plastics Corp., Hanwha Corp., INEOS Group Holdings SA, Kaneka Corp., KURARAY Co. Ltd., Occidental Petroleum Corp., Olin Corp., Reliance Industries Ltd., Shin Etsu Chemical Co. Ltd., SP Chemicals Pte Ltd., Tokuyama Corp., Vizag Chemical International, Vynova Beek BV, Wacker Chemie AG, Westlake Corp., and Zhengzhou Meiya Chemical Products Co. Ltd. |
Market dynamics |
Parent market analysis, 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 forecast period. |
Customization purview |
If our market growth analysis report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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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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