ID: MRFR/CnM/1434-HCR | February 2021 | Region: Global | 185 Pages
$141.94 Billion
5.59%
Asia Pacific
2021-2028
The Chlor-Alkali Market is showing remarkable growth and was valued at USD 98.16 billion in 2028. The major products of the Chlor-alkali process such as chlorine, caustic soda, and soda ash play an important role in different chemical industries. Owing to wide applications of Chlor-alkali products in various industries the global demand was 244,214.46 kilotons in 2028.
The Chlor-alkali process involves the electrolysis of brine water to yield three different products known as Chlor-Alkali products. These three products are chlorine, caustic soda, and soda ash. Chlorine is used in the manufacturing of PVC plastics, Fertilizers, paper bleaching, dyes and paints, Industrial solvents, and many others. Caustic soda (NaOH) is used in the manufacturing of soap and detergents, paper, alumina, and other chemicals, etc. Soda ash is used in mining and smelting of metals, manufacturing of lithium-ion batteries, glass, etc. Owing to wide applications the Chlor-alkali products have great demand in the market. The global Chlor-Alkali market is estimated to grow at a compound annual growth rate CAGR of 5.59 % over the current forecast period ( 2021-2028).
The technological advancements in the manufacturing process are bringing good changes to the market. The shift towards an eco-friendly manufacturing process will bring positive market results. Therefore, the market is expected to expand further with the rising demands. The Global Chlor-alkali market value is expected to be worth USD 141.94 billion by the end of the current forecast period in 2028.
Covid 19 Analysis
Covid 19 had a severe impact on the global Chlor-alkali market. The poor performance of the various end-user industries led to a decline in market growth. The temporary closure of production units to curb the spread of the virus widely affected the demand and supply ratio. The industry is also facing a labor shortage due to less working capital in the market.
However, a rise in awareness about hygiene and sanitation during the period increased the market for chlorinated cleansing products. There was a respite to Chlor-alkali market growth as chlorine is a major product of the Chlor-alkali process.
Market Dynamics
Drivers
The rapid growth of various end-user industries of Chlor-alkali products is driving the market growth. chlor-alkali products play a key role in automotive, construction, pulp & paper, food & beverage, chemical, paints, textile, and many other industries to name. The growing requirement of organic and inorganic chemicals in these industries act as growth boosters for the chlor-alkali market.
The technological advancements in the manufacturing process are backing up the market growth. For example, the shift in the production process from the mercury cell method to the membrane cell method brought a positive impact on the market. The latter is more eco-friendly than the former one. Therefore, technologically advanced and environment-friendly manufacturing processes will boost the growth of the Chlor-alkali market.
Restraints
The harmful environmental impact of the Chlor-alkali product especially chlorine is the major growth hindering factor. Chlorine is a potent greenhouse gas that causes ozone layer depletion. The mercury cell process of Chlor-alkali preparation causes mercury toxicity if the discharge is not properly regulated.
The other restraint for this market is its high energy-intensive production process. Strict government environmental norms hamper the rapid expansion of this market.
Technology Analysis
Chlor-Alkali is a process of electrolyzing brine water ( saltwater solution) to yield chlorine and caustic soda as major products. This process derives its name from its products only, chlorine and alkali NaOH. These products also known as Chlor-alkali products are key raw materials of various industries.
There are three electrolytic processes of Chlor-alkali production: the diaphragm cell process, the mercury cell process, and the membrane cell process. The mercury cell process was widely used in the early days but is discontinuing due to the toxic effects of mercury on the environment. The membrane cell method occupies the major market share nowadays which is relatively healthy but needs extra work to separate the chlorine from caustic soda.
Study Objectives
The specific objectives of this market report on the Chlor-alkali market are given below:
Segment Analysis
Segmentation of the global Chlor-Alkali market, by product type
The chlorine segment is the dominating market segment. This dominance is due to its wide application in various industries. Chlorine is used to manufacture PVC plastics, industrial solvents, paints and dyes, medicines, pesticides, etc. Moreover, it is also used on a large scale for bleaching purposes in the paper and textile industry. It also finds its use in water treatment plants.
Segmentation of the global Chlor-Alkali market, by the production process
The membrane cell process Is the most practiced. The popularity of this process is driven by less energy requirement in the procedure. Moreover, the initial investment required to set up a production unit is also very less in this type.
Segmentation of the global Chlor-Alkali market, by application
The EDC/ PVC holds the major market share. Ethylene Dichloride (EDC) acts as a starting material for the production of PVC ( Polyvinyl chloride ) material. PVC is the most used plastic material used for the production of almost everything ranging from footwear, electrical to medical devices. The global PVC market was alone valued at USD 60.85 billion in 2020. The Ethylene Dichloride is produced by chlorination of ethylene in presence of ferric chloride (FeCl3) as a catalyst.
Regional Analysis
The different regional markets for the global Chlor-Alkali market are:
The Asia Pacific is the largest regional market for Chlor-alkali products. Rapid industrial development in China and India are the major growth driving factors. China has emerged as the largest manufacturer and user of Chlor-alkali products. The prevalence of automobile, electrical and chemical manufacturing hubs in this region is too a growth-promoting factor.
North America holds the second-largest position in the global Chlor-Alkali alkali products market. The great presence of vinyl end-users and automotive manufacturers are the growth-boosting factors for this region.
Europe is showing moderate growth over the forecast period. Automotive electrification, paper industry, food and beverage industries are major demand generating industries in this region. Germany is the largest producer of chlor-alkali products and produces about 45 % of the 20 million tonnes production.
Latin America is also a significantly growing market. The developing food and beverage, paper pulp, and chemical industries in Brazil are the potential demand generators.
The Middle East and Africa also account for significant demand. The oil and automotive industry in the Middle East are major users of Chlor-alkali products.
Competitive Landscape
The major global companies playing a key role in the Chlor-Alkali market are :
Recent Developments
Intended Audience
This report will be beneficial for every stakeholder of the Chlor-Alkali market such as :
Report Overview
This report provides an in-depth analysis of the Chlor-Alkali market in terms of current value and future forecast. We have also highlighted the problems and prospects of the given market.
Moreover, technological analysis of the product will greatly help in knowing the product better and in decision making. Furthermore, this report contains a detailed analysis of every segment of the given market for the current forecast period. This report has also highlighted the key players and the current developments in the Chlor-Alkali market.
Report Attribute/Metric | Details |
---|---|
Market Size | 2030: USD 141.94 billion |
CAGR | 5.59% (2021β2030) |
Base Year | 2020 |
Forecast Period | 2021-2030 |
Historical Data | 2019 |
Forecast Units | Value (USD Billion) |
Report Coverage | Revenue Forecast, Competitive Landscape, Growth Factors, and Trends |
Segments Covered | By Product Type, Application and Region |
Geographies Covered | North America, Europe, Asia-Pacific, and Rest of the World (RoW) |
Key Vendors | Solvay SA (Belgian), Olin Corporation (US), Axiall Corporation (US), Akzo Nobel NV (The Netherlands), Bayer AG (Germany), Covestro AG (Germany), Tosoh Corporation (Japan), Tata Chemicals Ltd (India), Tronox Limited (US), and Xinjiang Zhongtai Chemical Co. Ltd (China) |
Key Market Opportunities | Increasing demand for chlorine and its derivatives particularly from petrochemical industry |
Key Market Drivers |
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Frequently Asked Questions (FAQ) :
The rapid growth of various end-user industries of chlor-alkali products is driving the market growth.
The Asia Pacific is the largest regional market for chlor-alkali products. A large presence of chemical, automobile, and other end-user industries drives the growth.
Chlorine holds the largest market share by product type owing to its wide use in various industries.
The major global companies playing a key role in the Chlor-alkali market are : β Solvay SA (Belgian) β Olin Corporation (US) β Axiall Corporation (US) β Akzo Nobel NV (The Netherlands) β Bayer AG (Germany) β Covestro AG (Germany) β Tosoh Corporation (Japan) β Tata Chemicals Ltd (India) β Tronox Limited (US) β Xinjiang Zhongtai Chemical Co. Ltd (China)