Market Overview:
The global chlor-alkali market size is expected to reach USD 55.39 billion by 2027, exhibiting a CAGR of 2.9% during the forecast period. The growing shift from conventional production technologies to greener production technologies will have an outstanding effect on the global market, states Fortune Business Insights, in a report, titled “
Chlor-Alkali Market Size, Share & Industry Analysis, By Application (Chlorine {Water Treatment, Paper & Pulp, Inorganics, Intermediates, Organics, Vinyl, and Others} and Caustic Soda {Textile, Alumina, Soap & Detergents, Organics, Inorganics, Pulp & Paper, Water Treatment, and others}), and Regional Forecast, 2020-2027.” The market size stood at USD 49.87 billion in 2019.
The occurrence of coronavirus has exerted enormous economic stress onto sectors in various countries. We understand that this health emergency has negatively impacted various sectors across the globe. Rising support from governments and several companies can help in the fight against this highly infectious virus. There are some industries that are struggling and some are thriving. More or less, nearly every sector is estimated to be impacted by this pandemic.
The report on the chlor-alkali market describes:
- Prominent understandings of the market
- Swot Analysis of the regions
- Latest market trends and developments
- Stellar insights into the competitive landscape
- COVID-19 impact
Market Driver:
Significant Demand for Vinyl Polymers to Boost Market Growth
The market for vinyl and polyvinyl chloride (PVC) is poised for robust growth, supported by increased production facilitated by chlorine. PVC’s status as the world’s third-largest polymer remains unaltered, driven by its indispensable role in the construction industry for applications such as pipes and window frames.
Furthermore, the flourishing construction sector in developing nations presents lucrative opportunities for market expansion. Similarly, the expanding utilization of PVC across various end-use industries is expected to further propel market growth in the coming years.
For instance, in electrical applications, PVC’s unique properties make it the material of choice for tapes and cases. Additionally, the rising popularity of electric vehicles is anticipated to drive higher consumption of PVC and chlorine, thereby contributing to market expansion.
Moreover, the escalating demand for chlor alkali products across end-use industries will serve as an additional catalyst for market growth, underlining the continued relevance and significance of PVC and its derivatives in various sectors.
Source: https://www.fortunebusinessinsights.com/industry-reports/chlor-alkali-market-101720
Disrupted Supply and Demand to Dampen Market Amid Coronavirus
The COVID-19 outbreak has negatively impacted the global market. The disruption caused by the virus has resulted in a shortage of laborers, disturbed transportation and logistics, and disrupted supply and demand. The reduced demand for chlor-alkali products particularly chlorine can significantly restrict the growth of the market amid COVID-19. The dropped revenue and losses were reported by key players in the first half of 2020. For instance, Olin Corporation, the world’s largest producer of Chlor-alkali, reported a loss of USD 80 million in Q1 2020 due to dipped sales prices and volume.
Regional Analysis:
Flourishing Construction Industry to Advance Market in Asia Pacific
The market in Asia Pacific is expected to hold the largest share in the global market owing to the heavy consumption rate in the region. China dominates the Asia-Pacific region with over 70% share in the regional consumption. The growth is attributed to the booming construction industry. The increasing demand for PVC pipes in the agricultural sector will bolster the healthy growth of the market in the region. Moreover, the thriving automotive and industrial sectors will simultaneously increase the demand for caustic soda, which, in turn, will aid the growth of the market. The paper & pulp industry is expected to contribute impetus to the market in Asia Pacific. India is poised to be the fastest-growing country in the region owing to robust developments in the construction industry and thriving end-use industries. As per Oxford Economies Global Construction 2030 outlook, India’s construction industry is expected to grow twice as fast as China in the forthcoming years.
Key Development:
January 2019: Ercros, a Spain based manufacturer of chemicals, announced that it has started the production of chlorine and caustic soda at its plant in Vila-seca I (Tarragona), Spain.
The Report Lists the Key Companies in the Chlor-Alkali Market:
- Olin Corporation (Clayton, United States)
- Tata Chemicals Limited (Mumbai India)
- Tosoh Corporation (Tokyo, Japan)
- Occidental Petroleum Corporation (OXY) (Houston, United States)
- Xinjiang Zhongtai Chemical Co. Ltd. (China)
- AGC In (Tokyo, Japan)
- Inovyn (Runcorn Site, UNITED KINGDOM)
- Formosa Plastics Corporation (Taiwan)
- Hanwha Chemical Corporation (Seoul, South Korea)
- Akzonobel N.V. (Amsterdam, Netherlands)