The Chlor-Alkali Market is estimated to be valued at US$ 263531.83 Mn in 2023 and is expected to exhibit a CAGR of 3.1% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
Chlor-Alkali market comprises of caustic soda (sodium hydroxide), chlorine, and sodium hypochlorite. Chlor-Alkali is majorly used in the production of polyvinyl chloride (PVC), ethylene dichloride (EDC), and propylene oxide. PVC has widespread applications ranging from pipes, fittings, construction materials, films and sheets, wires and cables, flooring to medical devices. Growing construction activities globally is boosting the demand for PVC which in turn is driving the growth of Chlor-Alkali market.
Market Dynamics:
One of the key drivers for the Chlor-Alkali market is the growing demand for PVC from construction industry. PVC finds wide applications in construction from pipes and fittings to flooring, window frames and siding. According to UNEP, the construction sector accounts for over 30% of global energy consumption and 40% of carbon emissions annually. Thus, governments across regions are investing heavily in green buildings which utilize sustainable materials like PVC to curb carbon footprint. For instance, in 2022 the US government announced a budget of USD 1 trillion for infrastructure projects including green buildings over the next 5 years.
Secondly, growing membrane cell technology is also fueling the Chlor-Alkali market growth. Membrane cell technology is more energy efficient and environment friendly as compared to traditional mercury cell technology. Major players are shifting towards adopting advanced membrane cell technology to lower production costs and meet stringent environmental norms. For instance, in 2022 Kemira announced capacity expansion plans with membrane cell technology in Finland and Germany plants to cater to growing European demand.
Segment Analysis
The Global Chlor-Alkali Market Size can be segmented based on the technology into mercury cell process, membrane cell process, and diaphragm cell process. The membrane cell process segment dominates the market as it is more eco-friendly and energy efficient compared to the other technologies.
PEST Analysis
Political: The regulations promoting green and sustainable production are positive drivers for the membrane cell technology segment. Economic: Growth in end-use industries such as paper, organic chemicals, and alumina are expected to drive the demand for chlor-alkali globally. Social: Increasing awareness about hazardous effects of mercury is shifting the preference towards non-mercury based membrane cell technology. Technological: Advancements in membrane cell technology have improved the efficiency and reduced the energy consumption in chlor-alkali production.
Key Takeaways
The global Chlor-Alkali market is expected to witness high growth, exhibiting CAGR of 3.1% over the forecast period, due to increasing infrastructure development and industrialization. Regionally, Asia Pacific dominated the global market in 2023 with a share of over 35%, with China being the major contributor. Key players operating in the Chlor-Alkali market include ANWIL SA , BorsodChem, Ciner Resources Corporation, Covestro AG, Dow, Ercros SA, Formosa Plastics Corporation, Genesis Energy LP, Hanwha Solutions, INOVYN, Kemira, Kem Onem, MicroBio Ireland Limited, NIRMA, Nouryon, Occidental Petroleum Corporation, Olin, Corporation, PCC Rokita SA, Shandong Haihua Group Co. Ltd, Spolchemie, Tata Chemicals Limited, Tosoh Corporation, Vinnolit GmbH & Co. KG, and Vynova Group.
The regionally fastest growing market is expected to be Asia Pacific due to rising domestic demand from end use industries. China dominated the Asia Pacific chlor-alkali market owing to presence of large number of production facilities and increased infrastructural activities. Key players like Formosa Plastics Corporation, Shandong Haihua Group Co. Ltd, Tosoh Corporation are expanding their production capacities to gain higher market share in the region.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
About Author - Vaagisha Singh
Vaagisha brings over three years of expertise as a content editor in the market research domain. Originally a creative writer, she discovered her passion for editing, combining her flair for writing with a meticulous eye for detail. Her ability to craft and refine compelling content makes her an invaluable asset in delivering polished and engaging write-ups. LinkedIn