Challenges and Opportunities in the VCI Packaging Market: 10-Year...

Challenges and Opportunities in the VCI Packaging Market: 10-Year Forecast (2023-2033)

Posted 2023-11-06 10:28:09

The global volatile corrosion inhibitors (VCI) packaging market is anticipated to reach a valuation of US$ 825.4 million in 2023, driven by increasing proliferation of electronic devices and components. The trend is expected to create new opportunities for the market, leading to a projected CAGR of 6.1% between 2023 and 2033, and reaching a total valuation of approximately US$ 1.4 billion by 2033.

The expansion of the primary metal industry in India is expected to significantly impact the demand for volatile corrosion inhibitors (VCI) packaging. India is projected to become the largest shareholder, accounting for approximately 34% of the South Asian VCI packaging market by 2033. The growth and increased penetration of value-added manufacturing industries present lucrative opportunities for VCI packaging manufacturers in the country. India has witnessed a steady rise in the demand for eco-friendly and biodegradable VCI packaging over the past decade, with an expected CAGR of 6.0% over the analysis period. The continued production in heavy equipment, metalworks, and the automotive industry has driven the need for VCI packaging to protect these assets, further boosting the growth of the global VCI packaging market.

Germany, on the other hand, is poised to present high demand for VCI packaging due to its significant role in automotive parts manufacturing, heavy equipment production, and metals work in Europe. German manufacturers are increasingly focused on developing environmentally friendly anti-corrosion solutions. This emphasis on eco-friendly products is expected to drive the growth of the German VCI packaging market, which is anticipated to achieve a CAGR of 5.9% over the analysis period and an incremental opportunity of US$ 19.3 million. The demand for VCI packaging is likely to rise in tandem with the German manufacturing industry’s commitment to sustainable solutions.

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One of the major factors expected to boost the growth of the VCI market is the increasing demand from the automotive industry. There is a growing need to protect metal components and parts from corrosion, as the automotive sector continues to expand. VCIs provide a reliable and cost-effective solution for preventing corrosion, thereby extending the lifespan of automotive parts and reducing maintenance costs. The rising production of automobiles, especially in emerging economies, is driving the demand for VCIs in the automotive industry.

The expansion of the oil and gas industry is also expected to contribute to the growth of the VCI market. The oil and gas sector heavily relies on metal equipment and infrastructure that are exposed to harsh environments and corrosive substances. VCIs are extensively used in this industry to protect pipelines, storage tanks, drilling equipment, and other metal components from corrosion. The demand for effective corrosion protection solutions like VCIs is expected to increase, as the industry continues to explore new reserves and invest in infrastructure development.

Advancements in VCI technology are further driving the growth of the market. Manufacturers are constantly investing in research and development to enhance the performance and effectiveness of VCIs, which includes the development of high-performance VCIs that offer extended protection and can be applied in challenging conditions. Advanced formulations and application methods are being developed to cater to the specific needs of different industries and ensure optimal corrosion protection. The technological advancements are propelling the adoption of VCIs across various sectors.

Key Takeaways from the Market Study

Global volatile corrosion inhibitors (VCI) packaging market was valued at US$ 778.0 million by 2022-end.
From 2018 to 2022, the market demand expanded at a CAGR of 3.0%.
India is expected to hold a dominant CAGR of 6.0% during the forecast period.
By product, the VCI Bags segment is expected to constitute a CAGR of 6.0% in 2033.
On the basis of end-user industry, the primary metal segment is expected to dominate the market with a CAGR of 5.9% in 2033.
From 2023 to 2033, volatile corrosion inhibitors (VCI) packaging market is expected to flourish at a CAGR of 6.1%.
By 2033, the market value of volatile corrosion inhibitors (VCI) packagingis expected to reach US$ 1.4 billion.

Increasing focus on sustainability, across the globe is a major factor that is expected to propel the growth of the volatile corrosion inhibitors (VCI) packaging market in the near future, remarks an FMI analyst.

Competitive Portfolio

Prominent players in the volatile corrosion inhibitors (VCI) packaging market are

Cortec Corporation,
Armor Protective Packaging,
Branopac India Pvt. Ltd.,
Daubert Cromwell, LLC,
Haver Plastics Co Ltd.,
Muller LCS Inc.,
NTIC (Zerust Excor),
Mondi Group,
Transcendia Inc.,
AICELLO CORPORATION,
Smurfit Kappa Group PLC,
NEFAB GROUP,
CGP Coating Innovation,
Crayex Corporation,
Patkar Extrusiontech (Pvt.) Ltd.,
among others.

Recent Developments:

In February 2021, Daubert Cromwell Inc. introduced a new line of VCI paper, called Clear Pak BIO VCI Paper, which is made from biodegradable and compostable materials. The paper provides corrosion protection for metal parts and can be easily recycled or disposed of in an environmentally friendly manner.
In November 2020, CORTEC Corporation introduced a new VCI film, called VpCI-126 HP UV Shrink Film, which combines UV resistance with VCI technology. The film is suitable for outdoor storage and provides both corrosion protection and UV protection for metal parts and equipment.
In June 2020, Cortec Corporation launched VpCI®-391, a water-based, temporary coating that offers multi-metal corrosion protection. The coating is environmentally friendly, easy to apply, and provides long-lasting corrosion protection for various metal surfaces.

More Valuable Insights Available

Future Market Insights offers an unbiased analysis of the global volatile corrosion inhibitors (VCI) packaging market, providing historical data for 2018 to 2022 and forecast statistics from 2023 to 2033.

To understand opportunities in the volatile corrosion inhibitors (VCI) packaging market, the market is segmented on the basis of product (VCI paper, VCI film, VCI bags, foam, and others), by material (paper, polyethylene, and others), and end-user industry (aerospace & defense, primary metal, electricals & electronics, automotive, heavy equipment, metal works, and others), by across five major regions (North America, Latin America, Western Europe, Eastern Europe, South Asia & Pacific, East Asia, and Middle East & Africa (MEA)).

The packaging team at Future Market Insights offers expert analysis, time-efficient research, and strategic recommendations with the objective to provide authentic insights and accurate results to help clients worldwide. With a repertoire of over 100+ reports and 1 Billion+ data points, the team has been analyzing the industry lucidly in 50+ countries for over a decade. The team provides a brief analysis on key trends including competitive landscape, profit margin, and research development efforts.

Key Segments Profiled In The Global Volatile corrosion inhibitors (VCI) packaging Market

By Product: