Chlor-alkali production involves an electrolysis process that produces chlorine gas and sodium hydroxide or potassium hydroxide. It is a major industrial process used globally for production of numerous chemicals and is used in various applications across sectors such as water treatment, paper & pulp, textile and more. The products generated are key components in making alloys, solvents, plastics, pharmaceuticals, agricultural compounds. The increasing use of PVC in construction activities and rising demand for consumer goods have augmented the growth of the chemical industry which in turn is driving the demand for chlor-alkali.
The global Chlor-Alkali Market is estimated to be valued at US$ 263531.83 KT in 2023 and is expected to exhibit a CAGR of 15.% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Dynamics:
One of the major drivers fueling the growth of chlor-alkali market is the increasing demand from chemical industry. The growing chemical industry globally especially in Asia Pacific region owing to rapid industrialization and infrastructure development is propelling the market growth. Countries such as China, India are witnessing strong growth in specialty and commodity chemicals which is positively impacting the chlor-alkali demand. Additionally, with rising government focus on clean water initiatives, water treatment activities are growing fast. Chlorine is indispensable in production of numerous water disinfectants and treatment chemicals driving the consumption. Also, growing urbanization and population is augmenting the demand for consumer products, pharmaceuticals, and other end use industries thereby supplementing the market expansion over the forecast period.
SWOT Analysis
Strength: The chlor-alkali industry has well-established production facilities and distribution networks globally. Several manufacturers have been operating in the market for decades and have achieved significant economies of scale. The industry also utilizes cost-effective production techniques like membrane cell technology.
Weakness: Strict environmental regulations regarding mercury emissions during chlor-alkali production pose a major challenge for manufacturers. Many countries have placed bans on mercury use that increases compliance costs. Fluctuations in raw material prices can impact profit margins for producers.
Opportunity: Rising demand for PVC, polycarbonate resins, chlorinated solvents, ethylene, and propylene from the construction and automotive industries present new growth avenues. The market is shifting towards mercury-free technologies like membrane cell and hydrogen reduction processes which provide an opportunity for investment and capacity expansion.
Threats: Intense competition among established players limits the scope for pricing flexibility. Developing alternative production methods for chlorine and alkali increases threat from substitute products. Trade wars and geopolitical issues pose risks for global supply chains and exports.
Key Takeaways
The global Chlor-Alkali Market Share is expected to witness high growth over the forecast period supported by increasing demand from end-use industries.
Regional Analysis: The Asia Pacific region dominates the market currently owing to the large production and consumption levels in China and India. Stringent environmental norms regarding the phasing out of mercury cells is driving technology upgrades in the region. Key players are making investments to transition to greener membrane cell and diaphragm cell techniques.
Major players in the chlor-alkali industry are Teva Pharmaceutical Industries Ltd., AbbVie Inc, Pfizer Inc., Reddy's Laboratories Ltd, Zydus Cadila, ReNetX Bio, Inc, InVivo Therapeutics Holdings, Lineage Cell Therapeutics, Inc, Kringle Pharma, Inc., Acorda Therapeutics, Inc., Bioaxone Biosciences, Inc, RespireRx Pharmaceuticals Inc., NervGen, Rising Pharmaceuticals, Inc, ScieGen Pharmaceuticals, Inc, MSN Laboratories Private Limited, and Lannett Co Inc.
Explore more related article on this topic: https://www.ukwebwire.com/chlor-alkali-market-propelled-by-growing-demand-for-chlorine-in-chemicals/