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The chlorine market size stood at $36,845.0 million in 2019, and is expected to demonstrate a CAGR of 5.2% during the forecast period (2020–2030). Some of the key growth factors of the chlorine industry include rising consumption of the compound for water treatment applications and increasing demand for polyvinyl chloride (PVC).
The chlorine market is projected to showcase a positive growth post the COVID-19 pandemic, on account of increased concerns for the presence of pathogens in water supply systems at a global level. However, the production of the chemical compound has been impacted to a certain extent, due to the shutdown of manufacturing facilities, in compliance with government regulations, to curtail the spread of the disease. On the other hand, the market is likely to grow on account of increasing awareness regarding sanitization and vitality of treated water.
In 2019, the EDC/PVC category accounted for the largest market size in the chlorine industry, on the basis of application. This is majorly attributed to the high-volume consumption of the chemical in the chlorination process for the manufacturing of EDC/PVC. With the rapid surge in demand for EDC/PVC from applications in the building & construction, automotive, electrical & electronics, and several other sectors, the production level of the chemical has witnessed a rise at a global level.
In order to suffice the demand for the compound from such end-use industries, the consumption is expected to increase in coming years, thereby boosting the chlorine market during the forecast period.
The water treatment category is expected to showcase the fastest growth, on account of increasing concerns regarding water safety. The compound is used in high volume by water utilities as a disinfectant, in order to provide safe drinking water, as well as clean water for sanitation purposes. Hence, the consumption of the compound is witnessing a fast-paced growth in water treatment applications, which in turn is promoting growth of the chlorine market.
In addition, the U.S. Environmental Protection Agency (EPA) requires treated tap water to contain a detectable level of the disinfectant chemical to help protect against germs all the way to consumers’ taps. Considering such factors, the consumption of the compound is witnessing a rapid growth for water treatment purposes, which, in turn, boosting the growth of the chlorine market.
Globally, APAC held the largest revenue share in the chlorine market in 2019, and the trend is likely to continue during the forecast period. This is majorly attributed to the high-volume consumption of the compound in developing countries, such as China, India, and Thailand, for EDC/PVC production, water treatment applications, as well as increased demand from the pharmaceutical sector.
The production of EDC/PVC in the APAC region has been at a rise, owing to its rising demand from the building & construction, electrical & electronics, and automotive sectors. PVC is also widely used for door sidings, insulation, shingles, roofing, and flooring. In order to meet the demand for EDC/PVC arising from such applications, the consumption of the chemical compound is likely to increase, owing to its high-volume requirement in the chlorination process. Therefore, such factors are expected to drive the chlorine market during the forecast period.
In developing countries of APAC, particularly China, India, and Indonesia, there has been an increase in awareness regarding water-borne diseases caused from untreated water, along with an understanding of harmful effects caused by consuming it. In order to prevent water-borne diseases, such as diarrhea, trachoma, and meningitis, the consumption of the chemical compound is projected to increase at a fast pace, thereby promoting the growth of the chlorine market.
In addition, the compound has an ability to provide a white appearance to paper by removing lignin, which is an element of wood fiber that makes the paper appears yellow in color under sunlight. With the growth of the pulp & paper industry in the region, the consumption of the compound is witnessing a rise.
For instance, in May 2019, Asia Pulp & Paper (APP), a leading Indonesian paper company, signed a memorandum of understanding (MoU) with the Government of Andhra Pradesh (India), as a preliminary step toward construction of a new pulp & paper mill, with a capacity of 5 million tons per year in the state. Therefore, with the increase in investments and manufacturing facilities of pulp & paper, the consumption of the compound is projected to increase, thereby boosting the chlorine market in coming years.
In recent years, the consumption of the compound has witnessed a significant rise, on account of treating water in order to make it safe for drinking and sanitation purposes. Developing countries across the world, including India, Brazil, Thailand, and several other emerging nations, are garnering knowledge on the adverse effects of consuming untreated water, which can lead to diseases, such as typhoid, cholera, Hepatitis A, and Hepatitis E. Chlorine has the ability to kill pathogens and bacteria at a very initial stage, and thereby helps in preventing water-borne diseases.
Moreover, the compound is gaining adoption for the treatment of water for irrigation purposes, as well as swimming pools. In addition, governments across the globe are taking stringent measures for regulating the supply of clean, safe, and treated water. Such factors are expected to boost the consumption of the compound, thereby driving the chlorine market.
Chlorine is required in high volume during the chlorination process for the production of PVC. The application of the compound in PVC offers several advantageous properties, such as ability to improve thermal stability and increase melt viscosity during the production process. With the increasing demand for PVC across several end-use industries, owing to its large-scale applications in piping and siding in the building & construction sector; non-breakable containers in the medical sector; and windshield system components in the automobile sector, the consumption of the compound has witnessed a huge spur, and is expected to increase in future. Therefore, such factors are expected to propel the chlorine market in coming years.
|Base Year (2019) Market Size||$36,845 million|
|Forecast Period (2020-2030) CAGR||5.2%|
|Report Coverage||Market Trends, Revenue Estimation and Forecast, Segmentation Analysis, Regional and Country Breakdown, Company Share Analysis, Companies’ Strategical Developments, Competitive Benchmarking, Company Profiling|
|Market Size by Segments||Application, End Use, Region|
|Market Size of Geographies||U.S., Canada, Germany, France, Italy, U.K., Japan, China, India, South Korea, Brazil, Mexico, Argentina, Saudi Arabia, South Africa, U.A.E.|
|Secondary Sources and References (Partial List)||Alkali Manufacturers Association of India, American Chemical Society, American Chemistry Council, Asia Pulp & Paper, Chlorine Institute, Essential Chemical Industry, Euro Chlor, International Water Association, Plastics Pipe Institute, U.S. Department of Health & Human Services|
The global chlorine market is consolidated in nature, with presence of few major players. The major players operating in the market include Olin Corporation, Occidental Petroleum Corporation, Westlake Chemical Corporation, The Dow Chemical Company, Covestro AG, and INEOS Group Holdings S.A.
Manufacturers in the industry are increasing their production capacities as well as geographical presence, in order to gain a competitive edge. For instance:
The chlorine market report offers comprehensive market segmentation analysis along with market estimation for the period 2014–2030.
Based on Application
Based on End Use
The chlorine market will value $63,121.6 million in 2030.
The major chemical demand in the chlorine industry will be generated for the water treatment end use.
The fastest growth in the chlorine market will be witnessed in APAC.
The consolidation in the chlorine industry is due to the presence of just a few major players.
In order to increase their revenue, key players in the chlorine market are raising their production capacity.