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The global chloromethanes market was valued at $2,675.9 million in 2018, and is expected to reach $3,286.9 million by 2024, growing with a CAGR of 3.4% during the forecast period (2019 – 2024). Among all regions, Middle East and Africa (MEA) is expected to be the fastest growing region in the global chloromethanes market during the forecast period. The rising demand for chloromethanes in the region is driven by expansion of chemical based industries in countries such as Saudi Arabia, the U.A.E. and other Gulf countries as a result of their diversification plans. The development of chemical based industries is encouraging the demand for different types of chloromethanes used in the chemical and intermediates production plants.
Dynamics of Chloromethanes Market
The demand for chloromethanes is growing at a considerable pace owing to its requirement as a raw material for producing industrial solvents. This is supported by the fact that a large quantity of chloromethane is processed for the production of dimethyldichlorosilane and related organosilicon compounds. Dimethyldichlorosilane, in particular, serves as a precursor to silicones. Those silicones have wide applications in production of sealants, lubricants, adhesives, cooking utensils, medicine, and thermal and electrical insulation. In addition to that, several derivatives of chloromethane such as trimethylsilyl chloride and methyltrichlorosilane also used as a solvent in chemical processes. Thus, the wide application of chloromethane derivatives as a solvent is expected to increase demand during the forecast period.
Furthermore, the regions including MEA and Latin America (LATAM) are the new market destinations for chloromethane manufacturers and exporters in the global market. In addition, MEA region has a high potential for chloromethanes sales in the coming years with its well-established agriculture industry, oil and gas exploration and production (E&P), and untapped pharmaceutical industry. In order to grab the market opportunity in these regions, global market players are increasing their production capacities by upgrading current production efficiencies, expanding current production facilities, and constructing new production facilities. For instance, in April 2019, Nouryon, former AkzoNobel N.V. specialty chemicals segment announced its plan of increasing production capacity of chloromethanes at its site in Frankfurt, Germany in order to grab the global market opportunity, which is mostly generated end use industries.
Chloromethanes Market Segmentation Analysis
Based on type, methylene chloride held the largest market share in 2018, in terms of volume, in the global chloromethanes market. However, the demand for carbon tetrachloride is expected to witness fastest growth at a CAGR of 4.2% during the forecast period, buoyed by their extensive usage in the production of industrial solvents and agrochemical products.
On the basis of applications, chemical and intermediates category held the largest share in the chloromethanes market in 2018, and is expected to remain the largest category during the forecast period. This is because of the growing use of chloromethanes in the chemical processing, production of metal cleaning agents, and blowing agents.
Global Scenario of Chloromethanes Market
Globally, the demand for chloromethanes is expected to be the highest in the APAC region, with 3.8% CAGR during 2019–2024, in terms of value. The market in the region is majorly driven by the very high production and consumption of chloromethanes in China. The Chinese market holds the largest share in the global chloromethanes market. This is due to the fact that the country is one of the leading producers of different chemicals, agrochemicals and pharmaceuticals in the world. Owing to the positive prospects of the industries using chloromethanes for the various production process in the country, the demand for chloromethanes in China is expected to witness a rapid rise during the forecast period.
Competitive Landscape of the Chloromethanes Market
The global chloromethanes market is highly consolidated in nature with more than 70% of the market being captured by the top eight players in the market. Among all the players, AkzoNobel N.V. is the market leader in the global chloromethanes market accounting for a share of more than 17% in the market. The company has a strong global presence and has ambitious plans of expanding its production capacity. In July 2018, the company expanded its chloromethane production capacity in Frankfurt, Germany. With the expansion, the overall production capacity would increase by 50% during 2018–2023. This is likely to help the company in gaining a competitive edge, and hence increase their market share in the global chloromethane market.
The key global market players include AkzoNobel N.V., Dow Inc., Solvay SA, Shin-Etsu Chemical Co. Ltd., Occidental Petroleum Corporation, Ercros S.A., AGC Inc., Gujarat Alkalise and Chemicals Ltd., Tokuyama Corporation, and KEM ONE.
Key Questions Addressed/Answered in the Report