The global chlor alkali industry size was USD 52.23 billion in 2023. The industry is projected to grow from USD 53.22 billion in 2024 to USD 62.24 billion by 2032 at a CAGR of 1.94% during the forecast period. Chlorine is utilized in huge volumes in vinyl production. Chlorine and various downstream chemicals are used to produce polyvinyl chloride (PVC), the third-largest used polymer in the world. The growing demand for vinyl polymers is likely to boost the industry’s growth. Fortune Business Insights™ has presented this information in its report titled, “Chlor Alkali Industry Size Report 2024-2032”.
Many manufacturers still use the mercury cell process for chlor alkali production. Mercury is an extremely toxic element, and as a result, producers are adopting greener production technologies such as membrane cell technology. The growing adoption of such green production technologies is anticipated to amplify industry growth in the coming years.
Chlor Alkali Industry Segmentation-
On the basis of application, the industry is bifurcated into caustic soda and chlorine. Geographically, the industry is categorized into five major regions- Europe, Asia Pacific, North America, Latin America, and the Middle East & Africa.
Chlor Alkali Industry Report Coverage-
- The report highlights a detailed analysis of key players operating across different geographies.
- The report provides insights into the regulatory scenarios of the industry.
- The report is based on historical data and highlights methods and opportunities for future growth.
- The report also highlights the impact of the COVID-19 pandemic.
Drivers & Restraints-
Expanding Demand from End-Use Sectors to Fuel industry Growth
Chlorine is utilized in huge volumes in vinyl production. Chlorine and various downstream chemicals are used to produce polyvinyl chloride (PVC), the third-largest polymer in the world. The construction industry uses PVC to produce window frames, pipes, and other products. Due to surging urbanization and industrialization, the increased construction activities are anticipated to boost the demand for the product and augment industry growth. Moreover, PVC cases and tapes are widely used by the electrical and electronics industry due to their unique properties. The growing demand for electric vehicles is likely to stimulate PVC consumption and therefore bolster industry growth. In essence, the growing demand for the product from end-use industries is expected to amplify the global chlor alkali industry growth.
There are still many manufacturers who use the mercury cell process for chlor alkali production. Mercury is an extremely toxic element, and stringent regulations have been implemented on these kinds of production processes in the wake of its harmful effects. Producers are therefore adopting greener production technologies such as membrane cell technology. The growing adoption of such green production technologies is anticipated to amplify industry growth in the coming years. However, stringent government regulations are likely to hinder the industry growth.
Source- https://www.fortunebusinessinsights.com/industry-reports/chlor-alkali-market-101720
Regional Chlor Alkali Industry Insights-
Expanding End-Use Sectors to Escalate Growth in Asia Pacific
Asia Pacific is anticipated to emerge dominant in the global chlor alkali industry share. China accounts for the highest consumption in the region with over 70% industry share. The surging construction activities, expanding industrial and automotive sectors, and booming paper packaging industry are expected to the significant growth drivers for the industry. The strong developments are likely to help India emerge as the fastest-growing country in Asia Pacific. North America is expected to gain the second-largest industry share due to high exports of chlor alkali products globally.
Europe is likely to exhibit steady growth due to sluggish developments in end-use sectors. Italy, Germany, U.K., France, and Spain are anticipated to dominate the regional industry.
Latin America and the Middle East & Africa are expected to witness substantial growth due to improving economic situations.
Chlor Alkali Industry Competitive Landscape-
Key Players Devise Ingenious Strategies to Garner Growth
The industry is fairly consolidated and comprises several key players operating at international and domestic levels. The key players operating in the industry primarily emphasize organic growth strategies such as launching new products. They also focus on inorganic strategies such as partnerships, mergers, acquisitions, collaborations, and accumulating growth. Recently, Formosa Plastics removed the force majeure on suspension-grade PVC in June 2021.
COVID-19 Impact-
The sudden emergence of the humanitarian crisis has inflicted a negative impact on the industry’s growth. The low available workforce and the closure of production facilities during the initial days of the pandemic have affected the growth of the industry. The disruptions in the supply chain networks have exacerbated the impact. Additionally, the reduced demand for chlorine by end-use industries further aggravated the situation. Nonetheless, the vaccines are now available globally, and various economies have ramped up their vaccination drives. The industry is slowly recovering and is likely to gain steep growth in the coming years.
Chlor Alkali Industry Developments-
- June 2021: Inovyn released the Environmental Protection Declaration for its PVC and chlor alkali products.
List of Key Players in the Global Chlor Alkali industry are:
- Olin Corporation (Clayton, U.S.)
- Tata Chemicals Limited (Mumbai India)
- Tosoh Corporation (Tokyo, Japan)
- Occidental Petroleum Corporation (OXY) (Houston, U.S.)
- Xinjiang Zhongtai Chemical Co. Ltd. (China)
- AGC Inc. (Tokyo, Japan)
- Inovyn (Runcorn Site, U.K.)
- Formosa Plastics Corporation (Taiwan)
- Hanwha Chemical Corporation (Seoul, South Korea)
- Akzonobel N.V. (Amsterdam, Netherlands)
