Global Cyclopentane Market, By Function (Blowing Agent & Refrigerant, Solvent & Reagent), By Applications (Refrigerators, Containers & Sippers, Personal Care Products, Electrical & Electronics, Insulating Construction Material, Fuel & Fuel Additives), By Region and Companies - Industry Segment Outlook, Market Assessment, Competition Scenario, Trends, and Forecast 2023-2032

Report Overview

In 2022, the global cyclopentane market accounted for USD 328.7 billion and is expected to grow US$ 665.3 billion in 2032. Between 2023 and 2032, this market is estimated to register a CAGR of 7.5%.

Cyclopentane is an alicyclic hydrocarbon used in the manufacturing of synthetic resins, and rubber adhesives, as well as to transform polyurethane insulating foam for commercial refrigerators. It’s colorless in nature with an odor similar to petrol.

Cyclopentane’s primary benefits over other chemicals in refrigerators lie in its zero ozone layer depletion rate and low global warming potential, making it a preferred alternative.

Additionally, the increasing requirements of the high cost of start-up and installation costs, as well as the increasing side effects related to health associated with the increased amount of cyclopentane consumption during the production process, are the key factors acting as restraints, while increasing flammability of cyclopentane will further challenge the growth of cyclopentane market during the forecasted period.

Key Takeaways

• Market Size: The global cyclopentane market size is anticipated to grow at a compound annual growth rate (CAGR) of 7.5% from 2023 to 2032.
• cyclopentane Market Trend: Cyclopentane usage in various industries is experiencing a notable increase, particularly driven by the growing focus on environmentally friendly refrigerants and insulation materials.
• Cyclopentane Function Analysis: Blowing agents and refrigerants dominated the market, commanding a substantial 58.3% share, showcasing an impressive CAGR of 7.8%.
• Application Analysis: Among these, the refrigerators segment is anticipated to be the most profitable within the global cyclopentane market. It is poised to hold the largest revenue share at 31.6% and is expected to experience a significant CAGR of 8.3% during the forecast period.
• Drivers: The push towards eco-friendly cyclopentane refrigerant and the rise in construction activities, especially in emerging economies, are significant drivers propelling the cyclopentane market.
• Restraints: Availability constraints and price volatility of raw materials, as well as regulatory challenges associated with chemical usage, pose substantial restraints for cyclopentane market growth.
• Opportunities: Increasing adoption of energy-efficient and green technologies, alongside advancements in cyclopentane production methods, offer promising growth opportunities for the cyclopentane market.
• Challenges: Uncertain regulatory landscapes, fluctuating raw material prices, and the need for enhanced production technologies are key challenges faced by the cyclopentane market.
• Regional Analysis: Asia-Pacific is predicted to emerge as the most lucrative cyclopentane market globally, boasting a 43.6 % market share and expected to experience stable compound annual growth rates at 8.5% over its projected 10-year forecast period.
• Key Players Analysis: Major players in the cyclopentane market include HCS Group GmbH, Dymatic Chemicals Inc., Chevron Phillips Chemical Company, SK geo centric Co. Ltd., LG Chem, Maruzen Petrochemical Co. Ltd., Liaoning Yufeng Chemical Co. Ltd., Haldia Petrochemicals Ltd., RESOURCES, ZEON CORPORATION, Puyang Zhongwei Fine Chemical Co. Ltd., HPL Additives Ltd., SOUTH HAMPTON RESOURCES Inc., INEOS Group Ltd., Other Key Players.

Driving Factors

Chlorofluorocarbons (CFCs) are a group of chemicals once widely used as refrigerants, solvents, and foam-blowing agents. But their hazardous effects on the ozone layer prompted researchers to develop alternatives such as HCFCs.

With their low ozone depletion potential (ODP), these HCFCs make an attractive replacement for chlorofluorocarbons (CFCs). Under The Montreal Protocol, their consumption has been restricted.

Therefore, there is now an increasing demand for cyclopentane – a blowing agent used in foam insulation. Cyclopentane is seen as an environmentally friendly alternative to other blowing agents, and the growth of refrigeration industries in emerging economies is expected to further drive demand for this chemical.

Furthermore, consumer spending on items such as furniture and mattresses is forecast to rise, leading to an even greater demand for cyclopentane. Ultimately, moving away from HCFCs towards more environmentally friendly alternatives like cyclopentane is a positive step towards protecting Earth’s ozone layer and lessening human activities’ effect on it.

Restraining Factors

Fluctuation in Crude Oil Prices, Environmental Concerns.

The cyclopentane market is challenged with several obstacles, such as fluctuations in crude oil prices, competition from alternative materials, environmental concerns, regulatory restrictions, and limited supply. Because cyclopentane is derived from crude oil, changes in prices could impact production costs and pricing.

Alternative blowing agents like HFCs or HCFCs could replace cyclopentane which would reduce demand for this chemical in the marketplace. Furthermore, environmental concerns, regulatory restrictions, and limited availability can hinder its growth; these factors highlight the need for sustainable and eco-friendly alternatives to cyclopentane.

Growth Opportunities

Increased Use of Blowing Agents in the Automotive, Appliance Industries, and Construction.

Blowing agents have become increasingly common in industries such as construction, automotive, and appliance manufacturing due to their superior insulation and physical integration properties. Polyurethane foam insulation in particular has become popular due to its superior thermal insulation capabilities. This has resulted in an uptick in demand for blowing agents, such as cyclopentane.

The appliance industry has seen tremendous growth throughout Europe and Asia, leading to increased consumption of this chemical compound. With the projected growth in these industries, demand for blowing agents is expected to keep increasing, leading to an eventual increase in cyclopentane usage. Cyclopentane plays a vital role in producing foam insulation used in refrigerators and freezers.

As demand for energy-saving appliances grows, so too does that of cyclopentane-based foam insulation. Businesses have an opportunity to invest in the production and supply of this essential ingredient to meet this rising need. Overall, investing in sustainable materials such as cyclopentane highlights the significance of meeting this growing need for eco-friendly products while meeting growing energy efficiency demands.

Trending Factors

Rising Government Spending Trends in Cyclopentane Market.

In the blowing agent industry, a few large players hold a dominant position and command an extensive cyclopentane market share of the market, creating relatively mild competition among them. Unfortunately, it appears that few other players in this space are actively seeking growth strategies.

The healthcare and pharmaceutical industries have seen a dramatic surge in the need for secure storage of blood, blood derivatives, and temperature-sensitive medicines – leading to an unprecedented spike in refrigeration demand. North America has implemented stringent regulations, leading to a shift away from HCFCs.

On the other hand, the Asia-Pacific market is rapidly growing, providing great growth prospects for both regional and global manufacturers. The Middle East, Latin America, and Africa are expected to witness an uptick in demand for cyclopentane due to rising government spending and the phaseout of CFCs.

Overall, the blowing agent industry is projected to experience growth due to rising demands for energy-saving products and a shift towards eco-friendly options.

Function Analysis

The Blowing Agent and Refrigeration Segment is The Most Lucrative Segment in The Cyclopentane Market.

According to offerings, the market for cyclopentane is divided into blowing agents & refrigerants, solvents & reagents, and others. Blowing agents & refrigerants held the majority share with 58.3% at an impressive CAGR of 7.8% over the years due to its growing demand in various industries such as refrigerant in refrigerators or insulation purposes; increasing healthcare & pharmaceutical industries, as well as food and beverage firms, require it for freezers and fridges, driving the segment growth.

The Solvent and reagent Segment is Expected to Grow in the Projected Period in the Cyclopentane Market.

However, the solvent & reagent segment is expected to grow at the highest CAGR of 8.8% and market share of 31.8% during the forecast period. Cyclopentane’s unique properties make it a highly sought-after solvent or additive for synthetic resins and rubber adhesives.

It has major applications in the fuel additives market, plastics, resins, and polymers industries. As an organic solvent with excellent solubility and miscibility properties, cyclopentane finds applications in manufacturing fuels as well as other chemicals.

Application Analysis

Refrigerators Segment Accounted for the Largest Revenue Share in Cyclopentane Market in 2022.

Based on application, the market is segmented into refrigerators, containers & sippers, personal care products, electrical & electronics, insulating construction material, fuel & fuel additives, and other applications. Among these, the refrigerators segment is expected to be the most lucrative segment in the global cyclopentane market, with the largest revenue share of 31.6% and a projected CAGR of 8.3% during the forecast period.

Cyclopentane has become increasingly popular in refrigerator applications, particularly as a refrigerant and insulation, owing to its ability to extend shelf life for temperature-sensitive items. There has been an uptick in demand for frozen food & beverages as well as healthcare industry storage needs, both driving up demand for refrigerators.

Containers & Slippers Segment is Fastest Growing Application Segment in Cyclopentane Market.

The containers & slippers segment is projected as the fastest-growing application segment in the cyclopentane market, with a revenue share of 22.7% in 2022. Owing to cyclopentane has become increasingly popular as a blowing agent in insulation products due to its thermal insulation properties, offering an alternative to HCFCs while cutting carbon emissions and administrating energy leakage & consumption issues.

Key Market Segments

Based on Function

• Blowing Agent & Refrigerant
• Solvent & Reagent
• Other Functions

By Applications

• Refrigerators
• Containers & Sippers
• Personal Care Products
• Electrical & Electronics
• Insulating Construction Material
• Fuel & Fuel Additives
• Other Applications

Regional Analysis

Asia-Pacific Accounted for the Largest Revenue Share in Cyclopentane Market in 2022.

Asia-Pacific is estimated to be the most lucrative market in the global cyclopentane market, with the largest market share of 43.6%, and is expected to register a CAGR of 8.5% throughout the forecast period. Owing to increasing use in residential and commercial refrigerators, the demand for cyclopentane has been growing in the region.

Additionally, the presence of large consumer appliance manufacturers like Daikin, Videocon Industries Limited, LG, and Samsung supports the growth of the refrigerants market in the region, which is driving the cyclopentane market.

Europe is expected as the Fastest Growing Region in the Projected Period in Cyclopentane Market.

Europe is expected to be the fastest-growing region in the cyclopentane market with a CAGR of 7.6% and a market share of 31.3% over the forecast period.

This growth can be attributed to factors like advanced materials like insulating materials as well as consumer demand/preferences, pricing structure, resource availability, and manufacturer preferences; additionally, new government laws and regulations could further spur innovation. Furthermore, rising thermal insulation demand helps fuel regional expansion.

Key Regions and Countries

• North America
  • The US
  • Canada
  • Mexico
• Western Europe
  • Germany
  • France
  • The UK
  • Spain
  • Italy
  • Portugal
  • Ireland
  • Austria
  • Switzerland
  • Benelux
  • Nordic
  • Rest of Western Europe
• Eastern Europe
  • Russia
  • Poland
  • The Czech Republic
  • Greece
  • Rest of Eastern Europe
• APAC
  • China
  • Japan
  • South Korea
  • India
  • Australia & New Zealand
  • Indonesia
  • Malaysia
  • Philippines
  • Singapore
  • Thailand
  • Vietnam
  • Rest of APAC
• Latin America
  • Brazil
  • Colombia
  • Chile
  • Argentina
  • Costa Rica
  • Rest of Latin America
• Middle East & Africa
  • Algeria
  • Egypt
  • Israel
  • Kuwait
  • Nigeria
  • Saudi Arabia
  • South Africa
  • Turkey
  • United Arab Emirates
  • Rest of MEA

Market Players

This is a competitive market with the presence of several global and regional players. Globally leading companies are engaged in strategic initiatives like partnerships, acquisitions, mergers, agreements, and collaborations to withstand the intense competition and increase their market share.

Cyclopentane manufacturers spend heavily on research and development activities for developing advanced products and integrating new technologies and characteristics to lead a sustainable future. In February 2022, Zeon Corporation acquired a leading manufacturer of high-performance microplates called Aurora Microplates.

Which will help Zeon develop new strategies for providing products and materials in research diagnostics. Through such initiatives, the market players continue to incorporate sustainability, providing improved cyclopentane applications, while expanding their market share.

Market Key Players

• HCS Group GmbH
• Dymatic Chemicals Inc.
• Chevron Phillips Chemical Company
• SK geo centric Co. Ltd.
• LG Chem
• Maruzen Petrochemical Co. Ltd.
• Liaoning Yufeng Chemical Co. Ltd.
• Haldia Petrochemicals Ltd.
• RESOURCES
• ZEON CORPORATION
• Puyang Zhongwei Fine Chemical Co. Ltd.
• HPL Additives Ltd.
• SOUTH HAMPTON RESOURCES Inc.
• INEOS Group Ltd.
• Other Key Players

Recent Developments

• In February 2021, HCS Group & Gevo signed a strategic agreement in Germany for developing low-carbon renewable chemicals & sustainable aviation fuel (SAF).
• In February 2021, SK Global Chemical Co. Ltd. announced that it will invest in a new cyclopentane production facility in South Korea which will have a production capacity of 40,000 metric tons per year.
• In March 2021, Honeywell announced that it has developed a new low-global-warming-potential (GWP) blowing agent for foam insulation applications, which is based on cyclopentane.

Report Scope