Global Epichlorohydrin Market By Feedstock Used(Petro-Based Feedstock, Bio-Based Feedstock), By Type(Oil-based Epichlorohydrin, Organic-based Epichlorohydrin), By Application(Epoxy Resins, Ion Exchange Resin, Epichlorohydrin Based Rubber, Water Treatment Chemicals, Synthetic Glycerine, Others), By End-Use Industry(Automotive, Adhesives, Paints, Construction, Pharmaceutical, Others) By Region and Companies - Industry Segment Outlook, Market Assessment, Competition Scenario, Trends and Forecast 2024-2033
- Published date: July 2024
- Report ID: 124015
- Number of Pages: 273
- Format:
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Report Overview
The global Epichlorohydrin Market size is expected to be worth around USD 4.6 billion by 2033, from USD 2.8 billion in 2023, growing at a CAGR of 5.1% during the forecast period from 2023 to 2033.
The epichlorohydrin market is currently experiencing significant growth and transformation, driven by increasing demand from key sectors and advancements in production capabilities. A prime example of this trend is the new epichlorohydrin plant established by Meghmani Finechem in Gujarat, India.
This facility, which has an annual capacity of 50 thousand tonnes, represents a major investment of INR 275 crore. This expansion is a strategic move to bolster supply in response to the escalating global demand for epichlorohydrin, particularly from the paints and coatings industry, which remains one of the largest consumers of this chemical.
Furthermore, the industry is witnessing a shift towards sustainable practices, particularly in the adoption of bio-based materials over traditional petroleum-derived feedstocks. This change is largely driven by stringent environmental and regulatory standards that encourage more eco-friendly production processes. Such initiatives not only align with global sustainability goals but also help in reducing the environmental impact of the production processes.
Government policies and funding initiatives play a crucial role in supporting these advancements. For instance, in 2023, the U.S. Department of Commerce announced significant funding through various programs like the American Rescue Plan and the CHIPS and Science Act. These initiatives are designed to enhance industrial competitiveness and stimulate market growth, particularly in sectors that include advanced materials like epichlorohydrin.
These developments reflect a broader industry trend towards enhancing production capacity to meet growing market needs while also adopting more environmentally sustainable practices. The combined efforts of industrial expansion, regulatory support, and investment in sustainability are pivotal in shaping the future of the epichlorohydrin market, ensuring it remains robust and aligned with global environmental and economic objectives.
Key Takeaways
- The epichlorohydrin market is expected to grow from USD 2.8 billion in 2023 to USD 4.6 billion by 2033 at a CAGR of 5.1%.
- Petro-based feedstock dominates with 67.8% of the market in 2023, favored for its established production processes.
- Epoxy resins dominate with a 27% market share in 2023, essential for coatings, electronics, and composite materials.
- The automotive industry holds a 35.5% share of the epichlorohydrin market, crucial for producing durable and resistant materials.
- Asia Pacific leads with a 48.9% market share, valued at USD 1.3 billion in 2023, driven by rapid industrialization.
By Feedstock Used
In 2023, Petro-Based Feedstock held a dominant market position in the epichlorohydrin market, capturing more than a 67.8% share. This segment’s prominence is largely due to its established manufacturing processes and widespread availability of petrochemical resources, which facilitate production on a large scale.
Petro-based epichlorohydrin is primarily favored for its cost-effectiveness and efficient production capabilities, making it a preferred choice for manufacturers in various industries, including automotive, construction, and electronics.
Bio-based feedstock is emerging as a significant segment within the epichlorohydrin market. This shift is driven by the growing emphasis on sustainability and the reduction of environmental impact from industrial processes. Bio-based epichlorohydrin, derived from renewable resources like glycerol, offers a greener alternative to its petro-based counterpart.
Although it currently occupies a smaller share of the market, its demand is expected to increase owing to tightening global regulations on emissions and environmental stewardship, along with an increasing preference for sustainable materials across industries. This segment is set to expand as advancements in technology improve its commercial viability and cost-efficiency.
By Type
In 2023, Oil-based Epichlorohydrin held a dominant market position, capturing more than a 68.9% share. This segment’s stronghold stems from its well-established production infrastructure and the extensive availability of petroleum feedstocks, which make it a cost-effective option for large-scale manufacturing.
Oil-based epichlorohydrin is extensively used in industries such as automotive, construction, and electronics due to its effective performance in producing durable epoxy resins and other industrial materials.
Conversely, Organic-based Epichlorohydrin is gaining traction, though it currently holds a smaller market share. This growth is driven by the increasing demand for sustainable and environmentally friendly manufacturing processes.
Organic-based epichlorohydrin, which utilizes renewable resources, represents a crucial step toward reducing the environmental footprint of the chemical industry. As regulatory pressures increase and consumer preferences shift towards greener alternatives, this segment is expected to see significant growth, promising a more sustainable approach to epichlorohydrin production.
By Application
In 2023, Epoxy resin held a dominant market position in the epichlorohydrin market, capturing more than a 27% share. This segment benefits significantly from the widespread use of epoxy resins in various applications, including coatings, electronics, and composites, due to their excellent mechanical properties and resistance to environmental degradation.
Ion Exchange Resins, another application of epichlorohydrin, also play a crucial role, particularly in water purification processes. The use of epichlorohydrin in producing these resins underlines its importance in facilitating cleaner water in industrial and residential settings.
Epichlorohydrin-based Rubber is essential in manufacturing specialty rubbers, which are used in automotive and industrial applications for products such as gaskets and hoses that require high chemical and temperature resistance.
In the Water Treatment Chemicals segment, epichlorohydrin is used to produce chemicals that help in the treatment and purification of water, demonstrating its utility in environmental management and sustainability.
The Synthetic Glycerine segment uses epichlorohydrin as a key intermediate in the production process, which is crucial for applications in pharmaceuticals and personal care products.
By End-Use Industry
In 2023, the Automotive sector held a dominant market position in the epichlorohydrin market, capturing more than a 35.5% share. This significant market share is attributed to the extensive use of epichlorohydrin-derived products like epoxy resins and special rubbers in the automotive industry. These materials are crucial for manufacturing components that require high durability and chemical resistance, such as coatings, adhesives, and seals used in vehicles.
The Adhesives industry also relies heavily on epichlorohydrin, particularly for producing epoxy adhesives renowned for their strong bonding characteristics and resistance to harsh conditions. These adhesives are widely used in various industrial applications, enhancing the segment’s market share.
In the Paints industry, epichlorohydrin is used to manufacture epoxy resins that serve as a binder in paint formulations, offering enhanced protection against corrosion and wear. This application underscores the importance of epichlorohydrin in the production of high-performance coatings.
The Construction sector benefits from epichlorohydrin in the formulation of concrete sealers and floor coatings, where its usage ensures structural integrity and longevity of the materials exposed to environmental stresses.
In the Pharmaceutical industry, epichlorohydrin’s role is pivotal in the synthesis of glycerol derivatives used in various medicinal products, highlighting its utility in health-related applications.
Key Market Segments
By Feedstock Used
- Petro-Based Feedstock
- Bio-Based Feedstock
By Type
- Oil-based Epichlorohydrin
- Organic-based Epichlorohydrin
By Application
- Epoxy Resins
- Ion Exchange Resin
- Epichlorohydrin Based Rubber
- Water Treatment Chemicals
- Synthetic Glycerine
- Others
By End-Use Industry
- Automotive
- Adhesives
- Paints
- Construction
- Pharmaceutical
- Others
Drivers
Government Initiatives and Renewable Energy Investments
A major driving factor for the epichlorohydrin market is the significant shift toward renewable energy sources, supported by governmental initiatives and investments. These initiatives are not only transforming the energy sector but are also propelling the demand for materials like epichlorohydrin, which is essential in producing epoxy resins used in various renewable energy applications.
In 2023, the U.S. Department of Energy highlighted the expansion of clean energy investments under President Biden’s “Investing in America” agenda, which catalyzed private sector investments totaling over $160 billion in clean energy manufacturing. This surge in investments is paving the way for new manufacturing facilities across the country, focused on solar, electric vehicle components, batteries, and other clean energy technologies.
Additionally, the American Clean Power Association reported that the last year saw private investments exceeding $270 billion in the U.S. clean energy sector, driven by federal support. This unprecedented financial backing is fostering a renaissance in clean energy production and manufacturing, expected to bolster the demand for materials and chemicals used in these technologies, including epichlorohydrin.
This focus on renewable energy and clean technology manufacturing underscores a broader market trend towards sustainability and environmental stewardship, which in turn boosts the epichlorohydrin market. The use of epichlorohydrin in applications like water treatment chemicals and synthetic glycerin, which are integral to these industries, is expected to rise as these sectors expand.
These trends suggest that the epichlorohydrin market will continue to benefit from the growing emphasis on clean energy and sustainability, driven by policy decisions and substantial investments in the sector.
Restraints
Stringent Environmental Regulations
One of the major restraining factors for the epichlorohydrin market is the stringent environmental regulations imposed globally. Epichlorohydrin, used predominantly in the production of epoxy resins and synthetic glycerin, faces significant scrutiny due to its environmental and health impacts. Regulatory bodies across various countries are tightening the guidelines for the use of chemicals that pose risks to human health and the environment, which in turn affects the production and handling of epichlorohydrin.
The environmental regulations impact the market both directly and indirectly. Directly, they restrict the use of epichlorohydrin in industries unless stringent compliance measures are met. Indirectly, these regulations drive the need for innovation in green technologies, potentially leading to alternatives that could displace epichlorohydrin in certain applications. Studies suggest that enhanced regulatory frameworks and the promotion of sustainable practices are pushing industries towards cleaner and more environmentally friendly alternatives, which could reduce the dependency on epichlorohydrin.
Furthermore, the increased costs associated with compliance with pollution control and the use of safer, more sustainable methods also contribute to the financial burden on manufacturers. This economic factor, combined with the regulatory landscape, creates a challenging environment for the growth of the epichlorohydrin market. These dynamics are reshaping the industry, steering it towards innovation in production processes and the exploration of less harmful alternatives.
This shift towards sustainability and reduced environmental impact is exemplified by the growing emphasis on green finance and eco-innovation, which are becoming integral to corporate strategies in chemical manufacturing. The interplay of these factors creates a complex scenario where regulatory pressures not only challenge the existing market but also drive its evolution toward greater sustainability.
Opportunity
Expansion in Renewable Energy Applications
A significant growth opportunity for the epichlorohydrin market arises from its expanding applications within the renewable energy sector, particularly in the production of epoxy resins used in wind turbine blades and solar panel components. The global push towards renewable energy, fueled by increasing environmental awareness and supportive government policies, is driving demand for materials that are critical to the infrastructure of these technologies.
The renewable energy market is experiencing unprecedented growth, with a substantial increase in capacity additions anticipated. For instance, the International Energy Agency (IEA) reported a dramatic rise in renewable capacity, with solar PV and wind accounting for the majority of new installations. This trend is expected to continue with renewable energy’s share of global electricity generation projected to grow significantly.
Moreover, investments in renewable energy infrastructure are soaring, supported by various government initiatives. Notably, the Inflation Reduction Act in the United States has catalyzed significant investments across the renewable sector, particularly in solar and wind energy, which benefits the demand for epichlorohydrin-based products like epoxy resins. These resins are essential for manufacturing durable and efficient wind turbine blades and lightweight, robust frames for solar panels.
Additionally, the economic attractiveness of renewable technologies, particularly solar PV, is accelerating their adoption. This is further supported by policy-driven efforts in key markets like China, the European Union, and the United States, which are rapidly scaling up their renewable capacities. As these technologies become more cost-effective, the demand for associated materials, including those derived from epichlorohydrin, is expected to increase.
These dynamics suggest a robust growth trajectory for the epichlorohydrin market within the renewable energy sector, offering substantial opportunities for manufacturers and stakeholders in the chemical industry to expand their operations and innovate in the production of environmentally friendly and high-performance epoxy resins. This aligns well with global sustainability goals and the ongoing shift towards greener energy solutions.
Trends
Renewable Energy Applications
One of the significant trends shaping the epichlorohydrin market is its increasing application in the renewable energy sector, particularly in the production of components for solar and wind energy systems. As the global shift towards renewable energy sources intensifies, driven by the need to reduce carbon emissions and enhance energy security, the demand for materials used in these technologies is also rising.
The International Energy Agency (IEA) projects that renewable energy capacity, especially from solar PV and wind, will continue to grow substantially. This growth is supported by favorable government policies and technological advancements that make renewables more cost-effective. For instance, solar PV and wind are becoming increasingly competitive against traditional fossil fuels, driving broader adoption and installation rates.
Significant investment is flowing into the renewable sector, with policies such as the Inflation Reduction Act in the United States catalyzing public and private investments. This trend is not only evident in the US but globally, as countries and major corporations commit to renewable targets and green energy solutions. For example, the RE100 initiative, which comprises companies committed to 100% renewable energy, continues to grow, indicating a strong corporate shift towards sustainable energy practices.
For the epichlorohydrin market, this trend towards renewables signifies a growing opportunity, especially in the manufacturing of epoxy resins used in wind turbine blades and solar panel encapsulants. As the renewable infrastructure expands, the demand for these critical components, which rely on epichlorohydrin, is expected to increase, presenting a clear growth avenue for producers of epichlorohydrin.
These developments underscore the interconnection between the chemical industry and the renewable energy sector, highlighting opportunities for innovation and market expansion in response to global energy trends.
Regional Analysis
Asia Pacific (APAC) dominates the global epichlorohydrin market, with a commanding 48.9% share and a market value of USD 1.3 billion in 2023. The region’s rapid industrialization, coupled with burgeoning demand from the electronics, automotive, and construction sectors, drives this dominance. China, Japan, and South Korea are the key contributors, with China being the largest producer and consumer. The region’s growth is further supported by favorable government policies and significant investments in manufacturing and infrastructure development.
The North American epichlorohydrin market is characterized by steady growth, driven by significant demand from the aerospace, automotive, and electronics industries. The region’s advanced technological infrastructure and strong focus on innovation have bolstered the adoption of epichlorohydrin in various applications, particularly in the production of epoxy resins.
The United States and Canada lead the regional market, with the U.S. being the largest consumer. In 2023, North America accounted for approximately 22% of the global market share, underscoring its importance in the global landscape.
Europe remains a crucial player in the epichlorohydrin market, driven by robust industrial activities and stringent environmental regulations promoting the use of bio-based epichlorohydrin. Countries like Germany, France, and the UK are at the forefront, contributing significantly to the regional market. The automotive and construction sectors are primary consumers, leveraging epichlorohydrin for high-performance applications. Europe held a 20.7% share of the global market in 2023, reflecting its industrial strength and commitment to sustainable practices.
The Middle East & Africa (MEA) region is experiencing gradual growth in the epichlorohydrin market, propelled by rising industrialization and expanding construction activities. The GCC countries, particularly Saudi Arabia and the UAE, are leading the demand, leveraging their strong chemical manufacturing base. However, the region’s market share remains relatively small, accounting for around 6.4% of the global market in 2023, due to limited production capabilities and fluctuating economic conditions.
Latin America shows promising growth potential in the epichlorohydrin market, with Brazil and Mexico being the key markets. The region benefits from increasing industrial activities and growing automotive and construction sectors. However, economic instability and regulatory challenges pose constraints. In 2023, Latin America held a 4% share of the global market, indicating a developing yet significant presence in the global epichlorohydrin landscape.
Key Regions and Countries
- North America
- The US
- Canada
- Europe
- Germany
- France
- The UK
- Spain
- Italy
- Russia & CIS
- Rest of Europe
- APAC
- China
- Japan
- South Korea
- India
- ASEAN
- Rest of APAC
- Latin America
- Brazil
- Mexico
- Rest of Latin America
- Middle East & Africa
- GCC
- South Africa
- Rest of MEA
Key Players Analysis
The epichlorohydrin market is highly competitive and features a mix of prominent multinational corporations and regional players. Leading companies such as Aditya Birla Chemicals, Boruta-Zachem SA, Daisco, DOW, and DuPont are at the forefront, leveraging their extensive R&D capabilities and robust distribution networks to maintain a significant market presence.
Aditya Birla Chemicals and DOW are notable for their global reach and diversified chemical portfolios, which enable them to cater to a wide array of industries, including automotive, construction, and electronics. DuPont and Formosa Plastics Corporation also play crucial roles, particularly in the innovation and development of bio-based epichlorohydrin, reflecting the market’s shift towards more sustainable and eco-friendly solutions.
Regional players like Jiangsu Yangnong Chemical Co., Ltd., LOTTE Fine Chemical, and Shandong Haili Chemical Industry Co., Ltd. contribute significantly to the market, especially within the Asia Pacific region. These companies benefit from the region’s rapid industrialization and high demand for epichlorohydrin in various applications. Companies such as Solvay and Sumitomo Chemical Co., Ltd. are also influential, and known for their advanced manufacturing technologies and commitment to sustainability.
The presence of firms like Osaka Soda, Momentive, NAMA Chemicals, and The Chemours Company underscores the market’s diversity, with each player striving to expand their market share through strategic partnerships, product innovations, and expansions.
This competitive landscape is characterized by continuous efforts towards enhancing product quality, reducing environmental impact, and meeting evolving consumer needs, thereby driving the overall growth of the epichlorohydrin market.
Market Key Players
- Aditya Birla Chemicals
- Boruta-Zachem SA
- Daisco
- DOW
- DuPont
- Formosa Plastics Corporation
- Jiangsu Yangnong Chemical Co.Ltd
- LOTTE Fine Chemical
- Momentive
- NAMA Chemicals
- Osaka Soda
- Shandong Haili Chemical Industry Co. Ltd
- Solvay
- Sumitomo Chemical Co. Ltd.
- The Chemours Company
Recent Development
January 2023 Aditya Birla Group, saw a production volume of 5,000 metric tons, which increased steadily to 5,500 metric tons by June and reached 6,000 metric tons by December
For 2024, Boruta-Zachem plans to further enhance its production capabilities, aiming for a 10% increase in monthly output, expecting to reach 2,750 metric tons by mid-year.
Report Scope
Report Features Description Market Value (2023) US$ 2.8 Bn Forecast Revenue (2033) US$ 4.6 Bn CAGR (2024-2033) 5.1% Base Year for Estimation 2023 Historic Period 2020-2022 Forecast Period 2024-2033 Report Coverage Revenue Forecast, Market Dynamics, COVID-19 Impact, Competitive Landscape, Recent Developments Segments Covered By Feedstock Used(Petro-Based Feedstock, Bio-Based Feedstock), By Type(Oil-based Epichlorohydrin, Organic-based Epichlorohydrin), By Application(Epoxy Resins, Ion Exchange Resin, Epichlorohydrin Based Rubber, Water Treatment Chemicals, Synthetic Glycerine, Others), By End-Use Industry(Automotive, Adhesives, Paints, Construction, Pharmaceutical, Others) Regional Analysis North America – The US & Canada; Europe – Germany, France, The UK, Spain, Italy, Russia & CIS, Rest of Europe; APAC– China, Japan, South Korea, India, ASEAN & Rest of APAC; Latin America– Brazil, Mexico & Rest of Latin America; Middle East & Africa– GCC, South Africa, & Rest of MEA Competitive Landscape Aditya Birla Chemicals, Boruta-Zachem SA, Daisco, DOW, DuPont, Formosa Plastics Corporation, Jiangsu Yangnong Chemical Co.Ltd, LOTTE Fine Chemical, Momentive, NAMA Chemicals, Osaka Soda, Shandong Haili Chemical Industry Co. Ltd, Solvay, Sumitomo Chemical Co. Ltd., The Chemours Company Customization Scope Customization for segments, region/country-level will be provided. Moreover, additional customization can be done based on the requirements. Purchase Options We have three licenses to opt for: Single User License, Multi-User License (Up to 5 Users), Corporate Use License (Unlimited User and Printable PDF) Frequently Asked Questions (FAQ)
What is the size of Epichlorohydrin Market?Epichlorohydrin Market size is expected to be worth around USD 4.6 billion by 2033, from USD 2.8 billion in 2023
What CAGR is projected for the Epichlorohydrin Market?The Epichlorohydrin Market is expected to grow at 5.1% CAGR (2024-2033).
Who are some key players in the Epichlorohydrin Market?Aditya Birla Chemicals, Boruta-Zachem SA, Daisco, DOW, DuPont, Formosa Plastics Corporation, Jiangsu Yangnong Chemical Co.Ltd, LOTTE Fine Chemical, Momentive, NAMA Chemicals, Osaka Soda, Shandong Haili Chemical Industry Co. Ltd, Solvay, Sumitomo Chemical Co. Ltd., The Chemours Company
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- Aditya Birla Chemicals
- Boruta-Zachem SA
- Daisco
- DOW
- DuPont
- Formosa Plastics Corporation
- Jiangsu Yangnong Chemical Co.Ltd
- LOTTE Fine Chemical
- Momentive
- NAMA Chemicals
- Osaka Soda
- Shandong Haili Chemical Industry Co. Ltd
- Solvay
- Sumitomo Chemical Co. Ltd.
- The Chemours Company
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