Global Tetrachloroethylene Market By Process(Ethylene Oxychlorination, Acetylene Method, Ethylene Direct Chlorination, Others), By Grade(Industrial Grade, Reagent Grade), By Application(Dry Cleaning, Refrigerants, Vapor Degreaser Extractant, Cooling Agents, Fluoropolymers, Cleaning and Degreasing, Isomerization and Reforming, Others), By End Use(Textile, Automotive, Aerospace, Construction, Others), By Distribution Channel(Direct Sales, Indirect Sales) , By Region and Companies - Industry Segment Outlook, Market Assessment, Competition Scenario, Trends, and Forecast 2024-2033

Report Overview

The global Tetrachloroethylene Market size is expected to be worth around USD 1996.4 Million by 2033, from USD 1323.01 Million in 2023, growing at a CAGR of 4.2% during the forecast period from 2023 to 2033.

The Tetrachloroethylene Market refers to the global industry surrounding the production, distribution, and usage of tetrachloroethylene, also known as perchloroethylene or “perc.” This chemical is primarily used as a solvent in dry cleaning and metal-degreasing operations. It is also employed in the manufacture of other chemicals and consumer products.

Tetrachloroethylene is valued in these sectors due to its high solvency power, which makes it effective in removing fats, oils, waxes, and greases without damaging materials, making it ideal for dry cleaning fabrics. Additionally, it is used in the automotive and other manufacturing industries to degrease metal parts.

Despite its utility, the tetrachloroethylene market faces significant challenges due to environmental and health concerns associated with its use. Tetrachloroethylene is classified as a likely human carcinogen, which has led to stringent regulations regarding its use and disposal. These regulations are driving demand for safer, more environmentally friendly alternatives and are influencing market dynamics by pushing innovation in solvent technologies.

Globally, the market dynamics are influenced by regulatory frameworks such as those imposed by the U.S. Environmental Protection Agency (EPA) and the European Union, which are tightening the allowable uses and emissions of hazardous substances like tetrachloroethylene. Market growth is also influenced by trends in industries that use perc, like the decline of traditional dry cleaning businesses and growth in industries requiring metal degreasing.

The future of the tetrachloroethylene market will likely depend on balancing the chemical’s industrial utility with environmental and health safety measures, and how quickly and effectively safer alternatives can be developed and adopted.

Key Takeaways

• The global Tetrachloroethylene Market is projected to reach USD 1996.4 million by 2033, growing from USD 1323.01 million in 2023 at a CAGR of 4.2%​​​​.
• In 2023, Asia Pacific held 44.3% of the Tetrachloroethylene Market, valued at USD 588.7 million​​​​.
• Dry cleaning applications captured over 36.4% of the tetrachloroethylene market share in 2023, making it the leading segment​​.
• Industrial-grade tetrachloroethylene accounted for more than 54.3% of the market in 2023, mainly used in dry cleaning and metal degreasing​​.
• The Ethylene Oxychlorination process held a dominant market share of over 37.6% in 2023, favored for its cost-effectiveness​​.
• Indirect sales channels dominated the market with a 64.3% share in 2023, driven by extensive logistical support and local market expertise​​.

By Process

In 2023, the Ethylene Oxychlorination segment held a dominant position in the tetrachloroethylene market, capturing more than a 37.6% share. This process is favored for its efficiency in producing tetrachloroethylene by reacting ethylene with chlorine and oxygen, making it a preferred method in terms of cost-effectiveness and output rate.

The Acetylene Method, another significant segment, utilizes acetylene and chlorine. This method is notable for producing a high-purity product, which is essential in applications requiring stringent quality standards, such as in high-grade solvent production. However, it is generally more expensive than ethylene oxychlorination, which limits its use to specific niche markets.

The Ethylene Direct Chlorination segment follows, where ethylene is directly chlorinated without the presence of oxygen. This process tends to have lower operational costs and is simpler than oxychlorination, but it may yield a product with lower purity. This makes it suitable for applications where extremely high purity is not critical.

By Grade

In 2023, industrial-grade tetrachloroethylene held a dominant market position, capturing more than a 54.3% share. This grade is predominantly used in large-scale applications such as dry cleaning and metal degreasing, where high volumes are required. Its widespread use is attributed to its effectiveness in removing grease and dirt, which is essential in industrial settings.

On the other hand, reagent-grade tetrachloroethylene, which is used for more specialized applications that require high purity, such as in laboratory settings and certain manufacturing processes, occupies a smaller segment of the market.

This grade is preferred where impurities could affect chemical reactions or product quality. Despite its smaller market share, Reagent Grade is critical for ensuring the precision and reliability of scientific experiments and high-quality manufacturing processes.

By Application

In 2023, Dry Cleaning held a dominant market position in the tetrachloroethylene market, capturing more than a 36.4% share. This segment leverages tetrachloroethylene’s strong solvency properties, making it ideal for removing stains and grease without damaging fabrics, which is highly valued in the dry cleaning industry.

Refrigerants also form a significant application segment, utilizing tetrachloroethylene for its chemical stability and effectiveness in cooling systems. Although less common than traditional refrigerants, its use in specialized industrial cooling applications contributes to its market share.

The Vapor Degreaser Extractant segment uses tetrachloroethylene as a solvent to cleanse metal parts in automotive and aerospace manufacturing, where high precision and cleanliness are critical.

As Cooling Agents, tetrachloroethylene is used in lesser volumes but plays a crucial role in specific industrial cooling processes due to its thermal properties.

In the production of Fluoropolymers, tetrachloroethylene is used as a raw material due to its ability to withstand high temperatures, contributing to the durability and strength of the final products.

For Cleaning & Degreasing, tetrachloroethylene is favored for its effectiveness in heavy machinery and electronic components manufacturing, ensuring that parts are free from oils and operational residues.

In Isomerization & Reforming processes, it’s utilized in the petrochemical industry, aiding in the restructuring of molecular components to enhance fuel quality.

By End Use

In 2023, the Textile sector held a dominant market position in the tetrachloroethylene market, capturing more than a 38.3% share. This industry primarily uses tetrachloroethylene as a solvent in dry cleaning processes due to its ability to dissolve greases and oils without damaging fabrics, making it essential for maintaining the quality and longevity of textile products.

The Automotive industry also relies significantly on tetrachloroethylene, particularly in metal degreasing and cleaning operations. It helps in preparing metal parts before painting or assembly, ensuring that surfaces are free from oils and contaminants.

In Aerospace, tetrachloroethylene is used for critical cleaning processes of aircraft components. The high purity requirements in aerospace necessitate the use of effective solvents like tetrachloroethylene to maintain the reliability and performance of aerospace parts.

The Construction sector uses tetrachloroethylene in lesser volumes, typically in applications that require solvent properties for cleaning and maintenance of machinery and structural components.

By Distribution Channel

In 2023, Indirect Sales held a dominant market position in the tetrachloroethylene market, capturing more than a 64.3% share. This channel primarily encompasses distributors and resellers who facilitate the supply of tetrachloroethylene to various end-use industries such as textiles, automotive, and aerospace.

The reliance on indirect sales channels is driven by the distributors’ ability to offer extensive logistical support, local market knowledge, and value-added services, which are crucial for handling chemicals like tetrachloroethylene.

Direct Sales, while having a smaller share, involve transactions between the manufacturer and end-user. This channel is preferred by industries that require specific formulations of tetrachloroethylene or large-volume purchases that might benefit from cost reductions.

Direct sales are critical for maintaining direct control over supply chains and enhancing customer relationships by providing tailored services and immediate support. Each distribution channel has its strategic importance, influenced by factors such as market reach, customer service, and supply chain efficiencies.

Key Market Segments

By Process

• Ethylene Oxychlorination
• Acetylene Method
• Ethylene Direct Chlorination
• Others

By Grade

• Industrial Grade
• Reagent Grade

By Application

• Dry Cleaning
• Refrigerants
• Vapor Degreaser Extractant
• Cooling Agents
• Fluoropolymers
• Cleaning & Degreasing
• Isomerization & Reforming
• Others

By End Use

• Textile
• Automotive
• Aerospace
• Construction
• Others

By Distribution Channel

• Direct Sales
• Indirect Sales

Drivers

Increasing Demand in Dry Cleaning Services

One major driver for the tetrachloroethylene market is its increasing demand within the dry cleaning industry. Tetrachloroethylene, commonly known as perchloroethylene or “perc,” is a solvent widely used in the dry cleaning sector due to its superior ability to dissolve grease, oils, and waxes without damaging fabrics. This characteristic makes it an ideal choice for dry cleaners aiming to provide high-quality cleaning services while maintaining the integrity of the materials they handle.

The global dry cleaning market has seen consistent growth, driven by urbanization, increasing disposable incomes, and the rising demand for professional and convenience services. As more people invest in high-end, non-washable garments that require professional care, the reliance on effective solvents like tetrachloroethylene intensifies. Moreover, the dry cleaning industry is not just expanding in volume but also adapting to modern consumer demands, including faster service and higher cleanliness standards, which further fuels the demand for reliable and efficient cleaning solvents.

Despite environmental concerns associated with its use, tetrachloroethylene remains a staple in many dry cleaning operations due to its efficacy and the slow pace of adoption for alternative solvents that can offer comparable results. However, the industry is under pressure from environmental regulations, which has spurred innovations in solvent technologies and cleaning methods that are more environmentally friendly and less dependent on traditional solvents like perc.

In response to these challenges, advancements in the formulation and recycling technologies for tetrachloroethylene are being developed to reduce its environmental footprint. These technological improvements aim to enhance the solvent’s efficiency and reduce waste and emissions during the cleaning process. Such innovations not only address environmental concerns but also help maintain tetrachloroethylene’s dominance in the dry cleaning solvent market by aligning with the increasing regulatory demands and shifting market preferences towards sustainability.

Restraints

Environmental and Health Concerns

The tetrachloroethylene market faces significant constraints primarily due to the environmental and health risks associated with the chemical’s production and usage. Tetrachloroethylene, also known as perchloroethylene or “perc,” is extensively used in dry cleaning, as a degreasing agent in the manufacturing sector, and in the production of fluorocarbons. Despite its widespread utility, tetrachloroethylene poses substantial environmental threats and health hazards, which severely limit its market growth.

One of the primary health concerns of tetrachloroethylene exposure is its classification as a likely human carcinogen. The chemical has been linked to various types of cancer, including bladder cancer, non-Hodgkin lymphoma, and multiple myeloma. Workers in industries that use tetrachloroethylene are particularly at risk of chronic exposure, which can lead to liver and kidney damage, cognitive and neurological deficits, and reproductive issues. These health risks necessitate strict occupational safety measures and health monitoring, increasing operational costs and liability risks for businesses that use this chemical.

From an environmental perspective, tetrachloroethylene is highly volatile and has a propensity to persist in the environment, leading to long-term contamination of air, water, and soil. Its release into the atmosphere contributes to urban smog and acts as a greenhouse gas. In water bodies, it poses a risk to aquatic life, affecting both flora and fauna due to its toxic nature. The soil contamination can lead to the bioaccumulation of the chemical in plants and animals, entering the human food chain and posing further health risks.

Regulatory frameworks globally have tightened controls around the use of tetrachloroethylene. In the United States, the Environmental Protection Agency (EPA) regulates its use under the Clean Air Act and the Safe Drinking Water Act, imposing strict guidelines on its handling, disposal, and emissions. The European Union has also implemented stringent directives aimed at reducing and eventually phasing out the use of tetrachloroethylene in dry cleaning and other industries, promoting safer and more sustainable alternatives.

The shift towards more environmentally friendly and safer chemicals is accelerated by these regulatory pressures coupled with growing consumer awareness and demand for sustainable practices. Industries traditionally relying on tetrachloroethylene are exploring alternative solvents that offer similar efficacy without the associated risks, such as liquid carbon dioxide, silicone-based solvents, and hydrocarbons which are less toxic and have a lower environmental impact.

Opportunity

Expansion in Textile and Industrial Cleaning Applications

The tetrachloroethylene market presents a significant opportunity for expansion, particularly in the textile and industrial cleaning applications. This solvent’s unique cleaning properties, including its effectiveness in degreasing and decontaminating fabrics without causing damage or shrinkage, position it as a valuable chemical in various industrial processes. Despite the environmental and health concerns associated with tetrachloroethylene, its continued use in specific sectors where alternative solvents fail to match its efficiency opens up potential market growth avenues.

In the textile industry, tetrachloroethylene is extensively used in the dry cleaning of delicate fabrics that cannot withstand the harsh conditions of traditional water-based cleaning methods. Its ability to dissolve greases, oils, and waxes without interacting with the textile fibers themselves makes it an irreplaceable solvent for maintaining the quality and longevity of high-end garments. As the global fashion industry grows, driven by emerging markets and increasing consumer spending on apparel, the demand for professional garment care is expected to rise, thereby potentially increasing the use of tetrachloroethylene in this sector.

Furthermore, industrial cleaning applications present another lucrative opportunity for the tetrachloroethylene market. Industries such as automotive, aerospace, and manufacturing require high levels of cleanliness and precision, which tetrachloroethylene can provide. Its use in metal degreasing operations to prepare parts for assembly or painting is particularly valuable. These sectors are expanding rapidly, especially in developing countries, which are experiencing industrial growth and increased foreign direct investment in manufacturing capacities.

Another aspect fueling this opportunity is the ongoing research and development aimed at mitigating the environmental and health impacts of tetrachloroethylene usage. Innovations in solvent recycling technologies and the development of more efficient and safer methods of application are making it possible to continue the use of tetrachloroethylene while complying with environmental regulations. For instance, closed-loop systems that minimize emissions and reduce worker exposure to the solvent are enhancing the sustainability of its use in industrial applications.

Moreover, regulatory pressures and the push for sustainability are driving the development of modified formulations that combine tetrachloroethylene with less hazardous solvents to reduce overall toxicity while maintaining cleaning effectiveness. These new formulations could open up new applications in industries that are currently restricted due to regulatory constraints.

In addition to technological advancements, strategic partnerships between chemical manufacturers and industrial users of tetrachloroethylene can create synergies that capitalize on the solvent’s benefits while addressing environmental and health concerns. By collaborating on research and development efforts, companies can tailor solutions that meet specific industry needs, thus expanding the market for tetrachloroethylene responsibly and sustainably.

Trends

Shift Towards Greener Alternatives and Advanced Recycling Techniques

A significant trend shaping the tetrachloroethylene market is the increasing shift towards greener alternatives and the development of advanced recycling techniques. This trend is driven by the growing environmental and health concerns associated with the chemical, alongside stringent global regulatory standards demanding safer and more sustainable industrial practices. As industries and regulators push for reduced environmental impact, the demand for more sustainable solvent solutions is rising, influencing market dynamics and innovation in the sector.

Environmental regulations and consumer preferences are propelling the adoption of alternative solvents that offer similar cleaning efficacy with reduced toxicity and environmental footprint. Emerging solvents such as hydrofluoroethers (HFEs), siloxanes, and modified alcohols are being developed to meet these needs. These alternatives are less volatile and have lower potential for ozone depletion and global warming, making them attractive substitutes for tetrachloroethylene in applications such as dry cleaning and industrial degreasing.

Concurrently, advancements in solvent recovery and recycling technologies are playing a crucial role in maintaining the viability of tetrachloroethylene in the market. Innovations in distillation, filtration, and chemical treatment processes enable the reuse of tetrachloroethylene, reducing the need for fresh solvent production and minimizing waste and emissions. For instance, the development of closed-loop systems in dry cleaning machines allows for the recovery and reuse of up to 99% of the solvent used, significantly decreasing the environmental impact and operational costs.

These recycling technologies not only align with regulatory requirements but also provide cost advantages to industries by reducing solvent purchase costs and disposal fees. Additionally, they enhance the sustainability profile of businesses, which is increasingly important to consumers and stakeholders who are more conscious of environmental responsibility.

Another aspect of this trend is the integration of digital technologies to optimize the use and recovery of tetrachloroethylene. Automation and real-time monitoring systems are being employed to precisely control solvent use, enhance safety, and predict maintenance needs for recycling systems. These technological enhancements lead to better efficiency and compliance with environmental standards, further driving the trend towards sustainable solvent management.

Furthermore, the industry is witnessing strategic collaborations between chemical manufacturers, technology providers, and end-users to develop and implement greener alternatives and recycling innovations. These partnerships are crucial for pooling resources, sharing technical expertise, and scaling solutions that meet the dual demands of efficacy and sustainability.

Regional Analysis

In 2023, Asia Pacific held 44.3% of the Tetrachloroethylene Market, valued at USD 588.7 million.

The global Tetrachloroethylene Market is segmented into key regions: North America, Europe, Asia Pacific, Middle East & Africa, and Latin America, each demonstrating unique growth dynamics and opportunities.

North America has shown steady growth in the Tetrachloroethylene Market, driven by advanced manufacturing techniques and high demand for efficient dry cleaning and degreasing solutions. The region’s focus on innovative industrial cleaning materials supports its substantial market share.

Europe follows closely, with a strong emphasis on environmental regulations that encourage the use of safer and more effective chemical solvents. European countries are leading in the adoption of stringent sustainability standards, which propels the demand for advanced tetrachloroethylene solutions in various industrial applications.

Asia Pacific is the dominating region, holding 44.3% of the market with a valuation of USD 588.7 million. This region’s market prominence is due to rapid industrialization, increasing urbanization, and the expansion of manufacturing sectors in emerging economies like China and India. The high volume of industrial activities coupled with growing environmental awareness has heightened the demand for tetrachloroethylene.

The Middle East & Africa region, though smaller in market size, is experiencing growth due to increasing infrastructure developments and industrial activities that demand high-quality solvent solutions.

Latin America is also seeing an uptick in demand for tetrachloroethylene, driven by the growth in local manufacturing sectors and the rising need for cost-effective and efficient industrial cleaning materials.

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

Banner Chemicals Group has a significant presence in the tetrachloroethylene market, particularly through their exclusive product, PERKLONE™ EXT. This product is a high-grade form of tetrachloroethylene, widely used in oil refinery catalyst regeneration. Banner Chemicals is renowned for its high-purity solvents, manufactured under strict quality controls, including ISO 9001 and ISO 14001 certifications.

Market Key Players

• AGC
• Aicello Chemical Co, Ltd
• Banner Chemicals Group
• Chemical Dakang
• Befar Group
• Juhua Wuxi Yangshi
• LUXI Dongyue Group
• Occidental Chemical
• Olin Corporation
• Westlake Chemical Corporation
• Dakang
• Dongying Hebang
• SINOCHEM LANTIAN
• Dow
• Kanto Denka
• Wuhu RongHui
• Xinlong Group
• Zhejiang Juhua
• ZHONGLIAN CHEM

Recent Development

In 2023 Banner Chemicals Group, the company continued to strengthen its market position by participating in key industry events such as CHEMUK, where it showcased its range of sustainable and high-performance solvents.

In 2023, Chemical Dakang maintained a robust presence in the market by leveraging its advanced manufacturing capabilities and strong distribution networks.

Report Scope