The
global epichlorohydrin market is poised to grow significantly over the forecast
period owing to increasing demand from various end-use industries such as
paints & coatings, construction, automotive, and electrical &
electronics. Epichlorohydrin is a chlorinated organic compound that finds wide
application as a precursor in the manufacturing of epoxy resins. Epichlorohydrin
(ECH) Market Growth in epoxy resins exhibit excellent adhesion,
chemical & heat resistance along with good insulation properties making
them ideal for use in paints, coatings, composites, adhesives, and electrical
encapsulants. The market for epoxy resins has been expanding steadily with
growth in construction, automotive and wind energy generation sectors.
The Global Epichlorohydrin Market is
estimated to be valued at US$ 2.95 Billion in 2024 and is expected to exhibit a
CAGR of 5.1% over the forecast period 2024-2031.
Key players operating in the epichlorohydrin market are Momentive Performance Materials Inc.,
Solvay S.A., Hexion Inc., DOW Chemical Company, Mitsubishi Chemical
Corporation, Aditya Birla Chemicals, Hubei Greenhome Chemical Co., Ltd., NAMA
Chemicals, Jiangshan Chemical Co., Ltd., Olin Corporation, Zhejiang Jianye
Chemical Co., Ltd., Arkema S.A., Hanwha Solutions Corporation, BASF SE, and
Koppers Inc.
Key Takeaways
Key players: Key players operating
in the epichlorohydrin market are Dow Chemical, Solvay, NAMA Chemicals, Hanwha
Chemical, Formosa Plastics and Shandong Halli Chemical Industry.
Growing demand: Increasing
consumption of epoxy resins in applications such as coatings, composites and
adhesives is expected to propel the demand for epichlorohydrin over the
forecast period.
Global expansion: Leading
epichlorohydrin producers are strengthening their positions and expanding
capacities globally to cater to the rising demand from developing nations in
Asia Pacific and Middle East & Africa.
Market key trends
Epichlorohydrin
(ECH) Market Size and Trends is observed in the epichlorohydrin market
is the shift towards bio-based raw materials. Major manufacturers are focusing
on developing bio-based technologies to produce epichlorohydrin from renewable
feedstock such as glycerol and used cooking oil, which can help reduce
dependency on petroleum resources. This is expected to boost the market growth
while supporting environment sustainability.
Porter’s
Analysis
Threat of new entrants: High
capital requirements and strong economies of scale in production and
distribution limits new companies from entering the market.
Bargaining power of buyers: Many large buyers are present in end-user
industries like paper, construction, electricals however individual buyers have
limited influence on price in this fragmented market.
Bargaining power of suppliers:
Supply of raw materials like propylene, allyl chloride for production of
epichlorohydrin is consolidated among few large chemical companies giving them
significant influence on price.
Threat of new substitutes: Some
substitutes are available for epichlorohydrin in applications however none
offer its versatility and ease of production in large volumes limiting impact
on existing players.
Competitive rivalry: Presence of few
large producers and many small medium players has led to intense price
competition to gain market share in this mature and stable market.
Geographical Regions
North America accounts for the largest share of the global epichlorohydrin
market, both in terms of value and volume. This is attributed to high demand
from end-use industries such as electrical and power cables in the region.
The Asia Pacific region is expected to witness the fastest growth over the
forecast period supported by robust growth of end-use industries and evolving
environmental regulations in emerging economies such as China and India.
Countries like China, Japan and South Korea are rapidly industrializing which
is driving the demand for epichlorohydrin.
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