Chlor-Alkali Market

Global Chlor-Alkali Market Size (2024 to 2029)

The Global Chlor-Alkali market is expected to grow from USD 70.02 billion in 2024 to USD 86.92 billion in 2029, with a CAGR of 4.22% between 2024 and 2029. 

MARKET OVERVIEW

Chlor-alkali is a process that involves the electrolysis of brine to produce chlorine and sodium hydroxide, which is utilized in a variety of applications including inorganics, medicines, organics, soap, and detergents. Because of the increased demand for chemical products, Chlor-alkali is utilized in large quantities in the chemicals processing industry. Membrane cells, as well as diaphragm cell processes, are the 2 primary kinds of processes involved in Chlor-Alkali. Chlor-alkali chemicals are used in a variety of industries, such as pulp and paper, alumina, organic and inorganic chemicals, detergents and soaps, textiles, and more. Chlor alkali manufacturing facilities produce chlorine and caustic soda, two frequently used commodity chemicals (NaOH). The procedure uses a lot of power, which accounts for more than 40% of the overall running expenses. Membrane cell technology is widely employed in the manufacture of Chlor alkali, accounting for one-fourth to one-fifth of total Chlor alkali production capacity installed across the world. Other production processes, such as the diaphragm and mercury cell, account for the remaining percentage.

MARKET DRIVERS

Some of the drivers driving the market include increased usage in the food and paper & pulp sectors, increased requirements from the construction and car industries, and growing demand for chlorine and its derivatives.

Furthermore, pandemics like COVID-19 (coronavirus) are driving demand for Chlor-alkali, which may be used to disinfect surfaces and objects, therefore breaking the infection cycle. The Global Chlor-Alkali Market was severely impacted by Covid 19. Market growth was slowed due to poor execution by various end-user industries. Chlorine is used to make a variety of downstream chemicals, including polyvinyl chloride (PVC). PVC is the third most widely used polymer on the planet. Tubes, windows, and other goods are commonly made from them in the construction sector. The growing building sector in emerging markets has raised chlorine demand in the vinyl industry. Furthermore, PVC applications in a variety of end-use sectors are constantly rising, indicating that profitable development prospects will emerge in the coming years. Because of their particular qualities, PVC tapes and casings are safe to use in electrical applications. The rise of electric cars in developing countries is expected to increase demand for PVC & chlorine in use in vinyl.

MARKET RESTRAINTS

The temporary shutdown of production facilities to stop the virus from spreading had a big impact on the demand-supply ratio. The business is also experiencing staffing scarcity due to a lack of operating capital in the market. Furthermore, during this time period, a rise in public awareness about cleanliness and sanitation boosted the demand for chlorinated washing solutions. Because chlorine is a key component of the Chlor-alkali process, there was a pause in market expansion. The Chlor-alkali product's hazardous environmental impact, particularly chlorine, is a key growth stumbling block. Chlorine is a powerful greenhouse gas that depletes the ozone layer.

Impact of COVID-19 on the Global Chlor-Alkali Market

COVID-19 has wreaked havoc on most industrial processes throughout the world. Industries throughout the world confront severe issues such as disruptions in logistics and supply, workforce shortages, the lack of end-users, and other constraints. During the early stages of the outbreak, operating rates plummeted, and several facilities were forced to shut down for a few days. Additionally, the lack of end-user limits demands certain goods, notably chlorine. As a result, revenue growth in the worldwide market for the very first 2020s has been recorded by leading industry players. For example, the world's largest manufacturer, Olin Corporation, suffered a decline of USD 80 million in Mid-2020 owing to lower selling prices and volume.

REPORT COVERAGE

DETAILED SEGMENTATION OF THE GLOBAL CHLOR-ALKALI MARKET INCLUDED IN THIS REPORT

This research report on the global chlor-alkali market has been segmented and sub-segmented based on product, process, end-user, and region.

Global Chlor-Alkali Market By Product

• Caustic soda
• Soda ash
• Chlorine

The Chlorine sector dominates the market, because of its widespread use in a variety of sectors. It's also used in water treatment facilities. Chlorine has a wide range of applications. It's being used to disinfect water as well as being a part of the sewage & industrial waste treatment process. Chlorine is utilized as a bleaching agent in the manufacturing of paper and fabric. It's also found in cleaning goods, such as chlorine dissolved in water, which is used in home bleach.

Global Chlor-Alkali Market By Process

• Mercury Cell Process
• Diaphragm Cell Process
• Membrane Cell Process

The Membrane sector accounts for a significant portion of the market. The appeal of this technology stems from the fact that it requires less energy to manufacture. Of addition, the initial expenditure necessary to start up a manufacturing unit in this kind is quite low. The transmembrane region, or peptide sequence that crosses the membranes, is generally hydrophobic and may be viewed using the hydropaths plot. 

Global Chlor-Alkali Market By End-User

• Glass
• Chemicals
• Water Treatment
• EDC/PVC
• Others

The EDC/PVC sector has a sizable market share. Ethylene Dichloride (EDC) is used as a starting ingredient for making PVC (Polyvinyl Chloride) plastic. PVC is the most widely used plastic material, with applications ranging from footwear to electrical and medical devices. PVC is a versatile material with several uses, including window frames, drainage pipes, water service pipes, and medical equipment.

Global Chlor-Alkali Market By Region

• North America
• Europe 
• Asia Pacific
• Latin America
• Middle East and Africa

KEY PLAYERS IN THE GLOBAL CHLOR-ALKALI MARKET

 Hanwha Chemical Corporation, Axiall Corporation, Tronox, AkzoNobel N.V, Tosoh Corporation, Nirma Limited, Olin Corporation, TATA Chemicals Limited, Solvay SA, Occidental Petroleum Corporation are some of the notable companies in the global Chlor-Alkali market.

RECENT HAPPENINGS IN THE MARKET

8^th December 2021: Reliance Industries, an Abu Dhabi chemical business, has formed a $2 billion manufacturing joint venture. The TA'ZIZ EDC & PVC joint venture will build and run a Chlor-alkali, ethylene dichloride (EDC), and polyvinyl chloride (PVC) production plant, according to the announcement. The JV intends to sell the materials both locally and to target markets in Southeast Asia and Africa.

30^th October 2020: Grasim and Lubrizol have agreed to build India's "biggest" CPVC resin facility. Lubrizol Advanced Materials and Grasim Industries Ltd. have signed a formal agreement for the manufacturing and delivery of chlorinated polyvinyl chloride (CPVC) resin in India. This partnership with Lubrizol Advanced Materials is part of our long-term goal to bring world-class technology to India, and it also compliments our Chlor-Alkali and Derivatives platform growth strategy.