Global epichlorohydrin (ECH) market is expected to witness a lucrative growth on account of growing demand from paint industry. The overall market is projected to grow at an approximate CAGR of 4% from 2016-2024.
This organochlorine compound has a presence of both chlorine and epoxy elements. Epichlorohydrin has strong epoxy bonds and shows chiral nature. It shows moderate solubility in water and polar solvents.
They are used in the glues, epoxy resins, paints, glycerol, plastic, and elastomers manufacturing. The raw material used for ECH production include propylene or glycerine. They are also employed in explosives by processing it with nitrates.
Extensive industrial applications drive the overall epichlorohydrin growth. Paint and coating industry accounts for maximum revenue share in the global market. The application industry is expected to witness significant growth on account of increasing usage in automobiles and construction sector.
The overall demand is also projected to be propelled by its usage in electrical and electronic appliances manufacturing. Approximately one-fourth of the revenue is derived from the electronic market with significant contribution from Japan.
Another driving factor is its use in the explosives manufacturing. Explosives are used for industrial purposes as well as for destruction. Growing explosives demand from mining industries and power grids have significantly contributed towards the ECH market demand.
Government bodies have been focusing on internal security by maintaining explosives in their armory. These chemicals have been extensively used in explosives on account of their property of forming a homogenous mixture.
Other end user industries which are expected to enhance ECH demand over the forecast period are surfactants, detergents, cosmetics, tea and coffee purification process. The potential ECH usage threat acts a barrier to the overall industry growth.
Several health organizations have classified epichlorohydrin as a probable human carcinogen.
Severe inhalation exposure to ECH in the workplace has known to cause eyes, respiratory organs and skin irritation.
Vomiting, cough, labored breathing, nausea, labored breathing, inflammation of the lung, pulmonary disorders, and renal lesions are other symptoms observed in human handling the product.
Experiments conducted on rodents have shown signs of a tumor when exposed to acute inhalation. Prolonged exposure is expected to result in increased lung cancer risk. These health hazards are supposed to restrain the overall market in near future.
Water treatment activities are projected to provide excellent opportunities over the forecast period. ECH is used for filtration and purification process in water treatment industry. Further, bio-based glycerine as a raw material propels the market on account of its low cost.
Bio glycerine is a by-product of bio-diesel and has helped organizations to achieve cost optimization. Buyers must go through the material safety data sheet provided by the manufacturers.
Inventory management is a critical function for both the manufacturers and end users as a result of high costs and risks involved in handling and storage. These chemicals are stored in locked dry containers and kept isolated from heat and ignition sources.
National institute for occupational safety and health (NIOSH), the U.S. provides the best industry practices to prevent illnesses and injuries at a workplace. NIOSH considers ECH as a potential carcinogen as per OSHA carcinogen policy.
ECH is segmented by raw material which includes propylene and glycerine. Europe is the leading glycerine based epichlorohydrin producer mainly on account of high production in Germany.
Further, ECH is segmented based on application usage which includes paints & coating, electronics, adhesives, paper & inks, textiles, water treatment and explosives. Major usage is observed in paints, electronics and explosives manufacturing.
Asia Pacific has shown its dominance regarding demand over the past few years. Countries including India, Taiwan, Japan and South Korea are expected to provide excellent opportunities owing to booming industrialization.
China was the primary market for ECH production and is expected to continue its dominance on account of low labor costs. Regional demand is followed by North America and Europe mainly from paint and defense equipment manufacturing sectors.
Countries including the U.S. and the UK are expected to show steady growth over the forecast period. South America and Africa offer little opportunities for ECH market owing to lack of sufficient application based manufacturing industries.
Key players operating in the market include The Dow Chemical Company, Shandong Haili Chemicals, Solvay Chemicals and Momentive Performance Materials. Other major players include Samsung Fine Chemicals, Spolchemie, Zibo Nature, NAMA Chemicals, Shenzhen Asia to Carnitine Technology, Tengzhou Rui Defence Fine Chemicals and Qingdao E.S. Chemicals.
In the previous decade, trends showed that ECH supply surpassed the market demand. The Chinese market was congested with foreign products and, therefore, hampering the local industries.
In 2006, the Chinese government imposed a five-year anti-dumping duty up to 71 % on imports from the U.S, South Korea, Japan, and Russia. The anti-dumping measures were reviewed and extended by another five years in 2011 to safeguard the interests of domestic players.
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