The global chlor alkali market is anticipated to witness growth over the forecast period. Chlor-alkali means scientific procedures utilized for manufacturing chlorine, caustic soda, and other sodium and chlorine-based derivatives or products like chlorinated paraffin, hydrochloric acid, bleaching powder, sodium hypochlorite, and hydrogen gas. The procedure comprises of the electrolysis of sodium chloride solution (brine solution) ensuring in the creation of the products as mentioned above. The primary products of the chlor alkali sector are caustic soda, chlorine gas, and soda ash.
Some of the major drivers comprise increased requirements from the automobile industry and construction sector, augmented use in pulp, food, and paper industries. With growing up-gradation and industrialization of technology to make chlorine, manufacturers are establishing up facilities to make allied products in a proficient manner. Almost all producers in the world are shifting their center of attention towards making chlor alkali chemicals utilizing membrane cell technology to reduce harm to the environment.
The booming alumina industry in the world is expected to witness noteworthy investments over the forecast period. Since, caustic soda is provided as a primary raw material in the refining procedure of alumina in return to which, expansion in the alumina market is expected to fuel the requirement for caustic soda over the forecast period, thus boosting the market for chlor-alkali chemical industry in the extended run. The initial challenge for the industry is the environmental impact the procedure has. Carbon and Mercury emissions have been reasons of concerns. However, the procedure is an extremely energy-intensive process, and the augmented energy demand is expected to hamper the expansion.
The chlor alkali sector is initially segregated based on the products which are caustic soda, and soda ash. The product segment is additionally segmented based on its functionality. The primary function for chlorine is polyvinyl chloride including organic chemicals, for soda ash. Its main application is the glass market while Caustic soda's main areas of service are inorganic chemicals & organic chemicals and the paper industry. Soda ash is mainly produced by utilizing the Solvay procedure. Chlorine and Caustic Soda are generated by the process of electrolysis by a mercury cell. By the region, the chlor alkali market can be segregated into Asia Pacific, North America, Europe, and the rest of the World. Asia Pacific is expected to consume the largest volume of the chlor alkali chemicals which is almost half the worldwide consumption, and it is followed by North America and Europe.
The chlor alkali market is expected to acknowledge a remarkable growth over the forecast period owing to the increasing demand from emerging economies of China and India. In addition to the fact above, the growing requirement in the application industries such as inorganic and organic chemicals is expected to boost the chlor-alkali market over the forecast period. Another significant factor promoting this expansion is the high production capacities for chlor-alkali derivatives and products. In addition, the development of technology utilized in the procedure to create it environmentally practicable and less energy concentrated is expected to give the industry a big boost over the forecast period. North America is expected to capture maximum revenue over the forecast period owing to increasing demand for chlor-alkali products across different industries such as the automobile. Europe is expected to be followed by North America over the forecast period regarding generating revenue.
The chlor alkali market is concentrated and has a lack of standardization. Some of the key players include Occidental Petroleum Corporation, Ineos Group Limited, Xinjiang Zhongtai Chemical Company Limited, Hanwha Chemical Corporation, Nirma Limited, Solvay SA, Olin Corporation, Formosa Plastics Corporation, FMC Corporation, The Dow Chemical Company, Tosoh Corporation, and Tata Chemicals Limited. Merger & acquisitions and expansion are the main strategies adopted by many key players. Several companies are busy increasing their existing facilities or are enterprising into new industries by acquisitions & mergers.
Another area of concern is the enhancement of the existing technology so that there is reduced energy consumption and the procedure is more environmentally friendly. Substituting old mercury cell manufacturing facilities with technically advanced membrane cell technology is also a key trend expected to observe across all areas. Many manufacturing facilities that had been closed in the past few years are beginning to start production, which is projected to play an important role in rising volume manufacturing of chlor-alkali chemicals around the world. Several key players are also re-strengthening their production facilities which are directed towards reinforcing its position in the global chlor alkali market over the forecast period. Several companies are trying their best to inculcate the latest technical innovations in their procedure so that their production process gives out the least pollutants.
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Demand across the organic chemicals sector shall register a slump in growth albeit increasing demand for certain chemicals that find end applications in healthcare and food. Furthermore, China, a major supplier of chemicals to the world, registered a considerable decline in manufacturing in the first quarter of 2020, following the trajectory unfolded by COVID-19's escalation to a pandemic. This has led to an imbalance in supply-demand dynamics, forcing manufacturers and customers alike to renegotiate supply agreements. The report will account for Covid19 as a key market contributor.