Epichlorohydrin - Glycidol Market 2021

 

The global epichlorohydrin market is forecast to reach USD 3,870.9 Million by 2028 from USD 2,695.8 Million, growing at a CAGR of 4.40% through the forecast period, according to a new report by Reports and Data. Global Epichlorohydrin (ECH) Market size is slated to expand substantially during the projected period 2021-2027. S Epichlorohydrin (67843-74-7) manufacturer India reports herein that the product demand is driven by the increasing consumption of epoxy resins across automotive, aerospace, construction and other key areas. Continuous investments in wastewater treatment infrastructure and the need for water treatment chemicals will further propel ECH demand.

Epoxy resins find demand in a large number of end-use industries. Thus, rising demand from industries such as building and construction, automotive, and renewable energy equipment is anticipated to be a major driver for the market. Paints and coatings is among the largest end-user segments that consumes a major volume of epoxy resins in their formulations.

Economic growth in the emerging countries of Asia Pacific will lead to a rise in the consumption of epoxy resin in paints and coatings, automotive, and building and construction sectors. The rise in private and public non-residential spending, as a result of increased employment opportunities, are improving the growth prospects for epoxy resins, thus benefitting the epichlorohydrin (ECH) market.

Largely, epichlorohydrin manufacturing uses propylene as a raw material. Rising reach of bio-based products has urged manufacturers to use glycerin-based starting material. Various companies such as Samsung Fine Chemical, Dow Chemical Company, and Belgium’s Solvay SA are utilizing renewable feedstock glycerin to manufacture ECH.

High fluctuation in the prices of propylene coupled with increased production of raw glycerin, obtained as a by-product of biodiesel manufacturing, has increased the interest in processes where the glycerol is used as a raw material. Recently, the manufacturing of ECH has incorporated the green trend in the chemical industry and has started using sustainable engineering and environmentally friendly raw materials. Rising demand from the developing countries in Eastern Europe and Asia is augmenting the market size.

These regions are the major product importers. Moreover, new technologies that are being applied in the polycarbonate and epoxy resin industries would also augment the epichlorohydrin market. The low supply of ECH in the Asia Pacific is expected to continue as plants in China cut output to comply with environmental regulations in the country.

The major application segments for epichlorohydrin are pharmaceuticals, epoxy resins, water treatment chemicals, and synthetic glycerin. Epoxy resins produced from epichlorohydrin are used across various industries, including adhesives, coatings, and plastics. These resins are also used to produce inks and dyes used in various end-use sectors. Whereas, synthetic glycerin is robustly used in the cosmetics industry and commercial insecticides surfactants, solvents, pharmaceuticals, textiles, and paper sectors.

In the construction industry, epoxy resins are used to manufacture floorings in high traffic areas such as shopping malls, industrial buildings, and hospitals due to their anti-slip textures. They are also used to bind concrete to itself or steel in monument restoration applications.

Epichlorohydrin has other multiple applications across diverse end-use industries, which include its use in ECH-based rubber, inks and dyes, paper, agricultural products, textiles, and ion-exchange resins, among others. ECH production trend shifted from petroleum-based manufacturing to bio-based manufacturing, substituting propylene with glycerin.

Epoxy resins are used in paint & coatings of heavy-duty metal substrates. Epoxy-based paints & coatings are eco-friendly and consume less energy than heat-cured coatings. Changing lifestyle, rising spending power, robust industrialization, and increasing population will drive the growth of the construction industry, which will propel the demand for paints & coatings. These resins are used to produce high-performance adhesives with excellent chemical and heat resistance that are used in aircraft, bicycle, and automobile manufacturing. Apart from this, epoxy resins are also employed in generators, motors, transformers, etc. Rapid development in these end-use industries will drive the demand for epoxy resins, which in turn will propel the growth of epichlorohydrin market size by 2027.

 

Heightened use of epichlorohydrin-based rubber in the automotive sector will augment the global epichlorohydrin industry forecast. ECH-based rubber is a specialty, multipurpose polymer which finds use in fuel applications such as automotive fuel systems, die-cut sealing, and bladders. Synthetic glycerin is another key area of application of ECH where it is utilized as an intermediate. 
       

Epichlorohydrin is a liquid epoxide generally obtained by the chlorohydrination of allyl chloride. ECH can be classified as bio-based ECH and petro-based ECH depending on the raw materials. Bio-based epichlorohydrin market is projected to witness notable demand through 2027. It is produced using biobased feedstock products such as glycerol. Its adoption is increasing owing to the rising environmental concerns and the need for sustainable products. Manufacturers are expanding the output of biobased products to meet the demand. For example, in October 2020, Solvay had ramped up the production of biobased solvents which use glycerin as one of the major raw materials in Brazil. 

Considering the application landscape, the synthetic glycerin segment is anticipated to acquire a substantial share of the epichlorohydrin industry in the forthcoming years. The consumption of synthetic glycerin in food products, pharmaceuticals, nutritional supplements, personal care products, and oral care products is increasing. In the pharmaceutical sector, it is widely used as a sweetener in syrups and commonly found in eardrops, creams, gel capsules, and other products. Growing demand for synthetic glycerin across myriad end-use sectors will bolster the epichlorohydrin market outlook significantly.

Europe epichlorohydrin market size is expected to grow at a notable CAGR up to 2027, largely due to the increasing demand for protective coatings in the region. Europe is one of the leading producers of paints & coatings which are widely used in the automotive sector. Epoxy resin-based coatings are one of the most widely used coating formulations in automotive, aerospace, construction, and other areas. Epoxy resins being a major area of application of epichlorohydrin, the regional market will witness an upward growth trend over the next few years.
 

Dow Chemical Company, Solvay SA, Sumitomo Chemicals, Aditya Birla Chemicals, Lotte Fine Chemical, Kashima Chemical, Yee Fong Chemical & Industrial Co., Ltd., Hanwha Chemical, Spolchemie AS, Nama Chemicals, and Shandong Haili Chemical Industry Co Ltd. are among the major companies involved in the production and supply of epichlorohydrin. Manufacturers are focusing on expanding their production capacities to keep up with the increasing epichlorohydrin industry demand.

COVID-19 impact on ECH industry forecast

The COVID-19 pandemic has had a significant impact on the epichlorohydrin market due to strict government restrictions, reduced industrial output, and weakened product demand. The decline in manufacturing activities across key end-use verticals owing to supply chain issues and lockdown measures has led to the decreased ECH consumption. Numerous manufacturers were forced to shut down production activities or operate a diminished capacity, causing production and supply delays. In addition, the global economic slowdown caused by the pandemic has created numerous challenges for the market players.