Global Epichlorohydrin Market is Segmented By Type (Fossil-based, Bio-based), By Application(Epoxy Resins, Stabilizers, Insect fumigant, Glycerol, Surfactants, Synthetic rubbers, Inks and Dyes, Others), By End-User(Electronics, Pharmaceuticals, Automotive, Textiles, Construction, Other), and by Region (North America, Latin America, Europe, Asia Pacific, Middle East, and Africa) – Share, Size, Outlook, and Opportunity Analysis, 2024-2031
Market Overview
(180 pages) Global Epichlorohydrin market to grow at a high CAGR Of 4.9% during the forecast period 2024-2031. The market is expected to grow due to increasing demand from Electronics, Pharmaceuticals, Automotive, Textiles, Construction. The competitive rivalry intensifies with Solvay, Dow Chemicals., Lotte Fine Chemical, and others operating in the market.
Market Scope
| Metrics | Details |
| Market CAGR | 4.9% |
| Segments Covered | By Type, By Application, By End-User, and By Region |
| Report Insights Covered | Competitive Landscape Analysis, Company Profile Analysis, Market Size, Share, Growth, Demand, Recent Developments, Mergers and acquisitions, New Product Launches, Growth Strategies, Revenue Analysis, and Other vital insights. |
| Fastest Growing Region | Asia Pacific |
| Largest Market Share | North America |
To know more insights Download Sample
Epichlorohydrin is generated from allyl chloride and is majorly used as a chemical intermediate. Epichlorohydrin is a chlorinated epoxy compound primarily used to manufacture glycerol and epoxy resins. Epichlorohydrin is also utilized in the manufacture of glycidyl ethers, elastomers, cross-linked food starch, surfactants, plasticizers, pharmaceutical products, dyestuffs, oil emulsifiers, lubricants, and adhesives; as a solvent for resins, gums, cellulose, paints, esters, and lacquers; as a stabilizer in chlorine-containing substances such as pesticide formulations, rubber and solvents, and the drug and paper industries as an insect fumigant.
The global epichlorohydrin market is categorized as fossil-based and bio-based on its type. The bio-based epichlorohydrin market has grown with strict norms on fossil-based products. Epichlorohydrin is extensively used in numerous industries, including pharmaceuticals, automotive, textiles, construction, and others.
Source: DataM Intelligence Analysis (2023)
Market Trends
The global epichlorohydrin market growth is driven by the rising consumption of epoxy resins in the construction and automotive industry.
Rising consumption of epoxy resins in the construction and automotive industry
Epoxy resin is highly nonporous and durable, making it perfect for various projects. Sealing floors or countertops, making river tables, and designing resin art are just a few of the many ways to use epoxy resin. The application of epichlorohydrin-based electric motors is the future of the automotive industry.
Epoxy resins are used to manufacture plastics, adhesives, primers, paints, coatings, sealers, flooring, and other products and materials used in building & construction applications. Epoxy resins are created by mixing BPA and epichlorohydrin, which are then reacted to generate the basic monomer unit of epoxy resin called DGEBA or BADGE.
Various leading countries have expanded their production of epoxy resins in response to the rising demand. For instance, in 2020, Sumitomo Bakelite Co., Ltd. started a manufacturing line to produce epoxy resin encapsulation materials for automotive use in its Belgian production subsidiary to meet growing demands in the mobility field in Europe.
The demand for epoxy resins has been growing in the construction and automotive industry, expected to drive the epichlorohydrin market. For instance, in 2019, Meghmani Finechem decided to set up a project of epichlorohydrin, a capacity of 50,000 tons per annum based on TechnipFMC's EPICEROL technology. The plant will be set to serve the rapidly expanding Epichlorohydrin market in India. Epichlorohydrin will act as a feedstock for the production of epoxy resins, which are increasingly used in various applications, including corrosion protection coatings in Industrial, automotive, and others.
Harmful impacts of epichlorohydrin on human health
Epichlorohydrin is used to produce various products such as glycerol, epoxy resins, insect fumigant, and others. Acute inhalation exposure to epichlorohydrin in the workplace can irritate workers' eyes, respiratory tract, and skin. Chronic occupational exposure of humans to epichlorohydrin in the air is connected with high levels of respiratory tract illness and hematological effects. At high levels of exposure, vomiting, nausea, labored breathing, lung inflammation, pulmonary edema, and renal lesions may be observed in humans.
Damage to the respiratory tract, nasal passages, and kidneys has been observed in workers exposed to epichlorohydrin by inhalation for acute or chronic duration. Various regulatory bodies have already declared epichlorohydrin unsafe for work. For instance, EPA has listed epichlorohydrin as a Group B2, a probable human carcinogen. NIOSH approved the supplied-air respirator with a facepiece operated in the positive-pressure mode for persons having the chance of epichlorohydrin exposure.
COVID-19 Impact on Market
The epichlorohydrin market has declined during the COVID-19 outbreak. The scarcity of raw materials during COVID-19 has impacted market growth. Epichlorohydrin has been utilized in manufacturing products for automotive, textiles, construction, and other industries. For instance, the sales of automobiles dropped 79% in February 2020 from the prior-year period in China. Builders are still dealing with supply-chain interruptions, material price spikes, and other pandemic-related issues.
Epichlorohydrin has been used in manufacturing various materials, including adhesives, plastics, coatings, paints, primers, flooring, and other products. However, the demand for these products has been unstable during the initial months of the pandemic, affecting the epichlorohydrin market. However, the epichlorohydrin market has faced a spike in demand from the pharmaceutical and electronics sector.
Market Segmentation Analysis
By type, the epichlorohydrin market is segmented into fossil-based and bio-based.
Bio-based epichlorohydrin market is growing because of the significant environmental advantages
Bio-based epichlorohydrin is produced using an innovative process based on glycerol. Glycerol is a renewable feedstock and a by-product of biodiesel and oleochemical production. It offers significant environmental advantages compared to propylene-based ECH from fossil fuels. Bio-based epichlorohydrin is a traditional ECH due to its significant environmental advantages. By choosing Bio-based Epichlorohydrin, downstream users can lessen raw material's impact on their end-products carbon footprint.
Various leading companies have recently expanded their bio-based epichlorohydrin production due to stringent government regulations on fossil-based epichlorohydrin. For instance, in 2020, Biobased chemical company Advanced Biochemical Co., Ltd. announced a capacity increase at its plant in Map Ta Phut, Thailand. The company is expanding its bio-based epichlorohydrin production to 120 kT/pa, increasing by 20,000 metric tons per year. The Industrial Estate Authority of Thailand granted permission for this increase. The capacity increase at ABT's plant was made possible because of improvements in process efficiency and process optimizations in production.
Source: DataM Intelligence Analysis (2023)
Market Geographical Share
Expanding construction industry is boosting the sales in Asia-Pacific
The demand in Asia-Pacific is increasing because of the growing need for epoxy resins. Epoxy resins are used to produce adhesives, coatings, plastics, paints, primers & sealers, flooring, and other products and materials used in building & construction applications. Due to increased demand for construction, the markets in developing nations are expected to grow. For instance, China's construction industry is forecasted to expand at an annual average of 5% between 2019 and 2023.
The companies are expanding their production facilities with rising demand from the end-users. For instance, in 2021, the environmental review approved Sinopec Baling Petrochemical Co., Ltd.'s 20,000 tons/year one-step solid resin plant and epichlorohydrin plant production increase and emission reduction technological transformation project. The investment of the project is estimated at US$ 2.4 million (15.6392 million yuan).
However, the growth is restrained by strict government regulations during the manufacturing processes. The epichlorohydrin company Jiangsu Haixing was suspected of being suspended due to carbon emissions, which directed to a sharp drop in market supply. Later, due to carbon emission inspections, the operating rate of the epichlorohydrin industry was low and the tight supply situation further intensified. Presently, the price of epichlorohydrin in China is US$ 3,086/ton (19,750 yuan/ton) and the quotation of some companies is 20,000 yuan/ton, an increase of 60% from the beginning of the year.
Source: DataM Intelligence Analysis (2023)
Companies and Competitive Landscape
The epichlorohydrin market is fragmented with the presence of local and global companies. However, the companies have to take government regulatory permissions to manufacture epichlorohydrin. In addition, some of the key players contributing to the market's growth are DCM Shriram Ltd, Samsung Fine Chemicals Co. Ltd, Dow Chemicals, Solvay, Aditya Birla, Lotte Fine Chemical, Haiwan Chemical, Meghmani Finechem, Shandong Haili Chemical Industry Co. Ltd., Hexion Inc, and others. The players are adopting new strategies to dominate the market, such as acquisitions, launching new products, expansions, and collaborations, contributing to the global growth of the epichlorohydrin market.
DCM Shriram Ltd
Overview: DCM Shriram Ltd. is a business conglomerate headquartered in India. The Company, through its subsidiaries, operates agricultural, energy, and other businesses that provide crop care chemicals, sugar, fertilizers, seeds, caustic soda, chlorine, polyvinyl chloride compounds and resin, calcium carbide, cement, and textiles. The company's business portfolio consists of Chlor-Vinyl Business, Agri-Rural Business, and Value-added business.
Product Portfolio: The company has recently started manufacturing epichlorohydrin for manufacturing epoxy resins.
Critical Development: In 2021, the DCM Shriram approved an investment of US$ 133.9 million (₹1,000 crores) in developing downstream capabilities in its chemical portfolio. The proposed investments include setting up a 52,500 tons per year hydrogen peroxide unit and a 51,000 tons epichlorohydrin unit along with a glycerine purification facility at its Bharuch plant in Gujarat.
Why Purchase the Report?
- Visualize the global epichlorohydrin market segmentation by type, application, end-user, and region, highlighting the key commercial assets and players.
- Identify commercial opportunities in the global epichlorohydrin market by analyzing trends and co-development deals.
- Excel data sheet with thousands of data points of global epichlorohydrin market-level 4/5 segmentation.
- PDF report with the most relevant analysis cogently put together after exhaustive qualitative interviews and in-depth market study.
- Product mapping in excel for the key product of all major market players
The global epichlorohydrin market report would provide an approximate 61 market data table, 59 figures, and 180 pages
