Global Chlorinated Paraffins Market: Lower Costs, Numerous Properties of Chlorinated Paraffins Goad Expansion, says TMR
The presence of a large number of companies has rendered the vendor landscape of the global chlorinated paraffins market highly fragmented. In the next few years, competition among the large companies is expected to intensify further, says Transparency Market Research (TMR). Numerous companies have been adopting business strategies such as partnerships, collaborations, mergers, product innovations, and acquisitions to strengthen their market position. For instance, in November 2016, Gulf Chlorine, a joint venture between Al Mirqab Capital and Oman Chlorine signed an agreement with KLG Organic Qatar to set up a calcium chloride plant in Doha, Qatar. KLG Organic Qatar, a joint venture between India-based KLG Organic Limited and Qatar Industrial Manufacturing Company, intends to manufacture chlorinated paraffin wax via this collaboration.
Some of the prominent market players operating in the global market for chlorinated paraffins are Dover Chemicals, JSC Kaustik, Ajinomoto Fine-Tech, and Caffaro Industrie.
According to TMR, the global market for chlorinated paraffins is expected to attain a revenue worth US$1.98 bn by the end of 2023. The market is expected to keep expanding at a CAGR of 3.2% between 2015 and 2023. By application, the largest share was held by metalworking fluids, claiming nearly 35% share in the overall market. Asia Pacific emerged as the leading segment by geography, accounting for a share of 55% in the global market for chlorinated paraffins in 2014.
Growing Metalworking Industry in Asia Pacific Incites More Demand
Asia Pacific is likely to hold its dominance over the forecast period in the global market, driven by the availability of labor and raw materials, expansion of the metalworking industry, and low costs of chlorinated paraffins. India and China are projected to surface as major contributors of the chlorinated paraffins market in Asia Pacific.
Based on product, metalworking fluids are expected to emerge as the leading segment. The growth of the metalworking fluids segment can be attributed to the flame retardant properties of these products. Chlorinated paraffins are used as extreme pressure lubricants in metal cutting applications by virtue of their flame retardant properties, contributing to this segment’s growth. The plastic additives application segment has been witnessing rapid growth. Therefore, it is waiting in the wings to replace the metalworking fluids segment.
Higher Need for PVC Products Lends a Hand to Market’s Growth
One of the primary growth drivers of the global market for chlorinated paraffins is the high demand for extreme pressure additives used in secondary plasticizers and metalworking fluids in polyvinyl chloride (PVC) compounds. PVC products such as sheets, pipes, tubes, cables, and wires are required in large supplies in industrialized regions. The demand for chlorinated paraffins is increasing owing to their rising deployment across several end-use industries. These include paints, rubber, lubricating additives, and applications in sealant and adhesives such as flame retardants and plasticizers. The low costs and numerous advantageous properties of these products have been responsible for their extensive use. The advancement of metalworking and plastic industries might generate more demand for chlorinated paraffins over the forthcoming period.
On the contrary, the environmental hazards associated with the use of these products might limit the growth of the market. Several European and North American nations have imposed restrictions on the use of chlorinated paraffin, leading to the usage of substitute products. However, the robust growth in industrialization in Asia Pacific is likely to make up for the loss resulting from these restraints.
The information presented in this review is based on a Transparency Market Research report, titled, “Chlorinated Paraffins (Product - L-grade (A1 (<40%), A2 (40%–70%), and A3 (>70%)), M-grade (B1 (<40%), B2 (40%–70%), and B3 (>70%)), and H-grade (C1 (<40%), C2 (40%–70%), and C3 (>70%)); Application – Lubricating Additives, Plastic Additives, Rubber, Paints, Metalworking Fluids, Sealants, and Adhesives)- Global Industry Analysis, Size, Share, Growth, Trends and Forecast 2015 - 2023”.
Key segments of the Chlorinated Paraffins Market
Chlorinated Paraffins Market - Product Analysis
- A1 (<40%)
- A2 (40%–70%)
- A3 (>70%)
- B1 (<40%)
- B2 (40%–70%)
- B3 (>70%)
- C1 (<40%)
- C2 (40%–70%)
- C3 (>70%)
Chlorinated Paraffins Market - Application Analysis
- Lubricating Additives
- Plastic Additives
- Metalworking Fluids
- Others (Including Sealants, Adhesives, etc.)
Chlorinated Paraffins Market - Regional Analysis
- North America
- Rest of Europe
- Asia Pacific
- South Korea
- Rest of Asia Pacific
- Latin America
- Rest of Latin America
- Middle East & Africa (MEA)
- Saudi Arabia
- South Africa
- Rest of MEA
Transparency Market Research (TMR) is a market intelligence company, providing global business information reports and services. Our exclusive blend of quantitative forecasting and trends analysis provides forward-looking insight for thousands of decision makers. TMR’s experienced team of analysts, researchers, and consultants, use proprietary data sources and various tools and techniques to gather, and analyze information. Our business offerings represent the latest and the most reliable information indispensable for businesses to sustain a competitive edge.
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