Published: Nov, 2019

Global Trichloroethylene and Perchloroethylene Market: Key Highlights

  • In terms of value, the global trichloroethylene and perchloroethylene market is anticipated to expand at a CAGR of ~1% from 2019 to 2027, and reach ~US$ 550 Mn by the end of the forecast period.
  • C2-chlorinated solvents such as trichloroethylene and perchloroethylene have major commercial significance. However, the consumption of these solvents has been negatively impacted by a decline in emissive applications as a result of regulations related to the 1987 Montreal Protocol on ozone-depleting chemicals, and the 1997 Kyoto Protocol on global warming and climate change.
  • The regulatory framework in China and India to restrict the usage or phase-down of trichloroethylene and perchloroethylene, due to their high toxic profile and environmental hazards, is not stringent, unlike that in Europe and North America. Domestic consumption of trichloroethylene and perchloroethylene in China and India is projected to mark a positive growth trend, while most of the geographies in the global trichloroethylene and perchloroethylene market are anticipated to mark a declining trend in the next decade.
  • The consumption of trichloroethylene and perchloroethylene decreased in North America in the last decade. The region has been a net exporter of these chlorinated solvents since the last few years.
  • According to the European Chlorinated Solvents Association (ECSA), the production and use of trichloroethylene and perchloroethylene in Europe has been declining since the last few decades. The usage of trichloroethylene has declined by more than 50% since the mid-1970s, due to improvement in operating conditions, leading to better solvent recovery, and growing use of other solvents for metal cleaning.

Regulatory Framework for Trichloroethylene and Perchloroethylene to Hamper Demand

  • Human health and environmental concerns due to the strong toxic profile and carcinogenicity associated with trichloroethylene and perchloroethylene have resulted in a notable decline in the consumption of these chemicals over the last few decades.
  • In July 2014, the U.S. EPA proposed a rule under the Significant New Alternatives Policy (SNAP) to limit the use of several hydrofluorocarbons.
  • Europe has enacted stringent regulations on the usage of trichloroethylene and perchloroethylene. For instance, in March 2013, France passed a specific national regulation (i.e. arrêté 2345) regarding the use of solvents for the dry cleaning and treatment of textiles or clothing. The country intends to progressively phase out machines by using chlorinated solvents in residential areas. In Germany, where a stringent emission control law (2.BimSchV) was implemented a few years ago, the domestic consumption of trichloroethylene and perchloroethylene has reduced significantly.
  • Trichloroethylene and perchloroethylene are regulated by the Air Pollution Control Law, Water Pollution Control Law, and Soil Contamination Countermeasures Act in Japan, in terms of their use and emissions in natural resources. The consumption of trichloroethylene and perchloroethylene is projected to decline significantly in the country during the forecast period.

Fluorocarbon to be Leading Grade in Trichloroethylene and Perchloroethylene Market

  • Amid the decline in the demand for a majority of grades of trichloroethylene and perchloroethylene, the fluorocarbon grade segment of the market is expected to witness moderate growth during the forecast period.
  • The fluorocarbon segment of trichloroethylene and perchloroethylene is anticipated to expand at a CAGR higher than that of the market CAGR, from 2019 to 2027. Trichloroethylene and perchloroethylene have largely been used as basic raw materials in the synthesis of hydrofluorocarbon HFC 134a, a popular alternative for chlorofluorocarbon (CFC) refrigerants, and   hydrochlorofluorocarbons such as HCFC 123, HCFC 124, and HFC 125.
  • The market share of the dry cleaning segment is estimated to decline during the forecast period, as the market is shifting toward the usage of more efficient equipment to limit emissions. This is in compliance with the implementation of stringent government rules regarding workplace exposure levels.

Hydrofluorocarbon Refrigerant to be Leading Application

  • Based on application, the global trichloroethylene and perchloroethylene market has been segregated into degreasers, hydrofluorocarbon refrigerants, spot-removal solvents, and others.
  • The hydrofluorocarbon refrigerant segment accounted for a large share of ~ 30% of the global trichloroethylene and perchloroethylene market in 2018. Perchloroethylene is primarily employed as the basic raw material in the manufacture of hydrofluorocarbon (HFC) 134a, which was introduced as an alternative to chlorofluorocarbon (CFC) refrigerants. Perchloroethylene is also employed in the synthesis of hydrochlorofluorocarbons (HCFCs) 123 and 124, and HFC 125. Trichloroethylene is used as an intermediate in the production of refrigerants such as HFCs and HCFCs. It is also used as an ingredient in solvents in metal degreaser applications.
  • Various environment-related regulations imposed in developed geographies such as the U.S. and the European Union favor the phase-out of HFCs, HCFCs, and other hazardous materials. This is anticipated to hamper the demand for trichloroethylene and perchloroethylene during the forecast period.

Asia Pacific to be a Lucrative Trichloroethylene and Perchloroethylene Market

  • The outlook for the trichloroethylene and perchloroethylene market in Asia Pacific appears positive, led by the rise in the demand for these products in China. The high consumption of trichloroethylene and perchloroethylene in China can be ascribed to factors such as increase in the production of hydrofluorocarbons and significant potential of the metal degreasing industry in the country.
  • The textile industry in Asia Pacific, particularly in China, India, Bangladesh, and ASEAN, is likely to witness moderate growth in the consumption of perchloroethylene in the next few years.
  • The Netherlands, Turkey, Belgium, Germany, and Russia are likely to be key countries of the trichloroethylene and perchloroethylene market in Europe during the forecast period.

Competition Landscape

  • In 2015, The Olin Corporation acquired the following business units of Dow: U.S. Gulf Coast chlor-alkali & vinyl, global chlorinated organics, and global epoxy. This initiative has enabled The Olin Corporation to strengthen its chlor-alkali business and expand its portfolio of chlorine derivatives.

Key manufacturers operating in the global trichloroethylene and perchloroethylene market include:

  • Westlake Chemical Corporation
  • The Olin Corporation
  • Dow (SAFECHEM Europe GmbH)
  • AGC Chemicals
  • Occidental Petroleum Corporation
  • TOAGOSEI CO., LTD.
  • SPOLCHEMIE
  • ACURO ORGANICS LIMITED
  • Befar Group Co., Ltd.
  • Shandong Xinlong Group
  • Kanto Denka Kogyo Co.

Global Trichloroethylene and Perchloroethylene Market: Segmentation

Trichloroethylene and Perchloroethylene Market by Grade

  • Trichloroethylene (TCE)
    • Degreasing & General Purpose Grade
    • Fluorocarbon Grade
    • High-purity Grade
    • Others (Custom Grade)
  • Perchloroethylene (PCE)
    • Degreasing & General Purpose Grade
    • Fluorocarbon Grade
    • Dry Cleaning Grade
    • Others (Catalyst/Refinery Grade and Custom Grade)

Trichloroethylene and Perchloroethylene Market by Application

  • Degreaser
  • Hydrofluorocarbon Refrigerant
  • Spot-removal Solvent
  • Others (including Asphalt Testing, Insecticides, and Weed Killers)

Trichloroethylene and Perchloroethylene Market by Region

  • North America
    • U.S.
    • Canada
  • Europe
    • Germany
    • U.K.
    • France
    • Italy
    • Spain
    • Russia & CIS
    • Rest of Europe
  • Asia Pacific
    • China
    • India
    • Japan
    • ASEAN
    • Rest of Asia Pacific
  • Latin America
    • Brazil
    • Mexico
    • Rest of Latin America
  • Middle East & Africa
    • GCC
    • South Africa
    • Rest of Middle East & Africa

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