Stagnancy of Trichloroethylene and Perchloroethylene Market in Developed Regions

There are negative sentiments projected regarding the trichloroethylene and perchloroethylene market, with only growth determinants of Asia Pacific evincing signs of market recovery. However, the sales of trichloroethylene and perchloroethylene will continue to lose vigor in North America and Europe, as environmental implications and human health are gaining prominence among government agendas.

With the depletion of the ozone layer mounting sustainability concerns, the significance of hydrofluorocarbons is projected to shrink, reflecting on the poor growth prospects of trichloroethylene and perchloroethylene market. In contrast to Western markets, developing countries will hold on to their lucrativeness, and will remain key market for maximizing gains out of inorganic growth strategies, during the forecast period of 2019-2027.

trichloroethylene and perchloroethylene market infographic

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Is Trichloroethylene and Perchloroethylene Market Dead in Developed Countries?

As soon as information regarding the toxic profiles of trichloroethylene and perchloroethylene, along with their carcinogenicity, began coming to light, federal agencies and organizations started legislating regulations to limit the exposure of these chemicals. The Environmental Protection Agency (EPA) took into consideration the liver problems and increased risk of cancer among humans from the long-term exposure of trichloroethylene, and set a zero contaminant level goal as a primary standard for drinking water.

In addition, the Occupational Safety and Health Administration (OSHA) fixed a permissible limit of 100 ppm for trichloroethylene for an 8-hour working day, and an exposure of 300 ppm for a maximum duration ranging from 5 minutes to 2 hours. The influence of these stringent regulations has been levying a negative impact on the sales of trichloroethylene and perchloroethylene, which has widened the window for the penetration of substitutes.

Among other substitutes, Cold Plus, Soy Gold 2500, and Dipropylene Glycol  Monomethyl Ether (DPM) are found to perform better due to their low-VOC and low-toxicity levels, which is projected to reduce trichloroethylene and perchloroethylene to merely chemicals with toxic profiles.

Given the strength of regulations and increasing popularity of substitutes, the trichloroethylene and perchloroethylene market cannot be declared dead, but can be deemed as a negatively-growing landscape in developed countries.

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Exponential Sales Opportunity for Trichloroethylene

Based on grade, perchloroethylene (PCE) will continue to grow in terms of value at a CAGR of ~1% during 2019-2027. The growth in demand for perchloroethylene is attributable to dry cleaning, vapor-degreasing, and other technical and industrial applications. While one-fourth of PCE supply is consumed for the production of chlorofluorocarbon, its popularity as a solvent has been driving sales in the paint and coating industry. However, the sales of trichloroethylene are projected to witness exponential growth with key applications of the chemical in vapor-degreasing, chemical synthesis, and cold cleaning.

In the developed countries of North America, trichloroethylene is generally imported, on account of the availability of inexpensive imports from developing countries of Asia Pacific, which has significantly decreased its production in the region. However, this decrease in production hasn’t prevented the use of imported trichloroethylene as a cold cleaning agent in numerous industrial processes such as electronics, automobiles, furniture, and plumbing fixtures, in North America.

trichloroethylene and perchloroethylene market segmentation

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Analysts’ Viewpoint

Authors of the report opine that, the growth of the trichloroethylene and perchloroethylene market will remain poor, with an estimated CAGR of ~1% during 2019-2027. Market players can look at developing countries for investments and expansion, owing to the impressive growth of the manufacturing industry in these countries, which triggers the demand for industrial solvents.

In this consolidated landscape, Westlake Chemical Corporation, AGC Chemicals, The Olin Corporation, Occidental Petroleum Corporation, and Befar Group Co., Ltd. account for ~60% of the share in the trichloroethylene and perchloroethylene market, with inorganic growth strategies helping them advance. For instance, in January 2019, Westlake Chemical Corporation acquired NAKAN to leverage the potential of the company, and, in turn, support its product diversification goals. However, while expanding production capacity in developing regions, it is imperative to stay updated with regional regulatory protocols to avoid instances of product recall.

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Metal Degreasing Industry to Present Moderate Potential for Trichloroethylene and Perchloroethylene Market

  • The metal degreasing process is one of the most essential cleaning processes in metal manufacturing operations. It removes light accumulation of motor oil on engine parts, and cleans the greasy accumulations that accrete on grease trap components.
  • Trichloroethylene and perchloroethylene are employed widely as solvents in cleaning and degreasing new metals to help prevent impurities from weakening the metals in the metal manufacturing process. These chemicals are employed as metal degreasers in fabricated metal products, electric and electronic equipment, transportation equipment, furniture and fixtures, etc.
  • The trichloroethylene and perchloroethylene market was valued at ~US$ 515 Mn in 2018.
  • The high boiling point of perchloroethylene enables it to condense higher amounts of vapor on a metal as compared to other chlorinated solvents. This leads to the more effective washing of parts. Automotive parts such as brakes and those parts with carbon, dirt, or oil build-up can be more efficiently cleaned with a perchloroethylene solvent. Furthermore, perchloroethylene vapor can reach inside tiny crevices, which liquids are likely to miss. Perchloroethylene is also employed as a solvent in cleaners to remove spinning oils and lubricants. It is also used as a carrier in silicones, fabrics, glues, rubbers, and adhesives.
  • The metal degreasing industry, particularly in China, is anticipated to generate demand for trichloroethylene and perchloroethylene by 2027. However, the consumption of these chemicals in degreasing applications is estimated to be moderate in most of the countries across the globe, due to the toxicity associated with these solvents. This explains the expected slow growth of the trichloroethylene and perchloroethylene (1% CAGR) over the forecast period.

Global Trichloroethylene and Perchloroethylene Market: Highlights

  • In terms of value, the global trichloroethylene and perchloroethylene market is expected to reach a value of ~US$ 550 Mn by 2027.
  • The growth of the manufacturing industry in developing economies has positively impacted the demand for metal and metal components in various end-use industries such as automobiles, electrical & electronics, and construction. China, India, and Brazil have emerged as key exporters of automotive and other metal components across the globe. This is anticipated to propel the demand for efficient and cost-effective metal cleaners and degreasing chemicals, as such, positively impacting the growth of the trichloroethylene and perchloroethylene markets in these economies.
  • The implementation of stringent environmental norms, primarily in Europe and North America, has led to a rise in research & development activities in order to find alternatives for trichloroethylene and perchloroethylene in cleaning solvent applications.
  • The demand for trichloroethylene and perchloroethylene in North America is projected to further decline from 2019 to 2027. Carcinogenic hazards associated with the use of trichloroethylene and perchloroethylene, strict regulations, and implementation of closed-loop systems for degreasing are likely to be responsible for the declining trichloroethylene and perchloroethylene market in the region in the near future.
  • Key players have shifted their focus toward the research & development of alternatives of perchloroethylene and trichloroethylene to discover industrial solvents with lower environmental impact. A few prominent players have launched products based on innovative technologies. Commercialized products in the market are 3M’s Novec, Vertrel by The Chemours Company, and EnSolv by Enviro Tech International.

Regulatory Framework for Global Trichloroethylene and Perchloroethylene Market

  • Health hazards and the harmful environmental impact of perchloroethylene and trichloroethylene have led to the imposition of various rules and regulations to curb the exposure of these chemicals to the environment and human beings.
  • Trichloroethylene and perchloroethylene are listed as hazardous wastes under the federal Resource Conservation and Recovery Act (RCRA). Furthermore, the U.S. EPA has taken regulatory initiatives to phase-out dry cleaning machines that use perchloroethylene, co-located with residential buildings, by the end of 2020.
  • The usage of trichloroethylene is permitted in Europe under defined regulatory conditions, to ensure minimal emission of the solvent through technical and organizational measures.
  • Global players are investing in research & development of alternatives for these chemicals. Therefore, restriction in the usage of trichloroethylene and perchloroethylene, due to related health hazards, is anticipated to hamper the trichloroethylene and perchloroethylene market during the forecast period.
  • A substantial threat of substitution is estimated to exist in the global trichloroethylene and perchloroethylene market during the forecast period. The imposition of stringent environmental laws has compelled companies to focus on the development of substitutes of trichloroethylene and perchloroethylene, especially in dry cleaning (spot-removal) applications.
  • Alternative spotting agents include glycol ethers, oxalic acid, soy-based cleaners, water-based cleaners, acetones, n-propyl bromide, and various blends of these chemicals.

Global Trichloroethylene and Perchloroethylene Market: Key Application Segments

  • As far as application is concerned, the global trichloroethylene and perchloroethylene market has been bifurcated into degreasers, hydrofluorocarbon refrigerants, spot-removal solvents, and others.
  • The hydrofluorocarbon refrigerants segment constituted more than 30% share of the global trichloroethylene and perchloroethylene market in 2018.
  • Trichloroethylene holds significance as a degreaser in the metal degreasing industry in Asia Pacific and the Middle East & Africa, owing to its cleaning properties, low flammability, and lack of measurable flashpoint. Trichloroethylene is a key solvent used for the degreasing of aluminum and the cleaning of steel sheets and strips prior to galvanizing.
  • Perchloroethylene is employed as a spot-removal solvent in the commercial & industrial dry cleaning industry. The product is highly effective in removing fat, oil, and grease.
  • In terms of demand, the degreasers and spot-removal solvents application segments are expected to either contract or remain stagnant across most geographies during the forecast period, owing to the implementation of stringent regulatory framework regarding the toxic profiles of trichloroethylene and perchloroethylene

Asia Pacific to be Lucrative Region in Trichloroethylene and Perchloroethylene Market

  • In terms of value and volume, Asia Pacific constituted a major share of the global trichloroethylene and perchloroethylene market in 2018. This trend is projected to continue during the forecast period. 
  • Environmental regulations concerning the usage of trichloroethylene and perchloroethylene in developing countries such as China and India are not as stringent as those in Europe and North America. Thus, the usage of trichloroethylene and perchloroethylene in metal degreasing and industrial solvent applications is estimated to continue in these countries.
  • Rapid growth in the manufacturing industry in India, supported by local and international investments in industries such as automobiles and automobile manufacturing, pharmaceuticals, chemicals, and construction, has boosted the demand for metal parts and industrial solvents in the country.
  • The textile industry in the Asia Pacific region, especially in China, India, Bangladesh, and ASEAN, is likely to experience moderate expansion in terms of the consumption of perchloroethylene as a spotting agent, wool scourer, dye carrier, and the sizing and finishing of cloth. This is in contrast to the market in Western countries.

Global Trichloroethylene and Perchloroethylene Market: Competition Landscape

  • Major players operating in the global trichloroethylene and perchloroethylene market include The Olin Corporation, AGC Chemicals, Befar Group Co., Ltd., Occidental Petroleum Corporation, SPOLCHEMIE, TOAGOSEI CO., LTD., Shandong Xinlong Group, Kanto Denka Kogyo Co., ACURO ORGANICS LIMITED, and Richard Geiss GmbH.
  • The global trichloroethylene and perchloroethylene market was consolidated in 2018. This trend is projected to continue throughout the forecast period.

Trichloroethylene and Perchloroethylene Market – Scope of the Report

Transparency Market Research’s recent report on the trichloroethylene and perchloroethylene market, with the help of a comprehensive outlook, provides readers with an assessment of the global market landscape. This study on the trichloroethylene and perchloroethylene market analyzes the scenario for the period of 2019 to 2027, wherein, 2018 is the base year. This report enables readers to make important decisions with regard to their business, with the help of a wealth of information enclosed in the study.

This TMR study on the trichloroethylene and perchloroethylene market also provides data on the developments made by important players and stakeholders in the market, along with a competitive analysis. The report also provides an understanding of the strengths, weaknesses, threats, and opportunities, along with the trends and restraints in the landscape.

Key Questions Answered in Trichloroethylene and Perchloroethylene Market Report

  • How much revenue is the trichloroethylene and perchloroethylene market expected to generate by the end of the forecast period?
  • Which region currently accounts for the maximum share of the global trichloroethylene and perchloroethylene market?
  • What are the indicators expected to drive the trichloroethylene and perchloroethylene market?
  • Which region is likely to be lucrative during the forecast period?
  • What are the essential strategies incorporated by key stakeholders in the trichloroethylene and perchloroethylene market to expand their geographical presence?
  • What are the major advancements in the trichloroethylene and perchloroethylene market?

This report answers these questions about the trichloroethylene and perchloroethylene market, aiding major stakeholders and key players in making the right decisions and strategizing for the advancement of their business.

Trichloroethylene and Perchloroethylene Market: Research Methodology

This TMR report on the trichloroethylene and perchloroethylene market is based on a complete and comprehensive evaluation of the market space, supported by various secondary and primary sources. The competitive scenario of the trichloroethylene and perchloroethylene market is supported by an assessment of the different factors that influence the market on a minute and granular level. By thoroughly analyzing the historical data and current trends, researchers of the trichloroethylene and perchloroethylene market have arrived at predictions and estimations, and have calculated the forecasts for the said market.

This report uses an analytical triangulation method to estimate the numbers of the trichloroethylene and perchloroethylene market, with both, the bottom-up and top-down approaches.

This detailed assessment of the trichloroethylene and perchloroethylene market, along with an overview of the landscape, is provided based on a careful examination of the avenues related to this industry. Analysts’ conclusions on how the trichloroethylene and perchloroethylene market is set to grow are based on carefully-vetted primary and secondary sources.

Trichloroethylene and Perchloroethylene Market: Segmentation

This report on the trichloroethylene and perchloroethylene market has been bifurcated for better understanding. It provides information to the readers based on grade, application, and region.

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)

Application

  • Degreasers
  • Hydrofluorocarbon Refrigerants
  • Spot-removal Solvents
  • Others (including Asphalt Testing, Insecticides, and Weed Killers)

Region

  • North America
  • Europe
  • Asia Pacific
  • Latin America
  • Middle East & Africa

This study also discusses the underlying trends and the impact of various factors that are driving the trichloroethylene and perchloroethylene market, along with their influence on the evolution of the market. This study also offers Porter’s Five Forces Analysis, value chain analysis, pricing analysis, import-export analysis, and regulatory scenario of the trichloroethylene and perchloroethylene market, in order to elaborate the crucial growth tactics and opportunities for market players contributing to the landscape.