Sep 11, 2020

Perchloroethylene Market to Reach US$ 263 Mn in 2030; Midterm Decline is Sales Predicted Due to COVID-19 Pandemic


by Team Fact.MR

Perchloroethylene’s non-flammability and impressive cleaning with the need for minimum mechanical agitation has made it an ideal choice for dry cleaning applications. Other bundled advantages such as high solvency and its recoverable nature have driven its consumption during the historical period (2015-2019). Increasing preference for perchloroethylene over trichloroethylene is set to bolster its demand during the forecast period (2020-2030). Further, perchloroethylene is largely consumed as an intermediate in hydrofluorocarbon production. Growing demand for perchloroethylene from a range of niche applications such as isomerization and reforming are set to drive the global market at a CAGR of 2% during the forecast period.

Key Takeaways from Perchloroethylene Market Study

  • In call to replace trichloroethylene and owing to perchlorethylene’s low ozone depleting potential, it has emerged as an ideal replacement in hydrofluorocarbon refrigerant production.
  • On the basis of function, perchloroethylene is primarily used as an intermediate in hydrofluorocarbon refrigerant production, and currently accounts for nearly three-fourth global consumption. 
  • On the basis of grade, industrial grade is poised to surpass a market valuation of US$ 7.7 Mn by 2030.
  • Dry cleaning application has remained the second-largest perchloroethylene consumer, and is poised to account for over 16% of global consumption by 2030.
  • According to Rule 1421, released by the South Coast Air Quality Management District, perchloroethylene will not be allowed to be used as a cleaning solvent from December 31, 2020.
  • China has been identified as the largest consumer of perchloroethylene, currently accounting for over one-third of global consumption.
  • California has already banned the usage of perchloroethylene, with the whole of the U.S. to follow suit, while other countries such as Canada and Japan are on the verge of banning this chemical, which will significantly impact its demand over the coming years.

“Increasing demand for perchloroethylene from Asian countries such as China and India are set to fuel global demand during the forecast period,” says a Fact.MR analyst. 

Global Perchloroethylene to Remain Oligopolistic Market  

Perchloroethylene is highly consolidated market space with three players currently accounting for over half of global sales. Occidental Chemical Corporation, Olin Corporation, and Westlake Chemical Corporation are the leading producers in the global perchloroethylene market. Their dominance is projected to continue owing to very high entry barriers. For instance, numerous stringent regulations levied on perchloroethylene makes it challenging to leverage profits from the market. Further, developed countries are on the verge of banning perchloroethylene, owing to its carcinogenic nature, which is compelling competitors to make investments in its alternatives. Companies such as 3M, The Chemours Company, and Honeywell are key alternate producers who have gained significant market share in the global metal cleaning market. These factors are set to create numerous impediments for new entrants and for market players in the long-term period.

More Valuable Insights on Perchloroethylene Market

Fact.MR, in its new offering, presents an unbiased analysis of the global perchloroethylene market, presenting historical demand data (2015-2019) and forecast statistics for the period of 2020-2030. The study divulges essential insights on the perchloroethylene market on the basis of function (intermediate, solvent, isomerization & reforming, and others), grade (hydrofluorocarbon grade, degreasing & general purpose, and industrial grade), and application (hydrofluorocarbon, dry cleaning, metal cleaning & degreasing, isomerization & reforming, and others), across five major regions.

>>> To Get more insights on perchloroethylene market, visit- https://www.factmr.com/report/5102/perchloroethylene-market

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