Chlorine Compressors Market: Overview
The market size for Chlorine Compressors was USD 54.2 million in 2021, projected to grow at a CAGR of 7.5 percent during the forecast period. Large-scale use of chlorine compressors in chlorine manufacturing plants and rising chlorine uses in various end-use industries, including chemicals, water & wastewater treatment, oil & gas, and petrochemicals, are major reasons for consistent market revenue growth. The significant driver fueling market revenue growth is the expanding use of chlorine as a raw material in different organic and inorganic chemicals.
One of the main elements fostering an optimistic view of the market is the chemical industry's notable rise in every region of the world. Chlorine's extensive use as a necessary component of organic and inorganic chemicals used in manufacturing paper and pulp boosts the market's expansion. In 2019, 10.94 million metric tonnes of chlorine were produced in the United States. Similarly, around 2.2 million metric tonnes of liquid chlorine were produced in India during the fiscal year 2021. The chemical industry in India is very vast. The south Asian nation is of the world's top producers of chemicals, producing more than 80,000 goods annually. A factor in the market's expansion is the introduction of novel compressor versions that include additional filtering units. Implementing beneficial government policies and other factors, such as increased consumer spending power, are expected to propel the industry toward expansion.
Another fueling market expansion is the booming demand for PVC in construction and building. Chlorine compressor technology advances and strict safety standards at chlorine manufacturing facilities further foster industry expansion. By 2021, it is anticipated that the global use of polyvinyl chloride (PVC) will increase from about 47 million metric tonnes in 2019. The building blocks for PVC are ethylene and chloride. The building industry uses over 70% of the PVC produced.
Chlorine Compressors Market: COVID-19 Impact
The COVID-19 pandemic has halted the production of several products in the chlorine compressor industry due to the protracted lockdown in important nations. Over the last several months, this has severely slowed the chlorine compressor industry's expansion, which is anticipated to continue in 2020. In the first quarter of 2020, sales of machinery and equipment were already impacted by COVID-19, and the market growth for the year is projected to suffer. The United States, Germany, Italy, the United Kingdom, and China, which are major manufacturing nations adversely affected by the coronavirus outbreak, accounted for most of the equipment and machinery demand in the past. However, this demand has since stopped due to the coronavirus outbreak.
Chlorine Compressors Market: Drivers
Surging Wastewater Treatment Projects to Drive Market Growth
As it eliminates dangerous germs, including parasites, viruses, and bacteria, chlorine is frequently used in water treatment. It also lessens the taste and smell of bad water. The slime bacteria, molds, and algae that often grow on the walls of water mains, storage tanks, and water supply reservoirs are also helped by chlorine. The rise of the water treatment sector is fueled by the explosion in global wastewater treatment projects. For instance, the Philippines Aglipay Sewage Treatment Plant in Mandaluyong started building in 2020. It would adhere to exacting national criteria that are more demanding than those set by the EU to minimize adverse effects on Manila Bay and the Pasig River and its environmental footprint. The project is currently in development and is anticipated to be finished in the first quarter of 2024. Therefore, such projects are boosting the demand for cleaning chemicals, which is anticipated to fuel the chlorine demand, thereby fueling the growth of the chlorine compressor market.
Government Investments in Research & Development Projects to Drive Market Growth
Important firms invest in large research and development projects to create compressors with various capacities. This aids them in expanding their product lineup. The industry participants are motivated to stay competitive by the desire to improve product features and performance. Because of the increased demand for chlorine across a range of end uses, the sector is expected to expand. It is projected that a key issue in determining corporate success would be the availability of raw materials and the fluctuating costs associated with them due to macroeconomic conditions. Since chlorine must be treated before use, makers of chlorine compressors have benefited greatly from manufacturers' efforts to eliminate or limit the usage of halogenated refrigerants by increasing the use of chlorine for industrial cooling.
Chlorine Compressors Market: Restraints
Chemical Leasing to Hamper Market Growth
In the foreseeable future, chemical leasing is a viable limitation on the chlorine sector. Chemical manufacturers in the chemical leasing model are accountable for more than just producing the chemicals; they must also dispose of them properly. The United Nations Industrial Development Organization implemented chemical leasing in 2014 with assistance from the Austrian government (UNIDO). UNIDO requires companies to cover the cost of recycling the chemicals they produce. Through this procedure, the profit margins might shrink, resulting in a smaller market and fewer producers throughout the value chain. Chlorine compressor manufacturers will certainly have difficulties as a result of these requirements.
Chlorine Compressors Market: Segment Overview
Liquid Ring Compressors Segment to Dominate Market Due to its Ability to Handle Chlorine in Liquid State
Based on product type, the chlorine compressor market is segmented into the liquid ring and centrifugal compressors. The liquid ring compressors segment dominates the market and is expected to maintain its dominance over the forecast period. Since they can handle chlorine in a liquid condition, liquid ring compressors are more in demand than centrifugal compressors. Due to improved safety, cost-effectiveness, decreased danger of corrosion, and better handling of liquid chlorine, liquid ring chlorine compressors are in higher demand than other chlorine compression technologies. These characteristics are major drivers of this segment's revenue growth. Liquid ring-type compressors create a lot more money than centrifugal compressors do. Centrifugal type non-corrosive materials require less capital than liquid ring coatings and electrical wiring. The amount of liquid ring and centrifugal compressors needed depends mostly on the size and capacity of the facility as well as the quality of manufactured Cl. Demand is influenced by the Cl plant's complexity and the intended discharge pressure.
Chemical Industry Category to Dominate Market Owing to Rising Sales of Chemicals in End-Use Industry
Based on product type, the chlorine compressors market is segmented into chemical, water and wastewater treatment, oil & gas, petrochemical, and others. The chemical industry segment dominates the market and is expected to maintain its dominance over the forecast period. Sales and income in the global chemical industry are increasing. Additionally, global chemicals are showing up everywhere in terms of end-user materials. In the chemical industry, chlorine is essential. Fluorine and bromine, it is a crucial inorganic substances. Due to the rising demand for PVC, the chemical output is anticipated to expand proportionately over the projection period. The widespread use of Cl in the manufacturing of organic and inorganic chemicals, as well as paper and pulp, is expected to support market expansion over the projection period.
Chlorine Compressors Market: Regional Landscape
North America to Dominate Market due to Increased Investments in Development and Production of High-End Machinery
Over the forecast period, it is anticipated that the North American market will account for the largest revenue share due to increased investments in developing and producing sophisticated and high-end machinery and other items, particularly from end-use sectors. The margins for PVC producers in North America would range from USD 200 to US$ 300 per tonne throughout the projected period. North America is anticipated to gain from elements like the availability of ethylene there and cheap electricity prices. The anticipated economic rebound will increase demand for PVC in North America. Due to the established, mature infrastructure for chlorine manufacturing, these compressors will probably be required in the upcoming few years.
The Asia Pacific market is anticipated to experience stable revenue growth throughout the forecast period. The Asia Pacific area benefits greatly from increased demand as significant projects are underway in nations like China, India, Australia, and Indonesia. Due to the region's significant manufacturing sector, the Chlorine Compressors market will continue to rise over the projection period. Expanding sectors, including chemical, water treatment, building & construction, are essential for the region's general industrial growth, speeding up economic expansion. According to Invest India, India produced 59.08 lakh tonnes of chemicals in 2020 and 73 lakh tonnes in 2021, an increase of 23.62%. In addition, the Japan Chemical Industry Association reports that with a market value of USD 2,076 in 2019, Japan was the third-largest chemical market in the world. China also dominated the global chemical sector, worth USD 14,207 billion.
Global Chlorine Compressors Market: Competitive Landscape
In April 2022, a compressor designed for low-carbon natural gas distribution networks, including hydrogen mixtures, was introduced by the Elliott Group. It can be applied to tasks requiring 10 to 35 megawatts of electricity. Similarly, in July 2019, to expand its operations in Europe, the Middle East, and Africa, Kobe Steel, Ltd. founded Kobelco Europe in Germany. In May 2019, a plant called Serbia was established and put into service by Mayekawa Mfg. Co., Ltd. in Smederevo. This is the company's second European production facility after the Brussels facility. The factory specializes in the production, design, sales, and after-sales service of compressor packages for industrial refrigeration, with most of its products going to markets in Africa, Russia, and the Middle East.
A few players in the Chlorine Compressors Market include Devi Hitech Engineers Pvt. Ltd., Sundyne, Gardner Denver Nash LLC, Elliott Group, RefTec International Systems LLC, Mayekawa Mfg. Co., Ltd., Mikuni Kikai Kogyo Co., Ltd., Charam Techno Chemical & Equipmen Ltd., and M. H. Industries.
Regional Classification of the Global Chlorine Compressors Market is Listed Below:
Middle East and Africa
*Regions and countries are subject to change based on data availability.
Key Elements Included In The Study: Global Chlorine Compressors Market
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