According to a research report published by Factmr, the global chlor alkali market is projected to witness a promising CAGR of 5.4% over the course of the given forecast period ranging from 2019 to 2027. In recent years, the proliferation of construction and building sector has helped in driving up the consumption of chlor alkali across all different end use applications. The PVC/EDC applications account for a considerable share in the global chlor alkali market. In recent years, the trade value of vinyl chloride polymers has increased massively. Moreover, increasing trade of PVC is projected to create several lucrative opportunities in the global chlor alkali market in the coming years of the forecast period.

Wide Ranging Applications to Drive Market Growth

The growth of the global chlor alkali market is expected to be further driven by the increasing demand for chlor alkali derivatives such as polyvinyl chloride plastics. These plastics have wide ranging applications such as in advanced infrastructure solutions. In addition to this, increasing production of aluminum and flourishing pulp and paper industries in countries such as Malaysia, India, China, and Indonesia are also projected to play a highly crucial role in driving the growth of the global chlor alkali market.

The market is expected to witness promising growth opportunities with the establishment of new age and modern facilities. These new facilities will drive improved and higher utilization of the market throughout the period of forecast. The manufacturing technologies are strategically moved on from the traditional mercury cell and diaphragm cell system to advanced membrane cell process across the globe. This change is due to the growing mercury pollution levels across the manufacturing sector. This paradigm shift is projected to give a massive boost to the overall development of the global chlor alkali market in the coming years of the forecast period.

Asia Pacific to Emerge Key Regional Segment

In terms of regional segmentation, the global chlor alkali market is segmented into five key segments. These are North America, Latin America, Asia Pacific, Europe, and the Middle East and Africa. Of these, traditionally, the chlor alkali market is expected to witness promising growth opportunities in the regional segment of South Asia. The demand for chlor alkali is high due to increasing applications in the field of metallurgy. Moreover, it is also used for neutralizing water because of its lower pH value. The growing need for integration of water treatment facilities because of the strict environmental restrictions across the globe will also help in escalating the demand for chlor alkali. Currently, the countries such as India and China in the Asia Pacific region are account for a considerable share in exporting caustic soda. This is expected to provide ample boost to the growth of the chlor alkali in the Asia Pacific region.

However, there are certain factors that are expected to hamper the growth of the global chlor alkali market in the coming years of the forecast period and stop it from reaching its full potential. One of the key restraining factor for the market development has been issuance of strict environmental guidelines by several different governments. Moreover, the energy intensive production process is also a key factor that may have a slowdown effect on the growth of the global chlor alkali market.

Some of the key players operating in the global chlor alkali market are Borregaard, Nuberg EPC, and Aditya Birla Group among others.