Chlorine Dioxide Market Size, Share & Trends Analysis Report By Form (Gas, Liquid, Solid), By Application (Municipal Water Treatment, Industrial Water Treatment, Swimming Pool Water Treatment, Wastewater Treatment), End-Use Industry (Chemical, Oil and Gas, Power Generation, Pulp & Paper, Water Treatment, Food and Beverage, Construction Industry, Pharmaceutical Industry, Others) and By Region(North America, Europe, APAC, Middle East and Africa, LATAM) Forecasts, 2024-2032

Market Overview

The global chlorine dioxide market was valued at USD 1,029.65 million in 2023. It is expected to reach USD 1,688.04 million in 2032, growing at a CAGR of 5.2% over the forecast period (2024-32). The global chlorine dioxide market is driven by increasing demand for water treatment applications due to its effectiveness against waterborne pathogens and pollutants. Stringent environmental regulations promoting safer disinfection methods further boost market growth.

Chlorine dioxide is a chemical compound that exists as bright orange crystals below −59 °C. It is an oxidizing agent, able to transfer oxygen to various substrates while gaining one or more electrons via oxidation-reduction (redox).

Market Dynamics

Market Drivers

The Rise in Demand for Safe Drinking Water

Rapid urbanization across developing economies such as China, India, and Brazil has led to a surge in demand for safe drinking water. In addition, government initiatives such as the "Jal Jeevan Mission" launched by the Government of India are expected to surge the demand for chlorine dioxide to purify and provide safe drinking water to the urban and rural people. In addition, the surge in the rate of waterborne diseases across the globe, especially in developing countries, due to growing pollution in natural water resources owing to the dispersion of industrial waste in these resources has led to a surge in demand for chlorine dioxide to treat the water and make it safer for drinking purpose.

Rapid Growth in the Food and Beverage Industry

Due to rapid industrialization and fast-paced life across both developed and developing countries, the demand for ready-to-eat and fast food across the globe has surged considerably. Due to this, the need for chlorine dioxide across the food & beverage industry has increased significantly to be used as an antimicrobial agent in water for washing fruits and vegetables or poultry processing. In addition, the unique property of chlorine dioxide, which enables it to be highly effective without affecting taste, makes it a preferred choice for multiple applications in the food processing industry. Therefore, the demand for chlorine dioxide across the food & beverage industry will likely surge during the forecast period.

Market Restraint

Fire and Explosion Hazards

Chlorine dioxide is highly reactive and flammable and can lead to dangerous fire and explosion hazards. May explode on heating or exposure to sunlight or shock or if subjected to sparks. The substance is a strong oxidant. It reacts with combustible and reducing materials. Reacts violently with organics, phosphorus, potassium hydroxide, and sulfur. This generates fire and explosion hazards. This is anticipated to restrain the global carbon dioxide demand during the forecast period.

Market Opportunities

Growing Regulatory Restrictions on the Usage of Chlorine and Hypochlorite in Pulp Bleaching

The vast volumes of soluble organochlorine chemicals created and released into the environment are the principal objections to the use of chlorine for bleaching pulp from an environmental safety standpoint. Organochlorine compounds exert many toxic effects on human health, such as hormone-related conditions (endometriosis, infertility), cancer of the male and female reproductive system, developmental toxicity, neurotoxicity, and immunotoxicity. Therefore, the demand for chlorine dioxide as a bleaching agent across the paper & pulp industry has surged significantly as its usage minimizes the production of organochlorine compounds. This will likely provide lucrative growth opportunities for chlorine dioxide producers across the globe in the coming years.

Regional Analysis

Asia-Pacific Dominates the Global Market

Region-wise, the global chlorine dioxide market share is analyzed across North America, Europe, Asia-Pacific, and LAMEA.

Asia-Pacific is the dominant and fastest-growing region. It is estimated to grow at a CAGR of 5.9% during the forecast period. It consists of China, Japan, South Korea, India, Australia, and the Rest of Asia-Pacific. The rest of Asia-Pacific mainly includes Asian countries such as Vietnam and Malaysia. Countries in Asia-Pacific, such as India, Japan, and China, have an advanced economy based on a robust manufacturing presence, consisting of paper & pulp, automotive, oil & gas, and petrochemicals. This is conducive to the growth of the chlorine dioxide market in the region.

China accounts for a significant share of the Asia-Pacific chlorine dioxide market, owing to the high demand from its end-user industries. The chlorine dioxide market in China is driven by numerous factors such as an increase in demand for industrial wastewater treatment solutions, adverse climatic conditions, and reduced freshwater content from saline intrusion. China is a fast-growing economy with end-user industries such as power, chemical, mining, and food processing.

All these industries require water either as an input or give out wastewater as a byproduct; hence, both intake and output water need to be processed through chemical treatment. For example, most electric power generation plants require water for their day-to-day operations as input. China's power generation has been growing significantly, owing to an increase in demand for power and a rise in investment in new electric power projects. Hence, owing to the abovementioned factors, China is expected to dominate the Asia-Pacific chlorine dioxide market during the forecast period.

North America is the second-largest market. It is estimated to reach an expected value of USD 375 million by 2030 at a CAGR of 5.7% by 2030. It is studied across the U.S., Canada, and Mexico. North America is the dominant market with critical macroeconomic indicators, such as high per capita income, manufacturing output, and supporting market growth. Stringent regulatory requirements to control wastewater disposal from both industrial sources and growing demand from the oil & gas industry in the U.S. are the major factors driving the growth of the chlorine dioxide market. The U.S. currently accounts for the highest share of the North American chlorine dioxide market.

A resurgence in the manufacturing sector in the country is creating massive demand for industrial water treatment, given the increasing need for water conservation and stringent environmental regulations. This, in turn, has increased the need for water treatment operations, thereby driving the chlorine dioxide market.

According to the U.S. Geological Survey, electric power generators are the largest source of U.S. water withdrawals and account for around 40% of total water withdrawals in the U.S. The wastewater released from the electricity generation process contains significant levels of toxic metal impurities, such as lead, mercury, arsenic, chromium, and cadmium. The power generation in the country is expected to grow significantly and is estimated to reach 106.55 quadrillion British thermal units by 2050. This growth is expected to drive the demand for chlorine dioxide in the country. These factors are likely to drive the development of the chlorine dioxide market across North America.

Europe is the third-largest region. The presence of a well-established automotive sector in Europe, which is among the leaders in the global automotive industry, is expected to increase the requirement for biocides, thereby driving the chlorine dioxide market share. The product finds extensive usage in various automotive components and materials such as adhesive tapes, wooden luggage decks, wood inserts in interior parts, and treated textile materials in vehicle interiors such as gear shift knobs, steering wheel covers & wheel covers. The regional automotive sector is witnessing the adoption of innovative technologies such as automotive vehicles and individual mobility, which boost the chlorine dioxide market sales. The automotive industry is constantly focused on sustainable operations, which involve reducing the consumption of water & energy, thereby necessitating water reuse which represents ample growth opportunities for chlorine dioxide.

Segmental Analysis

The global chlorine dioxide market size is segmented based on form, application and end-use industry region.

Based on application, the global chlorine dioxide market is divided into Municipal Water Treatment, Industrial Water Treatment, Swimming Pool Water Treatment, and Wastewater Treatment. The industrial water treatment segment was the highest contributor to the market and is estimated to grow at a CAGR of 4.8% during the forecast period.

Rapid industrialization across developing economies such as China, India, and Brazil has led to the set up of various manufacturing units, owing to which water usage has surged significantly. In manufacturing industries, water is converted to acceptable use levels and discharged out of the factories. An increase in water usage in the manufacturing industry is expected to enhance the demand for chlorine dioxide for wastewater treatment. In addition, significant sources of freshwater such as rivers, lakes, wells, and municipal water systems are polluted to a great extent. This has resulted in increased occurrence of cancer, liver damage, and other serious infections. Rising environmental concerns and concerns related to the health of people close to industrial areas have led to the implementation of strict government rules and regulations across the globe. This is likely to drive the growth of the chlorine dioxide market during the forecast period.

Based on End-use industry, the pulp & paper processing segment is anticipated to be the fastest-growing segment. Due to the surge in demand for paper from commercial and industrial sectors across the globe, the paper & pulp industry has grown significantly in recent years. Therefore, this industry's demand for chlorine dioxide as a bleaching agent has also considerably surged.

Previously, chlorine was widely used as a bleaching agent in the paper and pulp industry, but due to its adverse environmental effects as it produces large amounts of soluble organochlorine compounds, which have many toxic effects on human health, such as hormone-related conditions (endometriosis, infertility), cancer of male and female reproductive system, developmental toxicity, neurotoxicity, and immunotoxicity has led to a decline in its usage. This drives the demand for chlorine dioxide as a bleaching agent across the paper & pulp industry. Its use minimizes the production of organochlorine compounds and is anticipated to provide lucrative growth opportunities for chlorine dioxide producers across the globe in the coming years.

The food & beverage industry is also anticipated to grow at a significant CAGR during the forecast period. Chlorine dioxide works as a bactericide, fungicide, and antimicrobial agent, eliminating pathogens from the water and the surface of washed produce. It is effective as a disinfectant across a wide range of water pH values. This means it's suited to the closed-loop systems commonly used by the food and drinks industry. When it reacts with bioorganisms, there is no resultant taint or odor – again crucial when washing meat, poultry, fish, or produce. Rapid industrialization and fast pace life across both developed and developing countries drive the demand for ready-to-eat and fast food across the globe. Therefore, the need for chlorine dioxide across the food & beverage industry has increased significantly to be utilized as an antimicrobial agent in water for washing fruits and vegetables or poultry processing. In addition, the unique property of chlorine dioxide, which enables it to be highly effective without affecting taste, makes it a preferred choice for multiple applications in the food processing industry. This drives the demand for chlorine dioxide across the food & beverage industry during the forecast period.

Impact of covid-19

The onset of covid-19 across the nation resulted in a decline in the market for chemical mechanical polishing.

Amidst the spread of coronavirus, major economies witnessed a downfall in their GDP and operations. The lockdown imposed by the government and regulatory authorities across the globe disrupted the operations and activities of the players in the market. It inflicted a severe threat to humankind and society, disrupting the economies around the world. The government declared strict lockdowns to slow down the rapid spread of the disease, productions were ceased, all work environments closed, public interactions were restricted, and temporary suspension of manufacturing and trading activities across the globe. 

The pandemic caused a decline in the growth of automotive, electronics, and industrial sector activities which influenced the demand for chemical mechanical polishing in a negative manner. Due to the lockdowns and restrictions, semiconductor events/shows had to be canceled and shut down the electronics, industrial, and automotive sectors, which again affected the supply chains of CMP raw materials. Further, the lockdowns imposed by countries across the world resulted in the shutdown of manufacturing facilities, combined with strict restrictions over social distancing norms which impacted the overall operations of semiconductor manufacturing facilities. Hence, the global chemical mechanical polishing market witnessed a severe decline during the covid-19 era.

Market Recovery Timeline and Recovery

Nevertheless, approbatory government policies and initiatives, including reduction and ease in the interest rates, tax exemptions, and several financial packages along with automation in manufacturing, growing demand for medical devices during the period of a health crisis, and recovery of the manufacturing in China resulted in the market recovery of chemical mechanical polishing. 

Associations like the Semiconductor Industry Association (SIA) forwarded their suggestions to government officials to specify the semiconductor industry operations as an essential infrastructure or business activity and allow for the continuity in the functions of the industry, promoting growth in the semiconductor market. It pushed the need for chemical mechanical polishing to get back on track. 

Furthermore, the demand for electronic products in the healthcare industry rose, driven by the need to treat patients affected by the pandemic; this pushed the market growth further.

Recent Developments

• January 2024 - A medical gadget that was sterilized with chlorine dioxide gas in accordance with the new MDR regulations was given the first-ever CE mark. ClorDiSys Solutions, Inc. provides sterilization services at their FDA-registered contract sterilization facility in New Jersey. This surgical lighting gadget, classified as Class II medical equipment, is used to illuminate an electrocautery pencil during surgery.