The global chlorine market size was valued at USD 39.5 billion in 2023 and is projected to reach a value of USD 41.66 billion in 2024 to USD 67.2 billion by 2032, registering a CAGR of 5.6% during the forecast period (2024-2032). The increase in chlorine market share during the forecast period is related to factors such as the growing demand for water treatment, expansion in the chemical industry, and the rising utilization of PVC in various sectors like construction, automotive, and packaging.
Chlorine is one of the essential elements consumed during everyday life. It is used in chemical processes to produce thousands of crucial products. From medicines to tables and chairs and cell phones to solar panels and cars, chorine is utilized during the manufacturing process. Chlorine is made from common salt and sodium chloride, mainly using the Chlor-alkali method. PVC is the primary area of application for chlorine across the globe. Chlorine is utilized in numerous ways. It is a component of the sewage and industrial refuse sanitation process used to disinfect water. Chlorine is employed as a cleansing agent in fabricating paper and fabric. It is also dissolved in water and used in cleansing products, such as household bleach. Preparing chlorides, chlorinated solvents, pesticides, polymers, synthetic rubbers, and refrigerants requires chlorine. In-room air, chlorine is a yellow-green gas. Even in small amounts, chlorine has a strong, unpleasant smell similar to bleach.
As chlorine gas is about 2.5 times denser than air, it will first stay close to the ground in places where air doesn't move around much. It is not explosive and dissolves in water only slightly. When it comes in contact with water, chlorine turns into hypochlorous acid (HClO) and hydrochloric acid (HCl). Chlorine is usually cooled and put under pressure to store and ship it as an amber-colored liquid.
The growing home sector and industrial water treatment industry drive the demand for chlorine in water treatment processes. Calcium hypochlorite, containing 65-73% available chlorine, is an effective shock treatment used after prolonged water stagnation in industrial water treatment. This is helping the market grow. Here is a summary of how these things affect the need for chlorine. As more people move to cities and the population grows, there is a greater need for clean, safe water in residential places. Many water treatment plants use chlorine to kill dangerous microorganisms and make the water safe. This makes chlorine an essential part of keeping water quality standards in homes.
Furthermore, in residential water treatment uses, chlorine is needed to ensure the water is clean enough to drink and use around the house. Industries need water treatment processes to meet quality standards, lower prices, and ensure long-term water use. Chlorine is essential to treating industrial water because it cleans the water, stops dangerous bacteria from growing, and ensures that water quality standards are met. Chlorine is used to treat water in the industry sector, which includes manufacturing, power generation, and chemical processing. This is done to meet government standards and keep operations running smoothly.
Polyvinyl chloride is the most commonly used plastic in the world and comprises approximately 57% chlorine. Over time, plastic materials have evolved from toys and kitchenware to critical industrial and aerospace applications. The construction sector is the largest consumer of PVC in the world, and the burgeoning construction activities across the globe are slated to boost the demand for PVC. The increasing adoption of polyvinyl chloride in the automotive and aerospace industries is anticipated to provide an impetus to market growth. Additionally, automotive manufacturers are seeking ways to reduce the weight of vehicles to enhance performance and facilitate efficiency without compromising safety by using plastic components instead of metal. The American Society of Mechanical Engineers has estimated that companies can boost cost savings by 25–50% by adopting plastic parts.
The fact that chlorine is toxic and dangerous is a big problem that will slow the market's growth over the next few years. Safety can limit chlorine's use and market growth, especially in water treatment plants and industry processes where it is handled and used. There is a higher chance that a lot of people will be exposed to chlorine in industrial and commercial settings if it spills or is released by mistake or on purpose by terrorists. Since chlorine is a gas at room temperature, the most common way to be exposed is to breathe it in. However, touching chlorine through the skin, eyes, or food or water is also possible.
Strict rules have been implemented because people are becoming more worried about how chemicals like bleach, affect the environment. Regulations made by the EPA and other environmental laws push chlorine to be used in environmentally friendly ways that don't harm the environment. This regulatory atmosphere makes it hard for companies to follow the rules and switch to more eco-friendly options, which slows the growth of the chlorine market. The regulations in place affect the development of the chlorine market because they mean that manufacturing methods and product formulations must be changed to meet environmental standards and sustainable practices.
Chlorine is used in many fields, including the cleaning of water, drugs, chemicals, paper and pulp, plastics, and more. Chlorine can be used in many ways, and market players can serve a wide range of industries and make the most of its flexibility for different industrial processes. Chlorine is essential to water treatment methods to ensure that drinking water is safe and of good quality. Active pharmaceutical ingredients (APIs) and other pharmaceutical products are made with chlorine in the pharmaceutical business. Many different things in the chemical business depend on chlorine, like making chemicals, solvents, and intermediates. Chlorine is helpful in the paper and wood business because it is used in many steps to make paper. Chlorine is vital in making polyvinyl chloride (PVC) and other PVC resins. People use chlorine in many fields, including technology, to bond parts together and keep sensitive parts safe.
| Study Period | 2020-2032 | CAGR | 5.6%% |
| Historical Period | 2020-2022 | Forecast Period | 2024-2032 |
| Base Year | 2023 | Base Year Market Size | USD 39.5 billion |
| Forecast Year | 2032 | Forecast Year Market Size | USD 67.2 billion |
| Largest Market | Asia-Pacific | Fastest Growing Market | North America |
Asia-Pacific is the most significant market shareholder and is estimated to grow at a CAGR of 5.15% over the forecast period. According to the Ministry of Commerce and Industry, India's chlorine consumption is predicted to reach 3.3 million tons by 2024, driven by rising water treatment and paper demand. According to China's National Bureau of Statistics, chlorine production capacity will reach 4.5 million tons by 2024. The Asia Pacific chlorine market is growing due to the region's high population, rapid industrialization, and increased need for clean water and sanitation.
North America is estimated to grow at a CAGR of 5.6% over the forecast period, with the United States being the top consumer. The United States Environmental Protection Agency (EPA) estimates that the country's chlorine production will be 12.6 million tons in 2023. The American Chemistry Council predicts that demand for chlorine in the United States will rise by 2.5% per year from 2023 to 2024, led by increasing demand from the water treatment, paper, and pharmaceutical industries. The chlorine market in North America is growing due to the region's established chemical sector and tight water treatment and sanitation laws.
Europe is also essential in the global chlorine industry, with the European Union being a big chlorine user. The European Chemicals Agency (ECHA) states that the EU produced around 9.5 million tons of chlorine in 2023. The European Commission predicts that demand for chlorine in the EU will rise by 2% per year between 2023 and 2024, primarily due to increased demand from the water treatment, paper, and pharmaceutical industries. The chlorine market in Europe is driven by the region's tight water treatment and sanitation standards and its well-established chemical sector. Germany, France, and the United Kingdom are among the top chlorine consumers in the region.
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EDC/PVC and Inorganic Chemicals lead the segmentation because of their essential functions and applications in numerous sectors. EDC/PVC stands for ethylene dichloride and polyvinyl chloride. EDC/PVC is a crucial category in the chlorine industry due to the widespread usage of PVC, the most commonly used plastic worldwide. PVC contains around 57% chlorine, making it a large consumer of chlorine. Demand for EDC/PVC in the market is driven by the construction sector, which is the major consumer of PVC, and applications in electrical and electronics, packaging, automotive, and aerospace industries. EDC/PVC dominates the chlorine market because of increased infrastructure development, urbanization, and demand in emerging markets such as India, China, and Brazil.
Inorganic chemicals, such as titanium dioxide, sodium hypochlorite, and magnesium chloride, are critical applications for chlorine. Chlorine is used to produce a variety of inorganic compounds with a wide range of industrial applications. The adaptability of chlorine in creating inorganic compounds for many industries adds to the value of inorganic chemicals in the chlorine market. Chemicals are critical in water treatment, pharmaceuticals, and chemical manufacturing, highlighting their market relevance.
The market is further segmented based on End-users into government, pharmaceutical, chemicals, paper and pulp, plastic, pesticides, and others (sports club, residential). Chlorine is widely used in manufacturing numerous chemical compounds, solvents, and intermediates, and the chemical sector is likely to be one of the market leaders. The Chemicals segment is a large consumer of chlorine due to its adaptability in chemical processes and its significance in producing a wide range of chemical products, fueling demand and market growth.
The Plastic sector, particularly the production of Polyvinyl Chloride (PVC) and other PVC resins, is another vital segment of the Chlorine market. PVC is a big chlorine user, accounting for approximately 57% of total PVC content. The need for PVC in construction projects, electrical and electronics industries, packaging, automobile, and aerospace contributes to the importance of the Plastic category in the chlorine market, making it a prominent chlorine user.
