Chloroform Market Size is Expected to grow at higher CAGR 1.9% Over the Forecast Period.
Chloroform, also known as trichloromethane, is an organic compound with colorless, volatile liquid, an ether-like odor. Chloroform is used as a reagent and solvent in the chemical and pharmaceutical industries. It is also used in the manufacturing of refrigerant (R-22), and extensively used in HVAC systems. Increasing demand for chloroform across the end-use industries such as chemical, pharmaceutical, construction, and paper industries drive the market growth.
The global chemical sales were valued at around USD 3,730 billion in 2018. The chemical industry is a vital part of the world economic landscape and plays an essential role in economic growth worldwide. The global market is witnessing a significant surge in the FDI and government investments in the chemical and petrochemical industries. Several governments across the globe have introduced favorable policies to boost industrial growth. As per the data provided by Oxford Economics, the total contribution of the chemical industry to the global GDP was around USD 5.9 trillion, and the total global amount spent on R&D activities accounted for about USD 50 billion. Moreover, chloroform is used in the chemical industry as a solvent for lacquers, resins, floor polishes, and adhesives, further driving the market growth.
The refrigerant segment is predicted to emerge as a remunerative segment during the forecast period. Cascading interest in refrigerators among the working-class families and shifting preference towards consuming freshly cooked food drive the segment growth. As per data provided by the World Bank, global per capita income increased from USD 15,802 in 2015 to USD 17,900 in 2018. Thus, rising purchasing power is subsequently increasing the demand for consumer products, such as refrigerators and air conditioners.
As per data provided by the Global Construction Perspectives and Oxford Economics, the global construction sector is projected to reach USD 15.5 trillion by 85% by 2030. China and India are likely to be the frontrunners in terms of rapid growth in the construction sector. New building designs employ HVAC systems to supply chilled air from a centralized source throughout the buildings, further driving the demand for chloroform to manufacture refrigerant agent Freon. HVAC systems are also used in industrial sectors to provide all year cooling as data centers have sensitive electronic components that need to be guarded against humidity, moisture, and contaminants to ensure optimum performance. Thus, the growing internet penetration and data centers are subsequently driving the demand for HVAC systems.
China and India are the fastest-growing economies on account of increasing foreign direct investments and government support. For instance, India’s Make in India initiative has made it easy for the international players to set-up manufacturing hubs in India, further driving the demand for HVAC systems and refrigerants derived from chloroform.
However, as per the International Yearbook of Industrial Statistics 2019 published by the United Nations Industrial Development Organization (UNIDO), global manufacturing sector growth declined from 3.8% in 2017 to 3.6% in 2019. In line with this, the governments are introducing incentives and subsidies for manufacturers to reduce the prices of HVAC and refrigeration systems, such as air conditioners and refrigerators, ultimately boosting the market growth.
North America has been a pioneer in the field of technological development. Today, the region is one of the key manufacturers and consumers of HVAC systems and construction materials, such as adhesives, floor polishes, and lacquers. The region is also a top leader in chemical manufacturing.
According to the International Monetary Fund World Economic, globally, North America ranked first in terms of nominal GDP and second in terms of purchasing power in 2018. The region’s nominal GDP accounted for USD 19.39 trillion in 2017 and is expected to touch USD 24.53 trillion by 2023. The construction sector in the U.S. has been witnessing tremendous growth in the last few years. As per data provided by The Associated General Contractors of America (AGC), the U.S. construction industry employs around seven million people and generates nearly USD 1.35 trillion worth of projects every year. For instance, the LaGuardia airport construction, an ongoing project in Queens, New York, is estimated to cost USD 8 billion and be completed in 2022. Such developments create growth avenues for HVAC systems due to their widespread use in the building and construction sector to maintain ambient temperatures, further driving the market growth.
The chemical industry is the backbone of the Canadian economy and is projected to be the fast-growing sector during the forecast period. As per the Chemistry Industry Association of Canada (CIAC), Canada’s chemical industry is valued at USD 52 billion and employs around 90,000 people. The chemical industry uses chloroform as solvent and reagent in the umpteen manufacturing process, further driving the market growth.
|Report Coverage||Revenue Forecast, Competitive Landscape, Growth Factors, Environment & Regulatory Landscape and Trends|