The global cyclopentane market was valued at USD 425.98 million in 2022. It is estimated to reach USD 823.81 million by 2031, growing at a CAGR of 7.60% during the forecast period (2023–2031).
Cyclopentane is a flammable hydrocarbon, which is also known as pentamethylene. It has a chemical formula of C5H10. Cyclopentane is used as a blowing agent when creating foam. Eco-groups approve of it because it does not contribute to ozone depletion. It is a superior alternative to HCFCs and CFCs. Cyclopentane is available in different grades for different applications, thus providing a choice of performance. It is used in home refrigerator appliances, insulating foams and panels, and for boards and pipes in the construction industry.
A flammable hydrocarbon called cyclopentane makes synthetic resins and rubber adhesives. Additionally, it serves as a blowing agent in the manufacture of polyurethane insulation foam, which is substituted for environmentally hazardous substances like CFC-11 and HCFC-141b in a range of home appliances, including refrigerators and freezers.
Blowing agents provide a cellular structure in various materials, which undergoes transition states through the foaming process. Cyclopentane is used as a physical blowing agent in manufacturing rigid foam insulation, such as polyurethane insulating foam. Cyclopentane reduces the greenhouse gas (GHG) emissions of the insulating process. It is used to propel insulation into the doors and cases of refrigerators. Moreover, it is used as a replacement for the traditional blowing agent as it reduces the facility's GHG emissions by 99%.
Polyurethane foam insulation is used in the composite building elements for roof and wall claddings. Insulations, such as industrial halls and cold storage facilities, are used in industrial construction chemicle. In other applications, sandwich panels are used. Sandwich panels have an insulating foam core and a metal layer on either side, solidly glued to the center. In addition, cyclopentane has low global warming potential and ensures low operating costs, which makes them the preferred choice for blowing agents in end-use industries. Thus, it is anticipated that the cyclopentane market will rise rapidly during the projected period due to the high product demand as a blowing agent for rigid foam insulation and the rising industrialization.
Strict Environmental Regulatory Framework on HFCs and HCFCs and the Increasing Need for Refrigerants
The use of refrigerants such as HFCs and HCFCs is subject to regulations under international treaties such as the Montreal Protocol and the Kyoto Protocol due to their hazardous impact on the environment and human health. The signatories of the Montreal Protocol are required to phase out the use of ozone-depleting substances (ODS) such as HCFCs in the coming years. In contrast, the signatories of the Kyoto Protocol need to meet the emission reduction targets for greenhouse gases such as HFCs. For instance, in the US, the production and import of most HCFCs need to be phased out under the Montreal Protocol by 2020. The US Environmental Protection Agency has banned the commonly used R-404A HFC in food refrigeration and vending machines since 2020.
Additionally, the European Union, under the F-Gas Regulation, has prohibited using F-gas with a global warming potential more than 150 times greater than CO2. Under this regulation, essential F-gases can be sold in the EU from 2015 onwards. By 2030, sales of these gases will have decreased to one-fifth of their 2014 levels. Thus, the strict environmental regulatory framework on HFCs and HCFCs and the increasing need for refrigerants are expected to drive the growth of the global cyclopentane market during the forecast period.
Cyclopentane can be swapped out for HCFCs, HFCs, liquid CO2, and other hydrocarbons, including pentane and isopentane, when employed as a blowing agent. Physical blowing agents, chemical blowing agents, soluble fillers, and mixed physical or chemical blowing agents can also be used instead of cyclopentane. Cyclopentane is an environment-friendly alternative for HCFCs and HFCs, as cyclopentane has zero ozone depletion potential (ODP) and negligible global warming potential (GWP). However, cyclopentane is a highly flammable alicyclic hydrocarbon and, thus, is used as a component for some types of fuels. Therefore, the availability of substitute products and their explosive property will likely hamper the growth of the global cyclopentane market during the review period.
Global Cyclopentane Market Opportunities:
Cyclopentane is used as a blowing agent, solvent, and reagent, among other applications. The polyurethane insulating foam manufacturing process utilizes cyclopentane as a foam-blowing agent. Polyurethane insulating foam is widely used in refrigerators, freezers, water heaters, construction panels, and insulated pipes and roofs. The growth of the construction industry is likely to create a growth opportunity for the cyclopentane market. As per sr analysis, the spending on the global construction industry was USD 11.2 trillion in 2019 and is rising significantly year-on-year.
Furthermore, Asia-Pacific has witnessed a surge in construction activities in recent years. The rising residential and commercial constructions, especially in India and China, due to the growing economy and population, increasing government and private sector investments, rising per capita income, growing consumer spending, and improving standards of living, are expected to boost the demand for construction materials in the region. The governments of India and China have eased norms for foreign direct investments in the real estate and construction industries.
The global cyclopentane market is segmented into application and end-user.
Based on application, the global cyclopentane market is divided into blowing agents, solvents and reagents, and others.
The blowing agent segment is the highest contributor to the market and is expected to grow at a CAGR of 7.79% during the forecast period. In the polyurethane foam production process, different types of blowing agents such as hydrochlorofluorocarbons (HCFCs), hydrofluorocarbons (HFCs), and hydrocarbons (HCs) are being employed globally. However, due to strict restrictions imposed on HCFCs due to their ozone depletion potential (ODP) and several environment protection protocols being implemented, cyclopentane (hydrocarbons) has gained wide acceptance as a viable alternative blowing agent in manufacturing rigid polyurethane foams. The use of cyclopentane in rigid polyurethane foams provides cost benefits, and its low global warming potential (GWP) makes it a" green" blowing agent. The rigid polyurethane foam produced using cyclopentane is used in domestic and commercial refrigerators and building insulation products.
The solvents and reagent segment held a relatively minor market share during the forecast period and covered cyclopentane's consumption as a chemical industry solvent. Its cyclical structure provides a higher solubility coefficient than branched or linear hydrocarbons. Its low molecular weight results in one of the weakest heats of vaporization values among the non-aromatic hydrocarbon solvents. Due to these qualities, synthetic resins and rubber adhesives are used as a non-polar cycloalkane solvent and reaction medium. Moreover, it is also used as an extraction solvent or as a solvent for alkyl lithium compounds.
Based on end-user, the global cyclopentane market is divided into residential refrigerators, commercial refrigerators, construction, and others.
The residential refrigerators segment owns the highest market share and is estimated to grow at a CAGR of 7.68% over the forecast period. The residential refrigerators segment covers the consumption of cyclopentane in the production of rigid polyurethane foams, which are further used in domestic refrigeration products such as appliances (domestic refrigerators and freezers) and water heaters. The benefits of using PU foam for water heaters are energy efficiency and structural strength. Rigid polyurethane foam is a cost-effective material that meets the required energy ratings in consumer refrigerators and freezers and offers excellent thermal insulating properties.
The appliance market is highly competitive globally and is subject to stringent energy regulations in Europe, Asia, and the Americas. Therefore, the insulating material's cost and performance characteristics are critical parameters. Rigid polyurethane foam serves as the best-suited insulating material for these appliances. Cyclopentane is the preferred blowing agent in rigid polyurethane foams. The demand for cyclopentane is increasing as the need for rigid polyurethane foam is growing in domestic refrigerators.
The construction segment covers the consumption of cyclopentane in various end-use applications such as insulation panels and boards (wall, floor, and roof insulation), rigid-faced panels (used to fabricate insulated buildings, vehicles, and doors), and pipe and vessel insulation. The insulated continuous and discontinuous panels used in the sandwich panel construction offer thermal and acoustic insulation properties in addition to being a modular, modern, multi-purpose construction element and enhancing the design and engineering possibilities.
Furthermore, cyclopentane is primarily used as a blowing agent in the production of rigid polyurethane foam, which produces these insulation products in the construction industry. The use of insulation products results in the reduction the heat loss or gain by the building, thus the reduction of CO2 emissions, which further helps in reducing the carbon intensity of the energy used and improves the energy efficiency of the buildings themselves as well as of the appliances used within them.
Based on region, the global cyclopentane market is divided into North America, Europe, Asia-Pacific, Latin America, and the Middle East and Africa.
Asia-Pacific is the most significant contributor to the global cyclopentane market and is anticipated to grow at a CAGR of 8.56% during the forecast period. Increased urbanization, industrial growth, and economic expansion in the region's developing nations contribute to the market's development. The demand for polyurethane foam has grown due to evolution in the construction and automotive industries, which has fueled cyclopentane demand. More tremendous efforts have been made in the building and construction industries to increase energy efficiency and lower carbon emissions. Growth possibilities would be provided by increasing construction industry investments and expanding public infrastructure projects over the forecast period. The primary drivers propelling the regional market growth are significant companies' presence, raw materials availability, and the increased use of cyclopentane following the Montreal Protocol.
Furthermore, China is the world's top producer and consumer of hydrochlorofluorocarbons (HCFCs) and is planning to phase them out because of environmental concerns. This plan to phase out HCFCs will generate many prospects for foaming agents made without HCFC, including cyclopentane. The expansion of cold-chain warehousing and logistics, increased use of cyclopentane in refrigeration applications, and a more robust online retail sector all contribute to the industry growth in this area. In addition, the presence of large consumer appliances manufacturers such as Daikin (Japan), Samsung (South Korea), L.G. (South Korea), and Videocon Industries Ltd. (India) supports the expansion of the market in the region, which in turn is propelling the growth of cyclopentane market.
Europe is anticipated to grow at a CAGR of 6.36% over the forecast period. The region is expected to maintain its industry position in the following years. There are a lot of scopes for innovation to improve the construction process when using high-tech renovation materials, like insulating materials. Increasing insulation thickness standards, consumer demand and preferences, manufacturing preferences, pricing, and resource availability will influence these possibilities. Further, the nation's promulgation of novel rules and regulations can stimulate innovation. Increased demand for thermal insulation leads to regional development.
The North American region is growing primarily due to significant competitors in the U.S. market. The government's increasingly stringent restrictions on HCFCs and the rising demand for food storage at an appropriate temperature are some factors driving up the size of the Cyclopentane market in the U.S. over the forecast period. Furthermore, the construction industry's growth has increased demand for polyurethane foam, which has also increased cyclopentane demand.
In Latin America and the Middle East and Africa, population growth and increased demand for low-ODP residential refrigerators and building applications drive cyclopentane demand. Increased government spending and implementing CFC-phase-out policies in Africa and Latin America are expected to drive the cyclopentane market in the Middle East and Africa and Latin America over the forecast period.
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