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Perchloroethylene Market - Forecast (2022 - 2027)

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  • 131 Pages
  • April 2022
  • Region: Global
  • IndustryARC
  • ID: 5616337
The Perchloroethylene Market is expected to register a significant market growth of CAGR of 2.5% during 2022-2027. Perchloroethylene is a colorless liquid and has a sweet-smelling fragrance and known as PERC. It is chemically stable and non-flammable. Increasing demand for dry-cleaning fluid is the primary reason for the growth. Perchloroethylene has gained popularity due to its excellent solvent cleaning properties, easy recycling, and safe handling. Due to its effectiveness as an intermediary, perchloroethylene has become an ideal feedstock in fluorocarbon production. The fluorinated compound perchloroethylene is widely used as an intermediate in the manufacture of dry-cleaning industry. In 2019, approximately three-quarters of global perchloroethylene consumption was attributed to hydrochlorofluorocarbons applications. The product is also widely used as an intermediate to develop refrigerants, refrigerant blends, and fluorinated compound among others. Hydrochlorofluorocarbons (HCFCs) are a group of industrial chemicals primarily used for used as a refrigerant in several applications such as unitary air conditioners, and cold storage. As part of the Montreal Protocol, HFCs were developed to replace substances that deplete the ozone layer stratospherically.

COVID-19 Impact

Worldwide lockdowns which were caused by the Coronavirus outbreak have affected the demand for perchloroethylene. As a consequence of the outbreak, countries have stopped importing and exporting goods across borders. Global economic growth is down by 5% in 2020, leaving a permanent stain on the global economy. As a result of the current global economic situation, it might take years for the global economy to recover. The economies of big countries like Germany, France, the United Kingdom, and the United States have seen a huge loss due to this deadly virus. Perchloroethylene consumption in these countries declined between 2019-2020.

Report Coverage

The report: “Perchloroethylene Market- Forecast (2022-2027)” covers an in-depth analysis of the following segments of the Perchloroethylene Market.
  • By Grade Type: Reagent Trade, Industrial Grade.
  • By Application Refrigerants, Dry Cleaning, Vapor Degreaser, Extractant, Cooling Agents, Fluoropolymers, Metal Cleaning & Degreasing, Isomerization & Reforming.
  • By End Use Industry: Automotive, Aerospace, Metalworking industries, Industrial, Commercial, Construction, Textile, Others
  • By Geography: North America (USA, Canada, and Mexico), Europe (UK, Germany, France, Italy, Netherlands, Spain, Russia, Belgium, and Rest of Europe), Asia-Pacific (China, Japan, India, South Korea, Australia and New Zealand, Indonesia, Taiwan, Malaysia, and Rest of APAC), South America (Brazil, Argentina, Colombia, Chile, and Rest of South America), Rest of the World [the Middle East (Saudi Arabia, UAE and the rest of middle east)], and Africa [ Nigeria, South Africa and the rest of Africa)].

Key Takeaways

Hydrofluorocarbons are identified as the biggest perchloroethylene consumer, accounting for around three-fourths of the total worldwide consumption by 2026.

In terms of market valuation, the industrial grade is expected to hold a significant share and also estimated to grow at a CAGR of 3.1% between 2022-2027.

China will lead the Asia Pacific region at a CAGR of 3.6% during the forecast period 2022-2027 and followed by India.

Perchloroethylene Market Segment Analysis - By Grade Type

Industrial grade is the most used grade for dry cleaning. The industrial-grade segment accounted for more than 60% of the market share in 2020 and is estimated to grow significantly during the forecast period. Industrial grade is widely used in the dry cleaning industry and drying of clothes. They are used for washing, degreasing, and drying clothes. Consumers are adopting dry-cleaning and laundry services as they offer convenience and a reasonable price, driving the market. At the very least, dry cleaning and laundry have become an important part of life for many Americans, who expect their clothing and other household goods to last longer and to be clean and free of odor. One service that has grown substantially over the last decade is dry cleaning and laundry. According to Market Force Information, dry-cleaning and laundry services are expected to grow in the coming future.

Perchloroethylene Market Segment Analysis - By Application

The dry-cleaning segment accounted for more than 40% of the market share in 2020 and is estimated to grow significantly during the forecast period. Consumer preferences for organic and natural cleaning materials have been growing in the dry-cleaning industry over the past few years. The increasing need for clean clothes, increasing consumer awareness regarding dry-cleaning and laundry services, and growing demand for custom laundry services is supporting the market growth between the forecast period. In the United States alone, there are about 36,000 dry cleaners. Approximately 160,000 people are employed in the dry-cleaning industry in the U.S. PERC is used as the primary solvent by 60-65% of dry cleaners nationwide and most others use a hydrocarbon with a high flashpoint.

Perchloroethylene Market Segment Analysis - By End-Use Industry

The textile industry accounted for more than 30% of the market share in 2020 and is estimated to grow significantly during the forecast period. Textile Industry is one of the most prominent sectors for any country. A major part of economic growth depends on the textile industry in both developed and developing nations. Dry cleaning of textiles and leathers is commonly performed using perchloroethylene (PERC). Textile products such as clothing, accessories, gloves, hats, and blankets, or any type of plastic, industrial, natural fur, agricultural or medical fabric are suitable to be cleaned by PERC and denoted by the symbol for the normal process. Solvents like this are the strongest and most aggressive cleaners. In general, it can be used to clean textile and leather goods. Some plastics, such as beadings and trims, can, however, be harmed by it. In addition, some adhesives may dissolve and the plasticizer may be stripped from polyvinyl chloride (PVC). According to the data published by IBEF, India's textile and apparel export stood at US$ 37.00 billion in FY19 and was estimated to increase by US$ 70.00 billion by FY26 from US$ 36.00 billion in FY20.

Perchloroethylene Market Segment Analysis - By Geography

Asia Pacific region held the largest share in the perchloroethylene market in 2020 up to 34%, owing to the rapid growth in the textile sector in the region. The growing working populations and rising spending on dry-cleaning and laundry services in developing nations such as China, Japan, and India are driving the market growth. With its large population looking for convenient dry-cleaning and laundry services, China is expected to remain a dominant shareholder in the Asia Pacific. According to the data published by Computer World Article, in 2018, China has about 1.9 million programmers, and Russia has about 1.3 million. The growing usage of air conditioners is leading to the demand for refrigerants which is further driving the market for perchloroethylene. According to the data published by IBEF During FY18, the production of air conditioners in India increased 4.9 percent year on year to 3.19 million units. Split ACs had occupied 85 percent market share in FY18. The Overall room air conditioners market is expected to increase to 7 million units by FY21 from 5.5 million units in FY18.

Perchloroethylene Market Driver

Rising spending on dry-cleaning:

The dry cleaning industry is involved in the cleaning, pressing, and finishing of clothing and related products. The busy lives of the consumer are one of the reasons by which perchloroethylene has been expanded. Almost everyone likes to wear clean and neat clothes. However, doing laundry regularly isn't something most people enjoy. Because of busy lifestyles, many consumers use dry-cleaning and laundry services to handle their dirty clothes. According to the White Paper published by Great American Insurance Group, Huntington Group, is the largest dry-cleaning franchiser in the U.S. with over 400 franchise stores. They also mentioned the number of dry cleaners in the U.S. Industry is about US$8 billion. PERC is the most commonly preferred by professional dry cleaners. The growing consumer spending on laundry and dry cleaning activities In developed nations is also supporting the dry cleaning industry which is further supporting the perchloroethylene market. According to the facts published by the research paper, the average annual expenditure on coin-operated apparel laundry and dry cleaning per consumer unit stood at 39.09 U.S. dollars in 2019 in the United States.

Perchloroethylene Market Challenges

Recycling and health issues related to Perchloroethylene

Perchloroethylene can be difficult to recycle because it is highly flammable and the solvent has a high boiling point. As a result, the perchloroethylene is difficult to disassemble and disintegrate. Perchloroethylene is a toxic and flammable solvent that is widely used for dry-cleaning and in several industries. It is highly flammable and has a high boiling point that requires high gravity and pressure to boil the solvent. It is also toxic and flammable and can cause serious health effects and even death. Due to the report that indicates the presence of toxic chemicals in the environment, the usage of the solvent is becoming questionable. The dry-cleaning process is associated with hazards such as chemical and fire hazards. Dry cleaners can be exposed to hazardous chemicals through skin contact, eye contact, or inhalation of vapors. Perchloroethylene exposure can cause lungs to swell, nosebleeds, and even cancer. Consuming perchloroethylene causes stomach damage, liver damage, cancer, and flushing out of metabolic products.

Perchloroethylene Market Landscape

Perchloroethylene is currently a highly consolidated market where the top players account for over half of sales. Perchloroethylene is currently dominated by key players such as:

1. Occidental Chemical,
2. Olin Corporation, and Westlake Chemical Corporation,
3. Dow Axiall
4. AGC Kanto
5. Denka Banner
6. Chemicals Limited
7. Paari Chem Resources
8. Befar Group
9. LUXI Dongyue Group
10. Xinlong Group Zhejiang
11. Juhua Wuxi Yangshi
12. Chemical Dakang SINOCHEM LANTIAN and Other Companies

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Table of Contents

1. Perchloroethylene Market- Market Overview
1.1 Definitions and Scope
2. Perchloroethylene Market- Executive Summary
2.1 Key Trends by Grade Type
2.2 Key Trends by Application
2.3 Key Trends by End-Use Industry
2.4 Key Trends by Geography
3. Perchloroethylene Market- Comparative analysis
3.1 Market Share Analysis- Major Companies
3.2 Product Benchmarking- Major Companies
3.3 Top 5 Financials Analysis
3.4 Patent Analysis- Major Companies
3.5 Pricing Analysis (ASPs will be provided)
4. Perchloroethylene Market- Market Forces
4.1 Market Drivers
4.2 Market Constraints
4.3 Porters Five Force Model
4.3.1 Bargaining Power of Suppliers
4.3.2 Bargaining Powers of Buyers
4.3.3 Threat of New Entrants
4.3.4 Competitive Rivalry
4.3.5 Threat of Substitutes
5. Perchloroethylene Market- Strategic Analysis
5.1 Value/Supply Chain Analysis
5.2 Opportunity Analysis
5.3 Product/Market Life Cycle
5.4 Distributor Analysis - Major Companies
6. Perchloroethylene Market- By Grade Type (Market Size -$Million/Billion)
6.1 Reagent Trade
6.2 Industrial Grade
7. Perchloroethylene Market- By Application (Market Size -$Million/Billion)
7.1 Refrigerants
7.2 Dry Cleaning
7.3 Vapor Degreaser
7.4 Extractant
7.5 Cooling Agents
7.6 Fluoropolymers
7.7 Metal Cleaning & Degreasing
7.8 Isomerization & Reforming
8. Perchloroethylene Market- By End Use Industry (Market Size -$Million/Billion)
8.1 Automotive
8.2 Aerospace
8.3 Metalworking industries
8.4 Industrial
8.5 Commercial
8.6 Construction
8.7 Textile
8.8 Others
9. Perchloroethylene Market- By Geography (Market Size -$Million/Billion)
9.1 North America
9.1.1 U.S
9.1.2 Canada
9.1.3 Mexico
9.2 South America
9.2.1 Brazil
9.2.2 Argentina
9.2.3 Chile
9.2.4 Colombia
9.2.5 Rest of South America
9.3 Europe
9.3.1 Germany
9.3.2 France
9.3.3 UK
9.3.4 Italy
9.3.5 Spain
9.3.6 Russia
9.3.7 Netherlands
9.3.8 Rest of Europe
9.4 Asia-Pacific
9.4.1 China
9.4.2 Japan
9.4.3 South Korea
9.4.4 India
9.4.5 Australia & New Zealand
9.4.6 Indonesia
9.4.7 MalaysiaMalaysia
9.4.8 Rest of Asia Pacific
9.5 Rest of World
9.5.1 Middle East Saudi Arabia UAE Rest of Middle East
9.5.2 Africa South Africa Nigeria Rest of Africa
10. Perchloroethylene Market- Entropy
10.1 New Product Launches
10.2 M&As, Collaborations, JVs, and Partnerships
11. Perchloroethylene Market Company Analysis - Business Overview, Product Portfolio, Financials, and Developments
11.1 Company 1
11.2 Company 2
11.3 Company 3
11.4 Company 4
11.5 Company 5
11.6 Company 6
11.7 Company 7
11.8 Company 8
11.9 Company 9
11.10 Company 10 and more