Chlorinated Paraffin Market Analysis

Chlorinated Paraffin Market Analysis

Medium-chain (M-chain) grade accounted for more than half of the total market share in 2016 and will grow at a significant rate in coming years. The grade is primarily used as a plasticizer in the synthetic rubber processing sector due to its good stability, full compatibility, non-flammability, and other features. The carbon chain length of M-chain grade is usually between 14 – 17 carbon atoms with 40 – 70% chlorine content. Resistance against extrusion, low volatility, excellent chemical stability, non-toxic and moisture proof are key characteristics of the product and makes it ideal as a lubricant and metal working fluid additive in the manufacturing sector. The M grade is cost effective which enhances its application in myriad end-user domains such as adhesives, sealants, commercial paints, etc. and will strengthen the chlorinated paraffin market penetration in forecast period.
 

Long-chain grade held a prominent market share in past couple of years and significant revenue generation can be attributed to extensive usage of the product in many end-user domains such as in paints & coatings, manufacturing, leather, rubber, etc. as a flame retardant, plasticizer, lubricating additive, etc. These provides various technical benefits and will augment the market demand over the forecast time frame.
 

Metal working fluids dominated the overall chlorinated paraffin market with over 30% revenue share in 2016 and is likely to grow at a substantial rate by 2024. Extensive usage of the product in several manufacturing sectors such as automotive, aerospace, etc. due to its extreme flame retardant properties, compatibility with oils and other features. Growth in manufacturing sector will propel the segment demand in the market over the forecast period.
 

Plastics additive is the fastest growing application domain and is likely to expand with CAGR close to 3.5% by 2024. High consumption of the product for the production of PVC products, plastics and other industrial products owing to its outstanding fire resistance, flexibility, conditioning and other mechanical features. This will boost the market demand in future.
 

Considering end-user segments, the market is segregated as manufacturing, rubber, paints & coatings, leather and textile industries. Other minor end-user segment comprises adhesives & sealants, plastics, etc. Manufacturing and rubber industries, collectively will grow at a significant CAGR more than 3% in the forecast spell due to the increasing usage of rubber and flame retardants products in automobiles, buildings, packaging, etc. This in turn, will propel the chlorinated paraffin market growth by 2024.
 

Growth in the rubber industry is attributed to the product features such as compatibility with oils, flame retardancy, water & chemical resistance, and viscous nature, which makes it perfect to produce the rubber products such as cable, toys, conveyer belts, carpet backing, etc. and will fuel the segment growth over forecast period.
 

Asia Pacific chlorinated paraffin market will be expanding at a CAGR over 3.5% by 2024. Growth of textile and manufacturing sectors driven by substantial rise in personal income level coupled with improved monetary condition is the key factor supporting the market growth in forecast spell. Continuous production of all grades of chlorinated paraffin in China and India is likely to expand and will significantly impact the product demand in these regions.
 

North America is likely to lose its market share in forecast period due to the stringent regulations regarding the usage of short chain grade in the U.S. Increased emphasis on green products and rising demand for bio based products will also restrict the market growth in this region. Europe and Latin America will also show the sluggish growth in the market over the forecast time years owing to the economic slowdowns in the regions.