Chlorinated Paraffin Market Size

Chlorinated Paraffin Market Size

Chlorinated Paraffin Market size was estimated over USD 1.6 billion in 2016 and the industry will grow by a CAGR more than 3% up to 2024.

Chlorinated paraffin market will witness growth as an additive material to produce various metal working fluids and plastic products. Growth in manufacturing sector will drive the market demand as several companies are engaged in manufacturing of equipment & machineries, automobiles, metal products, etc., especially in the Asia Pacific region. For an instance, in 2016, Indian manufacturing sector contributed over USD 310 billion to GDP and foreign direct investment (FDI) reached over USD 70 billion in 2017 with major multinational companies being attracted to the high availability of cost efficient human resource in the country.

Increasing demand for automobiles, building & construction materials, rubber & plastic products, etc. will positively influence the manufacturing domain growth in coming years due to the upsurge in purchasing power coupled with changing consumer lifestyle. The product is excessively used in the formulation of metal cutting fluids, added in PVC to produce numerous products and also used as plasticizer in rubber and plastic products in order to impart the flexibility and flame-retardant quality. This in turn, will support the market penetration in the near future.

Increasing usage of flame retardants in myriad end-user domains such as paints & coatings, electronics & appliances, building & construction, etc. will propel the industry growth by 2024. This is all due to the implementation of regulations such as NFPA 255, NFPA 220, NFPA 703, CFPA, etc. regarding the fire safety in countries including the U.S., Germany, Singapore, Australia and Japan. These factors will significantly enhance the market demand from 2017 to 2024.

Positive trend towards the acceptance of bio-based products, green environmental image and volatility in raw material prices are the crucial reasons for restraining the market growth in future. Internal substitution, such as declining the usage of short chain grade and replacing with medium one in several end-user industries due to the potential prohibition in developed regions, may also hinder the industry growth in coming years.