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High Purity Chemicals Market - Forecast(2023 - 2028)
High Purity Chemicals Market Overview
The High Purity Chemicals Market size is estimated to reach US$20.6 million by 2027, after growing
at a CAGR of 9.5% during the forecast period 2022-2027. The growing transportation
sector is driving the growth of the High Purity Chemicals Market. The high purity chemicals are utilized in the manufacturing of microelectronic devices for
efficient technology drive, communications, efficient lighting and other
applications. The increasing
requirement for high purity chemicals such as nitric acid, sulfuric acid, acetic acid, hydrochloric acid and
others in the electrical &
electronics industry for semiconductor fabrication is anticipated to upsurge the growth of the high
purity chemicals industry during the
forecast period. According to Invest India, domestic production of electronics
hardware reached US$76 billion in 2019-2020, with a CAGR of around 23% and
production-linked incentives of US$5544 million, funded
over a period of 5 years.
High Purity Chemicals Market Report Coverage
The “High Purity Chemicals Market
Report – Forecast (2022-2027)” by IndustryARC, covers an in-depth
analysis of the following segments in the High Purity Chemicals Industry.
Key Takeaways
- The Asia-Pacific region dominates the High Purity Chemicals Market owing to the rising growth in the building and construction industry. According to Invest India, by 2025, the building and construction industry is estimated to reach US$1.4 trillion.
- Rapidly rising demand for High Purity Chemicals in the electrical & electronics industry for semiconductor fabrication to be utilized in the manufacturing of electrical and electronic devices has driven the growth of the High Purity Chemicals Market.
- The increasing demand for High Purity Chemicals in the transportation sector, due to their usage in the manufacturing of microelectronic devices for efficient drive technology, communications, efficient lighting and other applications, has been a critical factor driving the growth of the market.
- The health and environmental issues associated with High Purity Chemicals such as the toxic effects on human health including heart attack, kidney damage and other effects can hinder the growth of the High Purity Chemicals Market.
Figure: High Purity Chemicals Market Revenue Share by Geography, 2021 (%)
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High Purity Chemicals Market Segment Analysis – by Application
The paints & coatings segment held the largest share of the High Purity Chemicals Market in 2021 and is estimated to grow at a CAGR of 10.2% during the forecast period 2022-2027. High purity chemicals that are utilized in paints & coatings, provide longevity and durability and are non-flammable. These chemicals such as acetone, acetonitrile and others are utilized in paints and coatings to increase adhesion. The market for the paints and coatings segment is anticipated to rise, owing to rapidly rising residential construction activities. According to the India Brand Equity Foundation, in 2021, the federal government has invested to build 20 million affordable houses in metropolitan areas across the country, under the Union Ministry of Housing and Urban Affairs' ambitious Pradhan Mantri Awas Yojana (PMAY) scheme. Therefore, the residential building sector is set to expand dramatically. Thus, the rising construction activities require more paints & coatings, which is driving the growth of the High Purity Chemicals Market.
High Purity Chemicals Market Segment Analysis – by End-use Industry
The building & construction industry held the largest share of the High Purity
Chemicals Market in 2021 and is estimated to grow at a CAGR of 9.0%
during the forecast period 2022-2027. In the building & construction
industry, high purity chemicals such as nitric acid, sulfuric acid, acetic acid, hydrochloric acid and
others are utilized in adhesives
& sealants as well as paints and coatings to increase the bonding between polymer
matrix and fiber surfaces and other applications. They are also used to significantly reduce
porosity in renders, concrete and plasters, making them water-repellent. According to
Statistics of Japan, the number of construction contract orders went from
6,00,46,960 units in 2020 to 6,36,10,223 in 2021. Thus, the growing building
and construction industry would require more high purity chemicals for paints
and coatings due to their exhibit characteristics, which would drive the demand
for the High Purity Chemicals during the forecast period.
High Purity Chemicals Market Segment Analysis – by Geography
Asia-Pacific region dominated the High Purity Chemicals Market with a 39% share in 2021, due to the increasing requirement for high purity chemicals in developing countries such as China, Japan, India and South Korea. China is expected to continue its dominance in the High Purity Chemicals Market during the forecast period, due to the growth of the building & construction industry in the country. According to International Trade Administration (ITA), China is the world’s largest construction market and is estimated to grow at an annual average growth rate of 8.6% between 2022 and 2030. Moreover, the building and construction sector remains healthy in Singapore, with strong government spending on public infrastructure of about S$2 billion (US$1.43 billion) in contracts being awarded each month. Such increasing building & construction activities in the APAC countries are anticipated to increase the demand for high purity chemicals applications in the forecast period. This is also proving to be a market booster for the High Purity Chemicals Market size in this region.
High Purity Chemicals Market Drivers
Flourishing Electrical & Electronics Industry:
The electrical and electronics industry uses High Purity Chemicals such as nitric acid, sulfuric acid, acetic acid, hydrochloric acid and others for semiconductor fabrication, which is utilized in the manufacturing of tablets, monitors, mobile phones, televisions and other electrical and electronic devices. According to the Indian Brand Equity Foundation (IBEF), the Indian electronics manufacturing industry is projected to reach US$520 billion by 2025. Moreover, according to the Government of Canada, in 2022, the government announced the Semiconductor Challenge Callout, a fund of US$150 million through the Strategic Innovation Fund. Moreover, according to the Indian Brand Equity Foundation (IBEF), the Indian electronics manufacturing industry is projected to reach US$520 billion by 2025. Thus, increasing electrical and electronic device production would require more high-purity chemicals. This factor is expected to increase the growth of the High Purity Chemicals industry.
Growing Transportation Industry:
High Purity Chemicals are essential in manufacturing microelectronic devices in the transportation industry. Those devices improve work, drive technology, communications, efficient lighting and other applications. According to the European Automobile Manufacturers' Association (ACEA), in 2021, 79.1 million motor vehicles were produced around the world, registering an increase of 1.3% compared to 2020. Moreover, China reached about 4,603 merchant ships in 2020 from 4,504 merchant ships in 2019, with a growth rate of about 2.2%, according to the United Nations Conference on Trade and Development (UNCTD). With the increasing production of automobiles and the growing marine sector, it is estimated that the requirement for high purity chemicals in the transportation industry would rise in the upcoming years, enhancing the growth of the High Purity Chemicals Market.
High Purity Chemicals Market Challenges
Health and Environmental Issues Associated with High Purity Chemicals:
High Purity Chemicals exhibit various advantages and applications in
different end-use industries. However, there is a potential danger to health
from the use of these chemicals on humans and the environment. The toxic
effects on human health include heart attack, kidney damage and increased risk of
high blood pressure, while also being carcinogenic. Environmental rules and
regulations continue to implement limitations on the utilization and disposal
of toxic chemicals and force the industrial sector to search for an
environment-friendly and safer substitute. High purity chemicals are flammable.
Therefore, their transporting is strenuous in the industries. Thus, the health
and environmental issues associated with High Purity Chemicals would create hurdles for the market's growth.
Key Market Players
Technology launches, acquisitions and R&D activities are key
strategies players adopt in the High Purity Chemicals Markets. The top 10 companies in the High Purity Chemicals Market are:
- BASF SE
- The Dow Chemical Company
- DuPont
- ExxonMobil
- Akzo Nobel N.V.
- Evonik Industries AG
- Asahi Kasei Corp
- Bayer
- Linde AG
- Mitsubishi Chemical Holdings
Recent Developments
- In April 2022, High Purity New England (HPNE), a supplier of single-use solutions for the biopharmaceutical industry, launched its third facility.
- In January 2022, Hyundai Engineering launched a high-purity hydrogen production system using Ammonia.
- In August 2021, Sumitomo Chemical expanded its production capacity for High Purity Chemicals for semiconductors. The Company installed its new production lines to double the capacity for high purity sulfuric acid at its Ehime Works, Niihama city, Ehime, Japan.
Relevant Reports
Report Code: CMR 33274
Report Code: CMR 0411
Report Code: CMR 0003
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