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Indian Chloromethane Market - Forecast(2023 - 2028)
Indian Chloromethane Market Overview
The Indian Chloromethane market size is estimated to reach US$123 million by 2027, after growing at a CAGR of 6.2% during the forecast period 2022-2027. Chloromethane is an organic compound that is also known as methyl chloride, Refrigerant-40, R-40 or HCC 40. Chloromethane is an anthropogenic and naturally occurring chemical in the environment. Chloromethane is a water-soluble, highly flammable gas with a slightly sweet odor. During the forecast period, the growing demand from various end-use industries such as textile, automotive, construction, personal care products and others is positively driving the market growth. For instance, according to the India Brand Equity Foundation, the Indian textile and apparel market is anticipated to reach US$190 billion by 2025–2026. The increasing use of silicone in various end-user industries is driving the chloromethane market growth over the forecast period. The COVID-19 pandemic majorly impacted the Indian chloromethane market due to restricted production, supply chain disruption, logistics restrictions and a fall in demand. However, with robust growth and flourishing applications across major industries such as automotive and others, the Indian Chloromethane market size is anticipated to grow rapidly during the forecast period.
Report Coverage
The “Indian Chloromethane Market Report – Forecast (2022-2027)” by IndustryARC, covers an in-depth analysis of the following segments in the Indian Chloromethane industry.
Key takeaways
- One of the primary factors contributing to the Indian Chloromethane market's favorable outlook is significant growth in the agriculture sector across India.
- Chloromethane is used as an intermediate in the production of pharmaceuticals, fueling the pharmaceutical industry's growth.
- Growth in the electronics and automotive markets is expected to be one of the primary factors driving the silicone market, which would increase demand for Chloromethane over the next few years.
- However, stringent Chloromethane regulations are likely to hinder the growth of the Indian Chloromethane market size during the forecast period.
Indian Chloromethane Market Segment Analysis – by Type
The Carbon Tetrachloride segment held the largest share of the Indian Chloromethane market in 2021 and is projected to grow at a CAGR of 6.1% during the forecast period 2022-2027. This is due to extensive characteristics provided by carbon tetrachloride over other material types such as methyl chloride, methylene chloride and others. Carbon tetrachloride is used as a degreasing agent, a solvent for dry cleaning, a fumigant and a refrigerant. It is also used in extinguishers, varnishes and lacquers. Growth in industrial production would boost carbon tetrachloride consumption in the coming years, thereby driving the Indian chloromethane market. Thus, due to tremendous advantages and availability over material types, the demand for carbon tetrachloride is growing for application in major industries. It is thereby boosting the growth opportunities for the Indian Chloromethane industry in the projected years.
Indian Chloromethane Market Segment Analysis – by Application
The Silicone Polymers segment held the largest share in the Indian Chloromethane market in 2021 and is projected to grow at a CAGR of 6.7% during the forecast period 2022-2027. Chloromethane, also known as Refrigerant-40, R-40 or HCC 40, is used in the production of silicone polymer, which is in high demand for end-use industries such as automotive, personal care and electronics. Silicone has superior properties such as flexibility, solubility in organic solvents and water repellence, making it an excellent choice as an intermediate. Increasing silicone usage in personal care and medical applications are the major factors driving the Chloromethane Market during the forecast period. According to the International Trade Administration, Thailand's beauty and personal care goods market was valued at around US$6.2 billion in 2018 and is projected to grow to US$8.0 billion by 2022. With the rise in the demand for end-use industries in India, the demand for silicone polymers is anticipated to rise, which is projected to boost the growth of the Indian Chloromethane market during the forecast period.
Indian Chloromethane Market Segment Analysis – by End-use Industry
The Chemical & Pharmaceutical segment dominated the Indian Chloromethane market in 2021 with a market share of up to 35%. Chloromethane is used as an intermediate in the manufacture of pharmaceuticals. Chloromethane type methylene chloride, Refrigerant-40, R-40 and HCC 40 are primarily used in the extraction of numerous pharmaceutical compounds and the synthesis of antibiotics and vitamins as a re-crystallization and effective reaction solvent. Increased demand for chloromethane in applications such as chemical intermediate, chemical solvents, analytical processes and laboratory chemicals is expected to boost the Indian chloromethane market during the forecast period. According to Make in India, the chemical industry in India is expected to reach US$304 billion and a growth of 9.3% per annum by 2025. According to India Brand Equity Foundation, India's domestic pharmaceutical market was worth US$42 billion in 2021 and is expected to grow to US$65 billion by 2024 and US$120-130 billion by 2030. With the rise in the demand for the chemical & pharmaceutical industry in India, the demand for chloromethane is anticipated to rise for different applications, which is projected to boost the growth of the Indian Chloromethane market during the forecast period.
Indian Chloromethane Market Drivers
Bolstering Growth of the Automotive Industry:
The increased demand for light vehicles has boosted the consumption of Chloromethane in the automotive industry. The demand for light vehicles is likely to rise over the forecast period as a result of stringent government rules on carbon dioxide emissions and the requirement for fuel-efficient automobiles, which would drive demand for the Indian chloromethane market. According to India Brand Equity Foundation, the Indian passenger car market was valued at US$32.70 billion in 2021 and it is expected to grow to US$54.84 billion by 2027, with a CAGR of more than 9% between 2022 and 2027. According to India Brand Equity Foundation, the electric vehicle (EV) market in India is expected to reach Rs. 50,000 crores (US$7.09 billion) by 2025. With the increasing automotive industry, the demand for Indian Chloromethane would also increase, as a result of which the Indian chloromethane market share would flourish over the forecast period.
Rising Demand from Building & Construction Industry:
The rising demand for various applications of Chloromethane such as silicone polymer is driving the Indian Chloromethane market in the building & construction industry. These polymers are used to improve the performance and processing of a variety of applications, including pre-fabricated concrete, paver stones, ready-mix concrete, dry-mix mortars and building materials. Building and construction industry is expanding in India as a result of rapid urbanization and increased redevelopment and renovation activities, thereby driving the Indian chloromethane market. According to the Department for Promotion of Industry and Internal Trade (DPIIT), FDIs in the construction development sector and construction (infrastructure) activities totaled US$26.20 billion and US$27.92 billion, respectively, between April 2000 and March 2022. Furthermore, the Make in India campaign by the Government of India plans to achieve infrastructural investment worth US$965.5 million by the year 2040. With the increasing construction industry, the demand for Indian Chloromethane would also increase, as a result of which the Indian chloromethane market share would be flourished over the forecast period.
Indian Chloromethane Market Challenges
Strict Government Regulations and Adverse Health Effects:
Chloromethane’s hazardous effects on human health and strict government regulations are expected to restrict the growth of the Indian Chloromethane market. High toxicity claims regarding the use of chloromethane are acting as significant growth barriers. Individuals exposed to elevated chloromethane levels have reported symptoms such as staggering, blurred or double vision, fatigue, dizziness, nausea and so on. Moreover, government regulations governing the storage, use and handling of chloromethane, as well as various environmental issues, are limiting the market growth. Hence, manufacturers are being compelled to look into alternatives to chloromethane by strict government regulations brought on by the compound's detrimental effects on human health. Thus, owing to factors such as hazardous effects on human health and strict government regulations related to chloromethane, the Indian Chloromethane industry faces a major challenge.
Chloromethane Industry Outlook
Technology launches, acquisitions and R&D activities are key strategies adopted by players in the Chloromethane market. The top 10 companies in the Chloromethane market are:
- Asahi Glass Co. Ltd.
- Tokuyama Corp.
- AGC Chemicals Ltd.
- Gujarat Alkalies and Chemicals Ltd.
- Occidental Chemical Corp.
- AkzoNobel N.V.
- Shin-Etsu Chemical Co. Ltd.
- Solvay S.A.
- INEOS Group
- Nouryon
Recent Developments
- In July 2020, SRF invested INR 315 crore in the construction of a new chloromethane plant. The new project would contribute to an increase of 100,000 tons per year capacity by 2022.
- In April 2020, Nouryon started the construction activity in May on a project to increase chloromethane capacity at its site in Frankfurt, Germany, to meet growing global customer demand.
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