1,2-Dichloroethane Market Overview
Market size is forecast to grow at a CAGR of 4.1% during
2021-2026 due to rising demand from end-use sectors such as construction, paint
& coatings, pharmaceutical, textile, furniture, and others. 1,2-dichloroethane
is a highly flammable colorless liquid compound that is used in the production
of vinyl chloride monomers. These liquid compounds are used in the processing of
pharmaceutical products. 1,2-dichloride is also called ethylene dichloride, a chlorinated hydrocarbon, is also used as the extraction of rubber, as a solvent for
textile cleaning, in certain adhesives, and as a component upholstery
with the purity of >99% to 100%, it is used in the production of polyvinyl
chloride that protects pharmaceutical products against moisture, oxygen, and
other products. Hence, due to such properties 1,2-dichloroethane is widely used in paint,
coatings, adhesives, automotive, pharmaceuticals, and other industries which
are estimated to grow the 1,2-dichloroethane market
Impact of COVID-19
The tragedy of COVID-19, which is declared as
a pandemic by the World Health Organization, is having a noticeable impact on
global economic growth. This has affected the demand and supply chain as well, from
2020 and continue in Q2 of 2021. Thus, all pending activities are limiting the
demand for 1,2-dichloroethane.
report: “1,2-Dichloroethane Market–
Forecast (2021-2026)”, by IndustryARC, covers an in-depth analysis of the
following segments of the 1,2-Dichloroethane Industry.
- Asia Pacific dominates the market of 1,2-dichloroethane market due to growing various end-use industries such as pharmaceutical, automotive, and others, in emerging and developing countries such as India, Malaysia, China, and others.
- Increasing consumption as a dispersant, as a solvent, as a degreaser, and as a wetting agent in various applications such as adhesives, waxes, extraction, and others is estimated to grow the demand for 1,2-dichloroethane.
- Additionally, 1,2-dichloroethane, also called ethylene dichloride, is used in the production of polyvinyl chloride that is used for the storage of intravenous fluids, dialysis solutions, as well as blood which is estimated to grow the market size.
- Apart from this,
according to the International
Agency for Research on Cancer (IARC), 1,2-dichloroethane is a chlorinated hydrocarbon that is a toxic liquid and may cause cancer in
humans which may hamper the market growth.
Figure: APAC ,2-Dichloroethane Market, 2021-2026 (US$ Billion)
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1,2-Dichloroethane Market Segment Analysis – By Purity
to 100% purity grade leads the global market of 1,2-dichloroethane in 2020.
This level of purity is used as a chemical intermediate for the manufacture of vinyl
chloride monomer which is used in polyvinyl chloride production. This,
produced polyvinyl chloride is widely in the pharma industry, automotive parts,
paint & coatings, and other application which is expected to drive the
1,2-Dichloroethane Market Segment Analysis – By Application
chloride monomer held the largest share in the global market of
1,2-dichloroethane in 2020. 1,2-dichloroethane is used in the production of vinyl
chloride monomer that is used to make polyvinyl chloride. Polyvinyl chloride
leads a significant share in paint, adhesives, coatings, pharmaceutical, and
other industries. 1,2-Dichloroethane (ethylene dichloride) is also used generally as an
intermediate for other organic chemical compounds and as a solvent
including water at a boiling point of 70.5 °C. Hence, the high production of
organic compounds is projected to the market size.
1,2-Dichloroethane Market Segment Analysis – By End-Use Industry
1,2-Dichloroethane Market Segment Analysis – By Geography
Asia Pacific dominated
the global 1,2-dichloroethane market in 2020 with more than the share of 30%, due
to growing consumption from automotive, construction, textiles, pharmaceutical,
and other industries especially in India, Malaysia, Thailand, and China.
1,2-dichloroethane is used to produce vinyl chloride which is used in
upholstery applications and automotive parts. Thus, the increasing automotive
industry's growing consumption of vinyl chloride, in turn, is estimated to grow
the demand for 1,2-dichloroethane.
According to the International Trade Administration (ITA), the Chinese
government expected to run the production of automobiles with 35 million units
by 2025. According to the International Organization of Motor Vehicle
Manufacturers, in Malaysia, commercial and passenger car vehicle production
increased by 1.2% to 571632 units in 2019 as compared to 564800 units in 2018.
Also, produced vinyl chloride is used in wall coverings. According to the
National Economic and Social Development Council (NESDC), in Thailand, the
total construction spending rose by 1.5% (to THB1.321 trillion) including
public sector spending rose by 5.0% in 2020 as compared to 3.1% in 2019. Hence,
increasing such activities is estimated to grow the market size of 1,2-dichloroethane.
1,2-Dichloroethane Market Drivers
Robust Growth in Automotive Sector is Expected to Grow the 1,2-Dichloroethane Market
1,2-dichloroethane, a chlorinated hydrocarbon, is in the production
of vinyl chloride (used to make polyvinyl chloride pipes) which is
used to make automobile upholstery and automobile parts. Thus, increasing
automotive production is estimated to grow the demand for 1,2-dichloroethane. According to the International Organization of Motor Vehicles Manufacturers
(OICA), global vehicle production increased by 21.08 million in January-March
2021 as compared to 18.03 million in January-March 2020. Additionally, according to the Society of Indian
Automobile Manufacturers (SIAM), in India, passenger vehicle production
increased by 4,028,471 units in 2018-2019 as compared to 4,020,267 units in
2017-2018. Hence, the growing automotive production is estimated to grow
the market size.
Increasing Rubber Production is Estimated to Grow the Consumption of 1,2-Dichloroethane
1,2-Dichloroethane also called ethylene dichloride used as a
dispersant in rubber. It is used as a low-temperature solvent for
heat-sensitive substances in the extraction of natural rubber. Thus, increasing
production of rubber is estimated to grow the demand for 1,2-dichloroethane. According to the International Rubber Study Group
(IRSG), world production and consumption increased by 2.4% and 4.6%,
respectively in 2018. Additionally, according to the Malaysian Rubber Council
(MRC), rubber consumption increased by 15,792 million tons in 2020 from 15,280 million
tons in 2019. Hence, the growing investment and production of rubber is estimated to grow the consumption of 1,2-dichloroethane.
1,2-Dichloroethane Market Challenges
Adverse Health Effect of 1,2-Dichloroethane
1,2-Dichloroethane is a toxic liquid compound
that is hazardous for human health. These are used to manufacture vinyl
chloride monomer which may cause brain, lung tumor, and malignant hematopoietic
lymphatic tumors. Exposure to large amounts of ethylene dichloride in the air
may lead to lungs problems as well as respiratory distress. Also, continuous
exposure of 1,2-dichloroethane is highly affected by the nervous system, liver,
and kidney disease. 1,2-Dichloroethane irritates eyes, skin, noses, and
throats. Furthermore, high exposure to this liquid compound causes upset
stomach, headaches, dizziness, or another health issue. Hence, the negative
impact on human health may limit the consumption of 1,2-dichloroethane.
1,2-Dichloroethane Market Landscape
Technology launches, acquisitions, and R&D activities are key strategies adopted by players in the 1,2-dichloroethane Market. Major players in the 1,2-Dichloroethane market include:
- Dow Chemical Company
- Formosa Plastic Corporation
- BASF SE
- Bayer AG
- Westlake Chemicals
- Occidental Chemical Corporation
- Sigma Plastic
- INEOS Group Ltd.
- PPG Industries, Inc., and others.
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