Global Cyclopentane Market 2019-2023
About this market
Cyclopentane is majorly used in refrigerators due to its high demand as a blowing agent for insulation. Fluorinated blowing agents were widely used in refrigerators until 2014. However, the adverse effects of fluorine on the environment have led to the increasing demand for cyclopentane among refrigerator manufacturers. Cyclopentane refrigerants are used in refrigerators for storing a wide range of medical apparatus, medicines, and pharmaceuticals that require low temperatures. These factors are expected to drive the demand for cyclopentane as a refrigerant during the forecast period. Technavio’s analysts have predicted that the cyclopentane market will register a CAGR of almost 6% by 2023.
Growing demand for foam blowing agents from the automotive and construction industries
The global automotive industry is expected to grow, registering an increase in the need for foam blowing agents such as cyclopentane. Cyclopentane is used as a foam blowing agent to manufacture PU foams. PU foams are used extensively for manufacturing interior components in cars such as seats, headrests, armrests, roof liners, dashboards, and instrument panels. Also, these foams are widely used in the production of different automotive parts such as side skirts, wiper cowls, roll pans, and bumpers. Additionally, in the construction industry, PU foams are used in floor carpets, foam-cored entry doors, and garage doors.
High capital requirement
Cyclopentane manufacturing requires high capital investment and skilled labor. The workers need to be trained about handling cyclopentane and about its storage and usage. Also, they require protective gears while handling cyclopentane, which is costly. The availability of these protective gears is based on demand from the manufacturers, which is more expensive than other protective gears. This has led to a significant challenge for cyclopentane manufacturers. The protective gear manufacturers provide these gears based on the toxicity of various chemicals for which the production cost of these gears is high. Therefore, increasing the production cost of cyclopentane. Hence, the high capital requirement will hinder the growth of the global cyclopentane market during the forecast period.
For the detailed list of factors that will drive and challenge the growth of the cyclopentane market during 2019-2023, view our report.
The market appears to be highly fragmented. The presence of several companies, including HCS Group GmbH and INEOS AG makes the competitive environment quite intense. Factors such as the rise in demand for eco-friendly refrigerators from the consumer electronics industry and the phaseout of HCFCs will provide significant growth opportunities to the cyclopentane manufacturers. Merck KGaA, YEOCHUN NCC Co. Ltd., and Zeon Corp are some of the major companies covered in this report.
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