Global Vinyl Chloride Monomer (VCM) Market 2017-2021
About Vinyl Chloride Monomer (VCM)
VCM is a colorless compound, which is used to produce PVC. It is among the top twenty largest petrochemicals. VCM is used in the manufacture of ethylenediamine to produce resins and the production of chlorinated solvents. VCM is used as an aerosol propellant and is also a starting product for polyvinyl resins. It is highly flammable, has a sweet odor, and can emit toxic fumes of carbon monoxide, carbon dioxide, phosgene, and hydrogen chloride. Its exposure to fire and intense heat for a long period may result in rupturing of containers violently.
Technavio’s analysts forecast the global vinyl chloride monomer (VCM) market to grow at a CAGR of 5.40% during the period 2017-2021.
Covered in this report
The report covers the present scenario and the growth prospects of the global vinyl chloride monomer (VCM) market for 2017-2021. The report presents a detailed picture of the market by way of study, synthesis, and summation of data from multiple sources.
The market is divided into the following segments based on geography:
Technavio Announces the Publication of its Research Report – Global Vinyl Chloride Monomer (VCM) Market 2017-2021
Technavio recognizes the following companies as the key players in the global vinyl chloride monomer (VCM) market: BASF, Formosa Plastics, Occidental Petroleum, The Dow Chemical Company, and Westlake Chemical.
Other Prominent Vendors in the market are: INEOS Vinyls UK, LG Chem, Reliance Industries, Tokuyama, and Qatar Vinyl Company.
Commenting on the report, an analyst from Technavio’s team said: “One trend in the market is emergence of bio-based VCM. The growing commercialization and production of bio-based VCM will fuel the global VCM market during the forecast period. Bio-based products, which are produced by using sugarcane and other bio-based feedstock is anticipated to enhance the market in the near future.”
According to the report, one driver in the market is increased demand from construction industry. VCM is mainly used in the production of PVC, which is mostly used in the construction industry. The global construction market is expected to grow at a CAGR of 4% from $8.7 trillion in 2016 to $10.5 trillion in 2021. The increase in population in countries of the Middle East and Africa such as Qatar, the UAE, and Saudi Arabia will witness a huge growth in infrastructural developments. APAC is anticipated to lead the construction market with China and India, acting as the major driver.
Further, the report states that one challenge in the market is volatile raw material prices. The fluctuating prices of the crude oil and natural gas have an impact on the prices of their end products. The most widely used reactant to produce VCM is ethylene, which is a derivative of petrochemicals. Prices of petrochemicals have a strong correlation with crude oil prices. The volatility in prices results in an undefined return on investment due to which companies are forced to delay off their capacity expansion. This, in turn, will affect the demand-supply chain, resulting in the switching customers to VCM alternatives.
BASF, Formosa Plastics, Occidental Petroleum, The Dow Chemical Company, Westlake Chemical, INEOS Vinyls UK, LG Chem, Reliance Industries, Tokuyama, Qatar Vinyl Company