Caustic Soda Market - Segmented by Production Process, Application, and Region - Growth, Trends, and Forecast (2018 - 2023)
The global caustic soda market was valued at 78,833.08 kilotons in 2017 and is expected to grow at a CAGR of approximately 5.15% during the forecast period (2018 - 2023). The market is mainly driven by the growing demand from the chemicals industry, the rising demand for alumina in the automotive industry, and the increasing demand for paper and paperboards. On the flipside, energy-intensive production process is expected to hinder market growth.
Rising Demand in the Automotive Industry
In recent times, there has been an increasing demand for alumina in automobiles, such as autos and commercial vehicles, as it offers various benefits, such as the fastest, safest, environment-friendly, and cost-effective ways to increase performance, as well as boost the fuel economy and reduce the emissions without compromising the safety and durability. There has been strong demand to produce lightweight automobiles in order to control emissions and increase fuel efficiency. The usage of aluminum in automobiles has been gradually increasing. Aluminum improves vehicle performance, reduces CO2 emissions, and boosts fuel economy. It is the most used non-ferrous material in automobiles, and has the potential to become the most-used material, as new aluminum alloys are made to deliver more value than steel.
Membrne Cell to dominate the Production Process
The manufacture of caustic soda is a highly energy-intensive process and many manufacturers are moving toward the usage of membrane cell method, owing to its energy efficiency and environment friendliness. This process requires lesser quantity of evaporation, as compared to that of the diaphragm evaporation process. The total energy involved in the production of caustic soda using the membrane cell process is nearly 3,400 kWh per metric ton. Japan has the maximum usage of this process for the production of caustic soda. Owing to the energy efficiency of the production process and high purity of the output product, membrane cell production process is finding increasing applications.
Asia-Pacific is the Dominant Region
Asia-Pacific is the dominant region and is expected to emerge as the fastest-growing market due to a high product demand, which mainly attributable to the growing end-user industries, like textile the industry in the emerging economies, such as India, China, Taiwan, Vietnam, etc. China is the largest producer and consumer of caustic soda in the Asia-Pacific region. The country is a hub for chemical processing, accounting for a major chunk of the chemicals produced globally. With the growing demand for organic and inorganic chemicals globally, the demand for caustic soda from this sector is projected to grow during the forecast period.
Key Developments in the Market
- February 2018- DCM Shriram Ltd approved the investment proposal for the expansion of the caustic soda capacity at the Bharuch (Gujarat) plant with an investment of INR 113 crore and a proposed capacity increase of 186 tons per day. The project is expected to commence in 2019.
- January 2018- National Aluminium Company (Nalco) plans to start a second caustic soda plant at Paradip to nullify the volatility in the prices of caustic soda.
Major Players - Olin Corporation, Occidental Petroleum Corporation, Westlake Chemical Corporation, Formosa Plastics Corporation, DowDupont, include Xinjiang Zhongtai Chemical Co. Ltd, Inovyn, Tosoh Corporation, Shin-Etsu Chemicals Co. Ltd, Solvay, China National Chem, and Akzonobel N.V among others.
Reason to Purchase the Report
- Identify the current and future prospects of the caustic soda market in the developed and emerging markets
- Analyze various perspectives of the market with the help of Porter’s five forces analysis
- Information about the growth of the various segments that are expected to dominate the market
- Identify the latest developments, market shares, and strategies employed by the major market players
- 3 months analyst support, along with the Market Estimate sheet (in Excel)
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