Epichlorohydrin, also known as ECH, is a versatile chlorinated organic compound that finds wide usage as an intermediate in the manufacture of epoxy resins, synthetic glycerin, water treatment chemicals, and elastomers. ECH performs like an epoxide group donor and acts as a reactive intermediate for producing polymer products. It is a clear, colorless, flammable liquid with a pungent odor. The rising production of aliphatic epoxy resins is one of the major drivers boosting ECH consumption. Aliphatic epoxy resins possess beneficial properties such as high water and chemical resistance and are extensively used in the coatings, adhesives, construction, and composites industries.
The Global Epichlorohydrin (ECH) Market is estimated to be valued at US$ 2.95 billion in 2024 and is expected to exhibit a CAGR of 5.1% over the forecast period 2024-2031.
Key Takeaways
Key players operating in the Epichlorohydrin (ECH) market are Momentive Performance Materials Inc., Solvay S.A., Hexion Inc., DOW Chemical Company, Mitsubishi Chemical Corporation, Aditya Birla Chemicals, Hubei Greenhome Chemical Co., Ltd., NAMA Chemicals, Jiangshan Chemical Co., Ltd., Olin Corporation, Zhejiang Jianye Chemical Co., Ltd., Arkema S.A., Hanwha Solutions Corporation, BASF SE, and Koppers Inc.
The high growth of end-use industries such as construction, paints and coatings is creating immense opportunities for ECH manufacturers globally. Leading companies are expanding their production capacities and geographical footprint through acquisitions and greenfield projects to leverage the increasing demand. For instance, in 2021, Hanwha Chemical Corp acquired SABIC's ECH plant in Korea to become a global leader in the ECH market.
Market Drivers
- Epichlorohydrin (ECH) Market Demand from the aliphatic epoxy resins industry: ECH is a key raw material for producing aliphatic epoxy resins used in coating products. The flourishing paints and coatings industry is driving more consumption of aliphatic epoxy resins, which in turn spurs the demand for ECH.
- Favorable properties of ECH derivatives: Epoxy resins derived from ECH possess excellent adhesion, chemical and heat resistance. They find usage in a wide range of industrial and consumer product applications like surface coatings, electrical insulation, composites, adhesives.
Market Restraints
- Stringent regulatory environment: ECH is hazardous in nature and has restrictions around its production, transportation, usage, and disposal. Complying with changing environmental and safety regulations increases operational costs.
- Supply-demand fluctuations: As ECH is primarily consumed by cyclical downstream industries, its demand varies with economic conditions. Any decline in end-use sectors negatively impacts ECH consumption.
Segment Analysis
The global epichlorohydrin market can be segmented based on application and region. The epoxy resins application segment holds the major share in the market and is dominated mostly by epoxy resin industry. Epoxy resins find major applications in paints & coatings, adhesives, wind turbine blades, composites, and electrical & electronics industries. Thepaints and coatings sub-segment accounts for the largest share as ECH is used primarily in the formulation of thermosetting polymer chains in epoxy resins which further improves corrosion and chemical resistance of coatings.
Global Analysis
The Asia Pacific region is the fastest growing as well as dominating regional market for epichlorohydrin. This is attributable to huge presence of end-use industries like paints & coatings, composites, construction, and others in the developing economies of China, India, and ASEAN countries. Additionally, China is the leading consumer as well as producer of epichlorohydrin in the global market. Large scale production of ECH from its precursor material chloroethanol has boosted the manufacturing capabilities in China. North America and Western Europe are also significant markets owing to extensive usage of ECH in epoxy resins for applications in wind energy industry and infrastructure development.
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