Global Ferric Chloride Market - 2024-2031

Global Ferric Chloride Market - 2024-2031

Global Ferric Chloride Market reached US$ 7.1 billion in 2023 and is expected to reach US$ 10.6 billion by 2031, growing with a CAGR of 5.1% during the forecast period 2024-2031.

Ferric chloride is utilized in a variety of chemical processes, including chlorination, which produces other compounds. Its use as a catalyst and reagent in various processes drives its popularity in the chemical industry. With increasing population and industrialization, there is a greater demand for clean and safe water. Ferric chloride is commonly used as a coagulant in water treatment operations to remove pollutants and toxins.

The market demand for ferric chloride is driven by a trend of stronger regulations and the necessity for effective water treatment solutions. In November 2021, Kemira completes UK expansion of ferric-based water-treatment chemicals; they state that the yearly production of ferric-based water-treatment chemicals in Goole will be expanded by more than 1,000,000 tons per year.

In 2023, North America is expected to be the second-dominant region with over 20% of the global ferric chloride market. The region's emerging wastewater management practices are projected to drive market demand for ferric chloride. For instance, Renal Business from the STERIS Group's Mar Cor Purification and Cantel Medical businesses was acquierd by Evoqua Water Technologies LLC. The acquisition strengthened the company's ability to supply tried-and-true water solutions for North America's healthcare industry.

Dynamics

Growing Demand for Sustainable Water Treatment Solutions

There is a rising emphasis on sustainable water treatment systems with little environmental impact. In comparison to other coagulants such as aluminum-based compounds, ferric chloride is seen to be a more environmentally benign option. Its use produces less sludge and minimizes the overall environmental imprint. The movement toward sustainability promotes the use of ferric chloride in water treatment applications.

The Chinese government implemented work plans to prevent and regulate water and soil pollution, as well as raised fines for norm violations. Following the announcement of the 13th Five Year Plan, the Chinese government started the Water Pollution Prevention and Control action plan, which focuses mainly on preventing sectors from causing water pollution and has lead to a significant demand for wastewater treatment chemicals including ferric chloride in the country.

Expanding Electronics Industry

The electronics sector makes substantial use of ferric chloride to etch printed circuit boards. The growth of the electronics industry, fueled by growing demand for consumer electronics, automotive electronics and IoT devices, drives up demand for ferric chloride. High-quality etching chemicals are required to keep up with the continuous improvements in electronics manufacturing technology. Ferric chloride's efficiency in precise etching operations makes it a popular choice in the sector, promoting market growth.

According to the India Cellular & Electronics Association, the printed circuit board assembly market in India is anticipated to be worth US$ 24 billion in 2022 and would grow to US$ 88 billion by 2026. Furthermore, the demand for consumer gadgets, which implies the use of printed circuit board, like smartphones, PCs, tablets and other medical electronics products, is on the rise globally, with U.S., Germany, UK, India, China and Japan projected to stay at the top of the market.

Environmental and Health Concerns

Ferric chloride is a highly corrosive and toxic chemical that, if not handled appropriately, can pose substantial health risks to workers and potential environmental problems. The toxicity might result in rigorous handling and disposal rules, raising operational expenses. The manufacturing and use of ferric chloride can pollute the environment, especially if waste products are not properly processed. Concerns regarding ferric chloride's environmental footprint may hinder its usage, especially in places with severe environmental protection legislation.

Several countries have strict laws in place for the manufacturing, transit and disposal of ferric chloride. Adherence with REACH (Registration, Evaluation, Authorisation and Restriction of Chemicals) rules increases complexity and cost in regions such as the European Union. Similarly, in U.S., OSHA (Occupational Safety and Health Administration) standards necessitate elaborate safety protocols for handling and storage, which increases expenses.

Segment Analysis

The global ferric chloride market is segmented based on type, application, end-user and region.

Rising Demand of PCBs in Electronics Drives the Segment Growth

Printed Circuit Board (PCB) is expected to be the dominant segment with over 30% of the market during the forecast period 2024-2031. Ferric chloride (FeCl3) is commonly used in the etching process on printed circuit boards. PCBs are used to create electronic circuits. The global economy is undergoing rapid technological progress, increasing demand for PCBs.

The introduction of PCBs in connected vehicles has also propelled the demand for PCBs, since automobiles now have both wired and wireless technologies, allowing them to readily link with smartphones. Taiwan is currently one of the world's major producers of printed circuit boards. According to the Taipei Printed Circuit Association (TPCA), Taiwan's printed circuit board industry comprises around 33.9% of the global market.

Geographical Penetration

Rising Investments in Wastewater Solutions in Asia-Pacific

Asia-Pacific is expected to be the dominant region in the global Ferric Chloride market covering over 35% of the market. China is a large economy in Asia-Pacific, with the most industries in the world. It is expected to dominate the global ferric chloride market due to high demand from applications including water & wastewater treatment and printed circuit boards.

According to the International Trade Administration, China's industrial wastewater industry is estimated to reach US$ 19.4 billion by 2025. China intended to invest US$ 50 billion in several heavy-polluting industries as part of its development strategy to transform into a cleaner and more sustainable economy, with the goal of controlling wastewater generation. There are a great number of medium and low-order, single-, double- or multi-layer PCB goods with undetermined market demand in the area.

Competitive Landscape

The major global players in the market include Kemira Oyj, BASF SE, PVS Chemicals, Inc., Chemifloc Limited, Gulbrandsen Chemicals, Tessenderlo Group, BorsodChem, Bitterfelder Chemie GmbH, Sidra Wasserchemie GmbH and Zaclon LLC.

COVID-19 Impact Analysis

The pandemic disrupted the supply of raw materials used to produce ferric chloride. Lockdowns and limitations impacted iron ore mining activities as well as hydrochloric acid manufacturing, resulting in shortages and higher pricing. Lockdowns, border restrictions and a reduction in worker availability all caused significant delays to global transportation networks. The logistical issues affected the timely delivery of ferric chloride and its raw materials, resulting in delays and increased shipping costs.

Many ferric chloride production units were temporarily closed or operated at reduced capacity due to COVID-19-related health and safety measures. The reduction in production capacity resulted in supply shortages and increased operational costs. The epidemic caused labor shortages as workers were ill or were confined by lockdown measures. Labor scarcity impacted the efficiency and productivity of ferric chloride manufacturing plants.

Russia-Ukraine War Impact

Ferric chloride, a critical chemical used mostly in water and wastewater treatment, etching for printed circuit boards and the chlorination process in the chemical sector, has fluctuated due to geopolitical tensions. The battle hampered the availability of raw materials required for the manufacturing of ferric chloride. Ukraine and Russia are major providers of raw materials such as iron ore and hydrochloric acid, which are required for ferric chloride synthesis.

The volatility in the regions caused shortages and increased costs for key raw supplies. The war produced substantial disruptions in transportation routes, particularly in and around the Black Sea, which is an important area for shipping chemicals. Restrictions and blockades have worsened logistical issues, causing delays and increasing transit costs for ferric chloride.

By Type
• Anhydrous Ferric Chloride
• Liquid Ferric Chloride
• Ferric Chloride Hexahydrate

By Application
• Water and Wastewater Treatment
• Printed Circuit Board (PCB)
• Pigment Manufacturing
• Animal Nutrient Supplements
• Others

By End-User
• Pharmaceuticals
• Chemicals
• Electronics
• Metals & Metallurgy
• Municipal Wastewater Treatment
• Others

By Region
• North America
U.S.
Canada
Mexico
• Europe
Germany
UK
France
Italy
Russia
Rest of Europe
• South America
Brazil
Argentina
Rest of South America
• Asia-Pacific
China
India
Japan
Australia
Rest of Asia-Pacific
• Middle East and Africa

Key Developments
• In February 2022, Chemieanlagenbau Chemnitz has announced the commissioning of its first ferric chloride plant for client Al Kout Industrial Projects in Shuaiba, Persian Gulf, Kuwait. The factory employs feedstock such as iron scrap, hydrochloric acid and chlorine gas and has an annual output capacity of 20,000 tons of ferric chloride (FeCl3).
• In July 2021, Nouryon declared the completion of its base chemicals company's spin-out into a new company, Nobian. The company's base chemicals business comprises manufacturing and selling a variety of chemicals, including ferric chloride.

Why Purchase the Report??
• To visualize the global ferric chloride market segmentation based on type, application, end-user and region, as well as understand key commercial assets and players.
• Identify commercial opportunities by analyzing trends and co-development.
• Excel data sheet with numerous data points of ferric chloride market-level with all segments.
• PDF report consists of a comprehensive analysis after exhaustive qualitative interviews and an in-depth study.
• Product mapping available as excel consisting of key products of all the major players.

The global ferric chloride market report would provide approximately 62 tables, 59 figures and 205 pages.

Target Audience 2024
• Manufacturers/ Buyers
• Industry Investors/Investment Bankers
• Research Professionals
• Emerging Companies