Chloromethane Market - Growth, Trends, COVID-19 Impact, and Forecasts (2023 - 2028)

Chloromethane Market - Growth, Trends, COVID-19 Impact, and Forecasts (2023 - 2028)

The chloromethane market is projected to register a CAGR of over 4% during the forecast period.

COVID-19 negatively impacted the market in 2020. Owing to the pandemic, several countries worldwide went into lockdown to curb the spreading of the virus. The supply and demand chain was completely disrupted, impacting the demand for chloromethane from various applications such as agriculture, personal care, chemicals, etc. However, the condition recovered in 2021 and is expected to benefit the market during the forecast period.

• Over the short term, increasing usage of silicone in various end-user industries and growing demand from the pharmaceutical and personal care industries are driving the market growth.
• On the flip side, stringent regulations on chloromethane and the negative impact of the COVID-19 pandemic are the major restraints expected to hinder the market's growth.
• Ongoing research and development in the production of chloromethane are expected to offer various lucrative opportunities for market growth.
• By application, the silicone segment is expected to dominate the market owing to the increase in the usage of silicone elastomers in the construction and automotive industries.
• The Asia-Pacific region dominated the chloromethane market worldwide, with the largest consumption from countries such as China, India, and Japan.

• Most chloromethane produced is used as feedstock in manufacturing chemical intermediates like methyl chlorosilanes. These methyl chlorosilanes are employed in the production of silicone fluids.
• Silicone fluids made using chloromethane are used in a broad range of products, such as processing aids (antifoaming agents, release agents, and light-duty lubricants) and specialty chemicals for consumer products (cosmetics, furniture polishes, auto polishes, and paper coatings).
• According to Global Silicones Council, an estimated volume of 673,000 tons of silicone products are sold to the construction sector each year, the largest volumes sold among other sectors such as automotive, paints & coatings, and others. The revenue of the global construction industry is expected to grow steadily over the next few years and reach USD 4.4 trillion by 2030.
• Silicone resins are used in water-repellent resins, coatings, molding resins, electrical insulation, laminating resins, and others. Properties such as solubility in organic solvents, water-repellence, and flexibility, make silicones a better material of choice as intermediates.
• Silicone elastomers are used in automotive applications, like wire and cable insulation, and surgical and other medical applications. China was the leader in the global auto market in 2021, with sales of 26.27 million vehicles. The United States remains second at 15.4 million vehicles, followed by Japan at 4.44 million units.
• Moreover, in the construction industry, silicones are used in structural glazing and weatherproofing while contributing to the energy efficiency of buildings. They also help improve in-shop productivity, reduce material waste, extend building life, and reduce lifecycle costs.
• In 2021, the global production of silicon amounted to an estimated total volume of 8 million metric tons. China is the world's largest silicon producer, with a production volume estimated at six million metric tons in 2021, followed by Russia, which produced 580,000 metric tons in the same year.
• The factors above are expected to continue to drive the consumption of silicones in the coming years, thus driving the market for chloromethane.

• The Asia-Pacific region is expected to dominate the market for chloromethane during the forecast period. In countries like China, India, Japan, and South Korea, the demand for chloromethane is increasing in the region due to the increasing demand from various end-user industries.
• China is the second-largest market for pharmaceuticals globally. The pharmaceutical market is rapidly emerging due to the country's growing middle-class and aging society. The pharmaceutical sales of the country reached USD 175 billion by 2022. It is expected to boost the growth of chloromethanes used in pharmaceutical applications.
• China's pharmaceutical industry experienced rapid progress since the country entered the World Trade Organization. As of 2021, China holds 12% of the global pharmaceutical market, following the United States, responsible for 40% of the total revenue worldwide.
• In addition, the Chinese government promulgated Healthy China 2030, a blueprint outlining its ongoing intent to prioritize health as a precondition for sustained social and economic development.
• China is investing USD 1.43 trillion in major construction projects in the next five years till 2025. According to National Development and Reform Commission (NDRC), the Shanghai plan includes an investment of USD 38.7 billion in the next three years, whereas Guangzhou signed 16 new infrastructure projects with an investment of USD 8.09 billion.
• The Indian pharmaceutical sector is expected to grow to USD 100 billion, while the medical device market is expected to grow by USD 25 billion by 2025. In 2022, pharmaceutical exports from India were valued at USD 24.62 billion, which included pharmaceutical exports of bulk drugs, intermediates, drug formulations, and biologicals, among other products.
• India is the biggest vaccine exporter, responsible for around 65-70% of the World Health Organization (WHO) vaccine requirements. The exports of drugs & pharmaceuticals stood at USD 12,724.06 million, and exports of medicinal and pharmaceutical products stood at USD 4066.86 million from April 2022 to September 2022.
• In 2022, India contributed about USD 640 billion to the construction industry due to government initiatives in infrastructure development and affordable housing, such as housing to all, smart city plans, etc. The growing construction activities in the country are driving the demand for silicones, which, in turn, may drive the chloromethane market over the forecast period.
• The above factors and government support contribute to the increasing demand for chloromethanes during the forecast period.

The chloromethane market is consolidated, with top players accounting for a major market share. Some of the key companies in the market include Gujarat Alkalies and Chemical Limited, Occidental Petroleum Corporation, AGC Chemicals, Nouryon, and KEM ONE.

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