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Chlorinated Paraffins Market Analysis by Segments, Size, Trends, Growth and Forecast 2023

Chlorinated Paraffins Market Analysis by Segments, Size,

Global Chlorinated Paraffins Market: Snapshot

Chlorinated paraffins are a complex group of synthetic compounds and are used extensively in a variety of metal forming and cutting applications. They are primarily used in industrial cutting fluids, especially for manufacturing of automobiles and automobile parts and for cutting oils. Growth in the plastics and metalworking industries, especially in developed regions, is a primary factor stimulating the demand for chlorinated paraffins worldwide.

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Most commonly and commercially used chlorinated paraffins are of m-grade consisting of medium carbon chain length of 14 to 17 carbons. They are cost-effective and their surging applications in commercial paints, adhesives, lubricating additives, and sealants are expected to drive the market in the coming years. The soaring use of polyvinyl chloride in various end-use industries such as the paints and plastics, steel, and textile industries is expected to spur the demand for chlorinated paraffins. Expanding applications in paints industry in various emerging regions account for a major demand for chlorinated paraffins.

The global market for chlorinated paraffins market is anticipated to rise at a CAGR of 3.2% from 2015 to 2023. Expanding at this pace, the opportunities in the market is projected to reach US$ 1.98 bn by 2023.

Asia Pacific Market to Grow at Impressive Pace

Based on geography, the global chlorinated paraffins market is segmented into North America, Europe, Latin America, Asia Pacific, and the Middle East and Africa (MEA). In terms of volume, Asia Pacific held a significant share of the global chlorinated paraffins market in 2014. Over the forecast period, this regional market is expected to grow at an impressive pace. The growth of the Asia Pacific market is attributed to easy availability of various raw materials and soaring application of chlorinated paraffins in the metalworking industry. The surging demand for PVC compounds is driven by rapid advances in the plastics industry. The soaring demand for chlorinated paraffins as metalworking fluids in the metalworking industries in various nations such as India, China, and ASEAN countries is expected to propel the market in the forthcoming years.

However, mounting concerns of detrimental effect on humans and wildlife and the toxicity of m-grade chlorinated paraffins to environment are likely to severely hamper their use in developed regions such as North America and Europe. Nevertheless, the expansion of the paints and lubricants market in various countries of Asia Pacific is expected to open exciting opportunities for players across the globe.

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Demand for H-grade Chlorinated Paraffins to Pick up Pace in Coming Years

On the basis of the carbon chain length, the major products are L-grade, M-grade, and H-grade. The market for M-grade occupied a major market share in 2015. The segment is anticipated to grow at an impressive pace due to their substantial use in lubricating additives, metalworking fluids, and PVC additives in developing regions. However, in the coming years, the demand for H-grade is projected to outpace that of M-grade.

Based on application, the market for chlorinated paraffins is segmented into lubricating additives, plastics additives, rubber, paints, and metalworking fluids. Among these, the metalworking fluids segment is a prominent one and accounted for a market share of more than 35% in 2014, measured in terms of their demand. Owing to their flame retardant properties, chlorinated paraffins find extensive use in various metalworking applications. Since chlorinated paraffins are stable and active for a wide range of temperature and condition, they have substantial demand in the metal working industry.

The global market for chlorinated paraffins market is highly fragmented with the presence of several companies of all sizes competing with each other. Major players operating in the chlorinated paraffins market include Aditya Birla Chemicals, KLJ Group, Qualice, LLC, Caffaro Industrie S.p.A., Química del Cinca, Leuna-Tenside GmbH, Makwell Group, NCP Chlorchem, INOVYN, Altair Chimica SpA, and Ajinomoto Fine-Techno.

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