Vinyl Chloride Monomer (VCM) Market by Application (Polyvinyl chloride (PVC) and Other Applications) and Region - Analysis & Forecast 2019-2030
Report ID : 50 | Published Date : Apr 2019 | Pages : 150 | Region : Global | Report Code : CM-1
Vinyl Chloride Monomer (VCM) Market Overview and Introduction
Vinyl chloride monomer (VCM) market in terms of volume was over 52 million tons and is anticipated to grow at a CAGR of 6.3% from 2019 to 2030.
Vinyl Chloride Monomer (VCM) is highly flammable and colorless compound. Commercially it is made by combining feedstock with elemental chlorine. It is one of the widely used chemical. It is mainly used in the production of polyvinyl chloride (PVC). The remaining is used in chlorinated solvents and polyvinylidene chloride. VCM is used in various end-use industries such as construction, agricultural, healthcare and electrical.
Rising demand from construction industry is the major factor accelerating the market growth. VCM is majorly used in the production of polyvinyl chloride (PVC), which is used in the construction industry. The overall market for construction industry is anticipated to grow over US$ 15 trillion by 2030. Increase in demand from healthcare and piping industry is another factor propelling the market growth. Volatility in the prices of raw materials is the major factor inhibiting the market growth. Moreover, growing environmental concerns is another factor hindering the market growth. However, commercialization of bio-based VCM, made from bio-based feedstock is projected to offer huge traction towards the market growth over the forecast period of 2019-2030.
Vinyl Chloride Monomer (VCM) Market by Application
The market is segmented into PVC and other applications. In 2018, PVC accounted for more than 85% share of the market in terms of value and volume. It is anticipated, that PVC will maintain its dominance over the forecast period of 2019-2030. Thus, VCM follows the market trends of PVC very closely.
Vinyl Chloride Monomer (VCM) Market by Regions
In 2018, more than half of the market share was accounted by Asia Pacific region and this trend is anticipated to be the same over the forecast period. In 2018, China was the leading producer and consumer of VCM. India is another major country contributing towards the growth of VCM in Asia Pacific region. Huge demand is projected from these countries owing to rise in infrastructural development. In the same year, North America accounted for the second largest share of the market. After China, the US is the second largest consumer of VCM. The boom of shale gas in North America is providing the advantage of cheap feedstock to the VCM manufacturers. Therefore, North America is one of the lowest-cost VCM producers.
Vinyl Chloride Monomer (VCM) Market Prominent Players
The VCM market owing to its highly fragmented nature; is extremely competitive. Companies such as Formosa Plastics, the Dow Chemical Company, Occidental Petroleum and Axiall are some of the key players present in this market. To enhance their position and strengthen their market presence companies are shifting their focus towards the development of bio-based VCM. Other strategies adopted by market players are mergers and acquisition and technological development to minimize the cost and risk. Some of the other players present in this market are Nova Chemical, Bayer, Solvay, Sasol and Chemson Group among others.