Chlorinated Polyvinyl Chloride Market

Updated on : April 03, 2024

Chlorinated Polyvinyl Chloride Market

The global chlorinated polyvinyl chloride market was valued at USD 1.6 billion in 2023 and is projected to reach USD 2.7 billion by 2028, growing at 11.1% cagr from 2023 to 2028. The chlorinated polyvinyl chloride (CPVC) resin registered high growth in the residential sector, particularly in Asia Pacific. China and India were the largest markets for CPVC resin due to its significant application in plumbing systems, fire protection, chemical & industrial equipment, and power cable casing in these countries. The CPVC market is highly competitive, with both big and small players. This section will examine drivers, restraints, opportunities, and challenges.

The CPVC market has grown significantly due to its unique properties, allowing it to address specific challenges across various applications. The market’s expansion is driven by various factors, including the growing demand for robust and reliable materials in critical sectors.

Attractive Opportunities in CPVC Market Trends

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CPVC Market Dynamics

Driver: Growth of construction industry across the globe

CPVC resin is a dependable material that's gaining popularity in construction, especially in plumbing systems, due to the industry's growth in residential and commercial sectors. CPVC’s corrosion resistance and cost-effectiveness make it an attractive choice for plumbing applications. Infrastructure modernization and urbanization fuel the construction of new buildings, commercial spaces, and residential complexes in developed and emerging economies. As construction activities surge, the need for efficient, durable, and sustainable materials becomes more pronounced.

Restraint: High processing temperature than conventional PVC

While CPVC resin offers a range of enhanced properties that make it an attractive choice for various applications, there are certain processing challenges associated with its production and utilization. Manufacturing processes can be impacted by these challenges, influencing industries considering CPVC adoption. One of the prominent challenges in working with CPVC is its higher processing temperature than conventional PVC. The chlorination process elevates the melting point of CPVC, necessitating the use of higher temperatures during extrusion, injection molding, or other shaping processes, thereby posing difficulties in maintaining precise temperature control within production machinery and molds. The elevated processing temperature of CPVC may require manufacturers to use specialized equipment capable of withstanding higher temperatures.

Opportunity: Rapid urbanization and infrastructural development

The rapid growth and evolution of infrastructure worldwide present a substantial opportunity for innovative materials that can meet the demands of modern construction and urbanization. CPVC resin is poised to capitalize on this opportunity, finding a significant role in diverse infrastructure projects.

The expansion of wastewater treatment facilities to ensure environmental sustainability necessitates the use of materials that can withstand aggressive chemicals and corrosive environments. CPVC’s chemical resistance makes it a reliable choice for conveying and treating wastewater. As urban areas expand, the importance of fire safety systems in buildings and public spaces escalates. CPVC’s flame-retardant properties and ability to withstand high temperatures make it an excellent material for fire sprinkler systems and fire protection infrastructure.

Challenge: Increase in CPVC waste and microplastic pollution

Although CPVC resin offers numerous benefits, it is essential to address potential environmental concerns associated with its use. These concerns revolve around the long-term impact of CPVC on the environment and sustainability.

Unlike standard PVC, CPVC’s chlorination process can complicate its recycling. Separating CPVC from other plastics in the recycling stream can be challenging, leading to the downcycling or disposal of CPVC waste. Proper recycling infrastructure for CPVC is limited, leading to CPVC accumulation. Chlorine or other chemicals may be emitted due to CPVC accumulation and degradation. The long-term behavior of CPVC in various environmental conditions and its potential contribution to microplastic pollution require thorough assessment.

Chlorinated Polyvinyl Chloride Market Ecosystem

Extrusion grade of CPVC to register the largest market share in the CPVC market.

CPVC powder is mostly used to manufacture continuous and long shapes such as sheets and pipes, making extrusion-grade CPVC widely preferred. CPVC powder is fed into an extruder where it is melted and pushed through a die head to form the desired shape. The material then moves through additional downstream processing equipment to correct any present disproportions. After the extrusion process, which involves the melting and shaping of CPVC material, the end products, such as sheets and pipes, are cooled, hardened, and cut to be utilized in various applications. CPVC’s extrusion process is particularly effective in creating sheets and pipes as the manufacturing machine can operate continuously as long as there is material available.

Based on form, powder segment is anticipated to register the highest CAGR in the CPVC market.

The powder form is more versatile and can be easily tailored to meet the specific needs and requirements of the end-use applications. Powder CPVC allows manufacturers to produce various products to meet end-user expectations. CPVC powder is manufactured by chlorinating PVC resin. This process results in a product that offers outstanding temperature stability, chemical resistance, and impressive flame-retardant properties. The extent of the chlorination process determines the final properties of CPVC powder. It has wide applications in coatings & linings, injection molded products, pipe and fittings, industrial piping, and others.

Based on the sales channel, direct sales segment is anticipated to account for largest market share in CPVC market.

Direct distribution is a direct-to-consumer approach where the manufacturer controls all distribution aspects. Direct sales channel is opted by CPVC manufacturers who are more focused on providing customized products to end-use markets such as industrial piping, industrial fire suppression, and industrial fluid handling components. Customers from various industries buy specific, prequalified materials directly from suppliers.

Further, in direct sales, by managing all aspects of the distribution channel, manufacturers retain more control over how goods are delivered. They can cut out inefficiencies, add new services, and set prices.

Based on the production process, aqueous suspension method is expected to dominate the CPVC market.

The aqueous suspension method is a prominent production process for chlorinated polyvinyl chloride (CPVC) resin, known for its widespread applications in various industries. This method involves suspending PVC particles in water along with a chlorine source and subsequently subjecting the mixture to chlorination. The resulting CPVC resins attain enhanced heat resistance, flame retardancy, and chemical durability, making them highly suitable for applications demanding these qualities.

Based on the applications, plumbing systems is expected to dominate the CPVC market.

CPVC has extensive applications in plumbing systems as it is used mainly in hydronic piping and distribution, hot and cold water plumbing distribution, chilled water piping, etc., together with providing durability, corrosion-resistance, toughness, design flexibility, resilience, and high performance. CPVC is utilized in plumbing systems in a wide range of applications, including industrial piping, reclaimed water piping, pool & spa piping, residential piping, fittings, valves, connectors, and manifolds, among others. The chlorine molecules in the pipe effectively block the chlorine and chloramine in the water supply from attacking the pipe, making the material immune to chlorine degradation and extending its lifespan. CPVC pipes & fittings are also virtually impermeable and are not subject to unsafe leaching.

Based on the end-use industry, residential segment is anticipated to register the highest CAGR in the CPVC market

CPVC plays a crucial role in the residential application by providing durable and efficient plumbing solutions. It is extensively used in plumbing systems, delivering corrosion resistance and the ability to handle hot and cold water. CPVC ensures consistent water flow, facilitates hot water distribution, and connects appliances and fixtures securely. It also contributes to fire safety due to its flame-retardant properties in fire sprinkler systems. The versatility of CPVC extends to outdoor plumbing, water heater connections, and more, making it a material that enhances the reliability and convenience of residential plumbing systems.

Asia Pacific to hold the largest market share of CPVC market during the forecast period.

The increasing production of CPVC to cater to the domestic requirements of the residential, commercial, and industrial sectors is fueling the demand for CPVC in the region. The population growth and the growing number of end-use industries in Asia Pacific have also led to the growth of the CPVC market. An increasing number of construction projects, such as the Beijing New International Airport (China) and the South to North Water Transfer Project (China), are set up in the region. The region is estimated to be the most populated in the world, which creates opportunities for the growth of residential and commercial projects and, thereby, the CPVC market.

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Chlorinated Polyvinyl Chloride Market Players

The CPVC market is dominated by a few globally established players such as The Lubrizol Corporation (US), Sekisui Chemical Co., Ltd. (Japan), Meghmani Finechem Limited (India), Shandong Novista Chemical Co., Ltd. (China), Shandong Pujie Rubber & Plastic Co., Ltd. (China), Kaneka Corporation (Japan), Shandong Yada New Material Co., Ltd. (China), KEM ONE (France), Shandong Xuye New Materials Co., Ltd. (China), DCW Limited (India), Sundow Polymers Co., Ltd. (China), Mitsui & Co., Ltd. (Japan), Shanghai Chlor-Alkali Chemical Co., Ltd. (China), and Shandong Gaoxin Chemical Co., Ltd. (China) among others, are the key manufacturers that secured major contracts in the last few years. The major focus was given to the contracts and new product development due to the changing requirements across the world.

These companies are pursuing a variety of inorganic and organic strategies in order to gain a foothold in the CPVC market. The research includes a detailed competitive analysis of these key players in the CPVC market, including recent developments, company profiles, and key market strategies.

Read More: Chlorinated Polyvinyl Chloride Companies

Chlorinated Polyvinyl Chloride Market Report Scope

The study categorizes the CPVC market based on type, application, end-use industry, and region.

Chlorinated Polyvinyl Chloride Market by Grade:

• Injection Grade
• Extrusion Grade

Chlorinated Polyvinyl Chloride Market by Form:

• Pellet Form
• Powder Form

Chlorinated Polyvinyl Chloride Market by Sales Channel:

• Direct Sales
• Indirect Sales

Chlorinated Polyvinyl Chloride Market by Production Process:

• Aqueous Suspension Method
• Solvent Method
• Solid Phase Method

Chlorinated Polyvinyl Chloride Market by Application:

• Plumbing Systems
• Fire Protection Systems
• Chemical & Industrial Equipment
• Power Cable Casing
• Adhesives & Coatings
• Others

Chlorinated Polyvinyl Chloride Market by End-use Industry:

• Residential
• Commercial
• Industrial

Chlorinated Polyvinyl Chloride Market by Region:

• North America
• Asia Pacific
• Europe
• Latin America
• Middle East & Africa

Recent Developments

• In June 2023, The Lubrizol Corporation announced an investment of more than USD 150 million across several projects dedicated to its wide portfolio in India. Through this, the company is focusing on opening India’s largest CPVC resin production plant in Gujarat.
• In December 2022, DCW Limited announced its plans to expand the production of CPVC resin in India by commissioning a new manufacturing unit in the country.
• In December 2021, Apollo announced that it completed the acquisition of KEM ONE. This acquisition is helping KEM ONE to pursue its growth strategy and execution of growth plans. With its significant knowledge and successful track record, Appollo plans to leverage the knowledge along with the investment platform to support KEM ONE.
• In July 2021, Meghmani Finechem Limited expanded its CPVC production facility by setting up a new plant in Dahej, Gujarat. This plant has a production capacity of 30 KT per annum.
• In October 2020, The Lubrizol Corporation announced a partnership with Grasim Industries Limited, a flagship company belonging to the Aditya Birla Group. This partnership aims to manufacture and supply CPVC resin across India.

Frequently Asked Questions (FAQ):

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