Cyclopentane Market

The cyclopentane market size was USD 366 million in 2023 and is projected to reach USD 476 million by 2028 at a CAGR of 5.4% between 2023 and 2028. Cyclopentane is used across various applications such as residential refrigerators, commercial refrigerators, insulated containers and sippers, protecting construction materials, and electrical & electronics. The key factors driving the growth of this market are phasing out of HCFCs and other harmful blowing agents along with increasing demand for polyurethane foam insulation and expansion of end-use industries such as construction, refrigeration, automotive, and appliances is fueling the demand for cyclopentane.

Attractive Opportunities in the Cyclopentane Market

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Cyclopentane Market Dynamics

Driver: Global phase-out of HCFCs by 85% by late 2040s

HCFCs exhibit a low Ozone Depletion Potential (ODP), making them a recognized interim alternative to CFCs. In developing nations, starting January 1, 2013, there is a limit on the consumption of HCFC 141 b, followed by a gradual reduction over the course of 15 years until 2030. The Montreal Protocol stands as a globally recognized agreement, effectively safeguarding the Earth's ozone layer by orchestrating the gradual reduction in the production and use of ozone-depleting CFCs and HCFCs, while also facilitating technology transfer and financial assistance. Consequently, the anticipated complete phasing out of HCFCs is expected to bolster the demand for cyclopentane as a blowing agent.

Restraint: High Capital Investments

High capital investments present a significant obstacle to the growth of the global cyclopentane market. Establishing production infrastructure, conducting research and development, and ensuring regulatory compliance require substantial financial resources. Compliance costs, technological advancements, and market volatility further compound the financial challenges faced by companies in the industry. The need for ongoing investments in technology upgrades and innovation to remain competitive adds to the financial burden. Market fluctuations and economic uncertainty can deter investors and limit investment in cyclopentane production capacity expansion. Overall, careful evaluation of financial risks and rewards is essential for companies navigating the high capital requirements of the cyclopentane market.

Opportunity: Increasing use of blowing agents in the construction, automotive, and appliance industries

The utilization of blowing agents has surged across various industries including construction, automotive, and appliances. This rise can be largely attributed to the favorable properties inherent in blowing agents, particularly their insulation and physical integration capabilities, allowing them to effectively formulate polyurethane foam. Furthermore, there has been a notable increase in the demand for cyclopentane within the appliance sector in both Europe and Asia. The expansion of these industries is forecasted to fuel the demand for blowing agents, consequently leading to a heightened usage of cyclopentane.

Challenge: Flammability of cyclopentane

Due to its flammable nature, employing cyclopentane as a blowing agent introduces several risks. With an explosion limit of 1.1–8.7% by volume in air, stringent regulations must be adhered to by users. These precautions are necessary for both the utilization and storage of cyclopentane. Consequently, its flammability presents challenges for both users and manufacturers alike.

Cyclopentane Market: Ecosystem

The blowing agent & refrigerant segment is projected to be the largest segment in terms of volume and value during the forecast period.

Based on function, the blowing agent & refrigerant segment held the largest share in 2023, mainly driven by its extensive use in producing polyurethane foam insulation. Cyclopentane serves as a key blowing agent in the manufacturing process of polyurethane foam, which finds widespread applications in various industries such as construction, refrigeration, automotive, and appliances. The growing demand for energy-efficient insulation materials, driven by regulatory mandates, environmental concerns, and increasing sustainability awareness, has significantly boosted the demand for cyclopentane in this segment. Additionally, the phase-out of ozone-depleting substances and the transition towards eco-friendly blowing agents have further propelled the adoption of cyclopentane in the Blowing Agent & Refrigerant segment, contributing to its dominant market share.

Insulated containers and sippers are expected to be the largest segment of the cyclopentane market by material during the forecast period.

By application, in 2023, the insulated containers and sippers segment holds the highest market share in the cyclopentane market, primarily due to the widespread use of cyclopentane-based insulation materials in various containers and sippers. Cyclopentane is a critical blowing agent in producing polyurethane foam insulation, which offers excellent thermal insulation properties essential for maintaining temperature consistency in insulated containers and sippers. These containers and sippers are extensively utilized for storing and transporting food, beverages, pharmaceuticals, and other temperature-sensitive products, especially in food and beverage, healthcare, and pharmaceuticals. The increasing demand for insulated containers and sippers, driven by factors such as growing consumer preference for convenience, rising demand for on-the-go food and beverage consumption, and stringent regulations regarding food safety and preservation, has significantly contributed to the dominance of this segment in the cyclopentane market.

By region, Asia Pacific dominated the market in 2023 by volume

The demand for cyclopentane is driven by its use in refrigerant applications. The significant presence of leading consumer appliance manufacturers like Daikin (Japan), Samsung (South Korea), LG (South Korea), and Videocon Industries Limited (India) contributes to the expansion of the regional refrigerants market. This, in turn, propels the growth of the cyclopentane market.

Source: Secondary Research, Expert Interviews, and MarketsandMarkets Analysis.

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Key Market Players

Some of the key market players include HCS Group (Germany), Jilin Beihua Fine Chemical Co., Ltd. (China), Dymatic Chemicals, Inc. (China), INEOS (UK), Liaoning Yufeng Chemical Co., Ltd. (China), Maruzen Petrochemical (Japan), SK Global Chemical Co., Ltd. (South Korea), Haldia Petrochemicals Limited (India), Junyuan Petroleum Group (China), Zeon Corporation (Japan), and many more. These players have adopted investment, consortium, and partnership growth strategies.

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Scope of the Report

This research report categorizes the cyclopentane market based on function, application, and region.

Based on Function, the cyclopentane market has been segmented as follows:

• Blowing agent & refrigerant
• Solvent & reagent
• Others

Based on Application, the cyclopentane market has been segmented as follows:

• Residential Refrigerator
• Commercial Refrigerator
• Insulated Containers And Sippers
• Insulating Construction Material
• Electrical & Electronics
• Personal Care Products
• Fuel & Fuel Additives
• Others

Based on Region, the cyclopentane market has been segmented as follows:

• North America
  • US
  • Canada
  • Mexico
• Europe
  • Germany
  • UK
  • France
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • India
  • Japan
  • South Korea
  • Rest of Asia Pacific
• South America
  • Brazil
  • Argentina
  • Rest of South America
• Middle East & Africa
  • GCC Countries
    • UAE
    • Saudi Arabia
    • Rest of GCC
  • South Africa
  • Rest of Middle East & Africa

Recent Developments

• In July 2021, Haltermann Carless, a company of the HCS Group, completed a new hydrogenation plant at the German site in Speyer. As a result, Haltermann Carless will become the largest Cyclopentane producer worldwide. The company has set to bolster its Cyclopentane production capacity by up to 70% starting from Q1 2022.
• In February 2022, Zeon Corporation completed the acquisition of Aurora Microplates, a prominent manufacturer of high-performance microplates. This strategic move positions Zeon to devise novel strategies for offering products and materials in the domains of research and diagnostics. Such endeavors underscore the commitment of market players toward sustainability, enhancing the application of cyclopentane while concurrently broadening their market presence.

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