Zinc chloride, or ZnCl2, is a deliquescent salt, which is white in color and forms acidic solutions in polar organic solvents such as ether, acetone, water and ethanol. Zinc Chloride is hygroscopic in nature and thus, must be kept away from water vapors and moisture sources. By adding zinc chloride and acetone, a neutral solution of Zinc Chloride is prepared. Zinc chloride is most commonly used for galvanizing, soldering and tinning fluxes, odour control, oil-gas wells, vulcanized fiber, reclaimed rubber, textile finishing, liquid fertilizer and dry cell batteries among others.
Sales revenue of the zinc chloride market is pegged at approximately 270.9 Mn in 2018 and is projected to reach a value of US$ 426.4 Mn by the end of 2028, expanding at a CAGR of 4.6% over the forecast period (2018 – 2028).
Factors influencing the Global Zinc Chloride Market Growth
The growing footprint of the chemical industry is a key reason contributing to the demand growth of metal based chemicals. Zinc chemical demand has been growing over the last few years as these solvents are used for different applications such as galvanizing, soldering and tinning fluxes, odour control, vulcanized fibre, and textile finishing, among others.
Demand for batteries in industrial and commercial applications is expected to rise similarly. The increasing consumer demand for batteries is forecast to match the demand for primary cells and dry cell batteries over the years. With advancements in technology, the demand for highly active advanced batteries is expected to rise. Zinc chloride batteries are considered as primary cell batteries and also used in dry cells. With growing consumption of battery grade zinc chloride in industrial applications, the zinc chloride market is estimated to grow significantly over the forecast period.
Catalysts are prominent materials used to increase the rate of chemical reactions without bringing any permanent changes. The catalyst industry is growing with the developing chemical and polymer industries. Moreover, the substantial demand for catalysts in industrial applications and from the automotive industry will also affect the growth of the zinc chloride market.
However, the global zinc chloride market is projected to face numerous challenges as zinc chloride is toxic in nature and can cause skin & eye burns. Zinc chloride and water, on contact with eyes, can cause permanent damage. Such factors are is further expected to hamper the zinc chloride market growth.
In order to sustain the market competition and expand the global footprint, zinc chloride manufacturers are entering developing markets such as India, Brazil, Poland and GCC countries, among others.
Global Zinc Chloride Market Segmentation and Forecast
The global zinc chloride market can be segmented on the basis of grade type, application, end use sector and region. On the basis of grade type, the global zinc chloride market can segmented into high purity grade, battery grade, technical grade and commercial grade. On the basis of application type, the global zinc chloride market can be segmented into dry cell batteries, water treatment, catalyst and others.
On the basis of end use sector, the market can further be segmented into electronics, chemical, agriculture, pharmaceutical and other. On the basis of the region, the global zinc chloride market can be segmented into nine regions: North America, Latin America, Eastern Europe, Western Europe, SEA (South East Asia) and Pacific, China, India, Japan and Middle East and Africa (MEA).
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Global Zinc Chloride Market Analysis by Grade Type
On the basis of type, the high purity grade zinc chloride segment is projected to witness a relatively higher growth rate. High purity based powder and solution form zinc chloride are used for different applications, including galvanizing and soldering fluxes. Thus, they are projected to gain significant shares over the forecast period. The battery grade segment is projected to witness moderate growth.
Global Zinc Chloride Market Analysis by Application
In terms of application, dry cell battery and catalyst segments are projected to hold dominant shares throughout the forecast period. With technological advancements related to dry cell battery manufacturing, zinc chloride has further fuelled the demand from this segment. The catalyst segment is projected to witness a relatively higher growth rate over the forecast period, expanding at a CAGR of 4.7 % over the forecast period.
Global Zinc Chloride Market Analysis by End Use
On the basis of end use, the global zinc chloride market is projected to be dominated by the chemical segment. Zinc chloride is widely used in the chemical industry for galvanizing fluxes, soldering and tinning fluxes, odour control, vulcanized fibre and textile finishing, among others. Agriculture and electronic industries are also projected to gain high traction over the forecast period. The pharmaceutical segment is projected to witness a relatively moderate growth rate over the forecast period.
Global Zinc Chloride Market Analysis by Region
From a regional perspective, China is projected to dominate the global zinc chloride market throughout the forecast period. The region has a production base for a number of global manufacturers and also exports to Asian and other countries. North America also holds a significant share of ~21.6% in the global zinc chloride market with the U.S. representing the major market demand. India is projected to be a higher growth rate country with significant growth opportunities in the latter half of the forecast period.
ASEAN, Poland, Brazil and other countries are majorly dependent on the import of zinc chloride from the U.S., China and Europe. Therefore, a number of manufacturers are planning to strategically invest in expanding their sales and production footprint in the region. Latin America and MEA are projected to remain low volume – high growth regions over the forecast period.
To understand and assess opportunities in the global zinc chloride market, we have divided the report into three sections based on market segmentation as under:
By Grade Type
- By High Purity Grade
- Battery Grade
- Technical Grade
- Commercial Grade
By Application Type
- Dry Cell Batteries
- Water Treatment
By End Use
- North America
- Latin America
- Eastern Europe
- Western Europe
- SEA and Pacific