April 22, 2024

Ferric Hydroxide Market to Witnesses High Growth Driven by Rising Usage in Various End-use Industries

It possesses properties like non-toxicity, corrosion resistance and flame retardance, making it widely used as an additive in paints, coatings, ceramics, pharmaceuticals and water treatment. Rising demand from these end-use industries has been supplementing the growth of ferric hydroxide market worldwide.

The Global ferric hydroxide market is estimated to be valued at US$ 4.15 Mn in 2024 and is expected to exhibit a CAGR of 5.4% over the forecast period from 2024 to 2031.

Key Takeaways
Key players operating in the Ferric Hydroxide Market Size are Faurecia, Magna International Inc., Lear Corporation, Grupo Antolin, Yanfeng Automotive Interiors, Adient, Grammer AG, Toyota Boshoku Corporation, DRÄXLMAIER Group, IAC Group, Calsonic Kansei Corporation, Sumitomo Riko Company Limited, Sage Automotive Interiors, TS Tech Co., Ltd., Sanko Gosei Ltd.

Some of the key opportunities in the global ferric hydroxide market include rising consumption in water treatment applications due to its ability to effectively remove arsenic, fluoride and other harmful elements from water. Rapid industrialization and infrastructural development has been boosting the paints and coatings industry, thereby augmenting the demand for ferric hydroxide. Moreover, technological advancement like development of nano-sized ferric hydroxide particles with enhanced absorption properties would further catalyze the market growth.

Market Drivers
The key drivers contributing to the growth of global ferric hydroxide market include rapid growth of end-use industries like paints and coatings, pharmaceuticals and water treatment. Rising demand for products with enhanced properties like corrosion and flame resistance has been fueling the consumption of ferric hydroxide. Furthermore, stringent regulations regarding wastewater discharge and treatment in various countries have positively impacted the usage of ferric hydroxide in water purification applications. Favorable government policies and growing infrastructural investment in developing nations are also anticipated to boost the ferric hydroxide market during the forecast period.

Challenges in the Ferric Hydroxide Market

The Ferric Hydroxide market is currently facing challenges related to fluctuations in raw material prices and disruptions in supply chains due to the Covid-19 pandemic. Ferric hydroxide is manufactured using iron ore as the key raw material. Prices of iron ore have witnessed significant volatility in the last year due to various global factors affecting demand-supply dynamics. Additionally, lockdowns imposed by various countries impacted transportation and logistical activities, adversely impacting the procurement of raw materials and distribution of ferric hydroxide products by manufacturers.

SWOT Analysis

Strength: High demand from end-use industries like water treatment and paints & coatings. Ferric hydroxide is a critical input in coagulants used for water purification.
Weakness: Vulnerability to raw material price fluctuations. Disruptions in iron ore supply can negatively impact ferric hydroxide production.
Opportunity: Development of applications in wastewater treatment plants as stringent regulations are enforced. Growing applications in pharmaceuticals industry for production of medicines.
Threats: Presence of substitute products; alternatives like ferric chloride and polyaluminum chloride usage in water treatment can replace ferric hydroxide.

Geographical Regions

In terms of value, Asia Pacific region accounts for the major share in the global ferric hydroxide market. This is mainly attributed to large presence of end-use industries like paints & coatings and water treatment in economies like China, India. North America also represents a significant market backed by stringent wastewater treatment regulations and high per capita water consumption in the US and Canada.

The fastest growing regional market is expected to be Asia Pacific between 2024-2031. This growth will be driven by rising industrialization, urbanization, population and infrastructure development activities across developing nations like India, Indonesia, Vietnam and Thailand augmenting demand from end-use industries. Additionally, implementation of new environmental norms for wastewater treatment will further bolster regional ferric hydroxide consumption.

Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it