February 24, 2024
Ferric Hydroxide Market

The Rising Demand From Water Treatment Industry Fuels The Growth Of The Global Ferric Hydroxide Market

Ferric hydroxide is a coagulating agent that is used for removal of suspended solids and dissolved substances from water during water treatment processes. It clumps the suspended particles together so that they can easily be removed from the water by sedimentation or filtration. The global demand for clean and potable water has increased rapidly owing rising population and industrialization. This has significantly boosted the consumption of ferric hydroxide for treatment of waste water from various industries as well as municipal water treatment plants.

The global ferric hydroxide market is estimated to be valued at US$ 3.6 Bn in 2023 and is expected to exhibit a CAGR of 5.4% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market key trends:

One of the key trends in the ferric hydroxide market is growing demand from wastewater treatment facilities. Rapid urbanization and industrialization have led to significant increase in wastewater volumes globally. Proper treatment of industrial and municipal wastewater is crucial before its discharge into natural water bodies. Ferric hydroxide plays a vital role in removal of suspended solids, dissolved organic and inorganic compounds from wastewater. Its use enables facilities to meet stringent discharge quality standards. As per industry estimates, over 80% of ferric hydroxide consumed globally is used for wastewater treatment applications. The increasing spending on upgrade and expansion of wastewater treatment infrastructure especially in emerging economies of Asia Pacific and Latin America is expected to drive the demand for ferric hydroxide over the forecast period.

Porter’s Analysis

Threat of new entrants: The threat of new entrants in the ferric hydroxide market is moderate. High capital requirements and established customer relationships of existing players increase barriers for new players. However, gaps in addressing niche applications can provide opportunities.
Bargaining power of buyers: Buyers have moderate bargaining power. Presence of numerous buyers and possibilities of substitutes provide options. However, established customer and supply chain relationships increase switching costs.
Bargaining power of suppliers: Suppliers have moderate bargaining power due to availability of alternatives and differentiated products. However, patent protections and customer product matching requirements increase dependence.
Threat of new substitutes: Threat from substitutes is moderate. Alternatives are available but none match ferric hydroxide’s performance across parameters like purity, toxicity and price. Significant R&D is required to match product profiles.
Competitive rivalry: The global ferric hydroxide market comprises large international and regional players. Intense competition exists on the basis of product differentiation, price and customer relationships.

Key Takeaways

The Global Ferric Hydroxide Market Demand is expected to witness high growth. Growing application in wastewater treatment, cosmetics and pharmaceuticals will drive volumes. The global ferric hydroxide market is estimated to be valued at US$ 3.6 Bn in 2023 and is expected to exhibit a CAGR of 5.4% over the forecast period 2023 to 2030.

Regional analysis: Asia Pacific holds major share of the ferric hydroxide market and is expected to witness fastest growth. Countries like China, India and Japan are major markets owing to wide processing industries, growing infrastructure and favorable regulations. North America and Europe are also sizable markets driven by environmental regulations regarding wastewater treatment.

Key players: Key players operating in the ferric hydroxide market are Brenntag, Chemtrade Logistics Inc., Clinty Chemicals, Delta chemicals, Huntsman, Kemira and Uniform. Players compete on parameters like product consistency, application development, pricing and customer relationships.

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