Inorganic chemicals are a combination of two or more elements other than carbon. Carbon monoxide, carbon dioxide, carbides, carbonates, and cyanides are exceptions, as these are inorganic chemicals despite having carbon. Rising demand for inorganic chemicals in the fertilizers industry is expected to be one of the prime factors driving market growth. Moreover, due to stringent government regulations and stagnant economy in the developed countries of North America and Europe, the market is estimated to fuel growth of the market in emerging economies of Asia Pacific and Middle East. Cheap labor costs in countries such as China and India, makes these the preferred production hubs for global manufacturers. This helps reduce the overall cost of production of inorganic chemicals. Increasing environmental consciousness and implementation of stringent regulations influences market players to switch technology shifting and producing environment friendly products.
Inorganic Chemicals Market Taxonomy
On the basis of product type, the global market is classified into:
On the basis of geography, the global market is classified into:
Inorganic Chemicals Market Outlook – Surge in Demand for Ammonia for Agricultural Application Augmenting Market Growth
Population explosion witnessed over the last five decades has put considerable strain upon the already stretched thin agricultural sector. Moreover, rapid urbanization led to steep fall in farmland which force down the farmer for duel cultivation, characterized by large volumes of fertilizers being used to maintain optimum soil fertility. Nitrogen-based fertilizers are widely used by farmers, as it is easily available, cost-effective, and rather effective in increasing fertility of the soil. This in turn is expected to fuel the inorganic chemicals market during the forecast period. Ammonia is also used for cold storage and food preservation in the food & beverages industry. Moreover, the explosive manufacturing industry uses ammonium nitrate in bomb manufacturing. Asia Pacific is expected to be one of the most lucrative markets of manufacturers of inorganic chemicals, due to strengthening of the economy and strong agricultural base in China, India, and South East Asian countries.
Inorganic Chemicals Market Challenges – Fluctuating Crude Oil Price and Stringent Government Regulations
Fluctuating prices of crude oil and natural gas is expected to significantly dampen growth of inorganic chemicals market. Crude oil and natural gas are the basic building blocks of numerous inorganic chemicals industry. Moreover, the Frank R. Lautenberg Chemical Safety for 21st Century Act upon Toxic Chemicals and Chinese State Environment Protection Administration and General Administration of Custom has enforced strict regulation upon import and export of certain hazardous chemicals and pesticides. These are few challenges for inorganic chemical manufacturing company during the forecast period.
Inorganic Chemicals Market – Regulatory Scenario:
Key players in the inorganic chemicals market include Akzo Nobel, BASF SE, Bayer, The Dow Chemicals Company, DuPont, Evonik Industries, Formosa Plastics, Ineos, LG Chem, LyondellBasell Industries, Mitsubishi Chemicals, Sabic, The Royal Dutch Shell, Sinopec, Sumitomo Chemicals. Strategic mergers and acquisitions is the new trend in the industry. For instance, BASF SE and Avantium on March 15, 2016, collaborated to establish production and marketing of furandicarboxylic acid and PEF based. Moreover, May 10, 2016, BASF SE launch new cross linking and water based dispersion coating product.
Increasing adoption of inorganic chemicals in various industries is expected to boost the market growth. For instance, on September 10, 2019, Reflect Scientific, Inc., a provider of products and services for the biotechnology, pharmaceutical and transportation industries, released the Cryometrix L-80 liquid chiller, for the cannabis extraction market. The L-80 liquid chiller uses a liquid nitrogen cooling technology.
Key players in the market are focused on gaining product approvals to expand their product portfolio. For instance, in February 2018, Evonik Industries received pharmaceutical approvals for hydrogen peroxide (ASPERIX Vet) from the European Medicines Agency for salmon farming in the United Kingdom, Norway, and Iceland.
Key players in the market are focused on adopting partnership strategies to enhance their production capabilities in order to enhance their market share. For instance, in February 2018, AkzoNobel Specialty Chemicals and Evonik Industries started production of chlorine and potassium hydroxide at their new joint venture in Germany. The facility has a production capacity of 120,000 metric tons of potassium hydroxide and 75,000 metric tons of chlorine, annually.