Ferric Hydroxide Market Is Estimated To Witness High Growth Owing To Opportunity In Water Treatment

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Ferric Hydroxide Market Is Estimated To Witness High Growth Owing To Opportunity In Water Treatment

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.

Ferric hydroxide is an inorganic compound widely used as an iron supplement or as a coagulant in water treatment facilities. It naturally occurs in various ore deposits and is synthetically manufactured. Ferric hydroxide finds applications in removing toxins like arsenic and fluoride from drinking water. It forms hydrous ferric oxide flocs when added to contaminated water, which aids in trapping impurities and their removal through sedimentation or filtration.

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 Opportunity:

Stringent regulations regarding purification of drinking water across various countries present a lucrative opportunity for the ferric hydroxide market. Growing concerns over presence of heavy metals and toxic elements in water sources used for municipal supplies have prompted governments to impose strict maximum contaminant level guidelines. This has increased adoption of advanced treatment technologies using coagulants like ferric hydroxide. Furthermore, rising freshwater scarcity worldwide is augmenting investments in desalination plants that deploy ferric hydroxide on a large scale. The vital role played by ferric hydroxide in ensuring supply of clean potable water makes it a critical agent going forward.

Porter's Analysis

Threat of new entrants: The threat of new entrants is moderate as the ferric hydroxide market requires significant capital investment for raw material procurement and processing facilities. However, barriers to entry are not very high.

Bargaining power of buyers: The bargaining power of buyers is high due to the availability of substitutes. Buyers can easily switch to alternatives like activated carbon and zeolites.

Bargaining power of suppliers: The bargaining power of suppliers is moderate since raw materials required for ferric hydroxide production such as iron ore are commoditized.

Threat of new substitutes: The threat of new substitutes is high as alternative treatment chemicals like activated carbon and zeolites can be used for water treatment applications.

Competitive rivalry: The competitive rivalry is high owing to the presence of several global players operating in the market.

SWOT Analysis

Strength: Ferric hydroxide is highly efficient in removing phosphorus and arsenic from water. It is also cost-effective and widely used in municipal and industrial water treatment.

Weakness: Ferric hydroxide has a shorter lifespan and lower absorption capacity compared to some alternative treatment chemicals. Highly corrosive in nature.

Opportunity: Growing global water scarcity and stringent regulations regarding wastewater discharge present opportunities for market growth. Rapid urbanization in developing nations also boosts demand.

Threats: Economic slowdowns negatively impact the market as water treatment infrastructure projects may face budget cuts. Volatility in raw material prices is also a threat.

Key Takeaways

The Global Ferric Hydroxide Market Growth is expected to witness high over the forecast period of 2023-2030 propelled by increasing focus on water purification infrastructure development worldwide. 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.

The Asia Pacific region dominates the global market with India, China and Japan being the major consumers. Strong economic growth coupled with rising industrial and municipal wastewater volumes in the region drive the demand.

Key players operating in the ferric hydroxide market are Kemira Oyj, Chemifloc Ltd, Hunan Yide Chemical Co., Ltd., Lubon Industry Co., Ltd., and BorsodChem Zrt. Kemira dominates with its wide global presence and strong product portfolio for water treatment applications.