Ferric Chloride Market

• Growing demand for water treatment is driving the market growth

The rising demand for clean water and governing wastewater treatment drives market CAGR for ferric chloride. Ferric chloride is extensively used as a coagulant and flocculant in the treatment of drinking water, industrial wastewater, and sewage. Its ability to effectively remove contaminants such as suspended solids, heavy metals, and phosphates makes it a popular choice in the water treatment industry. The rising population, urbanization, and industrialization have led to rising water pollution worldwide. As a result, governments and regulatory bodies are imposing stricter standards for wastewater treatment, thereby driving the demand for ferric chloride.

Additionally, ferric chloride production technology advancements, such as developing high-purity grades, have further propelled its adoption in water treatment applications.

The electronics industry is another significant consumer of ferric chloride. Ferric chloride is commonly used as an etchant in manufacturing printed circuit boards (PCBs). PCBs are integral components of electronic devices and require precise and controlled etching processes to create circuit patterns. The demand for ferric chloride in the electronics sector is driven by factors such as the rapid growth of consumer electronics, the increasing adoption of Internet of Things devices, and the continuous advancements in electronic manufacturing techniques. Moreover, the trend toward miniaturizing electronic components has necessitated more sophisticated etching agents, further boosting the demand for ferric chloride.

While ferric chloride has been widely used in various industries, there is a growing focus on finding greener alternatives due to concerns about its environmental impact. Disposing of ferric chloride-based sludge generated during water treatment is a significant environmental concern. It has led to exploring alternative coagulants and flocculants that are more eco-friendly and produce less sludge. Poly aluminum chloride (PAC) and ferric sulfate are alternatives for water treatment applications. These alternatives offer comparable performance to ferric chloride, generating less sludge and reducing the environmental footprint.

As a result, some end-users are gradually shifting away from ferric chloride and adopting these greener alternatives, particularly in regions with stringent environmental regulations.

The need for clean water, strict wastewater treatment regulations, and technological advancements in ferric chloride production have contributed to its widespread adoption in water treatment applications. Simultaneously, the growth of the electronics industry and the trend toward miniaturization have fueled the demand for ferric chloride as an etchant in PCB manufacturing. However, concerns about the environmental impact of ferric chloride and sludge generation have led to a shift toward greener alternatives in some regions. The development and adoption of alternative coagulants and flocculants, such as PAC and ferric sulfate, provide opportunities for a more sustainable approach to water treatment.

As the  ferric chloride market evolves, stakeholders must stay informed about these trends and adapt their strategies accordingly. The demand for ferric chloride will likely remain strong in the foreseeable future, driven by the need for clean water and advancements in electronics manufacturing. At the same time, the exploration of greener alternatives will shape the industry's long-term sustainability, driving the Ferric Chloride market revenue.

June 2023

It has been said that a dendrite-free zinc-iron redox flow battery has been produced by researchers working in the postgraduate and research department of chemistry at Christ College in Kerala, India. "A Dendrite Free Zn-Fe Hybrid Redox Flow Battery for Renewable Energy Storage" is the title of the article that was first published in the journal that is dedicated to Energy Storage.

Materials like as vanadium, copper, iron, and lead were used in the past when redox-flow batteries were being manufactured. The researchers said that none of these were acceptable for commercialization owing to a variety of issues, including but not limited to high prices, toxicity, poor energy efficiency, low cell voltage, hydrogen evolution, and coulombic loss, to mention a few.

The Global Ferric Chloride Market Industry is characterized by various trends and projections that indicate its future trajectory. The market is expected to reach 7.6 USD Billion in 2024 and is projected to grow to 12.1 USD Billion by 2035, reflecting a robust growth pattern. The anticipated CAGR of 4.31% from 2025 to 2035 suggests a steady increase in demand across multiple sectors, including water treatment, electronics, and pharmaceuticals. These trends highlight the importance of ferric chloride in supporting industrial processes and environmental initiatives, positioning it as a critical component in various applications.

The Global Ferric Chloride Market Industry is significantly influenced by the electronics sector, where ferric chloride serves as an essential etching agent in the production of printed circuit boards (PCBs). As the demand for electronic devices continues to surge, driven by advancements in technology and increasing consumer electronics consumption, the need for ferric chloride is expected to rise correspondingly. The electronics industry is projected to expand, contributing to a robust growth trajectory for ferric chloride, which is anticipated to reach 12.1 USD Billion by 2035. This growth underscores the importance of ferric chloride in supporting the manufacturing processes of modern electronics.

The Global Ferric Chloride Market Industry is experiencing heightened demand due to its critical role in water treatment processes. Ferric chloride is widely utilized as a coagulant in municipal and industrial wastewater treatment facilities, effectively removing impurities and enhancing water quality. As global water scarcity issues intensify, municipalities are investing in advanced treatment technologies, thereby driving the demand for ferric chloride. In 2024, the market is projected to reach 7.6 USD Billion, reflecting the growing emphasis on sustainable water management practices. This trend is likely to continue as governments worldwide implement stricter regulations on water quality, further propelling the market forward.

The Global Ferric Chloride Market Industry is witnessing growth in pharmaceutical applications, where ferric chloride is utilized in various processes, including the production of iron supplements and as a reagent in analytical chemistry. The rising global population and increasing health awareness are driving the demand for pharmaceuticals, which in turn boosts the need for ferric chloride. As pharmaceutical companies expand their production capacities to meet consumer needs, the market for ferric chloride is likely to experience a steady increase. This trend aligns with the projected CAGR of 4.31% from 2025 to 2035, indicating a sustained demand for ferric chloride in the pharmaceutical sector.

The Global Ferric Chloride Market Industry is poised for growth due to the rapid industrialization in emerging markets. Countries in Asia-Pacific and Latin America are experiencing significant economic development, leading to increased industrial activities and, consequently, a higher demand for ferric chloride in various applications, including water treatment and manufacturing processes. As these regions continue to develop, the market for ferric chloride is expected to expand, driven by the need for effective wastewater treatment solutions and industrial processes. This trend indicates a promising future for the ferric chloride market, as industrialization in emerging economies creates new opportunities for growth.

The Global Ferric Chloride Market Industry benefits from regulatory support aimed at enhancing environmental sustainability. Governments worldwide are implementing policies that promote the use of ferric chloride in wastewater treatment and other environmental applications. These regulations encourage industries to adopt eco-friendly practices, thereby increasing the demand for ferric chloride as a preferred coagulant. As environmental concerns gain prominence, the market is expected to flourish, with ferric chloride playing a pivotal role in meeting regulatory requirements. This supportive regulatory framework is likely to contribute to the market's growth, ensuring that ferric chloride remains integral to environmental management strategies.

By region, the study provides market insights into North America, Europe, Asia-Pacific, and the Rest of the World. The North American Ferric Chloride market area will dominate this market due to the well-established water treatment infrastructure, stringent environmental regulations, and a strong presence of key market players. In addition, the rising demand for electronics and the growth of the chemical industry also contribute to the market's expansion.

Further, the major countries studied in the market report are The US, Canada, German, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.

Figure 2:  FERRIC CHLORIDE MARKET SHARE BY REGION 2022 (USD Billion)

Source: Secondary Research, Primary Research, Market Research Future Database, and Analyst Review

Europe's Ferric Chloride market accounts for the second-largest market share due to the mature industrial sector and a robust water treatment infrastructure. The European Union's stringent regulations regarding wastewater discharge and the growing emphasis on environmental sustainability propel the demand for ferric chloride in the region. Furthermore, the increasing demand for printed circuit boards (PCBs) and electronic components is driving the growth of the electronics industry, thereby augmenting the market's progress. Further, the German Ferric Chloride market held the largest market share, and the UK Ferric Chloride market was the rapid-growing market in the European region.

The Asia-Pacific Ferric Chloride Market is expected to grow at the fastest CAGR from 2023 to 2032. It is due to rapid industrialization and urbanization, leading to increased water consumption and wastewater generation. The rising population, improving living standards, and increasing government initiatives for water treatment and sanitation fuel the market's expansion. Additionally, the thriving electronics industry, especially in China and South Korea, is raising the demand for ferric chloride for PCB manufacturing. Moreover, China’s Ferric Chloride market held the largest market share, and the Indian Ferric Chloride market was the rapid-growing market in the Asia-Pacific region.

Leading market players are investing heavily in research and development to expand their product lines, which will help the Ferric Chloride market grow even more. Market participants are also undertaking various strategic activities to expand their  footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. The Ferric Chloride industry must offer cost-effective items to expand and survive in a more competitive and rising market climate.

Manufacturing locally to minimize operational costs is one of the key business tactics manufacturers use in the  Ferric Chloride industry to benefit clients and increase the market sector. The Ferric Chloride industry has offered some of the most significant medical advantages in recent years. Major players in the Ferric Chloride market, including Kemira (Finland), Tessenderlo Group (Belgium), Chemifloc LTD (Ireland), KEM ONE (France), Gulbrandsen (US), MALAY-SINO CHEMICAL INDUSTRIES SDN.

BHD (Malaysia), Sidra Wassercheime GmbH (Germany), Sukha Chemical Industries (India), Borsod Chem (Hungary), PVS Chemicals (US), BASF SE (Germany), Seqens Group (France), Feralco AB (France), and Saf Sulphur Company (Saudi Arabia), and others, are attempting to increase market demand by investing in research and development operations.

Nouryon Company, a  specialty chemicals leader operating in more than 80 countries, presently provides essential solutions to manufacture everyday products, which include personal care, cleaning, paints and coatings, agriculture and food, pharmaceuticals, and building products to the customers. The products include bleaching and oxidizing chemicals and technologies, polymer production and processing chemicals, and specialty polymers. In July 2021, the completion of Nouryon's base chemicals business's spin-out into a distinct company, Nobian, was announced. The company's core chemical business is the production and distribution of a range of chemicals, including ferric chloride.

Chemieanlagenbau Chemnitz GmbH, founded in 1811 in Chemnitz, Germany, is an international company specializing in plant and process engineering. The company does the planning for the commissioning of plants in the chemical industry. The business areas included are chloralkali electrolysis, sulfuric acid, natural gas storage, petrochemistry, and natural gas processing. In February 2022, the first ferric chloride facility for its customer Al Kout Industrial Projects (AIP) in Shuaiba in Kuwait's Persian Gulf was recently put into operation, according to a statement from Chemieanlagenbau Chemnitz.

The facility can produce 20,000 tonnes of ferric chloride (FeCl3) per year using feedstock like iron waste, hydrochloric acid, and chlorine gas.