Cyclopentane Market by Function (Blowing Agent & Refrigerant, Solvent & Reagent), Application (Residential Refrigerators, Commercial Refrigerators, Insulated Containers, Insulating Construction Materials, Electrical), and Region - Global Forecast to 2028
The cyclopentane market size was USD 366 million in 2023 and is projected to reach USD 476 million by 2028 at a CAGR of 5.4% between 2023 and 2028. Cyclopentane is used across various applications such as residential refrigerators, commercial refrigerators, insulated containers and sippers, protecting construction materials, and electrical & electronics. The key factors driving the growth of this market are phasing out of HCFCs and other harmful blowing agents along with increasing demand for polyurethane foam insulation and expansion of end-use industries such as construction, refrigeration, automotive, and appliances is fueling the demand for cyclopentane.
Attractive Opportunities in the Cyclopentane Market
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Cyclopentane Market Dynamics
Driver: Global phase-out of HCFCs by 85% by late 2040s
HCFCs exhibit a low Ozone Depletion Potential (ODP), making them a recognized interim alternative to CFCs. In developing nations, starting January 1, 2013, there is a limit on the consumption of HCFC 141 b, followed by a gradual reduction over the course of 15 years until 2030. The Montreal Protocol stands as a globally recognized agreement, effectively safeguarding the Earth's ozone layer by orchestrating the gradual reduction in the production and use of ozone-depleting CFCs and HCFCs, while also facilitating technology transfer and financial assistance. Consequently, the anticipated complete phasing out of HCFCs is expected to bolster the demand for cyclopentane as a blowing agent.
Restraint: High Capital Investments
High capital investments present a significant obstacle to the growth of the global cyclopentane market. Establishing production infrastructure, conducting research and development, and ensuring regulatory compliance require substantial financial resources. Compliance costs, technological advancements, and market volatility further compound the financial challenges faced by companies in the industry. The need for ongoing investments in technology upgrades and innovation to remain competitive adds to the financial burden. Market fluctuations and economic uncertainty can deter investors and limit investment in cyclopentane production capacity expansion. Overall, careful evaluation of financial risks and rewards is essential for companies navigating the high capital requirements of the cyclopentane market.
Opportunity: Increasing use of blowing agents in the construction, automotive, and appliance industries
The utilization of blowing agents has surged across various industries including construction, automotive, and appliances. This rise can be largely attributed to the favorable properties inherent in blowing agents, particularly their insulation and physical integration capabilities, allowing them to effectively formulate polyurethane foam. Furthermore, there has been a notable increase in the demand for cyclopentane within the appliance sector in both Europe and Asia. The expansion of these industries is forecasted to fuel the demand for blowing agents, consequently leading to a heightened usage of cyclopentane.
Challenge: Flammability of cyclopentane
Due to its flammable nature, employing cyclopentane as a blowing agent introduces several risks. With an explosion limit of 1.1–8.7% by volume in air, stringent regulations must be adhered to by users. These precautions are necessary for both the utilization and storage of cyclopentane. Consequently, its flammability presents challenges for both users and manufacturers alike.
Cyclopentane Market: Ecosystem
The blowing agent & refrigerant segment is projected to be the largest segment in terms of volume and value during the forecast period.
Based on function, the blowing agent & refrigerant segment held the largest share in 2023, mainly driven by its extensive use in producing polyurethane foam insulation. Cyclopentane serves as a key blowing agent in the manufacturing process of polyurethane foam, which finds widespread applications in various industries such as construction, refrigeration, automotive, and appliances. The growing demand for energy-efficient insulation materials, driven by regulatory mandates, environmental concerns, and increasing sustainability awareness, has significantly boosted the demand for cyclopentane in this segment. Additionally, the phase-out of ozone-depleting substances and the transition towards eco-friendly blowing agents have further propelled the adoption of cyclopentane in the Blowing Agent & Refrigerant segment, contributing to its dominant market share.
Insulated containers and sippers are expected to be the largest segment of the cyclopentane market by material during the forecast period.
By application, in 2023, the insulated containers and sippers segment holds the highest market share in the cyclopentane market, primarily due to the widespread use of cyclopentane-based insulation materials in various containers and sippers. Cyclopentane is a critical blowing agent in producing polyurethane foam insulation, which offers excellent thermal insulation properties essential for maintaining temperature consistency in insulated containers and sippers. These containers and sippers are extensively utilized for storing and transporting food, beverages, pharmaceuticals, and other temperature-sensitive products, especially in food and beverage, healthcare, and pharmaceuticals. The increasing demand for insulated containers and sippers, driven by factors such as growing consumer preference for convenience, rising demand for on-the-go food and beverage consumption, and stringent regulations regarding food safety and preservation, has significantly contributed to the dominance of this segment in the cyclopentane market.
By region, Asia Pacific dominated the market in 2023 by volume
The demand for cyclopentane is driven by its use in refrigerant applications. The significant presence of leading consumer appliance manufacturers like Daikin (Japan), Samsung (South Korea), LG (South Korea), and Videocon Industries Limited (India) contributes to the expansion of the regional refrigerants market. This, in turn, propels the growth of the cyclopentane market.
Source: Secondary Research, Expert Interviews, and MarketsandMarkets Analysis.
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Key Market Players
Some of the key market players include HCS Group (Germany), Jilin Beihua Fine Chemical Co., Ltd. (China), Dymatic Chemicals, Inc. (China), INEOS (UK), Liaoning Yufeng Chemical Co., Ltd. (China), Maruzen Petrochemical (Japan), SK Global Chemical Co., Ltd. (South Korea), Haldia Petrochemicals Limited (India), Junyuan Petroleum Group (China), Zeon Corporation (Japan), and many more. These players have adopted investment, consortium, and partnership growth strategies.
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Report Metric |
Details |
|
Market Size Available for Years |
2019–2028 |
|
Base Year Considered |
2022 |
|
Forecast Period |
2023–2028 |
|
Forecast Units |
Value (USD Million) |
|
Segments Covered |
By Function, Application, and Region |
|
Geographies Covered |
Asia Pacific, North America, Europe, Middle East & Africa, and South America |
|
Companies Covered |
HCS Group (Germany), Jilin Beihua Fine Chemical Co., Ltd. (China), Dymatic Chemicals, Inc. (China), INEOS (UK), Junyuan Petroleum Group (China), Liaoning Yufeng Chemical Co., Ltd. (China), Maruzen Petrochemical (Japan), Yeochun NCC Co., Ltd. (South Korea), SK Global Chemical Co., Ltd. (South Korea), Haldia Petrochemicals Limited (India), Puyang Zhongwei Fine Chemical Co, Ltd. (China), Zeon Corporation (Japan) |
This research report categorizes the cyclopentane market based on function, application, and region.
Based on Function, the cyclopentane market has been segmented as follows:
- Blowing agent & refrigerant
- Solvent & reagent
- Others
Based on Application, the cyclopentane market has been segmented as follows:
- Residential Refrigerator
- Commercial Refrigerator
- Insulated Containers And Sippers
- Insulating Construction Material
- Electrical & Electronics
- Personal Care Products
- Fuel & Fuel Additives
- Others
Based on Region, the cyclopentane market has been segmented as follows:
-
North America
- US
- Canada
- Mexico
-
Europe
- Germany
- UK
- France
- Italy
- Rest of Europe
-
Asia Pacific
- China
- India
- Japan
- South Korea
- Rest of Asia Pacific
-
South America
- Brazil
- Argentina
- Rest of South America
-
Middle East & Africa
-
GCC Countries
- UAE
- Saudi Arabia
- Rest of GCC
- South Africa
- Rest of Middle East & Africa
-
GCC Countries
Recent Developments
- In July 2021, Haltermann Carless, a company of the HCS Group, completed a new hydrogenation plant at the German site in Speyer. As a result, Haltermann Carless will become the largest Cyclopentane producer worldwide. The company has set to bolster its Cyclopentane production capacity by up to 70% starting from Q1 2022.
- In February 2022, Zeon Corporation completed the acquisition of Aurora Microplates, a prominent manufacturer of high-performance microplates. This strategic move positions Zeon to devise novel strategies for offering products and materials in the domains of research and diagnostics. Such endeavors underscore the commitment of market players toward sustainability, enhancing the application of cyclopentane while concurrently broadening their market presence.
Frequently Asked Questions (FAQ):
What is the key driver and opportunity for the cyclopentane market?
Global phase-out of HCFCs by 85% by late 2040s and increasing use of blowing agents in the construction, automotive, and appliance industries are the primary drivers and opportunities, respectively.
Which region is expected to hold the highest market share in the cyclopentane market?
The cyclopentane market in Asia Pacific is expected to dominate the market share in 2028 due to rapid development and investment in the construction, automotive, and appliance industries.
What function of the cyclopentane market accounts for a significant share?
Blowing agents & refrigerants account for a significant share of the cyclopentane market.
Who are the major service providers of cyclopentane?
The key manufacturers operating in the market are HCS Group (Germany), Junyuan Petroleum Group (China), INEOS (UK), Zeon Corporation (Japan), and Haldia Petrochemicals Limited (India).
What total CAGR is expected for the cyclopentane from 2023 to 2028?
The market is expected to record a CAGR of 7.8% from 2023-2028. .
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The study involved four major activities in estimating the current size of the cyclopentane market—exhaustive secondary research collected information on the market, peer markets, and parent markets. The next step was to validate these findings, assumptions, and size with industry experts across the cyclopentane value chain through primary research. Both top-down and bottom-up approaches were employed to estimate the complete market size. After that, market breakdown and data triangulation were used to estimate the market size of segments and subsegments.
Secondary Research
Secondary sources for this research study include annual reports, press releases, investor presentations of companies, white papers, certified publications, and articles by recognized authors, gold- and silver-standard websites, cyclopentane manufacturing companies, regulatory bodies, trade directories, and databases. Secondary research was mainly used to obtain critical information about the industry’s supply chain, the total pool of key players, market classification, and segmentation according to industry trends at the bottom-most level and regional markets. It has also been used to obtain information about key developments from a market-oriented perspective.
Primary Research
The cyclopentane market comprises several stakeholders, such as raw material suppliers, processors, end-use industries, and regulatory organizations in the supply chain. The market's demand side is characterized by cyclopentane manufacturers, importers/exporters, and manufacturers engaged in the production of various products. Key technology providers for cyclopentane, end users, researchers, and service providers represent the supply side.
In the primary research process, various primary sources from the supply and demand sides of the market have been interviewed to obtain qualitative and quantitative information. The prior interviewees from the demand side included key opinion leaders, executives, vice presidents, and CEOs of construction companies. The primary sources from the supply side included research institutions involved in R&D activities to introduce new technologies, key opinion leaders, distributors, and cyclopentane manufacturing companies.
Breakdown of the Primary Interview
Notes: Other designations include sales managers, engineers, and regional managers.
Tier 1 company—revenue >USD 5 billion, tier 2 company—revenue between USD 1 and USD 5 billion, and tier 3 company—revenue <USD 1 billion
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Market Size Estimation
Both the top-down and bottom-up approaches have been used to estimate and validate the total size of the cyclopentane market. These approaches have also been used extensively to estimate the size of various dependent market subsegments. The research methodology used to estimate the market size included the following:
The following segments provide details about the overall market size estimation process employed in this study
- The key players in the market were identified through secondary research.
- The respective regions' market shares were identified through primary and secondary research.
- The value chain and market size of the cyclopentane market, in terms of volume and value, were determined through primary and secondary research.
- All percentage shares, splits, and breakdowns were determined using secondary sources and verified through primary sources.
- All possible parameters that affect the market covered in this research study were accounted for, viewed in extensive detail, verified through primary research, and analyzed to obtain the final quantitative and qualitative data.
- The research included the study of annual and financial reports of the top market players and interviews with industry experts, such as CEOs, VPs, directors, sales managers, and marketing executives, for critical insights, both quantitative and qualitative.
Global Cyclopentane Market Size: Bottom-Up Approach
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Global Cyclopentane Market Size: Top-Down Approach
Data Triangulation
After arriving at the overall market size from the estimation process explained below, the total market was split into several segments and subsegments. The data triangulation and market breakdown procedures were employed, wherever applicable, to complete the overall market engineering process and arrive at the exact statistics for all the segments and subsegments. The data was triangulated by studying various factors and trends from both the demand and supply sides. The market was also validated using both the top-down and bottom-up approaches.
Market Definition
The cyclopentane market encompasses a global economic ecosystem centered around producing, distributing, and consuming cyclopentane, a highly flammable alicyclic hydrocarbon widely used as a blowing agent in polyurethane foam insulation manufacturing. This market involves stakeholders like manufacturers, suppliers, distributors, and end-users across the cyclopentane supply chain. Key components include production facilities employing processes like hydrogenation or cracking and the intricate supply chain network facilitating movement from production to end-users in industries ranging from construction to pharmaceuticals. Governed by regulatory standards ensuring safety and environmental compliance, the market is also influenced by technological advancements, shifting consumer preferences, and economic conditions. It underscores its significance in providing essential raw materials for insulation, refrigeration, and other industrial applications while being sensitive to global supply-demand dynamics.
Market participants engage in activities such as research and development, innovation, and strategic partnerships to enhance product offerings and expand their market share. Consumer industries seek cyclopentane solutions that align with their requirements, contributing to the overall growth and evolution of the cyclopentane market.
Key Stakeholder
- Cyclopentane manufacturers
- Cyclopentane traders, distributors, and suppliers
- End users of cyclopentane
- Government and research organizations
- Associations and industrial bodies
- Research and consulting firms
- Research & development (R&D) institutionss
- Environmental support agencies
- Investment banks and private equity firms
Report Objectives
MARKET INTELLIGENCE
- To analyze and forecast the size of the cyclopentane market in terms of value and volume
- To define, describe, and forecast the market size by function, end-use industry, and region
- To indicate the market size concerning five main areas, namely, North America, Europe, Asia Pacific, the Middle East & Africa, and South America
- To provide detailed information about the key factors influencing the growth of the market (drivers, restraints, opportunities, and challenges)
- To strategically analyze the market segments concerning individual growth trends, prospects, and their contribution to the market
- To explore the opportunities in the market for stakeholders and provide a competitive landscape for market leaders
- To analyze competitive developments, such as product launches, expansions, contracts, partnerships, and agreements as in the cyclopentane market
COMPETITIVE INTELLIGENCE
- To identify and profile the key players in the cyclopentane market
- To determine the top players offering various products in the cyclopentane market
- To provide a comparative analysis of the market leaders based on the following:
- Product offerings
- Business strategies
- Strengths and weaknesses
- Key financials
- To understand the competitive landscape of the market and identify the key growth strategies adopted by the leading players across critical regions
Available Customizations
With the given market data, MarketsandMarkets offers customizations according to client-specific needs.
The following customization options are available for the report:
- Additional country-level analysis of the cyclopentane market
- Profiling of additional market players (up to 5)
Product Analysis
- Product matrix, which gives a detailed comparison of the product portfolio of each company.
Generating Response ...
Growth opportunities and latent adjacency in Cyclopentane Market