July 19, 2024
Ferric Hydroxide Market

The Global Ferric Hydroxide Market is Driven by Growing Concrete Production

Ferric hydroxide, commonly known as rust, is a reddish-brown amorphous precipitate formed due to the oxidation and hydrolysis of ferrous iron. Ferric hydroxide is widely used as a coagulant in water purification plants owing to its property of binding suspended solids and heavy metals. It helps remove pollutants from wastewater by forming chemically bonded agglomerates with them which settles down in the water column. Around 70% of ferric hydroxide produced globally is used for water treatment applications.

The growing concrete production industry is one of the key end-users of ferric hydroxide. It is used as a setting regulator in concrete to control the hydration rate and improve workability. Ferric hydroxide allows concrete to retain its plasticity for an extended period which is essential for large construction projects requiring concrete being transported over long distances. Growing infrastructure development and construction spending particularly in developing Asian economies is bolstering the demand for concrete which in turn is driving the ferric hydroxide market. 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 the increasing use in wastewater treatment applications. Stringent environmental regulations regarding discharge of untreated industrial effluents into water bodies have been driving the installations of industrial wastewater treatment facilities globally. Ferric hydroxide is widely used as a coagulant in industrial wastewater treatment plants to remove toxic heavy metals and particulate impurities. Growing volume of industrial wastewater owing to rapid industrialization particularly in Asia Pacific region is estimated to further boost 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 due to the presence of established big players. However, new players can enter the market with novel technologies.

Bargaining power of buyers: The bargaining power of buyers is moderate as ferric hydroxide has applications across various end-use industries. Buyers can negotiate on the basis of volume and quality.

Bargaining power of suppliers: The bargaining power of suppliers is low due to the presence of multiple suppliers in the market. Suppliers depend on the demands of buyers.

Threat of new substitutes: The threat of new substitutes is low as ferric hydroxide has characteristics that are difficult to substitute.

Competitive rivalry: The competitive rivalry in the market is high due to the presence of numerous regional and international players.

Key Takeaways

The Global Ferric Hydroxide Market Share is expected to witness high growth.

Regional analysis: The Asia Pacific region dominates the global ferric hydroxide market and is expected to grow at the fastest rate during the forecast period. This is attributed to increasing demand from China, India, and other developing economies for water treatment applications.

Key players operating in the ferric hydroxide market are BASF SE, DowDuPont Inc., Thermax Global, Hunan Yide Chemical Co. Ltd., Coogee Chemicals Pty Ltd, SANDIMAK etc. BASF is one of the leading players with a wide product portfolio. Thermax Global specializes in water treatment applications.

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