Ferric hydroxide or iron(III) hydroxide is a chemical compound with formula Fe(OH)3. It occurs naturally as the mineral limonite. Ferric hydroxide is predominantly used as a coagulant in water treatment processes to reduce turbidity in water. It effectively binds with other particles in water and forms heavier aggregates which are then removed through sedimentation or filtration. With growing concerns over clean drinking water supply and stringent regulations regarding wastewater treatment, the demand for effective coagulants like ferric hydroxide is increasing steadily.
The global Ferric Hydroxide Market is estimated to be valued at US$ 4.15 Mn in 2024 and is expected to exhibit a CAGR of 5.4% over the forecast period 2024 to 2031, as highlighted in a new report published by Coherent Market Insights.
Market Opportunity
The rising global population is putting immense pressure on water resources. Rapid urbanization and industrialization have further deteriorated water quality in many parts of the world. According to a UN estimate, over 4 billion people globally will face water scarcity by 2025 due to increased demand and poor wastewater treatment facilities. This growing water crisis is expected to drive the demand for effective water treatment chemicals like ferric hydroxide. The water treatment industry is investing heavily inadvanced purification technologies to meet the clean water needs. The ferric hydroxide market will benefit considerably from this expected rise in spending on water infrastructure development projects globally.
Porter’s Analysis
Threat of new entrants: The ferric hydroxide market is moderately consolidated, as it requires high investments and established supply chain. However, threat of new entrants is high due to increasing demand from paints & coatings industry.
Bargaining power of buyers: Buyers have moderate bargaining power due to availability of substitutes and competitive prices. However, established brands ensure strong demand.
Bargaining power of suppliers: Suppliers have moderate bargaining power owing to availability of raw materials and scale of operations of key players. Suppliers can switch to alternative buyers.
Threat of new substitutes: Threat of substitutes such as synthetic pigments is moderate as properties of ferric hydroxide make it preferred in numerous applications.
Competitive rivalry: Competition is high due to presence of regional and international players. Players focus on new product launches and expansion strategies.
SWOT Analysis
Strengths: Wide applications, physicochemical properties, environmental compliance
Weaknesses: Fluctuating raw material prices, health hazards during production
Opportunities: Growth of end-use industries, development of eco-friendly production technologies
Threats: Substitute threats, stringent regulations, trade barriers
Key Takeaways
The Global Ferric Hydroxide Market Demand is expected to witness high growth during the forecast period owing to increasing demand from paints & coatings industry. The global Ferric Hydroxide Market is estimated to be valued at US$ 4.15 Mn in 2024 and is expected to exhibit a CAGR of 5.4% over the forecast period 2024 to 2031.
Regionally, Asia Pacific dominates the market and is expected to grow at fastest pace due to strong growth of end-use industries in countries such as China and India.
Key players operating in the ferric hydroxide market are Faurecia, Magna International Inc., Lear Corporation, Grupo Antolin, Yanfeng Automotive Interiors, Adient, Grammer AG, Toyota Boshoku Corporation, DRÄXLMAIER Group, IAC Group, Calsonic Kansei Corporation, Sumitomo Riko Company Limited, Sage Automotive Interiors, TS Tech Co., Ltd., Sanko Gosei Ltd. Players focus on new geographical expansion, product innovations, and collaborations.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
