Ferric hydroxide, also known as iron(III) hydroxide, is an inorganic compound with the chemical formula Fe(OH)3. It is an important water treatment chemical that is widely used as a coagulant in municipal water purification plants to remove organic contaminants, turbidity, and microorganisms. When added to water, ferric hydroxide forms complexes with compounds such as phosphates, arsenates, and fluorides, causing them to precipitate out of the water. It is also commonly used as a pigment, ripening inhibitor, and oxygen scavenger. The rising global demand for safe drinking water due to rapid urbanization and industrialization has been a key driver for 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 Dynamics:
One of the major drivers for the growth of the ferric hydroxide market has been its wide applications in the water treatment industry. As mentioned earlier, ferric hydroxide is predominantly used as a coagulant in water treatment plants to remove various contaminants from water. Stringent regulations regarding water quality and increasing investments towards improving water infrastructure in developing nations is expected to drive the demand for ferric hydroxide over the forecast period. In addition, the growing concern about water scarcity and need for potable water sources, especially in urban areas has necessitated greater use of water treatment chemicals like ferric hydroxide.
The rapid growth of industries such as power generation, oil & gas, mining, and food & beverage which require large quantities of treated water on a daily basis has also created lucrative opportunities for ferric hydroxide suppliers. Moreover, continuous expansions and capacity additions in the existing municipal water treatment facilities are further propelling market revenue growth.
Segment Analysis
The ferric hydroxide market is dominated by two main segments – solid ferric hydroxide and liquid ferric hydroxide. The solid ferric hydroxide segment accounts for nearly 65% of the overall market share due to its wide applications in wastewater treatment plants. Solid ferric hydroxide is preferred for treating large volumes of wastewater as it settles down rapidly and facilitates easier disposal.
PEST Analysis
Political: Stringent environmental regulations regarding wastewater treatment in various countries are boosting the demand for ferric hydroxide. This is expected to drive growth.
Economic: The growing industrial sector and rising urbanization are increasing wastewater volumes. This is expected to boost the need for efficient treatment and augur well for the ferric hydroxide market.
Social: Rising awareness about water conservation and the need for proper wastewater treatment are influencing positive industry growth.
Technological: New technologies that enable ferric hydroxide to more effectively remove phosphorus from wastewater are gaining traction. This is expected to support market expansion.
Key Takeaways
The Global Ferric Hydroxide Market Share is expected to witness high growth over the forecast period of 2023 to 2030.
Regional analysis: North America dominates the global market and is expected to grow at a CAGR of over 6% during the forecast period supported by stringent regulatory environment and presence of key players. Japan, China, Germany and India are other major markets for ferric hydroxide in the Asia Pacific and Europe regions respectively.
Key players operating in the ferric hydroxide market are Kemira Oyj, DuPont de Nemours Inc., BASF SE, PVS Chemicals and Sukha Chemicals. Kemira dominates the market with over 20% share due to its wide global presence and diverse product portfolio.
