Cyclopentane Market (2022 - 2030)

Cyclopentane Market Summary

Moreover, stringent government regulations and policies to eliminate the use of hydrochlorofluorocarbons (HCFC), increase the use of cyclopentane as a potential substitute, and ensure a sustainable future with the widespread application of cyclopentane. Rising awareness regarding various characteristics of cyclopentane like its wide range of applicability and environment-friendly nature is further expected to boost the demand for cyclopentane.

The COVID-19 pandemic negatively impacted the cyclopentane industry. The pandemic led to the sealing of national borders and the temporary shutdown of industries and markets in 2020. This caused a huge supply gap. However, there was a significant spike in the demand from the medical and food industries that led to a rise in demand for refrigerators, freezers, and cold storage, among others, which turned out to be positive for this industry. The market witnessed a recovery in 2021. However, at the beginning of 2022, there were fluctuations in crude oil supply and prices due to the Russia-Ukraine war. Nevertheless, it is expected to witness significant growth during the forecast period.

The ongoing R&D and technological developments promote the use of an environment-friendly blowing agent and its widespread adoption. Moreover, the need for cyclopentane across various sectors is expected to drive the market's growth. There is an increasing need to reduce the carbon emissions in the atmosphere caused due to HCFCs and prevent the ozone layer from depleting, which is one of the main factors driving the demand for green cyclopentane.

Cyclopentane is derived from a process that involves converting crude oil, and the chemical reaction and copolymerization of ethylene and hydrocarbons. Cyclopentane is used as a blowing agent for polyurethane (PU) foam. It is also used as a solvent for synthetic resins & rubber adhesives. Furthermore, rising awareness regarding sustainability and reducing CO2 emissions has forced manufacturers to adopt cyclopentane and focus on R&D activities.

The U.S. is required to gradually reduce its consumption and production of HCFCs as a member of the Montreal Protocol, with a complete phase-out in 2030. In 2015, HCFC usage must be brought to at least 90% of baseline levels. By 2020, it must be at least 99.5 percent below baseline levels. These factors will have a significant impact on the growth of the cyclopentane market.

Function Insights

The blowing agent & refrigerants segment accounted for the largest revenue share of 62.6% in 2021 and is expected to continue to dominate over the forecast period. This can be attributed to the increasing demand and use of cyclopentane across various industries, as a refrigerant in refrigerators, and as a blowing agent for insulation purposes. The rising healthcare & pharmaceutical industries and food & beverage industries require cyclopentane for its application in freezers, cold storage, and refrigerators, which is further expected to drive the segment growth.

The solvents & reagents segment is expected to grow at a CAGR of 7.1% over the forecast period 2022-2030. This can be attributed to the unique properties of cyclopentane as a solvent and additive for synthetic resins, rubber adhesives, and other application products. The fuel & fuel additives industry along with the plastics, polymers, and resins industry are the biggest consumer of cyclopentane as a solvent. Cyclopentane organic solvent offers properties like solubility and miscibility which makes it a good product for applications like manufacturing fuel and other related chemicals.

Application Insights

The refrigerators segment accounted for the largest market share of 63.2% in 2021 and is expected to retain its position over the forecast period. This can be attributed to the usage of cyclopentane in refrigerator applications, mainly as refrigerant and insulation, because it improves the shelf life of temperature-sensitive products. There has been an increase in demand for frozen foods and beverages and also from the healthcare industry to store drugs and other medicines, which is increasing the demand for refrigerators, which in turn is expected to propel the growth of the cyclopentane industry.

The insulated containers & sippers segment is expected to grow at the fastest CAGR of 8.3% over the forecast period of 2022-2030. The use of cyclopentane as a blowing agent in manufacturing insulated products is growing due to its thermal insulation properties. It helps in providing an alternative to HCFCs and reducing carbon emissions also the greater issue of energy leaks and consumption is administered.

The insulating construction material segment is also growing at a significant rate in Europe owing to the rise in the construction and buildings industry and rising awareness regarding energy saving. For instance, in November 2021, Haltermann Carless, a significant supplier of cyclopentane, will soon be able to provide the market with larger volumes of cyclopentane, eliminating the shortage of this crucial substance and allowing the insulation industry to reach their 2030 climate commitments in accordance with the European Green Deal.

Regional Insights

Asia Pacific accounted for the largest revenue share of 40.4% in 2021 owing to the use of cyclopentane applications in the electrical and appliance industry and the phasing out of HCFCs in the region. Factors such as the presence of major players, availability of raw materials, and the high adoption of cyclopentane post-Montreal Protocol are the key factors driving the regional market growth. China is the largest producer of cyclopentane and is set to maintain its global position in the world.

Europe accounted for the second-largest revenue share in 2021 and is anticipated to grow at a significant CAGR of 6.0% over the forecast period. The region is said to maintain its industry position in the coming years. Using advanced renovation materials like insulating materials, there is much potential for innovation to improve the construction process. These possibilities will be influenced by rising insulation thickness standards as well as consumer demand and preferences, manufacturer preferences, pricing, and resource availability. New laws and regulations from the government can also spur innovation. The rise in demand for thermal insulation contributes to regional growth.

Key Companies & Market Share Insights

This is a competitive market with the presence of various global and regional players. Globally leading companies are engaged in strategic initiatives like partnerships, collaborations, acquisitions, mergers, and agreements to withstand the intense competition and increase their market share. Cyclopentane manufacturers spend extensively on research and development activities to develop advanced products and integrate new technologies and characteristics to lead a sustainable future.

In February 2022, Zeon Corporation acquired a leading manufacturer of high-performance microplates called Aurora Microplates. This will help Zeon develop new strategies to provide products and materials in research and diagnostics. Through such initiatives, the market players continue to incorporate sustainability, providing improved cyclopentane applications, while expanding their market share. Some prominent players in the global cyclopentane market include:

• HCS Group GmbH

• Dymatic Chemicals, Inc

• Chevron Phillips Chemical Company

• SK geo centric Co. Ltd

• LG Chem

• Maruzen Petrochemical

• Liaoning Yufeng Chemical Co, Ltd

• Haldia Petrochemicals Limited

• YEOCHUN NCC CO. LTD

• SOUTH HAMPTON RESOURCES

• ZEON CORPORATION

• Puyang Zhongwei Fine Chemical Co. Ltd

Cyclopentane Market