The Ferric Hydroxide Market is driven by increasing demand from water treatment industry

Author : Purvaja Jadhao | Published On : 02 Feb 2024

Ferric hydroxide is an inorganic compound which is commonly known as rust and is red-brown in color. It is widely used in water treatment process for purification of drinking water. Ferric hydroxide acts as a coagulant which binds with other impurities present in water to form larger particles that can be filtered easily. It ensures removal of harmful pollutants like heavy metals, inorganic compounds, microorganisms and suspended solids from water. The compound improves clarity and quality of water making it suitable for domestic and industrial consumption. It is also employed in wastewater treatment plants to treat industrial effluents before their release into water bodies. The growing concerns regarding water pollution and need for clean drinking water has augmented the use of ferric hydroxide in water treatment activities.

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 key trends: One of the major trends witnessed in the ferric hydroxide market is increasing investment in water treatment infrastructure. With growing population and rapid urbanization, the demand for clean water has increased significantly putting pressure on existing water resources and treatment facilities. This has prompted governments worldwide to allocate higher funds towards expansion and upgradation of water treatment plants. According to data by Organisation for Economic Co-operation and Development (OECD), the global investment in water supply and sanitation was estimated at US$ 153 billion in 2018 and is expected to grow steadily. The improved infrastructure will subsequently support the demand for water treatment chemicals including ferric hydroxide.

Porter's Analysis
Threat of new entrants: The threat of new entrants is moderate due to the high capital requirement needed to build manufacturing capabilities. While the technology used is not highly specialized, scaling production requires substantial investment.

Bargaining power of buyers: The bargaining power of buyers is moderate. While ferric hydroxide has many uses, buyers have some ability to drive prices lower by pitting suppliers against each other. However, switching costs are relatively low.

Bargaining power of suppliers: The bargaining power of suppliers is moderate to high given the specialized product and process knowledge needed. However, the number of suppliers is large reducing the impact of any single supplier.

Threat of new substitutes: The threat of new substitutes is moderate as there are alternatives that can replace ferric hydroxide in some applications. However, substitutes may have different chemical or performance properties limiting widespread adoption.

Competitive rivalry: Competitive rivalry is high due to the large number of players and maturity of the market. Product differentiation is low exerting pricing pressures.

Key Takeaways
The Global Ferric Hydroxide Market Demand is expected to witness high growth. 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.

Regional analysis: North America is expected to hold the largest share in the global market due to high consumption and technological advancements in the water treatment sector. Asia Pacific is anticipated to grow at the fastest rate owing to rising industrialization and population growth placing substantial pressure on water resources.

Key players: Key players operating in the ferric hydroxide market are Faurecia, Magna International Inc., Lear Corporation. Grupo Antolin, Yanfeng Automotive Interiors focuses on designing and manufacturing automotive interiors. Adient designs and manufactures seating and structural components for passenger vehicles. Grammer AG specializes in components and systems for automotive interiors. Toyota Boshoku Corporation is a major supplier of automotive seats and interior components. DRÄXLMAIER Group produces wiring harnesses, cockpit and door module systems. IAC Group supplies interior automotive components. Calsonic Kansei Corporation provides automobile interior and exterior systems.

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