The cupric chloride market covers copper (II) chloride, which is widely used as an agricultural fungicide and wood preservative. Copper (II) chloride has high efficacy against various fungal pathogens and is also inexpensive compared to alternatives. It works by interfering with the respiration of fungus and eventually causing their death.
The global cupric chloride market is estimated to be valued at US$ 1193.75 Bn in 2024 and is expected to exhibit a CAGR of 10% over the forecast period 2024 to 2031.
Key Takeaways
Key players operating in the cupric chloride market are Anixter International Inc., AVI Systems Inc, AVI-SPL Inc., CCS Presentation Systems, Ford Audio-Video LLC, Avidex Industries, Herman ProAV, Kramer Electronics, Samsung, Vistacom Inc, Biamp Systems, proAV Limited, Professional Audio Visual Ltd., Cypress Technology Co., Ltd. (CYP), Pro AV Solutions Pty Ltd, Audio Technica, NETGEAR, LG Electronics, Logitech, Sony, Black Box Corporation, Guntermann & Drunck GmbH, Aten International Co., Ltd, Adder Technology Ltd, Rextron. The growing demand from agrochemical sector is expected to boost market growth during the forecast period. Technological advancements including development of nano-formulations of cupric chloride are further expected to drive the market.
Market Trends
One of the key trends in the cupric chloride market is growing adoption in wood preservative applications. Cupric chloride acts as an excellent wood preservative and protects wood from fungal decay. It provides long lasting protection and is being widely used for treatment of wood used in construction. Secondly, growth in organic farming is also expected to drive the demand. With increasing preference for organic foods, demand for organic-certified fungicides like cupric chloride is rising at a rapid pace globally.
Market Opportunities
One of the major opportunities for cupric chloride market is expanding application in organic agriculture. Strict regulations regarding use of synthetic agrochemicals in organic farming has opened opportunities for cupric chloride. Secondly, development of advanced formulations is also expected to create new growth prospects. Companies are engaged in R&D of nano-formulations of cupric chloride with improved efficacy and cost benefits. This is anticipated to boost its acceptance in the coming years.
Impact of COVID-19 on Cupric Chloride Market Growth
The COVID-19 pandemic has significantly impacted the growth of the cupric chloride market growth. During the initial outbreak, many key regions that are major consumers and producers of cupric chloride went into lockdown. This led to disruptions in the supply chain and logistical networks, creating shortages and raising prices of cupric chloride globally. Manufacturing facilities for cupric chloride were shut down due to virus containment measures. This caused a major decline in production volumes across key regions like Asia Pacific and Europe in 2020.
Demand from end-use industries like agriculture, chemical processing, and electronics which are major consumers of cupric chloride also declined sharply during the peak pandemic period. Restrictions on transportation and construction activities meant lower demand from these sectors. Project delays and postponements impacted the cupric chloride market negatively. However, since mid-2021, as economies reopened and vaccination drives gained momentum, the market has started recovering gradually. Production volumes are rising again to meet the increasing demand. While uncertainties still remain, the cupric chloride market is projected to bounce back to pre-pandemic levels by 2024.
In the post-COVID era, key players in the cupric chloride market need to focus on strengthening supply chains and distribution networks to ensure resilience. They also need to explore new end-use applications and regions to mitigate risks from future crises. Adopting digital technologies can help improve visibility and flexibility across operations. Diversifying manufacturing base and establishing local sourcing are some strategies that companies may consider to deal with any potential disruptions in the future.
Asia Pacific currently accounts for the largest share of the global cupric chloride market in terms of value. China contributes to over 40% of the total Asia Pacific market revenue owing to its large scale manufacturing industry. The country is a major producer and exporter of cupric chloride globally. India is another fast growing market in the region driven by high demand from chemicals, textiles and pharmaceuticals sectors. Both China and India are expected to continue dominating the Asia Pacific cupric chloride market through the forecast period.
Europe is the second largest as well as the fastest growing regional market for cupric chloride globally. Germany, followed by France and United Kingdom account for major share of the European market. Strong manufacturing base of chemical, textiles and plastics industries support the demand for cupric chloride in these countries. Additionally, favorable government policies as well as focus on industrial and infrastructure development are some factors accelerating the European market growth. The region is projected to witness a double digit CAGR through 2030.
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