Ionic Liquids Market Overview
The Ionic Liquids market size is estimated to
reach US$4.4 billion by 2027 after growing at a CAGR of 18.2% during the
forecast period 2022-2027. The ionic liquids are a special group of molten salts
that comprise of anions and cations and are usually liquid at or below the 100°C. Ionic liquids such as ethylammonium nitrate
and aluminum hydrogen sulphate are used as powerful solvents and electrolytes
for a wide range of applications such as catalysts and auxiliaries in chemical
synthesis, supercapacitors, electric batteries, lubricants, and others. The
increasing demand for ionic liquids over organic solvents owing to their low
VOC content and relatively low vapor pressure is anticipated to be a major
driving factor for the ionic liquids market. The rising demand for ionic
liquids as a green solvent for various biochemical reactions in green chemistry
is driving the market. The covid-19 pandemic majorly impacted the market due to
restricted production, supply chain disruption, logistics restrictions, and a fall
in demand. However, with robust growth and flourishing applications across
major industries such as chemicals, pharmaceuticals, automotive, and others,
the ionic liquids industry is anticipated to grow rapidly during the forecast
period.
Report Coverage
The report: “Ionic Liquids Market Report – Forecast (2022-2027)”, by IndustryARC,
covers an in-depth analysis of the following segments of the ionic liquids market.
Key Takeaways
- Asia-Pacific dominates the ionic liquids market, owing to a flourishing base for green solvents, growing applications for ionic liquids in pharmaceuticals, and developments in cosmetics, bio-refining, and energy generation sectors, thereby boosting the demand for ionic liquids in APAC during the forecast period.
- The growing chemical industry owing to factors such as the rise in chemical production and demand for green chemicals offers major demand in the ionic liquid industry for applications in the solvent, synthesis, catalysis, and others, thereby driving the market.
- The rise in automotive production and demand for electric vehicles drives the ionic liquids market by boosting its application in electrolytes, electric batteries, automotive lubricants, gear oil, and others.
- However, the high costs associated with ionic liquids compared to organic solvents poses a major challenge to the growth and demand of the ionic liquids market.
Figure: Asia-Pacific Ionic Liquids Market Revenue, 2021-2027 (US$ Billion)
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Ionic Liquids Market Segment Analysis – By Application
The Solvent & Catalyst held the largest
share in the ionic liquids market in 2021 and is forecasted to grow at a CAGR
of 18.4% during the forecast period 2022-2027. The high demand for ionic
liquids in solvent and catalyst applications is influenced by its superior
features such as low VOC content, polarity, thermal stability, and good
solvating properties, which speeds up the catalysis, thereby having flourishing
demand across major industries such as chemical and pharmaceutical. The
chemical industry is rising due to development and advancements in the chemical
processing for green and new compounds, along with the rising production of
chemicals across the globe. For
instance, according to the BASF report 2021, the growth of the chemical
industry was 6.1% in 2021. According to the American Chemical Council (ACC), chemical
output in the US is estimated to grow by 4.1% in 2022 and further expand by 2.4%
in 2023. The solvent and catalysts also have a high demand for the pharmaceutical
industry for various drug and chemical synthesis. For instance, according to
the India Brand Equity Foundation (IBEF), the pharmaceutical industry in India
is estimated to reach US$65 billion by 2024, further expanding to US$120-US$130
billion by 2030. With the rise in industrial reactions in the chemical and
pharmaceutical sector, the solvent and catalyst applications of molten salts
such as ionic liquids are growing, thereby it is anticipated to boost the
demand and growth for solvent & catalysts in the ionic liquids market
during the forecast period.
Ionic Liquids Market Segment Analysis – By End-Use Industry
The chemical industry segment held a
significant share in the ionic liquids market in 2021 and is forecasted to grow
at a CAGR of 18.9% during the forecast period 2022-2027. The ionic liquid has
flourishing demand in the chemical industry for various applications involving
catalysts and solvents, auxiliaries in chemical synthesis, and others. The
ionic liquids are green solvents that speed up and enhance chemical processing
and synthesis. The chemical industry is growing rapidly owing to an increase in
demand for green chemistry technology and demand for clean and innovative
chemical compounds. For instance, according to the National Investment
Promotion & Facilitation Agency, the chemical industry in India is
projected to reach US$300 billion by 2025.
According to the European Chemical Industry Council (CEFIC), the
chemical output in EU27 to grow by 2.5% in 2022, after following a growth of 6%
in 2021. With the increase and rising production in the chemicals industry, the
applicability of ionic liquids such as ethylammonium nitrate, lanthanide
trifluoromethanesulfonate, and hydrogen sulfate-based ionic liquid and others for
green solvents and catalysis uses, chemical processing, and others will rise,
thereby the chemical industry is anticipated to grow rapidly in the ionic
liquids market during the forecast period.
Ionic Liquids Market Segment Analysis – By Geography
Asia-Pacific region held the largest share in the ionic liquids market in 2021 up to 41%. The flourishing growth of ionic liquids is influenced by its major applications across major industries, along with growing development in energy storage, and developed the base for ionic liquids in APAC. The chemical sector in Asia-Pacific is rapidly growing due to a flourishing base for chemical manufacturers, demand for green chemical compounds, and production rise. For instance, according to Make in India, the chemical industry in India is expected to reach US$304 billion and a growth of 9.3% per annum by 2025. According to the European Chemical Industry Council (CEFIC), the global chemical sales were US$3.5 trillion in 2020, with China holding a 44.6% share. World chemical sale is projected to reach US$6.2 trillion by 2030, with a major share of 48.6% by China. According to the International Trade Administration (ITA), the estimated value of specialty chemicals in Korea accounted for US$55 billion in 2020, an increase of 3% compared to 2019. With the rise in chemical production and flourishing chemical processing base in APAC, the demand for ionic liquids for a wide range of applications such as catalysis, green solvents, synthesis, and others will grow. This is anticipated to boost the market growth for the ionic liquids in the Asia-Pacific region during the forecast period.
Ionic Liquids Market Drivers
Rising Adoption for Ionic Liquids as Solvents
The demand for ionic liquids as
solvents is rapidly growing as these are increasingly used to replace the
organic solvents for various biochemical reactions. The ionic liquids are used
as green solvents and replacements for various solvents that are toxic and high
in volatile organic compounds (VOCs). The green solvent sector is growing due
to rising regulations and restrictions on the VOC compounds and other toxic
solvent materials that cause environmental threats. For instance, U.S.
Environmental Protection Agency (EPA) regulated the emissions through VOCs
under the Clean Air Act (CAA). Moreover, the National Volatile Organic Compound
Emission Standards aim to reduce the VOC emission by 90,000 tons per year. With
the rise in restrictions and replacement for toxic and high VOCs in organic
solvents, the adoption of ionic liquids as an alternative to solvents is
growing. Thus, the demand for ionic liquids as green solvents owing to their
non-toxicity and negligible VOC emissions is rising, thereby driving the ionic
liquids industry.
Flourishing Application in the Automotive Industry
The ionic liquids have
flourishing demand in the automotive sector owing to their applications in
electric vehicle batteries, electrolytes, lubricant additives, gear oil, and
others. The automotive industry is growing rapidly due to the rise in vehicle
electrification, growing manufacturing of fuel-efficient vehicles, and
urbanization. For instance, according to the International Organization of
Motor Vehicle Manufacturers (OICA), the total global vehicle production rose
from 77,621,582 units in 2020 to 8,145,988 units in 2021. According to the
International Energy Agency (IEA), the consumer spending on electric cars was
US$120 billion, showing an increase of 50% in 2020 compared to 2019.
Furthermore, the sales of electric cars topped 2.1 million in 2019, surpassing
the record in 2018. Electric cars registered a 40% year-on-year increase in
2019. According to the European
Automobile Manufacturer Association (ACEA), hybrid electric vehicles accounted
for 19.6% of all passenger cars registered in 2021 in the EU, up from 11.9% in
2020. With the rise in production for electric vehicles and other automotive
vehicles, the demand for ionic liquids for applications in electric batteries,
automotive lubricants, and gear oil is increasing, thereby offering a major drive
and growth in the ionic liquids market.
Ionic Liquids Market Challenges
High Costs Associated with Ionic Liquids and
Biodegradability Issues
The high cost of ionic liquids poses a major
challenge in the market. The high cost incurred in the production compared to
the organic solvents is a challenging factor that affects the growth and demand
in the market. The high-quality manufacturing of ionic liquids creates a rise
in the overall price, thereby hindering growth. Furthermore, the ionic liquids
are confirmed to be not easily biodegradable. Hence, the release of ionic
liquids into the environment leads to difficult biodegradation and causes
serious impacts on the environment as well. Thus, owing to factors such as high
costs and difficulty in biodegradation, the ionic liquids market faces a major
challenge.
Ionic Liquids Industry Outlook
Technology launches, acquisitions, and R&D
activities are key strategies adopted by players in the ionic liquids market. Ionic
liquids top 10 companies are:
- BASF SE
- Tokyo Chemical Industries
- Chevron Chemical Corporation
- Evonik Industries
- Tatva Chemicals Pharma Chem Pvt. Ltd.
- Proionic GmbH
- Merck KgaA
- IOLITECH GmbH
- Strem Chemical Inc.
- TCI America
Recent Developments
- In April 2022, Ionic Rare Elements Limited received formal advice from the UK government on the approval of the acquisition of Seren Technology (SerenTech). SerenTech uses ionic liquids for refining and separation procedures, thereby boosting the demand and growth prospects in the market.
- In April 2021, Honeywell and Chevron announced the start-up of the commercial Isoalkyl™ ionic liquids alkylation unit. The ISOALKYL™ technology offers a cost-effective alternative to liquid acid systems and offered superior performance in the refining sector, thereby boosting growth in the market.
- In February 2021, the CAGE Bio Inc, an innovative biotechnology company focused on the development of therapeutics using ionic liquids. The ionic liquids for therapeutics and pharmaceutical products will treat papulopustular rosacea, thereby maintaining its position in the healthcare sector.
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LIST OF TABLES
LIST OF FIGURES
1.US Ionic Liquids Market Revenue, 2023-2030 ($M)2.Canada Ionic Liquids Market Revenue, 2023-2030 ($M)
3.Mexico Ionic Liquids Market Revenue, 2023-2030 ($M)
4.Brazil Ionic Liquids Market Revenue, 2023-2030 ($M)
5.Argentina Ionic Liquids Market Revenue, 2023-2030 ($M)
6.Peru Ionic Liquids Market Revenue, 2023-2030 ($M)
7.Colombia Ionic Liquids Market Revenue, 2023-2030 ($M)
8.Chile Ionic Liquids Market Revenue, 2023-2030 ($M)
9.Rest of South America Ionic Liquids Market Revenue, 2023-2030 ($M)
10.UK Ionic Liquids Market Revenue, 2023-2030 ($M)
11.Germany Ionic Liquids Market Revenue, 2023-2030 ($M)
12.France Ionic Liquids Market Revenue, 2023-2030 ($M)
13.Italy Ionic Liquids Market Revenue, 2023-2030 ($M)
14.Spain Ionic Liquids Market Revenue, 2023-2030 ($M)
15.Rest of Europe Ionic Liquids Market Revenue, 2023-2030 ($M)
16.China Ionic Liquids Market Revenue, 2023-2030 ($M)
17.India Ionic Liquids Market Revenue, 2023-2030 ($M)
18.Japan Ionic Liquids Market Revenue, 2023-2030 ($M)
19.South Korea Ionic Liquids Market Revenue, 2023-2030 ($M)
20.South Africa Ionic Liquids Market Revenue, 2023-2030 ($M)
21.North America Ionic Liquids By Application
22.South America Ionic Liquids By Application
23.Europe Ionic Liquids By Application
24.APAC Ionic Liquids By Application
25.MENA Ionic Liquids By Application
26.BASF SE, Sales /Revenue, 2015-2018 ($Mn/$Bn)
27.Evonik Industries, Sales /Revenue, 2015-2018 ($Mn/$Bn)
28.Solvay S.A., Sales /Revenue, 2015-2018 ($Mn/$Bn)
29.Merck KGAA, Sales /Revenue, 2015-2018 ($Mn/$Bn)
30.The Chemours Company, Sales /Revenue, 2015-2018 ($Mn/$Bn)
31.Proionic, Sales /Revenue, 2015-2018 ($Mn/$Bn)
32.Solvionic SA, Sales /Revenue, 2015-2018 ($Mn/$Bn)
33.Ionic Liquids Technologies Gmbh, Sales /Revenue, 2015-2018 ($Mn/$Bn)
34.Strem Chemicals Inc., Sales /Revenue, 2015-2018 ($Mn/$Bn)
35.Coorstek Specialty Chemicals, Sales /Revenue, 2015-2018 ($Mn/$Bn)
36.Reinste Nanoventure, Sales /Revenue, 2015-2018 ($Mn/$Bn)
37.Tatva Chintan Pharma Chem Pvt. Ltd., Sales /Revenue, 2015-2018 ($Mn/$Bn)