Hydrazine Hydrate Market Share, Opportunities, Industry 2031

Report Description

Hydrazine Hydrate Market Outlook 2031

The global hydrazine hydrate market size was around USD 417.96 million in 2022 and is estimated to reach USD 682.51 million by 2031, expanding at a Compound Annual Growth Rate (CAGR) of 5.6% during the forecast period, 2023–2031. The market growth is attributed to the rising product demand from the pharmaceutical sector.

Hydrazine hydrate is a colorless chemical compound. Hydrazine hydrate is harmful in its anhydrous form. It can harm the central nervous system and causes tumors and seizures. It is a highly volatile and explosive alkaline liquid. Hydrazine hydrate is a powerful reducing agent and has a pungent smell.

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Its chemical formula is written as NH₂NH_2.H₂O. Hydrazine hydrate is manufactured by the Raschig, hydrogen peroxide, or Bayer processes. Raschig process is widely used for hydrazine hydrate manufacturing, which involves the reaction of an aqueous alkaline ammonia solution with sodium hypochlorite (NaOCl). It reacts with dissolved oxygen to raise pH and temperature.

Hydrazine hydrate is used in boiler water treatment and during polymerization. It is a key component in boiler water treatment. It shields the boiler tubes from corrosion as it creates a hard magnetic outer layer. Hydrazine hydrate is a chemical that can react with hematite layers of tubes. It is commonly used in industrial boilers to control the pH of water.

Hydrazine hydrate is used in space vehicles as it is also a form of gas. There is no water residue in this component, thus it is used as a precursor to reduce the concentration of dissolved oxygen. It helps in the preparation of gas precursors used in airbags in automobiles and it is used as rocket fuel.

Hydrazine hydrate has applications in the production of forming agents, such as azodicarbonamide. It decomposes into carbon monoxide, nitrogen, carbon dioxide, and ammonia thermally, when azodicarbonamide is bubbled via a liquid polymer precursor. Furthermore, these gases form bubbles in hydrazine liquid, hence polymerizing to leave a lightweight and foamy plastic. It is widely used in high-purity and high-pressure systems. It is generally used as an oxygen scavenger in water and another substitute for sulphide.

COVID-19 Impact

The research report finds that the COVID-19 pandemic hampered the global hydrazine hydrate market. The government implemented lockdowns in various places, due to the coronavirus outbreak. Stringent regulations are imposed on the hydrazine hydrate, as it’s toxic and carcinogenic in nature. Supply problems and a drop in demand are the key factors affecting the market growth. Furthermore, another factor that affects product demand from end-users is the stoppage of manufacturing facilities.

Operations and production of the product are facing many challenges due to unfavorable market conditions. Moreover, foam manufacturers are being enforced to limit the production process. Stringent regulations on international trade and lockdown restrictions on operations of the chemicals industry are expected to hinder the market. However, the rising demand for drinkable water and applications as pharma intermediates are projected to help moderately lessen any losses arising in the coming years.

Hydrazine Hydrate Market Dynamics

The market research report presents a complete overview by providing a detailed analysis of the current market trends, existing drivers, growth opportunities, and emerging challenges. The global hydrazine hydrate market report offers up-to-date information about factors that can shape the market outcome or overall performance during the forecast period, 2023 to 2031.

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Major Drivers:

Increasing demand from the pharmaceutical industry

The increasing demand from the pharmaceutical industry is anticipated to drive market growth during the forecast period. Hydrazine hydrate is widely used in many drugs and medicine. Hydrazine hydrate is a colorless agent; thus, it is used in many pharmaceutical products and clinical drugs. The rising demand and investments from the pharmaceutical industry are expected to contribute to high revenue rates.

Rising demand from blowing agents and polymerization

The demand for polymer goods is high, due to the several applications in the end-user industry. Blowing agents produce fine and regular cellular structures during polymer processing. The plastic manufacturing industry uses hydrazine derivatives in the production of blowing agents and polymerization initiators. Blowing agents are thermally insulating, lightweight, and contribute to cost savings. Thus, the rising demand for blowing agents and polymerization is projected to propel the market expansion.

Current Restraints:

Regulations imposed on hydrazine hydrate

The regulations imposed on hydrazine hydrate are expected to hamper the market. Hydrazine hydrates are hazardous chemicals, it can harm the environment. Hydrazine hydrate is non-biodegradable and has high water solubility. However, the demand for hydrazine hydrate is affected due to its toxicity. Thus, various restrictions arise due to product awareness and declining adoption rates. Hydrazine hydrate has a lower penetration rate in many areas.

Market Opportunities:

Increasing the application of hydrazine in the agrochemicals industry

The rising population coupled with land degradation increases the challenges of crop production. The increasing population results in the fragmentation of farm plots, land resource scarcity, and ecological degradation such as soil erosion, increasing emissions, deforestation, and the overuse of natural resources. All these factors drive the use of crop protection agents such as fungicides and insecticides. Hydrazine hydrate acts as a protection agent. It is widely used in the production of crops as it improves soil quality and accelerates plant growth.

Hydrazine hydrate raises crop output and is employed in a variety of agrochemical applications. Thus, increasing the application of hydrazine in the agrochemical industry is anticipated to propel market expansion in the coming years. Hydrazine hydrate has applications in the textiles and aerospace industries. Moreover, the product demand from developing countries plays a vital role in the market.

Scope of the Hydrazine Hydrate Market Report

The global hydrazine hydrate market research report includes an assessment of the market trends, segments, and regional markets. Overview and dynamics have also been included in the report.

Hydrazine Hydrate Market Segment Insights

Agrochemicals segment to expand at a considerable CAGR

On the basis of application, the global hydrazine hydrate market is segmented into agrochemicals, water treatment, pharmaceuticals, and polymerization & blowing agents. The agrochemicals segment is projected to expand at a considerable CAGR during the forecast period, owing to increasing demand for a higher amount of food due to the rising population all over the globe.

The rising demand for food is satisfied by the high production capacity of agricultural products. Thus, insecticides and pesticides are used to protect crops from pest and insect damage and increase crop production. Agrochemicals play a significant role to expand agricultural production. Hydrazine hydrate is widely used in the production of agrochemicals including insecticides, hydrogel, and pesticides.

Agrochemicals is anticipated to be a main consumer industry of the hydrazine hydrate. The agrochemicals segment size is expected to reach USD 65.8 million during the forecast period. Furthermore, the reduced cultivation area augments the demand for agrochemicals, which is projected to boost market expansion.

The water treatment segment is anticipated to account for a major market share during the forecast period. Hydrazine hydrate is used to remove the excess oxygen from water as it causes corrosion. it removes oxygen via the reaction N₂H₄ + O₂ → N2 + 2H₂O. It is used as a raw material for plastic foaming agents, with 28% of hydrazine used in water treatment and pH control.

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60%-85% segment to hold a significant market share

Based on concentration level, the market is divided into 24%-35%, 40%-55%, 60%-85%, and 100%. The 60%-85% segment is expected to hold a significant share of the market in the coming years. The 60%-85% concentration level of hydrazine hydrate is increasingly used in chemical synthesis. It is also used in polymerization process initiation, manufacturing of veterinary drugs, or as a blowing agent.

The 60%-85% concentration level of is used as a catalyst in emergency power units on the F16. This enables the development of new technologies and ensures a high-quality product.

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North America to dominate the market

In terms of regions, the global hydrazine hydrate market is classified as Asia Pacific, North America, Latin America, Europe, and Middle East & Africa. North America is expected to dominate the market during the forecast period, owing to rising product demand from the pharmaceutical industry. The Canada and US are the main countries contributing to the regional market expansion.

The market in Asia Pacific is anticipated to expand at a rapid pace during the forecast period, due to rising consumer demand for hydrazine hydrate in water treatment and agrochemicals. China and India are prominent market players, owing to their large consumer base, growing demand for pesticides, and rising purchasing power.

Moreover, the rising demand for polymer products in several applications in the end-use industries including electronic gadgets, automobiles, and footwear industry is expected to boost market growth in the region.

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