Hydrazine Hydrate Market

Hydrazine Hydrate Market Outlook (2023 to 2033)

The global hydrazine hydrate market is expected to advance at 4.8% between 2023 to 2033. By 2033, the market value is expected to cross US$ 784 million. In 2023, the valuation is expected to be US$ 488.9 million.

Significant factors which might propel the market growth are:

• Increasing water pollution
• Surging adoption in the aerospace market
• Growing usage in the automobile industry

Increase in global population, growing pharmaceutical, and agrochemicals industries are expected to drive the market growth. Surge in the adoption of polymer and blowing agents for the production of plastics and polymers are expected to boost the demand. Azobisisobutyronitrile and Azodicarbonamide are one of the most important derivatives of hydrazine hydrate, and are employed in the form of polymerization initiators and low temperature blowing agents.

Increase usage of hydrazine hydrate for various commercial applications such as rocket fuels owing to its explosive and flammable nature may create significant opportunities. Hydrazine hydrate is stable over a wide range of temperatures, which is believed to be a crucial aspect. The rocket would experience variety of temperatures, right from launching till the time it passes through different spheres. The ability to work as monopropellants is also expected to surge the demand for hydrazine hydrate during the forecast period.

Hydrazine hydrate is used for water treatment as well. Presence of oxygen in water leads to corrosion of metals, and this may lead to heavy losses especially in various industrial processes. The application of hydrazine hydrate removes oxygen from the water, and makes it suitable for industrial usage.

The automobile sector is making use of hydrazine hydrate because of its ability to control carbon emissions, as water and nitrogen are only substances that are emitted. The output density that was obtained by the adoption of hydrazine hydrate is comparable to that of hydrogen fuel cells.

In the current times, hydrazine hydrate is also used for manufacturing pesticides. They offer excellent resistance against two-spotted spider mite, carmine spider mite, etc. The global pesticide market was valued at US$ 8 billion in 2022, and is expected to grow at 7%. These figures represent huge prospects for the market.

However, the hydrazine hydrate may some serious implications on health. Unwarranted usage may lead to seizures and tumors, and in extreme cases the nervous system might get damaged.

Asia Pacific is expected to dominate the market during the forecast period. Burgeoning automobile market, coupled with massive growth of electrical industry is expected to drive the market growth during the forecast period. Rapid urbanization has led to the establishment of many industrial plants, which has propelled the demand for hydrazine hydrate in the region. This is also supported by the government initiatives, which is all about investing in the end user industries, like electronics sector.

Detailed Analysis of Historical CAGR (2017 to 2021) vs Anticipated CAGR

With nations looking to strengthen their security by advancing aerospace technology, the application of hydrazine hydrate is expected to surge. There is also an attempt from manufacturers from various niches to equip their industries for seamless processes using hydrazine hydrate, which again brightens the prospects. With so much to offer, the FMI analysts are of the view that the anticipated CAGR is expected to be greater than the historical CAGR. While the historical CAGR for the market was 3.3%, the anticipated CAGR is 4.8%.

• Short-term (2023 to 2026): In this period, there might be surging demand from pharmaceuticals, agrochemicals and other industries. The pharmaceutical sector is expected to grow by leaps and bounds, which represents opportunities for the market in the future.
• Medium-term (2026 to 2029): The market might gain momentum owing to the effects of widespread urbanization. Thus, the end-use industries such as water treatment, polymerization and blowing agents, and others are expected to make high-scale use of hydrazine hydrate.
• Long-term (2029 to 2033): With countries looking to strengthen their international defense systems, there might be an increase in the valuation of aerospace sector. Hydrazine hydrate is consumed in rocket fuels owing to its explosive and flammable nature. Thus, during this timeframe, there might be an increased adoption from the aerospace and defense sector.

Key Growth Driver for Hydrazine Hydrate Market

Hydrazine hydrate use is widespread, and the element is used in agrochemicals such as pesticides, hydrogel, plant growth etc. Agrochemical plays an important role to boost the agricultural productivity and production. Crop protection agents and pesticides are used in current agriculture for protection of crop from micro-organism, insects etc.

Since past few years, growing population has resulted in decrease in farmland area. Rapid pace of industrialization and urbanization, due to growing number of industries, houses and buildings, highways and infrastructure, are shrinking the available land for cultivation.

For instance, from 2010 to 2018, total land area harvested has declined with a rate of about 3.5%. In 2010, total area for cultivation available for harvesting was 1.8 billion hectare all over the globe, which decreased to 1.3 billion hectare in 2018. Hydrazine hydrate plays a key role as it increases the production even when the area is less. Potash plays an important role in maintaining soil fertility and improve plant health. Thus, the need for higher yield of cultivation land, due to the decrease in the area of agricultural land, is enhancing the growth of this market globally.

Nikhil Kaitwade

Principal Consultant

Talk to Analyst

Find your sweet spots for generating winning opportunities in this market.

Talk to Analyst

Key Challenges faced by Hydrazine Hydrate Manufacturers

Commercial production of hydrazine and its usage in various applications result in its release in the environment through various waste streams.

As hydrazine hydrate is highly toxic in nature, the emissions of hydrazine hydrate liberated during various processes are required to be within the limits. Various organizations and authorities have imposed certain occupational exposure restrictions considering the hazardous nature and effects of hydrazine hydrate.

Hydrazine hydrate can be released into the atmosphere during venting operations, storage, and transportation. Accidental discharge of hydrazine hydrate into water, air, and soil might occur owing to bulk storage, handling, transport, and improper waste disposal. Evaporation of hydrazine after a spill can generate atmospheric concentration as high as 4 mg/m3.

The compound degrades rapidly in water, especially under aerobic conditions, and in the presence of organic material or hard water. In soil, it is can be adsorbed and decomposed on clay surfaces under aerobic conditions. Measurable levels are not usually encountered due to the rapid degradation of hydrazine in the environment. Increasing concern related to human and environmental health may hamper the hydrazine hydrate market.

Country-wise Insights

What is the demand outlook for hydrazine hydrate in the United States?

As per FMI, the United States is projected to account for a significant share in the global hydrazine hydrate market. Over the projection period, the United States is expected to dominate the North American hydrazine hydrate market, with a substantial value share in terms of consumption.

United States is a lucrative market for hydrazine hydrate market owing to extraordinary presence of end-use industries like pharmaceuticals, polymer and others in the country. The remarkable growth in end-use industries in the country is expected fuel the adoption of hydrazine hydrate over the forecast period.

United Kingdom: Water treatment applications driving the market growth

United Kingdom is believed to be a huge market for water treatment. The water treatment market estimation is anticipated to cross US$ 7.5 billion in 2023. Since hydrazine hydrate is used specifically for removing oxygen from water for industrial purposes, the market is expected to display rapid growth during the forecast period.

Even the automobile industry has been growing at an exponential rate in United Kingdom. Adoption of electric vehicles is expected to further drive the market growth. As per the United Kingdom government, the electric vehicles sales grew by 77% in 2022 as compared to 2020. The figures reveal the prospects for hydrazine hydrate during the forecast period.

What is the growth outlook for hydrazine hydrate market In China?

China is expected to be among the key consumers of hydrazine hydrate owing to substantial development in the end-use industries. Significant presence of the end users in the country creates a considerable demand for hydrazine hydrate across the country.

Moreover, owing to boom in water treatment and agrochemicals industry across the country, demand for hydrazine hydrate is expected to rise substantially. The electronics market in particular has been going through mammoth growth. As per Statista, the China electronics market is expected to cross US$ 257.6 billion in 2023.

Japan: Aerospace market in burning need of hydrazine hydrate

The Japan aerospace market has been advancing at a rapid rate. In 2022, the Japanese aerospace market was valued at US$ 115 billion. The presence of adversaries in the neighborhood has led to the participation of both public and private players in the market. Hydrazine hydrate is an important component of the aerospace as it plays a crucial role in the seamless functioning of rockets.

Moreover, the agrochemicals and pesticides market in Japan has been witnessing decent growth rate. Hydrazine hydrate protects them from rodents, as a result of which their demand is expected to rise.

South Korea: Massive pharmaceuticals requirement expanding growth

The South Korea market is expected to grow owing to the expansion of pharmaceutical sector. In 2022, the South Korean government invested US$ 693 million into the pharmaceutical sector. Be it tranquilizers or for controlling tuberculosis, hydrazine hydrate is used in many areas across the pharmaceutical sector. These are also used in the medicines, which act as plant growth regulators.

The polymer sector in South Korea is also making use of hydrazine hydrate. Owing to its ability to act as a blowing agent and reducing agent, the polymer manufacturers are putting their stakes on the adoption of hydrazine hydrate.

Category-wise Insights

Which application accounts for maximum market share?

As per the market research, the polymerization and blowing agents account for the maximum market share. The stakeholders from the polymers market have mainly invested on the ability of hydrazine hydrate to initiate or terminate polymerization. Moreover, the application of hydrazine hydrate also helps in reducing the residual monomer content. The ability to act as crosslinking agents for polyurethane and rubber has further surged the market growth.

The agrochemicals application is expected to grow at a high rate. Agrochemicals play an important role to boost the agricultural productivity and production. Crop protection agents and pesticides are used in current agriculture for protection of crop from micro-organism, from insects etc.

Increasing population all over the globe especially in Asia and in Africa region are bolstering the demand for higher amount of food. This is being fulfilled by growing production capacity of the agricultural products. This is being enhanced by various pesticides, insecticides as pest and insects damages the crops resulting in low production volume.

Giants form Start-up Space

The start-up ecosystem for the market is quite unique as compared to a lot of other niches. Well established players are collaborating and forming a new enterprise, which is no less than a start-up, as these are driven by ideas which are not so conventional. The main emphasis is on developing indigenous technology for manufacturing hydrazine hydrate.

Quite recently, Gujarat Alkalies and Chemicals Ltd. (GACL) and Indian Institute of Chemical Technology (IICT) created an indigenous environment friendly technology. It was about production of hydrazine hydrate. The two companies were also awarded a patent. This is an extremely crucial development, especially at a time when India has been importing hydrazine hydrate from Europe.

Manufacturers in for reducing Carbon Footprints

The key players operating in the market are taking steps, which fall in sync with sustainability goals. For this, the manufacturers are focusing on energy production, which makes use of renewable methods. In order to achieve this, the manufacturers are entering into agreement with companies who have been dedicatedly working on sustainable development. In January 2023, Arkema signed a long-term agreement with ENGIE for the supply of 300 Gwh/year of renewable biomethane in France.

Significant developments in the market are

• In November 2022, Arkema increased its bio-based offer with a new range of mass balance acrylic materials.
• In January 2023, LANXESS and TotalEnergies entered into an agreement to cooperate on sustainable styrene.

Dominant players in the market

Other significant companies profiled: Weifang Yaxing Chemical Co Ltd., Japan FineChem Company Inc.

Hydrazine Hydrate Market Segmentation

By Application:

• Water Treatment
• Pharmaceutical Industries
• Agrochemical Industries
• Polymer and Blowing Agent
• Others

By Region:

• North America
• Latin America
• Europe
• Asia Pacific
• The Middle East and Africa