Perchloroethylene Market Set To Reach USD 2.3 Bn by 2034

Overview

New York, NY – June 18, 2025 – The Perchloroethylene Market is a powerful solvent widely used in dry cleaning, metal degreasing, and chemical manufacturing. The Global Perchloroethylene Market size is expected to reach USD 2.3 billion by 2034, growing from USD 1.7 billion in 2024, with a CAGR of 2.9% during the forecast period from 2025 to 2034.

In 2024, Reagent Grade led the By Grade segment of the Perchloroethylene Market, commanding a 67.4% share. Its dominance stems from its extensive use in laboratories, research facilities, and precision industrial processes requiring high-purity solvents. Refrigerants dominated the By Application segment of the Perchloroethylene Market, holding a 39.8% share.

This position is driven by perchloroethylene’s critical role as an intermediate in producing hydrofluorocarbon and hydrochlorofluorocarbon refrigerants. The Textile Industry led the By End Use Industry segment of the Perchloroethylene Market, capturing a 39.8% share. Its prominence is driven by perchloroethylene’s widespread use in dry cleaning.

Key Takeaways

• The Global Perchloroethylene Market is expected to be worth around USD 2.3 billion by 2034, up from USD 1.7 billion in 2024, and grow at a CAGR of 2.9% from 2025 to 2034.
• Reagent grade Perchloroethylene held a 67.4% share due to its purity and strong industrial solvent demand.
• Refrigerants accounted for 39.8% of the Perchloroethylene market, driven by chemical stability and cooling performance.
• The textile industry contributed a 34.7% share, using Perchloroethylene extensively in dry cleaning and fabric treatment applications.
• The Asia-Pacific region recorded a perchloroethylene market value of USD 0.7 billion overall.

How Growth is Impacting the Economy

• The perchloroethylene market’s growth positively impacts the economy by supporting key industries like textiles, automotive, and chemical manufacturing. Its role in dry cleaning sustains jobs in the service sector, particularly in urbanizing regions with rising disposable incomes. In Asia-Pacific, industrial expansion in countries like China and India fuels demand, boosting local economies through increased production and exports.
• However, environmental regulations, especially in Europe and North America, challenge growth by necessitating costly compliance and innovation in eco-friendly alternatives. Investments in recycling and closed-loop systems create new economic opportunities, fostering job creation in R&D and sustainable technology. While health risks associated with PCE may limit growth, its economic contributions remain significant in industrial and emerging markets.

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Strategies for Businesses

• Businesses in the perchloroethylene market should prioritize sustainability to align with regulatory trends. Investing in R&D for eco-friendly solvents and advanced recycling systems can enhance compliance and market competitiveness. Adopting closed-loop technologies minimizes emissions, appealing to environmentally conscious consumers.
• Strengthening direct sales channels ensures better customer relationships and pricing transparency, particularly for bulk industrial users. Companies should also expand in high-demand regions like Asia-Pacific, focusing on partnerships with local manufacturers. Educating clients on safe PCE handling and leveraging digital platforms for market reach can further drive growth and resilience in a regulatory-challenged landscape.

Report Scope

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Key Market Segments

By Grade Analysis

• In 2024, Reagent Grade led the By Grade segment of the Perchloroethylene Market, commanding a 67.4% share. Its dominance stems from its extensive use in laboratories, research facilities, and precision industrial processes requiring high-purity solvents. Reagent grade perchloroethylene is valued for its consistent composition and dependable performance, making it vital for analytical testing, quality control, and specialized chemical synthesis.
• Rising investments in R&D across pharmaceuticals, chemicals, and material sciences drive demand, as labs and industries rely on high-grade solvents for accurate and repeatable results. Increased focus on environmental testing and compliance further boosts the need for low-impurity solvents. With end-users enforcing strict purity standards, reagent grade ensures steady demand and repeat purchases, solidifying its role as the preferred choice for high-precision applications.

By Application Analysis

• In 2024, Refrigerants dominated the By Application segment of the Perchloroethylene Market, holding a 39.8% share. This position is driven by perchloroethylene’s critical role as an intermediate in producing hydrofluorocarbon and hydrochlorofluorocarbon refrigerants. Growing global demand for air conditioning and refrigeration systems across residential, commercial, and industrial sectors fuels the need for this base chemical.
• Perchloroethylene’s stability and effectiveness in refrigerant synthesis make it indispensable, despite regulatory pushes in some regions for low-global-warming-potential alternatives. Developing nations with expanding HVAC infrastructure continue to rely on traditional refrigerants, sustaining perchloroethylene demand. The rise of cold chain logistics for food and pharmaceutical transport further supports refrigerant production, reinforcing perchloroethylene’s strong market share.

By End Use Industry Analysis

• In 2024, the Textile industry led the By End Use Industry segment of the Perchloroethylene Market, capturing a 39.8% share. Its prominence is driven by perchloroethylene’s widespread use in dry cleaning, where it excels at removing oil-based stains and dirt from fabrics without damage. The textile sector’s dependence on dry cleaning, especially in commercial laundries and professional garment care, sustains high demand.
• Perchloroethylene’s superior cleaning efficiency, fabric compatibility, and recyclability through solvent recovery systems make it the go-to solvent. Urbanization and growing consumer demand for professional clothing care, including uniforms and specialty fabrics, further propel its use. While alternative solvents are emerging, their limited adoption in cost-sensitive markets ensures perchloroethylene’s continued dominance in textile applications.

Regional Analysis

• The Asia-Pacific region led the global perchloroethylene market, capturing a 45.2% share with a valuation of USD 0.7 billion. This dominance is driven by the booming textile and industrial cleaning industries, especially in China and India, where demand for dry cleaning and metal degreasing surges. Perchloroethylene’s extensive use in manufacturing and processing further solidifies its stronghold in the region.
• North America and Europe also play key roles, supported by robust industrial frameworks and controlled applications in chemical synthesis and refrigerant production, though stringent environmental regulations have slowed their growth. Meanwhile, the Middle East & Africa and Latin America are emerging markets, showing gradual adoption fueled by industrial growth and localized solvent needs. These regions are poised for steady expansion, driven by the demand for efficient, cost-effective solutions.

Recent Developments

1. Occidental Chemical (OxyChem)

• Occidental Chemical continues to produce perchloroethylene for industrial applications, focusing on environmental compliance and sustainable practices. Recent efforts include reducing emissions and improving recycling processes. OxyChem adheres to strict regulatory standards, particularly under the EPA’s Toxic Substances Control Act (TSCA). The company also invests in research for safer solvent alternatives.

2. Olin Corporation

• Olin Corporation, a key producer of chlor-alkali products, manufactures perchloroethylene for dry cleaning and metal degreasing. Recently, Olin has emphasized reducing PCE’s environmental impact by enhancing closed-loop systems and supporting regulatory compliance. The company also explores alternative solvents due to increasing restrictions on PCE in certain regions.

3. Westlake Chemical Corporation

• Westlake Chemical produces perchloroethylene for industrial and dry-cleaning applications. The company has been adapting to stricter environmental regulations by improving emission controls and waste management. Westlake also researches greener solvent alternatives while maintaining PCE supply for critical industries.

4. AGC Kanto

• AGC Kanto, part of AGC Inc., supplies perchloroethylene in Japan and Asia. Recent developments include optimizing production efficiency and ensuring compliance with regional chemical regulations. AGC is also investing in sustainable chemistry, exploring PCE alternatives for long-term viability.

5. Denka

• Denka manufactures perchloroethylene primarily for industrial use. The company has been focusing on reducing PCE’s environmental footprint through advanced purification technologies. Denka also complies with evolving global regulations, particularly in Japan and Southeast Asia, while researching alternative solvents.

Conclusion

The Perchloroethylene (PCE) Market is undergoing significant changes due to tightening environmental regulations and shifting industry preferences toward safer alternatives. While still used in dry cleaning, metal degreasing, and chemical manufacturing, demand is gradually declining in regions with strict VOC (volatile organic compound) laws. Key producers like OxyChem, Olin, and Westlake are focusing on emission control and recycling technologies, while companies in Asia, such as AGC and Denka, continue supplying PCE for industrial applications. 

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