MRFR (Market Research Future) expects the Global Fluorochemicals Market to touch USD 36,755.7 MN by 2023, jumping from the valuation of USD 25,902.7 MN it had reached in 2017.
Fluorochemicals find extensive use in the manufacturing of fluoropolymers like Ethylene Tetrafluoroethylene (ETFE), Perfluoroalkoxy alkanes and polytetrafluoroethylene (PTFE). These have high application range in manufacturing of medical hoses, tubes, gaskets, films, ventilator components, and more.
The COVID-19 outbreak has fostered the demand for essential medical equipment, and by extension, has fostered the demand for fluorochemicals. In terms of supply, following the lockdown due to the novel coronavirus pandemic, manufacturers have been concentrating on closing the demand and supply gap, while aiding medical device firms to ensure sustained production. As a result of these efforts by players, MRFR projects the fluorochemicals market to remain strong in the face of rising SARS-CoV-2 cases.
Refrigeration and Automobile Industries to Generate High Demand
The fluorochemicals market is set to note substantial growth in the years ahead, backed by factors like the escalating demand in the commercial refrigeration and automobile industries. The commercial refrigeration sector has been zooming ahead at a significant pace, especially in emerging countries such as Brazil, China, India as well as Africa. This can be accredited to the increasing disposable income and the striking growth in industrialization. Food & beverage, pharmaceuticals, marine and electronics are a few other key market end-users also responsible for the considerable growth.
Hydrofluorides’ Rising Demand in Developing Regions to Offer Opportunities
Large-scale production of aluminum in Asia Pacific can offer attractive opportunities to the players over the coming years. Hydrofluorides are gaining significant impetus across developing regions, in view of the escalating aluminum production, given the fact that the latter finds extensive use in construction and automotive sectors. A prominent trend to emerge in the ensuing years can be the rising focus on renewable energy, encouraged by governments and organizations, which can be quite favorable for the fluorochemicals market in conjunction with the growing demand for fluoropolymers.
Ammonia to Emerge as a Credible Threat
Fluorochemicals market’s growth can be restrained by the surging preference for ammonia as an alternative product, considering its low cost and encouraging regulations.
Stringent Regulations to Challenge Market Growth
Introduction of Kyoto and Montreal Protocols in North America and Europe and the imposition of regulations restricting the use of chemicals that have high global warming potential can be a few major challenges faced by fluorochemicals manufacturers in the following years.
Cumulative Growth Analysis
Market Burgeons Rapidly as Players Increasingly Adhere to Environmental Norms
The fluorochemicals industry can continue to expand at a rate of 6.10% between 2018 and 2023, says Market Research Future (MRFR). Rapid development of HFC keeping in mind the F-gas regulations pertaining to reduced carbon emission is currently the focus area for the leading players, which has opened up new growth avenues for the global market, ensuring a robust development rate in the following years.
Fluorocarbons Segment Likely to Remain in the Lead
The primary types of fluorochemicals are fluoropolymers, fluoroelastomers, fluorocarbons, elemental fluorine, inorganic, specialties and fluoropolymer additives. Out of these, the biggest share is owned by the fluorocarbons segment, which can continue to grow owing to the strong demand for effective refrigerants in HVAC systems, refrigerators, automobile air conditioning, and more.
Fluorochemicals’ Extensive Applications in Refrigeration to Foster Growth
The top application areas are aluminum production, refrigeration, tubing, blowing agents, paint strippers, films, and others. At present, the refrigeration segment is in the lead and can project a striking growth rate of 6.61% over the appraisal timeline. Extensive application of fluorocarbons in air conditioning, refrigerators and HVAC systems remains the key reason for the segment’s dominance in the global industry.
Electrical and Electronics Sector Emerges as the Top End-User
Some of the key market end-use industries include automotive and transportation, chemical processing, electrical and electronics, industrial equipment, construction, consumer goods, pharmaceuticals, and more. The lead has been secured by the electrical and electronics segment, which held a value of USD 8,372.4 Mn in the year 2017. The segment is also assumed to touch USD 3884 Mn by 2023-end. The notable growth of the global electrical and electronics industry along with the accelerated use of consumer electronics across the world can boost revenue generation in the years ahead.
APAC to Emerge as the Most Lucrative Market
APAC is the most lucrative market for fluorochemicals at present and could remain so throughout the analysis period, even reaching a considerable valuation of more than USD 15 Mn by 2023-end. The upsurge in manufacturing as well as sales of lightweight and electric vehicles has been favoring the regional market for fluorochemicals. The escalation in fluoropolymers’ applications in solar, photovoltaic and water filtration can also add to the market value in the ensuing years.
North America to Remain in the Second Lead
North America is the second biggest gainer and could continue scaling the global market in the coming years. With the U.S. spearheading the growth, the North American market benefits from the increasing demand for fluorocarbons and fluoropolymers’ heightened use in medicals implants. Robust network of world renowned firms actively engaged in innovations for wider application scope can also propel the market position in the region. Latin America is presumed to escalate at a rate of 6.21% over the review period.
MEA Exhibits Strong Growth Prospects
The MEA resonates promising growth prospects and can reach USD 1050 Mn by 2023. The amplified demand for advanced cooling systems for efficient storage of perishable items and the growth in restaurants as well as distribution services are responsible for the MEA’s bright growth possibilities. The soaring need for effective transportation also fosters the demand for fluorochemicals.
Top firms are adopting a number of strategies like acquisition, product launch, partnership, collaboration, product innovations, business expansion and agreement to remain competitive in the global market.
Solvay has emerged one of the top brands in the fluorochemicals industry, bringing advancements in water and air treatment, cars, planes, medical devices and batteries to solve critical social, environmental and industrial challenges. The company offers a variety of innovative solutions, contributing to cleaner, sustainable and safer future.
Scope of the Report
The scope of the report highlights drivers, opportunities, restraints and challenges surrounding the global market. With easy-to-comprehend segmentation that includes antihypertensive drugs classification, therapeutic class, distribution channel, as well as region, MRFR projections are on the basis of historical as well as expected trends. Major firms active in the global market have been profiled as well, paired with the top strategies employed by them to remain competitive in the industry.
Frequently Asked Questions (FAQ) :
The valuation of the global fluorochemicals market is projected to escalate to USD 36,755.7 MN by 2023, from USD 25,902.7 MN in 2017, growing at 6.10% CAGR during 2018 to 2023.
Rapidly growing solar photovoltaic industry
Asia Pacific holds the largest share in the global Fluorochemicals market followed by North America and Europe, respectively.
Gujarat Fluorochemicals Ltd, SRF Limited, Alufluor AB, The Chemours Company, Halocarbon Products Corporation, Daikin Industries Ltd, Kureha Corporation, Fluorsid SpA, DowDuPont, Arkema SA, Solvay, and 3M, are some of the major players operating in the global Fluorochemicals market.
Strategic initiatives such as mergers & acquisitions, collaborations, expansion, and technology/ product launch are some of the growth strategies that players operating in the global fluorochemicals market adopt to gain a larger competitive advantage.
The global fluorochemicals market is expected to grow at a CAGR of 6.10% during the forecast period from 2018 to 2023. Fluorochemicals display beneficial properties such as thermal stability, high tensile strength, chemical inertness, and others which are applied extensively in various end-use industries. Observed to have valued USD 25,902 Mn in 2017, the market is expected to generate a revenue of USD 36,755.7 Mn by the end of 2023.
Fluorochemicals, in particular, fluorocarbons, are increasingly being used in HVAC systems, freezers, and refrigerators due to their various properties mentioned above. Increasing demand for consumer electronics, and air conditioning in automotive vehicles, building and construction, pharmaceuticals, food & beverage storage and others. Many of these mentioned industries are growing at a rapid pace due to the growing population, increasing disposable incomes and rapid urbanization across the globe, with an emphasis on emerging regions, are propelling the demand for refrigerants during the forecast period. The expansion of infrastructure has increased commercial and residential construction resulting in the increased demand for HVAC systems in warehouses, stores, malls, households, and others. Moreover, there has been a significant increase in the demand for frozen food and fresh produce which require temperature controlled storage for optimum quality, thus increasing the demand for fluorochemicals. The automotive industry is also growing at a swift pace and the use of fluoropolymers in fuel cells to meet the demand for high performance, lightweight vehicles, thus increasing demand for fluorochemicals. Additionally, the establishment of stringent emission regulations, demand for fuel-efficient vehicles and the growing demand for electric vehicles are expected to lead to considerable growth for the global fluorochemicals market.
Stringent environmental regulations with regards to the use of CFC, HFC, and HCFC due to the hazardous impact on the environment is expected to restrain market growth. For instance, the Montreal Protocol signatories are required to phase out the use of such chemicals in the next few years. Moreover, global concern for the environment will likely support the phasing out of fluorochemicals in the coming years, thus hampering growth. However, novel applications for fluoropolymers such as water filtration, solar, and photovoltaic applications are expected to offer the market new avenues for growth. The increased demand and need for efficient water filtration to meet the high demand for clean drinking water is expected to drive the growth of the fluorochemicals market in the foreseeable future.
The global fluorochemicals market is segmented on the basis of type, application, end-use industry, and region. By type, the market is segmented into fluoroelastomers, fluorocarbons, elemental fluorine, inorganics & specialties, fluoropolymers, and fluoropolymer additives. The fluorocarbons segment accounts for the largest share of the market at present and is set to grow at a CAGR of 5.90% during the assessment period. The fluorocarbons segment is sub-segmented into HFC, hydrochlorofluorocarbons (HCFC), and hydrofluoroolefins. Increasing demand for refrigerants in airconditioning for warehouses, automotive vehicles, and households among others is responsible for the significant size of the fluorocarbons segment. Meanwhile, the fluoropolymer segment is expected to witness the fastest growth at the highest CAGR of 6.70%. Fluorocarbons account for the second largest segment and are sub-segmented into polytetrafluoroethylene, polyvinylidene fluoride, polychlorotrifluoroethylene, fluorinated ethylene-propylene, and others.
Applications for fluorochemicals can primarily be found in films, refrigeration, blowing agents, aluminum production, tubing, paint strippers, and others. These applications have been included in the segmentation of the global fluorochemicals market. The refrigeration segment accounts for the majority share of 37% and has a market value of USD 9,631.5 Mn, and is likely to appreciate to reach an approximate value of USD 14,065 Mn by 2023. The increasing demand for refrigeration due to climate change and the benefits of temperature control combined with the superior properties of fluorocarbons have been attributed to the increasing use of fluorochemicals in the refrigeration application.
End-use industries, where fluorochemicals have considerable use, include pharmaceutical, electrical & electronics, automotive & transportation, construction, chemical processing, consumer goods, and industrial equipment. The electrical and electronics industry accounts for the largest share of 32.15% and a market value of USD 8,372.4 Mn. The electrical and electronics segment is expected to grow at a CAGR of 6.65% during the forecast period due to the increasing demand for consumer electronics and appliances where fluorochemicals have vital applications.
The Asia Pacific region accounts for over 43% of the global market share, making it the most significant regional segment in the global fluorochemicals market. Valued at USD 11,187.7 Mn in 2017, the APAC fluorochemicals market is expected to reach a value of USD 16,298.5 Mn by the end of the review period. The expansion of the automotive industry and the APACs position as an automotive manufacturing hub has been found to be a significant factor driving the regions market growth. Moreover, the increasing demand for water filtration and renewable sources of energy in highly populous APAC emerging economies such as China and India are expected to increase the consumption of fluoropolymers, thus directly impacting the fluorochemicals market positively. Growing disposable incomes in increasingly urban markets in the APAC are expected to drive the demand for refrigeration and coolants. The APAC region represents a high potential for growth of the global fluorochemicals market.
Other significant regional markets for the fluorochemicals market include North America and Europe, due to the presence of leading key players in the region and increasing demand for automotive combined with the rapid expansion of commercial infrastructure. In North America, the U.S is the most significant country, while in Europe, Germany leads growth. These regions are fairly well developed. However, they are rapidly adopting stringent environmental norms which are likely to have a negative impact on the fluorochemicals market as a whole.
The Chemours Company, 3M, Solvay, KUREHA Corporation, Arkema, DowDuPont, Halocarbon Products Corporation, Fluorsid SpA, Gujarat Fluorochemicals Ltd., SRF limited, Daikin Industries Ltd., and Alufluor AB are among the notable market players operating in the competitive landscape of the global fluorochemicals market.
Global Fluorochemicals Market: Competitive Landscape
Some of the key players operating in the global fluorochemicals market are Gujarat Fluorochemicals Ltd (India), SRF Limited (India), Daikin Industries Ltd (Japan), Alufluor AB (Sweden), Fluorsid SpA (Italy), Halocarbon Products Corporation (US), Kureha Corporation (Japan), Arkema SA (France), DowDuPont (US), 3M (US), Solvay (Belgium), and The Chemours Company (US).
The Chemours Company (US), Solvay (Belgium), SRF Limited (India), Daikin Industries Ltd (Japan), and Arkema SA (France) collectively holds the largest market share of the global fluorochemicals market. There is intense competition among these players to capture the larger market share. The market players are adopting various strategies such as product development, business expansions, and acquisitions to outperform their competitors and serve the increasing demand for refrigerants and fluoropolymers in major end-use industries. Among them, capacity expansions, acquisitions, and product launches were the most widely used growth strategies in 2017.
The Chemours Company is a holding company that provides performance chemicals. The company’s fluoroproducts segment supplies refrigerants and industrial fluoropolymer resins. In May 2018, the company signed a distribution agreement with Arkema to offer its XP40 (R-449A) refrigerant in the European Union to meet the growing demand for low global warming potential refrigerants under the F-Gas regulation.
Solvay is engaged in the manufacturing and distribution of chemical and plastic products. The company manufactures aromatic polymers, high barrier polymers, and fluoropolymers, among others, under its advanced material business segment. In March 2018, the company agreed to sell its Porto Marghera hydrofluoric acid plant in Italy to Alkeemia, a part of the Fluorsid Group. This would help Solvay focus on its core products. In November 2017, the company inaugurated its Solef polyvinylidene fluoride plant in China to meet the growing demand in automotive and transportation and other industrial applications.
SRF Limited is engaged in the manufacturing of industrial and specialty intermediates. It offers a vast variety of products such as fabrics, refrigerants and propellants, fluorochemicals, industrial chemicals, specialty chemicals, and engineering plastics. In November 2017, SRF acquired the hydrofluorocarbon (HFC)-125 assets and technical know-how of the UK-based Mexichem S.A.B. de C.V., one of the largest fluorochemicals producers in the world. This growth activity will help the company expand its refrigerants product portfolio and strengthen its presence in the global refrigerants market. In April 2016, the company set up a plant for manufacturing of its new-generation hydrofluoroolefin, HFO 1234yf, using its in-house R&D capabilities. This step will enable the company to reinforce its expertise and widen its portfolio of refrigerants.
Daikin Industries Ltd is a leading manufacturer of air conditioning equipment. It offers air conditioning systems for rooms, office buildings, facilities, and plants. The company also provides freezers, air purifiers, fluorocarbons, fluoroelastomers, fluoropaints, oil hydraulic pumps, cooling equipment and systems, and warheads for missiles, among others. In September 2017, the company introduced a new fluoropolymer under the brand name Neoflon VT-6630 which is a copolymer of tetrafluoroethylene and vinylidene fluoride. The product is suitable for use in electronic devices, seals, gaskets, and tubes owing to its high dielectric and good mechanical properties at high temperatures. In August 2017, the company acquired the Italian Heroflon SpA, a manufacturer of high-performance fluoropolymers. This growth activity will enable Daikin to increase the sale of its fluoropolymers and fluoroelastomers.
Arkema SA manufactures and supplies chemical products. It offers fluoropolymers under its high-performance materials segment for various applications such as automotive and electronics. In April 2018, the company opened a new Kynar fluoropolymer facility in Calvert City, Kentucky (US), to meet the growing product demand in emerging applications such as water filtration. In April 2017, the company opened a new Kynar fluoropolymer facility in Changsu, China, to meet demand in energy and water management applications.