Global fluorochemicals market demand is expected to reach 5,398.2 kilo tons by 2024, growing at a CAGR of 4.3% from 2014 to 2024. Increasing installation of HVAC systems in manufacturing and automotive sectors is expected to augment application of refrigerants and thus likely to fuel fluorochemicals demand in the near future.
High resistance to organic solvents, acids and bases offered by fluorochemicals is expected to be critical for developing demand in automotive, electronics and construction applications over the forecast period. However, there is a credible threat from ammonia as a substitute product, owing to its low cost and regulatory developments.
Hydrofluorides are expected to witness gains on account of aluminum production growth, driven largely by its increasing use in automotive and construction. Demand in aluminum production is expected to grow at a CAGR of 3.8% from 2014 to 2024, in terms of volume.
Adoption of Montreal and Kyoto Protocols in Europe and North America, regarding restriction on chemicals with high global warming potential (GWP) is expected to impact fluorocarbon including CFC and HCFC demand.
Global fluorochemicals market, by product, 2014 - 2024 (Kilo Tons)
Fluorocarbons dominated the market, accounting for over 50% of global demand in 2013. It is expected to lose share to inorganic and polymer counterparts in light of stringent regulations in U.S. and Canada to phase out CFC and HCFC compounds.
Fluoropolymers market is expected to witness significant gains over the forecast period, growing at a CAGR of 10.2%, in terms of volume. Increasing consumption of fluoropolymers in electronics, construction and automotive industries on account of providing high tensile strength and electrical insulation is expected to have a positive impact over the forecast period.
Inorganic product demand was 986.7 kilo tons in 2013 and is expected to witness growth in light of growing application of cryolite, silicofluoride, fluorosilicate and aluminum fluoride in manufacturing cleaning agents and aluminum.
Refrigerant applications dominated the global fluorochemicals industry, accounting for over 40% of overall volume in 2013. Rising importance of clean air systems in manufacturing industry along with increasing installation of HVAC systems in automobiles is expected to augment industry growth in the near future.
Demand in component and other applications exceeded 1,250.0 kilo tons in 2013 and is expected to witness significant growth in light of increasing utilization in manufacturing consumables that are used in household and industrial appliances.
Asia Pacific fluorochemicals market accounted for over 45% of global volume in 2013. Positive outlook towards the automobile sector in China, India, Indonesia, and Malaysia is expected to increase the application of refrigerants in HVAC systems for vehicles and thus contribute to industry growth.
The abundance of aluminum reserves in China, India, and Australia along with the regulatory inclination to promote FDI in the domestic metal sector is expected to increase its application in the near future. Asia Pacific is expected to witness significant gains at a CAGR of 5.2% from 2014 to 2024, in terms of volume.
The U.S. government announced to phase out certain fluorochemicals including HCFC-22 (also called R-22) and HCFC-142b from 2010 which is expected to pose a negative impact on growth over the forecast period.
Top four manufacturers accounted for over 40% of global fluorochemicals market share in 2013. Key manufacturers include DuPont, Arkema SA, 3M, Solvay SA, Daikin Honeywell, Asahi Glass and Dongyue.
In July 2014, Solvay commenced the production of NOVOLOK at Quzhou, China. In June 2010, 3M announced plans to adopt a new non-toxic perfluorooctane-sulfonyl fluoride technology for developing new products. These chemicals can be used as oil and water repellent coatings. New product developments along with the expansion of production in manufacturing units located in or near high demand regions are expected to remain critical success factors for growth.
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