The global fluorochemicals market size is expected to expand at a CAGR of 4.3% over the forecast period. Increasing installation of HVAC systems in the manufacturing and automotive sectors is expected to augment application of refrigerants and thus likely to fuel demand for fluorochemicals.
High resistance to organic solvents, acids, and bases offered by fluorochemicals is a critical factor expected to drive the product demand in automotive, electronics, and construction applications over the forecast period. However, credible threat from ammonia as a substitute product owing to its low cost and regulatory developments can restrain the fluorochemicals market growth in the coming years.
Hydrofluorides are expected to witness gains on account of rise in the aluminum production, largely driven by its increasing use in the automotive and construction sectors. Demand for the product in aluminum production is expected to expand at a CAGR of 3.8% over the forecast period.
Adoption of Montreal and Kyoto Protocols in Europe and North America and regulations regarding restriction on chemicals with high global warming potential (GWP) are expected to impact the demand for fluorocarbons including CFC and HCFC.
Fluorocarbons dominated the market, accounting for over 50.0% share of global volume in 2013. It is expected to lose share to inorganic and polymer counterparts owing to stringent regulations in U.S. and Canada to phase out CFC and HCFC compounds.
Fluoropolymers are expected to witness significant gains and expand at a CAGR of 10.2% in terms of volume over the forecast period. Increasing consumption of fluoropolymers in the electronics, construction, and automotive industries on account of properties like high tensile strength and electrical insulation is expected to have a positive impact on the segment growth over the forecast period.
Demand for inorganic products was 986.7 kilotons in 2013 and is expected to witness growth in the coming years on account of growing application of cryolite, silicofluoride, fluorosilicate, and aluminum fluoride in manufacturing cleaning agents and aluminum.
Refrigerants dominated the global industry, accounting for over 40.0% share of the overall volume in 2013. Rising importance of clean air systems in the manufacturing industry, along with increasing installation of HVAC systems in automobiles, is expected to augment industry growth.
Demand for fluorochemicals in component and other applications was above 1,250.0 kilo tons in 2013. The segment is expected to witness significant growth on account of increasing utilization of the product in manufacturing consumables that are used in household and industrial appliances.
Fluorochemicals are used to manufacture CFCs, HFCs, and HCFCs that serve as refrigerants. Moreover, they have a wide application in the refrigeration industry with key use in refrigeration equipment, heat ventilation air-conditioning (HVAC), self-chilling beverages cans, and defrost systems.
This industry is expected to witness significant growth due to mounting demand for refrigerants in the automotive industry and consumer durables. In addition, this industry shows a high growth potential in the forecast period due to rising demand for the cooling equipment. Asia Pacific is expected to witness high consumption due to rapid expansion of the manufacturing base, coupled with growth of the automotive industry in this region.
Asia Pacific accounted for over 45.0% share of the global volume in 2013. It is expected to witness significant gains and expand at a healthy CAGR in terms of volume over the forecast period. 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.
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 region. 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 the market growth over the forecast period.
Top four manufacturers accounted for over 40.0% share in the global fluorochemicals market 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 to develop new products. These chemicals can be used as oil and water repellent coatings. New product developments, along with 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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