Nitrogen Trifluoride & Fluorine Gas Market Size, Share & Trends Analysis Report By Application, By Region (North America, Europe, Asia Pacific, Latin America, RoW), And Segment Forecasts, 2015 - 2020

Industry Insights

Nitrogen trifluoride (NF3) is an inorganic compound and has toxic, odorless, non-flammable properties. NF3 is manufactured by the reaction of hydrochloric acid (HCL) and ammonia (NH3) and primarily used in the cleaning of silicon wafers in semiconductor and solar energy applications. Fluorine gas (F2) is produced either from fluorite (fluorspar) or fluorapatite, used in uranium enrichment, switchgears, and electronic cleaning applications. Fluorine in the form of uranium hexafluoride (UF6) and sulfur hexafluoride (SF6) are used for uranium enrichment and as a dielectric medium for gas-insulated switchgears, respectively. Nuclear enrichment enables uranium for further processing in power generation and other applications.

Increasing uranium production is expected to boost the demand for UF6 in nuclear power production driving growth in the F2 market. NF3 is considered in place of other cleaning agents such as sulfur hexafluoride, per fluorocarbon, and hexafluoroethane on account of its environmental effectiveness. Increasing solar power generation is expected to boost the NF3 market demand for thin-film solar cells.

In addition, NF₃ is used in plasma processing for fabricating the integrated circuits of televisions, laptops, and tablets. It mainly cleans the silicon wafers at Plasma Enhanced Chemical Vapor Deposition (PECVD) in Liquid Crystal Displays (LCDs). NF3’s fluorine content is used for cleaning the silicon-based impurities in the chamber. Hence, increasing demand for LCD televisions is expected to boost NF3 market demand for use in televisions. However, the Kyoto Protocol has recognized NF3 as the second most GWP gas after SF6 and included it in the list for the second commitment period from 2013.

The growth in demand for LCDs is expected to boost the demand for NF3 over the forecast period. However, many manufacturers have started to use F2 in place of NF3 catering to solar cells and LCDs owing to their environmentally friendly nature. The increased use of F₂ in uranium enrichment is expected to further augment its demand for nuclear production. In addition, the preference of Gas Insulated Switchgears (GIS) over Air Insulated Switchgears (AIS) is expected to propel the demand of F2as a dielectric medium intended for electrical applications.

The adoption of Kyoto Protocol by the U.S. and European countries is expected to restrict NF3 market demand for different applications in the region. Additionally, being highly reactive and hence toxic to human beings in case of direct and prolonged exposure which can be a major restraint for the F2 market.

Nitrogen Trifluoride & Fluorine Gas Market Trends

Global nitrogen trifluoride and fluorine markets are anticipated to grow due to increasing demand of the products from end-use markets. Increasing demand for nitrogen trifluoride in semiconductor chips from the growing electronics industry worldwide is anticipated to pave opportunities for the material over the coming years. Further, high electronic production across countries of Asia Pacific such as China, India, South Korea, India and more have accelerated demand for nitrogen fluoride in semiconductor applications across the region.

The market demand for fluorine is driven by increasing consumption of chlorofluorocarbons in refrigeration application worldwide. Increasing movement of food processed in terms of crop yields as well as processed food and beverages across inter-state markets and cross-borders have led to increasing demand for refrigerated transportation facilities, cold storages, air conditioned warehouses and more to ensure longer shelf life of food products. This in turn is anticipated to pave way for higher consumption of fluorine products over the coming years globally.

Growing semiconductor industry is a key driving factor for the market. Semiconductors are an essential component of electronics industry which is utilized to power multiple digital devices globally. Increased research & development activities related to development of semiconductor industry and application markets have led to surge in demand for various semiconductor cleaning formulations. East Asia is the major hub for semiconductor manufacturers backed by rising mobile communications, burgeoning economy, as well as growth in cloud computing across the region.

Nitrogen trifluoride is principally used in cleaning application for a range of electronic applications such as in semiconductor chips, flat panel displays, solar cells and more. Further, with increasing dependency on digitalized platforms and automated services globally, the demand for flat panel displays have increased over the past decade. Demand for laptops, desktops for commercial and private utility, LCD and LED television sets and more have reflected high demand growth.

The global electronics sector is rapidly growing in terms of consumer demand, commercial applications and more across the globe. China is the leading market in electronics, followed by the U.S., Germany, Japan, and UK. By end of 2020, China is projected to record revenue generation of USD 151.42 million, followed by the U.S. with revenue records of USD 65.02 million. Increasing penetration of electronics manufacturers and regional product formulators in China and the rest of Asia Pacific has reflected high demand for various chemicals for electronics cleaning applications including nitrogen trifluoride and fluorine gas.

Consumer electronics is one of the largest segments in the electronics industry that is projected to record revenue generation of USD 375.61 million by the end of 2020 with projected user penetration of 22.3%. further, the demand for electronic gadgets across North America and Europe on account of high consumer expenditure on mobile phones, laptops, smart television, and automotive dashboard displays is further projected to increase market demand for electronic cleaners in these regions. These factors are anticipated to drive demand for NF3 and F2 in these regions over the coming years.

Toxicity concerns of fluorinated gases is likely to restrain the industry growth over the coming years. Flammability is that property of a mixture to self-propagate a flame for a certain distance, and the flammability of a refrigerant refers to its ability to ignite, causing combustion or fire. Toxicity in simple terms is the dose that makes the poison. All substances can turn out to be toxic in sufficient amounts. The difference between safe and those that can be considered toxic is the concentration required to cause harm and in particular cases the repetition of exposures.

As the phase-out of fluorocarbon-based products progresses, a significantly higher uptake of alternative refrigerants such as ammonia, carbon dioxide, hydrocarbons, and hydrofluoro olefins among others is anticipated. Many of these possess different characteristics of toxicity, flammability, and high pressure in comparison with the previously used CFCs and HCFCs. Due to global warming potential of fluorinated gases, the consumption is anticipated to be restricted to certain extent over the foreseeable future to curb global warming.

Application insights

Semiconductor chips were the largest application segment for NF3 and accounted for 45.9% of the market share. NF3 market for semiconductor chips is expected to account for 44.2% of the total market share in 2024. The demand for NF3 in semiconductor chips is expected to be driven by the increasing use of NF3 as a greener alternative to clean silicon wafers.

NF3 is majorly used in the manufacturing of semiconductor chips, flat panel displays, and solar cells, whereas, F2 is used in uranium enrichment, sulfur hexafluoride, and in electronic cleaning. The semiconductor chip was the largest application segment for the NF3 market and accounted for 45.9% of total demand in 2013. It is mainly used to clean the manufacturing chamber of silicon chips in the semiconductor industry. It is also used in the cleaning of PECVD (Plasma Enhanced Chemical Vapor Deposition) chambers for the manufacturing of large volumes of flat panel displays in laptops, mobile phones, digital cameras, camcorders, point-and-shoot cameras, and pocket video cameras.

Additionally, NF3 market applications also include cleaning of silicon wafers in plasma-enhanced chemical vapor deposition (PECVD) for the production of thin-film solar cells or thin-film photovoltaic cells. Uranium enrichment was the largest application for the F2 market in 2013. F2 is used in the form of uranium hexafluoride (UF6) for nuclear enrichment of uranium trioxide (U₃O₈).

Sulfur hexafluoride (SF6) is majorly used as a dielectric medium in electronic applications. The other uses of SF6 include contrast agents for ultrasound imaging, tracer compound, and casing medium for magnesium production. F2 is used in the cleaning of the PECVD manufacturing chamber for the production of semiconductors. It is mainly used for cleaning silicon wafers present in the silicon-based semiconductors.

Regional insights

Asia Pacific was the largest regional NF3 market as well as the F2 market with 43.5% and 45.4% of the total demand respectively. The growth of the semiconductor industry in South Korea, China, and Japan is expected to augment drive NF3 market demand in the production of semiconductors. Demand is expected to be further propelled owing to increasing demand for flat panel displays in emerging markets such as China and India.

China is the world’s major hub for the manufacturing of consumer electronics, over 70% of smartphones are now made in China. The electronics industry index rose by over 450% in the past decade in China. Growing demand for NF3 gas in electronics chamber cleaning procedure provides free F2 radicals to volatize Si residues on chamber walls thereby decreasing risk of elements falling on the units thereby raising their efficiencies.

Semiconductor industry is crucial to numerous high-tech industrial segments and broadly used in computing, military weapons, and electronic counter measurements. The growth of semiconductor market has positive effect on the special electronic gases thereby driving the need for NF3 gas.

The growth of the semiconductor industry in the European Union is expected to boost the production of semiconductors in the region. In addition, the European Union’s announcement of Euro 100 million investments in semiconductors is expected to boost the production of semiconductors. As a result, the increasing use of NF3 for the manufacturing of semiconductors is expected over the forecast period. The shift in manufacturers of flat panel displays from Europe to Asia Pacific on account of surging demand of LCDs and low production cost in China and India is expected to hamper the production of flat panel displays in Europe.

The increase in nuclear power generation in China, India, and Australia is expected to boost the F2 market demand for uranium enrichment over the forecast period. China is one of the top 5 countries in terms of UF6 conversion capacity, with presence of 15,000 tU of capacity by China National Nuclear Corporation (CNNC). The country has been focused on enhancing its uranium supply to meet its energy demand. The country is expected to witness increase in its conversion capacity over the coming years with establishment of new units by China Nuclear Fuel Element Co (CNFEC). Rising capacity of enrichment and conversion is expected to fuel F2 demand in the country over the coming years.

In India, the demand for F2 gas is driven by rising demand from semiconductor and electronic cleaning applications. The gas increases the efficiency of display production processes, which is a key factor driving its demand in the electronics sector. India is also a key exporter of electronic circuits with exports valued at USD 244.03 million in 2019 and growth of 10.4% from the previous year. Rising production of electronic components & devices is expected to fuel demand for F2 in the country. Moreover, increasing investments in the power sector, primarily in renewable energy sources, is expected to fuel growth during the projection period.

Nitrogen Trifluoride (NF3) & Fluorine Gas (F2) market share insights

Technological developments such as the utilization of F2 gas in the chemical recovery of unconventional petroleum resources such as gas hydrates is expected to tap new applications by F2 over the forecast period. In addition, Air Liquide and Solvay Group joined their hands in developing a new F₂ gas intended for electrical applications.

Companies in the Nitrogen Trifluoride (NF3) & Fluorine Gas (F2) market include Mitsui Chemicals Inc, American Gas Group, Central Glass Co. Ltd, Formosa Plastics, Kanto Denka Kogyo Co. Ltd, Ulsan Chemical Company Limited, Foosung Co. Ltd, Hyosung, Linde Group, Navin Fluorine India and OCI Materials Co.

Report Scope

Segments Covered in the Report

This report forecasts revenue and revenue growth at global, regional & country levels and provides an analysis on the industry trends in each of the sub-segments from 2012 to 2020. For this study, Grand View Research has segmented the global Nitrogen Trifluoride (NF3) & Fluorine Gas (F2) market on the basis of application and region.

• NF3 Application Outlook (Volume, Tons; Revenue, USD Million, 2012 – 2020)

  • Semiconductor Chips

  • Flat Panel Displays

  • Solar Cells

• F2 Application Outlook (Volume, Tons; Revenue, USD Million, 2012 - 2020)

  • Uranium Enrichment

  • Sulfur Hexafluoride

  • Electronic Cleaning

• Regional Outlook (Volume, Tons; Revenue, USD Million, 2012 - 2020)

  • North America

  • Europe

  • Asia Pacific

  • Rest of the World