Fluorochemical Market - Growth, Trends, COVID-19 Impact, and Forecasts (2023-2028)

Key Highlights

• Over the short term, the growing demand from HVAC systems is expected to drive market growth.
• However, the environmental problems associated with fluorochemicals are likely to hinder the market's growth.
• Over the next five years, the fluorochemical market is likely to benefit from the research and development of fluorochemicals that make clothing waterproof.
• The Asia-Pacific region is expected to have the biggest share of the market and the highest CAGR over the next five years.

Fluorochemical Market Trends

Fluorocarbon to Dominate the Market

• Due to new rules meant to protect the ozone layer and slow down global warming, the fluorocarbon segment is likely to be the largest.
• Fluorocarbons are used in propellants, blowing agents, refrigerants, and solvents, and major manufacturers are formulating less harmful fluorochemical substitutes that are anticipated to surge the demand for fluorochemicals. For instance, in 2021, the global refrigerator market generated a revenue of USD 126.6 billion, which showed an increase of 7.8% compared with 2020, which amounted to USD 118.8 billion. Therefore, this is expected to create demand for fluorochemicals.
• Fluorocarbon demand may go down over the next few years because of growing worries about the ozone layer.
• Fluorocarbons serve as a refrigerant, and the growing importance of clean air systems in the manufacturing sector and the growing installation of HVAC systems in automobiles are expected to increase the growth of the market. For instance, according to OICA, in 2021, automobile production in the United States amounted to 91,67,214 units, which showed an increase of 4% compared to 2020. So, if the number of cars made goes up, there should be more demand for fluorochemicals on the market in the country.
• All of the aforementioned factors are likely to be the driving forces behind the fluorochemical market during the forecast period.

Asia-Pacific Region to Dominate the Market

• Over the next few years, the Asia-Pacific market is expected to be the biggest and grow the fastest. This is because more and more refrigerants are being used in HVAC systems in the automotive and infrastructure sectors.
• Fluor Technology's products are often used in the construction and building industries. These include anti-corrosion, high-strength, and UV-resistant materials like caulks, wire and cable, architectural membranes and coatings, and wire and cable.
• An increase in consumption of packaged and frozen food has led to a rise in market demand for commercial cooling systems, which is likely to drive the fluorochemical industry's growth. For example, the Ministry of Economy, Trade, and Industry (METI) says that the value of electric refrigerators made in Japan in 2021 will be JPY 229.39 billion yen ($2.09 billion), which is up 2.64 percent from 2020.
• Fluorine-based chemicals such as AHF are prominently used for aluminum production owing to their cost-effectiveness. For instance, according to the Ministry of Industry and Information Technology of the People's Republic of China, in 2021, the production volume of primary aluminum in China was 38.5 million tons, an increase of 3.8% compared to 2020. Therefore, this is expected to create upside demand for the flurochemical market in the country.
• Moreover, lightweight and low-maintenance characteristics also promoted the use of aluminum in electronic and automotive applications, which is likely to propel the demand for fluorochemicals. For instance, according to OICA, the total automotive production in India amounted to 43,99,112 units, which shows an increase of 30% compared to 2020. Because of this, a rise in the number of cars made is likely to increase demand in the fluorochemical market.
• Aluminum is likely to be used more in the region because China and India have a lot of it and their governments want to encourage foreign direct investment in their metal industries.
• So, all of these market trends are likely to boost the demand for fluorochemicals in the region over the next few years.

Fluorochemical Market Competitor Analysis

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