Fluorochemicals Market Analysis

Global Fluorochemicals Market Overview

Fluorochemicals Market Size was valued at USD 28.1 Billion in 2023. The Fluorochemicals industry is projected to grow from USD 29.1 Billion in 2024 to USD 45.1 Billion by 2032, exhibiting a compound annual growth rate (CAGR) of 6.10% during the forecast period (2024 - 2032). The expanding need for HVAC technology from the construction industry is the primary market driver for the fluorochemicals market. The demand for ventilation systems across the board has increased as a result of growing commercial and residential construction activity in developing nations worldwide. Thus, are the key market drivers enhancing the market growth.

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Fluorochemicals Market Trends

• 
  

  Advancements in refrigeration and air conditioning systems is driving the market growth

  
  

The rise of the fluorochemicals market has been significantly influenced by the development of refrigeration and air conditioning technologies. The development and acceptance of more efficient and environmentally friendly cooling systems has led to an increase in the demand for specific types of fluorochemicals, particularly hydrofluorocarbons (HFCs). One of the main issues influencing this industry is the ban on CFCs and HCFCs due to their harmful impact on the ozone layer. The Montreal Protocol, an international environmental agreement, has lowered and ultimately eliminated these chemicals ly. As a result, HFCs took over as the preferred alternative for cooling and refrigeration applications. HFCs offer several advantages over their forerunners. Because they don't contain chlorine, which contributes to ozone depletion, they are ozone friendly. Additionally, thanks to their exceptional thermodynamic properties and low toxicity, HFCs are perfect for a number of cooling applications. By using HFCs, the ozone-depleting potential (ODP) has been significantly reduced, which has been crucial for preserving the ozone layer.

Improved refrigeration and air conditioning systems have also encouraged the development of energy-efficient devices. Energy efficiency has been a prominent industrial focus due to a desire to reduce operational costs and environmental concerns. HFCs in particular, which are fluorochemicals, are crucial for these systems to attain higher energy efficiency. Strong heat transfer properties provided by HFCs increase cooling efficiency and reduce energy consumption. They enable the development and manufacture of high-performance cooling and refrigeration equipment that satisfies stringent energy efficiency standards. Because they contribute in lowering greenhouse gas emissions, HFCs are utilised in these systems to combat climate change. Furthermore, technological advancements in refrigeration and air conditioning systems have led to the production of smaller and lighter equipment. The significance of portability and miniaturisation has increased for a variety of applications, including portable air conditioners, vehicle air conditioning, and transportation refrigeration.

Due to the small size of these systems, refrigerants that can operate safely and effectively in high-pressure settings are required. The characteristics required to meet these demands are provided by HFCs and other fluorochemicals. As a result of their stability, low toxicity, and superior energy efficiency, they are ideal for compact and lightweight cooling systems. The use of fluorochemicals outside of conventional cooling applications has increased because to modern refrigeration and air conditioning technology. For instance, the necessity for specific cooling solutions has expanded as server rooms and data centres have grown. Fluorochemicals are used in precise cooling systems to ensure appropriate operating temperatures for fragile electronic equipment.

The increased popularity of electric vehicles (EVs) is another element boosting the demand for efficient air conditioning systems in the automotive industry. Fluorochemicals are used as refrigerants in electric vehicle air conditioning (EVAC) systems, which increases the comfort and security of EV occupants. The expansion of refrigeration and air conditioning systems has thereby increased demand for fluorochemicals. The phase-out of ozone-depleting substances and the demand for energy-efficient cooling solutions have driven the market for fluorochemicals, particularly HFCs. Fluorochemicals are essential for the proper operation of cooling systems, which are improving in sustainability and efficiency as a result of technical developments in the sector. Thus, driving the Fluorochemicals market revenue.

March 2023, Indian MWM distributor and service partner Green Power International Pvt. Ltd. carried out major maintenance on three MWM petrol engines at Gujarat Fluorochemicals Limited (GFL), an Indian industrial coolant manufacturer. The engines provide heat and power to the plant, which has been running in island mode for over 100,000 hours.

Fluorochemicals Market Segment Insights

Fluorochemicals Product Insights

The Fluorochemicals market segmentation, based on product includes fluorocarbons, fluoropolymers, inorganics & specialties. The fluoropolymers segment dominated the market, accounting for 41.23% of market revenue. Due to its non-stick qualities and resilience to hostile environments, it is widely utilised in a variety of industries, including automotive, electronics, cookware, and construction.

Figure 1:  Fluorochemicals Market, by Distribution channel, 2022 & 2032 (USD Billion)

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Fluorochemicals Application Insights

The Fluorochemicals market segmentation, based on application, includes refrigeration, aluminum, automobile, films, tubings, blowing agents and others. The aluminum segment dominated the market, accounting for 40.23% of market revenue. During the electrolysis procedure, aluminium fluoride functions as a flux, assisting in the purification of aluminium and lowering the melting point of alumina. It is a crucial component in the creation of aluminium, which is utilised in numerous sectors.

Fluorochemicals Regional Insights

By region, the study provides market insights into North America, Europe, Asia-Pacific and Rest of the World. The North America Fluorochemicals Market dominated this market in 2022 (45.80%). The advanced industrial infrastructure of North America includes a robust chemical industry, state-of-the-art manufacturing facilities, and resources for research and development. A strong supply chain and a long history of fluorochemical production provide the region an advantage over competitors in the market. Further, the U.S. Fluorochemicals market held the largest market share, and the Canada Armor Materials market was the fastest growing market in the North America region.

Further, the major countries studied in the market report are The U.S., Canada, German, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.

Figure 2:  FLUOROCHEMICALS MARKET SHARE BY REGION 2022 (USD Billion)

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Europe Fluorochemicals market accounts for the second-largest market share. Europe has been in the forefront of passing strict environmental regulations and policies to lower greenhouse gas emissions and safeguard the environment. The European Union (EU) has been a strong proponent of the F-Gas Regulation, which governs the use and emissions of fluorinated gases, including fluorochemicals. These regulations have affected both the adoption of more ecologically friendly alternatives and the local market's demand for fluorochemicals. Further, the German Fluorochemicals market held the largest market share, and the UK Fluorochemicals market was the fastest growing market in the European region

The Asia-Pacific Fluorochemicals Market is expected to grow at the fastest CAGR from 2023 to 2032. The growth of the local consumer base explains this. Asia and the Pacific have a major manufacturing base for electronics. Additionally, the increase in disposable income is fueling demand for fluorochemicals and offering lucrative growth opportunities for the Asia-Pacific commercial refrigeration market. Moreover, China’s Fluorochemicals market held the largest market share, and the Indian Fluorochemicals market was the fastest growing market in the Asia-Pacific region.

Fluorochemicals Key Market Players & Competitive Insights

Leading market players are investing heavily in research and development in order to expand their product lines, which will help the Fluorochemicals market, grow even more. Market participants are also undertaking a variety of strategic activities to expand their footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. To expand and survive in a more competitive and rising market climate, Fluorochemicals industry must offer cost-effective items.

Manufacturing locally to minimize operational costs is one of the key business tactics used by manufacturers in the Fluorochemicals industry to benefit clients and increase the market sector. In recent years, the Fluorochemicals industry has offered some of the most significant advantages to medicine. Major players in the Fluorochemicals market, including Air Products and Chemicals Inc, 3M Company, Arkema Group, Solvay SA, Mexichem S.A.B. de C.V., Mitsui Chemicals Inc, ASAHI GLASS CO. LTD, DAIKIN INDUSTRIES Ltd, are attempting to increase market demand by investing in research and development operations.

Air Products and Chemicals Inc. (Air Products) provides industrial gases. Aside from atmospheric, process, and specialty gases, ancillary equipment is also included in its product line. The supplier provides welding gases, specialised gases, gas mixtures, carbon monoxide, neon, xenon, krypton, syngas, helium, hydrogen, nitrogen, and oxygen. The markets that Air Products serves include those for electronics, chemicals, metals, manufacturing, food, and beverages. It runs on a system of producing units and industrial gas pipelines. The corporation has operations in the Americas, Europe, the Middle East, Africa, and Asia. The corporate headquarters of Air Products are located in the American city of Allentown, Pennsylvania.

The 3M Company is a producer and distributor of industrial products and services. Advanced materials, display materials and systems, office supplies, home care, home improvement, roofing granules, closure and masking systems, and other products are also part of the company's product portfolio. Aside from that, 3M offers a variety of services, such as health information systems, consumer health, medical, and dental care. It serves clients from a range of industries, including consumer products, automotive, electronics, healthcare, safety, and energy. The company has manufacturing and conversion facilities throughout the Americas, Europe, the Middle East, Africa, and Asia Pacific. 3M is based in the American city of St. Paul, Minnesota.

AHF is a starting raw material for refrigerant gas, fluoropolymer and battery chemicals – all of which will be more readily available as Gujarat Fluorochemicals Ltd intends to expand its production capacity from 120 tpd to 220 tpd by November 2022.

ICICI Securities recently hosted Gujarat Fluorochemicals Ltd (GFL), which is eyeing significant opportunities in fluoropolymers and battery chemicals over the next five to ten years; the company plans to increase FKM capacity seven-fold, PVDF four-fold and PFA four-fold in the next two years alone, driving new fluoropolymers sales growth.

Key Companies in the Fluorochemicals market include

• Air Products and Chemicals Inc


• 3M Company


• Arkema Group


• Solvay SA


• Mexichem S.A.B. de C.V.


• Mitsui Chemicals Inc


• ASAHI GLASS CO. LTD


• DAIKIN INDUSTRIES Ltd

Fluorochemicals Industry Developments

November 2022: The capacity of Gujarat Fluorochemicals Ltd's AHF will increase from 120 tpd to 220 tpd, which will enable the company supply vital beginning raw materials for fluoropolymer, refrigerant gas and battery chemicals.

September 2022: Gujarat Fluorochemicals Ltd. was recently hosted by ICICI Securities. Over the next five to ten years, GFL is enthusiastic about the growing market for battery chemicals and fluoropolymers. Over the next two years, the business intends to increase capacity by 7x in FKM, 4x in PVDF, and 4x in PFA, which will considerably boost revenue growth in novel fluoropolymers.

Fluorochemicals Market Segmentation

Fluorochemicals Product Outlook

• Fluorocarbons


• Fluoropolymers


• Inorganics & Specialties

Fluorochemicals Application Outlook

• Refrigeration


• Aluminum


• Automobile


• Films


• Tubings


• Blowing Agents


• Others

Fluorochemicals Regional Outlook

• North America
  
  
  
  • US
  
  
  • Canada
  
  
  
  


• Europe
  
  
  
  • Germany
  
  
  • France
  
  
  • UK
  
  
  • Italy
  
  
  • Spain
  
  
  • Rest of Europe
  
  
  
  


• Asia-Pacific
  
  
  
  • China
  
  
  • Japan
  
  
  • India
  
  
  • Australia
  
  
  • South Korea
  
  
  • Australia
  
  
  • Rest of Asia-Pacific
  
  
  
  


• Rest of the World
  
  
  
  • Middle East
  
  
  • Africa
  
  
  • Latin America