The global fluorochemicals market is anticipated to show a nominal growth over the forecast period. The major factors that are projected to drive the market growth is the constantly growing demand for air-conditioners and refrigerators around the globe owing to the rapid urbanization, rising disposable income and also due to the growing middle-class population, especially in the developing economies of the world. Also, a notable increase in the HVAC installations across the globe is also one of the key factors which is propelling the demand for fluorochemicals and adding up to the market growth during the next five years.
Furthermore, the wide applications of these chemicals across numerous industries such as for aluminum production, as blowing agents fire extinguishers and others are also significantly adding up to the market growth during the forecast period. Also, the versatile properties of these chemicals is leading to the growing acceptance of fluorochemicalsacross various industries. Furthermore, the globally growing production of aluminum due to its growing applications in the automotive sector along with decent growth in the production of automobiles also supplement the fluorochemicals market growth in the near future.
The growing demand for air conditioners and refrigerators across the globe on account of the on account impressive economic growth, rising disposable income, and improvement in the standard of living especially in developing economies such as China, India, and Brazil among others is projected to propel the market growth during the next five years.Simultaneously, the production of these products is increasing due to growing demand which is further anticipated to augment the market growth opportunities for the manufacturers during the forecast period. For instance, as per the report from the Japan Refrigeration and Air Conditioning Industry Association, the global air conditioner demand increased from 104,367 thousand units in 2013 to 110,971 thousand units in 2018.Furthermore, the increasing household consumption expenditure also plays an important role in driving the demand for these products also, which is further expected to propel the market growth for the coming years. Per the World Bank Group, the household’s and NPISHs Final consumption expenditure has grown remarkably from US$37.838 trillion in 2010 to US$48.611 trillion in 2018.
Moreover, the burgeoning automotive production is also considered to significantly drive market growth during the coming years. As the growth in the production of vehicles will lead to a significant increase in the installation of air conditioning systems in these vehicles. In addition, the booming government initiatives for boosting the production of electric vehicles is also one of the key opportunities for the market to surge over the forecast period and beyond. The growth in the sales of the passenger vehicles is leading to a nominal growth in the production also. For example, as per the data from OICA, the production of passenger vehicles increased from 67,530,621 per year in 2014 to 70,567,581 by 2018. Additionally, the booming deployment of electric vehicles across the globe at a growing pace is also anticipated to continue over the coming which is also a key factor that is expected to propel the opportunities for the fluorochemicals market growth in the coming years.
By application, the fluorochemicals market has been classified into aluminum production, refrigerants, blowing agents and others. The refrigerant application of fluorochemicals is anticipated to hold a notable share in the market owing to the growing demand for clean air systems across the manufacturing sector. The booming demand for AC systems and refrigerators also supports the growth of this segment in the coming years.The growth in the aluminum production owing to the high adoption across the automotive sector owing to numerous capabilities of aluminum is also considered to be one of the key factors for this segment to grow substantially over the forecast period. The growing sales of automobiles in various developing economies such as India, China, Brazil, and Argentina is also projected to bolster the growth of the market throughout the forecast period and beyond.
Geographically, the fluorochemicals market has been segmented into North America, South America, Middle East and Africa, Europe and the Asia Pacific. North American region is anticipated to hold a noteworthy share owing to the well-established and a state-of-art chemicals and materials industry. Furthermore, the presence of key players in the market in countries such as the United States is also one of the factors which is anticipated to support the significant share of this region in the next five years. The Asia Pacific region is anticipated to show a notable growth in the market owing to the fact that there is a growing demand for ACs and refrigerators in major developing countries such as India and China among others. Also, the booming automotive sales due to impressive economic growth and the growing middle-class population also supplement the market growth in the APAC region during the forecast period.
Competitive Scenario in the market
The key players in the market are investing heavily in the form of R&D for the development of new products for the expansion of the product portfolio. Also, investments in the facility expansions and partnerships and agreements is also supplementing the market growth during the forecast period. Some of the key developments in the fluorochemicals market are listed below:
Recently in February 2020, Navin Fluorine International Ltd. a leading company fluorochemical manufacturing company based out of India announced a 7 year US$410 million contract with a global company for the supply of high-performance products in the fluorochemicals segment.
In September 2019, Daikin, the world’s one of the largest producers of fluorochemicals in the world announced an investment of around US$195 million in its Decatur production facility. The company aims to expand its production capacity over the coming years along with infrastructure enhancements and R&D capabilities. The investment is also done with an aim to ramp up the polymer production capability and associated monomer production.