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Perfluoroalkoxy Market Overview
Perfluoroalkoxy
Market size is expected to be valued at US$265.2 million by the end of the year
2026 and is set to grow at a CAGR of 4.2% during
the forecast period from 2021-2026. The perfluoroalkoxy market is growing due to
the increase in demand from the chemical processing industry, as perfluoroalkoxy
contains hexafluoropropylene, which has excellent thermal resistance and is
also highly resistant to mechanical shocks. Perfluoroalkoxy is also made of fluoro
polymer, which is used for plastic lab equipment due to its extreme resistance
to chemical attack, optical transparency, and flexibility and is also used in
tubing for handling highly corrosive fluids and sheet linings, which is one of
the significant factors driving the perfluoroalkoxy market.
COVID-19 impact
The Covid-19
pandemic has led to the slowdown of perfluoroalkoxy market in terms of
production and supply chain. The marketing channels of perfluoroalkoxy
companies were disrupted leading to blockage of inventories and also the
slowdown in the operation and distribution channels pulled down the
perfluoroalkoxy market in a huge way resulting in various losses. This has
affected the perfluoroalkoxy market top 10 companies in many aspects like over
piling of stocks, reduction in production capacity and disruption in supply
chain activities, eventually leading to losses.
Perfluoroalkoxy Market Report Coverage
The report: “Perfluoroalkoxy Market – Forecast (2021-2026)”,
by IndustryARC, covers an in-depth analysis of the following segments of
the Perfluoroalkoxy Industry.
By Product
Type: Granules, Pellets,
Powder, and Aqueous Dispersion.
By Application:
Tubes, Linings,
Transfer Molded Articles, Semi-Conductor Components, Wire & Cable
Insulation, Hoses, Coatings, Woven Packing, and Others.
By End-User
Industry: Aerospace
& Defense, Automotive & Transportation, Energy & Power, Chemical
& Petrochemical, Electrical & Electronics, Pharma/Medical, Machinery
& Equipment, and Others.
By Geography: North
America (U.S, Canada, Mexico), Europe (Germany, UK, France, Italy, France,
Netherlands, Belgium Spain, Russia and Rest of Europe), APAC (China, Japan
India, South Korea, Australia, New Zealand, Indonesia, Taiwan, Malaysia), South
America (Brazil, Argentina, Colombia, Chile and Rest of South America) and RoW
(Middle East and Africa).
Key Takeaways
- The Middle East region is projected to witness a significant growth during the forecast period in the perfluoroalkoxy market owing to the growth in the building and construction sector, which is further fuelling the need for wires & cables and coatings.
- The increase in the use of hexafluoropropylene processed perfluoroalkoxy in chemical processing industry is one of the main factors driving the perfluoroalkoxy market.
- The rise in the research activities that require the use of lab equipment and applications like tubing is also driving the perfluoroalkoxy industry.
- The covid-19 pandemic has affected the perfluoroalkoxy industry in adverse ways disrupting the production and supply chain activities of the market, leading to the slowdown in the growth of the perfluoroalkoxy market.
FIGURE: Perfluoroalkoxy Market Revenue, 2020-2026 (US$Million)
Perfluoroalkoxy Market Segment Analysis - By Product Type
The pellets segment
held the largest share of more than 25% in the perfluoroalkoxy market in the
year 2020. Pellet have excellent dielectric properties, which is used in
semi-conductor applications, making it a preferred type of perfluoroalkoxy in
the electronics and electrical industry. The semiconductor industry is hugely
dependent on perfluoroalkoxy, since it is the only material that can hold and
transport harsh chemicals and resist extreme heat and temperature.
Perfluoroalkoxy is also a corrosive resistant chemical substance, which makes
it a preferred chemical compound in the manufacturing and other industries. The Semi-conductor Industry Association (SIA)
announced the global revenue of US $ 439 billion in the year
2020, which drives the
demand for pellets in the perfluoroalkoxy industry.
Perfluoroalkoxy Market Segment Analysis - By Application
Tubes segment
held the largest share of more than 30% in the perfluoroalkoxy market in the
year 2020. Perfluoroalkoxy is extensively used in the tubing apparatus and
other applications of the research industry to handle highly volatile and corrosive
chemicals, due to its properties like resistance to chemicals and mechanical
shocks. Perfluoroalkoxy offers excellent crack and stress resistance, making it
the most used chemical compound in the manufacture of tubes and other lab
applications. Perfluoroalkoxy is the best choice when it comes to resistance
involving high chemical resistance combined with high temperature exposure.
This further fuels the growth of perfluoroalkoxy market.
Perfluoroalkoxy Market Segment Analysis - By End-User Industry
Chemical and
Petro-Chemical industry held the largest share of more than 25% in the perfluoroalkoxy
market in the year 2020. Perfluoroalkoxy is extensively used in the chemical
processing industry for various applications like heat exchanger tubing, lining
& trace heating cables, and convoluted tubing, which is driving the demand
for perfluoroalkoxy in the chemical processing industry. Perfluoroalkoxy is
highly resistant to crack and breakage which is very useful in the chemical
industry as they require to handle and use chemicals in tubes and other
apparatus often. Perfluoroalkoxy is also used in the manufacture of
petrochemicals such as propylene, ethylene, and toluene, which is one of the
major factors driving the perfluoroalkoxy in the petrochemical industry.
Perfluoroalkoxy Market Segment Analysis – By Geography
Asia-Pacific region held the largest share of more than 35% in the perfluoroalkoxy market in the year 2020. The increase in the building and construction industry in countries like China, India, and Japan drives market growth as it is used for the piping and fittings in the buildings, mostly for its anti-corrosion and chemical resistant linings in the pipes and carriages. According to Invest India, the construction industry in India is estimated to reach US $ 738.5 billion by the year 2022. As per the data provided by Invest India, the construction sector of India grew by 5.6% between the year 2016 and the year 2020. The estimated construction projects as of March 2021, there is a total of 924 government projects and 21 private projects in the construction sector in India. The increasing number of activities in the construction sector will further drive the need and demand for perfluoroalkoxy market in the APAC region.
Perfluoroalkoxy Market Segment Analysis Drivers
·
The
increase in demand from chemical processing industry
The increase in demand from chemical processing
industry for perfluoroalkoxy, due to its superior properties like excellent
thermal-resistance, resistance to mechanical shocks are driving the perfluoroalkoxy
market growth. Perfluoroalkoxy is effective against harshness of chemicals,
which makes it a preferred product in the research field for usage in their lab
equipment and applications. For instance, on December 22, 2020, a project on
Fluorochemicals was announced in Dahej, Gujarat, India for a cost of $ 1950
million. Investments and projects like these are some of the significant factors
contributing to the growth of the perfluoroalkoxy market.
·
The growth
in automobile sector
The growth in automobile sector is increasing the need and
demand for fuel hose and other components, which is further fuelling the demand
for perfluoroalkoxy market. Fluoropolymers are extensively used in the fuel
hose and other components for protection in thermal and chemical resistance. It
is also used in vehicle electrical systems for cabling and wiring insulation. Thus,
the growth in the electrical vehicle sales volume that is increased to 2
million in the year 2019 also contributes to the market growth. The increase in
the use of such engines and vehicles are driving the need and demand for perfluoroalkoxy
in the automobile industry.
Perfluoroalkoxy Market Segment Analysis Challenges
·
High
competition from substitutes like Polytetrafluoroethylene (PTFE)
The presence of close substitutes such as
Polytetrafluoroethylene (PTFE), a fluoro polymer that has high quality
properties such as low coefficient of friction and higher resistance to heat
and chemicals which is mainly used for tubing applications.
Polytetrafluoroethylene (PTFE) is extensively used in containers and pipes for
handling reactive and corrosive chemicals. It helps to reduce friction and
minimize the wear and tear that helps in improving energy consumption. Whereas
perfluoroalkoxy is used as sheet linings for chemical equipment. These
additional features and properties of polytetrafluoroethylene (PTFE) makes it a
close and easy substitute to perfluoroalkoxy, and is one of the biggest
challenges to the Perfluoroalkoxy market.
For instance, the US industry revenue of polytetrafluoroethylene (PTFE)
wasUS $ 1.3 billion in the year 2019.
Perfluoroalkoxy Industry Outlook
New product launches, investments, collaborations, acquisitions and mergers, and expansions are some of the key strategies adopted by players in the Perfluoroalkoxy Market. Major players in the Perfluoroalkoxy Market include:
- AMETEK Inc.
- Saint Gobain Performance Plastics
- Li Chang Technology (Ganzhou) Co. Ltd.
- Holscot Fluoroplastics
- Alpha Chemical Ltd.
- 3M
- Zeus Industrial Products Inc.
- Alfa Chemicals Ltd.
- Daikin Industries Ltd.
- Hubei Everflon Polymer CO LTD.
- Solvay SA
- AGC Chemicals Europe Ltd.
- HaloPolymer OJSC
- Polyfluor Plastics BV
- The Chemours Company among others.
Acquisitions/Technology Launches
- On December 21, 2020 Brenntag acquired Alpha Chemical Ltd., a leading chemical industry company based in Canada, specialising in key industries including oil & gas, mining, water treatment, fluoro polymers etc., .
- On January 24, 2019, AGC Chemical Europe Ltd acquired Malgrat Pharma Chemicals S.L.U, in Spain, which specialises in synthetic pharmaceutical ingredients for pharma/medical products.
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