Fluoropolymers Market Size, Share & Industry Analysis, By Product (Polytetrafluoroethylene (PTFE), Polyvinylidene fluoride (PVDF), Fluorinated Ethylene Propylene (FEP), Polyvinylfluoride (PVF), and Others), By Application (Coatings, Additives, Films, and Others), By End-Use (Industrial Equipment, Automotive, Construction, Electrical & Electronics, and Others), and Regional Forecast, 2024-2032

The global fluoropolymers market size was valued at USD 7.92 billion in 2023 and is projected to grow from USD 8.32 billion in 2024 to USD 12.63 billion by 2032, exhibiting a CAGR of 5.4% during the forecast period.

Efficacy to offer various exceptional mechanical and chemical properties such as chemical inertness and high resistance to temperature, fire, and weather has made fluoropolymers an essential material in various applications. Its unique set of properties has increased its use in a wide range of applications including automotive, aerospace, electronics, semiconductors, and common household appliances. In addition, fluoropolymers pose non-adhesive and low friction properties along with superior electrical properties compared to other polymers, making them an ideal choice in the manufacturing of electrical components and semiconductors. Surging demand from the above-mentioned applications and the product’s unique set of properties are projected to drive the global fluoropolymers market growth during the forecast period.

During the COVID-19 pandemic, due to preventive measures implemented by the government and to adhere to the safety norms, production plants were running at their lowest production levels. Nationwide lockdown and halted transportation activities significantly hampered various industrial operations of most of the businesses. As a result, the coronavirus outbreak severely impacted many businesses in 2020, with mostly affected businesses being in the construction and automotive sectors. These industries are the major consumers of fluoropolymers and the negative impact on these businesses resulted in lower market growth in 2020.

Fluoropolymers Market Trends

Increasing Use in Li-ion Battery and Renewable Energy to Propel Market Growth

Properties such as excellent chemical, abrasion and corrosion resistance, and resistance to extreme temperature play an important role in increasing components lifetime such as fuel cells, photovoltaics, and batteries. The growing global population and rapid industrialization may drive energy demand. By 2040, the world’s energy consumption is expected to increase by around 50%. To control global warming, renewable energies, including sunlight, wind power, and new energy vehicles (NEV), are increasing continuously. Consequently, advancements in technological for power storage, power saving, power transmission, and offers for new business models are booming. Therefore, the demand for lithium-ion batteries and other power storage technologies is flourishing.

Many companies have developed new and innovative solutions to improve the life cycle for Li-ion batteries. For example, Daikin has developed innovative solutions to improve the high-efficiency and life cycle of lithium-ion batteries and primary lithium batteries. The company uses fluoro-based additives and solvents, thus increasing the Li-ion battery energy densities, voltage range, power, safety, and cycle life. Daikin's uses modified PVDF, which provides superior flexibility, allowing for high electrode densities and higher power densities than standard PVDF binder resin.

In addition, in April 2019, the Chemours Company entered into a strategic partnership with UniEnergy Technology LLC, a redox flow battery (RFB) manufacturer in Washington, the U.S. This strategic partnership will consist UniEnergy Technology supply agreement for Nafion ion-exchange membranes. Also, it will enable Chemours to further optimize and develop the Nafion product offering in energy storage, create competition, and accelerate flow batteries adoption in the marketplace. However, the energy market is a key growth area for Chemours Fluoroproducts business.

In August 2017, 3M introduced Dyneon Fluoropolymers that can be used in batteries as an additional solution for electro-mobility, mainly as anode or cathode binders or for separator coatings. These materials can withstand high voltages and have good electrical properties. Also, they can exhibit high flexibility for the cyclic stress on the electrodes. Overall, the product can prolong batteries lifetime, which has an advantage in the automotive industry.

Fluoropolymers Market Growth Factors

Growing Automotive Industry to Drive Growth

The rise in disposable income, R&D expenditure for the automobile sector, rising traffic congestion, and strict government regulations regarding reducing carbon emissions are the key factors driving the market growth in the automotive industry. The polymer prolongs the component's life for emission control, safety, and performance in the automotive sector. They provide effective protection and durability against aggressive fluids and fuels, heat, vibrations, compression, and humidity. Polymer coatings help prevent corrosion and friction on car parts, thus extending the lifespan. They are important in car components such as gears and ball bearings, which withstand wear and tear.

Using biodiesel, ethanol, and other biofuels is becoming common as manufacturers are inclining alternatives to nonrenewable oil resources to reduce harmful carbon emissions. As per the U.S. Department of Energy, nearly 97% of petrol in the U.S. contains some ethanol. The major concern is that these additives and biofuels are extremely harsh on the vehicle fuel components and systems. Moreover, to avoid such damages, most manufacturers utilize hoses and other parts made with new fluoropolymers. This factor will significantly improve the chemical resistance of the car.

Adhesive Ethylene tetrafluoroethylene (ETFE) enables automotive components such as vapor and liquid fuel lines, fuel tanks, filler necks, and compressor hoses to show great performance. High-temperature ETFE is ideal for automotive wire. These polymers exhibit superior performance properties, so car manufacturers rely on these products. Automotive manufacturers create more value for car buyers and suppliers by building components that withstand corrosion and high temperatures. For instance, Chemours introduced Teflon product solutions that protect the vehicles inside and out. High-performance polymers increase longevity and efficiency, enable car parts to tolerate harsh environments, and provide low-friction surfaces.

RESTRAINING FACTORS

Careless Release of PFAS to Adversely Impact Environment Adversely

When released or disposed of at the industrial site, Per and polyfluoroalkyl substances (PFAS) pose some environmental risk. An insoluble PTFE may pose a little health or environmental risk. Various PFAS, including oligomers and monomers, are emitted during the polymer's processing, production, and use.

Due to the varied use of PFAS in consumer and commercial products, the diffuse release of PFAS to the environment may occur during the use and disposal of some PFAS-containing products. Although, these may result in significant environmental impacts. Different PFAS sources and products differ in their relative environmental significance, distribution mechanism, volumes released, and area affected. For example, Class B firefighting foam application may affect a moderate area relative to air dispersion from polymer production.

Non-polymer PFAS and some side-chain fluorinated polymer PFAS may pose a greater risk when released to the environment than PTFE, FEP, and ETFE. These polymers are stable, not bioavailable, and insoluble in the environment. However, the manufacturing and production of some fluoropolymers can pose a significant risk to the environment if the emissions are not properly controlled at the industrial site. Also, releases to the environment from the polymers disposal cannot be ruled out, as non-polymer PFAS may be found at trace levels as byproducts or impurities in the product.

Fluoropolymers Market Segmentation Analysis

By Product Analysis

Polytetrafluoroethylene Segment to Dominate Market owing to its Cost-effectiveness

Based on product, the market is segmented into polytetrafluoroethylene (PTFE), polyvinylidene fluoride (PVDF), fluorinated ethylene propylene (FEP), polyvinylfluoride (PVF), and others.

Polytetrafluoroethylene (PTFE) segment accounted for the fastest growing CAGR during the forecast period. PTFE is a cost-effective solution for various industries, including automotive, aerospace, electronics & electrical, construction & building, oil & gas, consumer goods, and industrial processing. The polymer is found in non-stick coatings in kitchen cookware such as baking trays, pans, and others. PTFE exhibits low friction, good resistance to heat and low temperature, flexibility, strong anti-adhesion properties, good resistance to UV, weathering, and light, low water absorption, and good electrical insulating power in wet hot environments.

The fluorinated ethylene propylene (FEP) segment may witness significant market share during the forecast period. FEP is considered a corrosion preventive coating for metallic surfaces due to its low friction and non-reactivity properties. Growing applications in electronics & electrical, and food processing, aerospace industries are expected to boost demand. The polymer is made by co-polymerizing tetrafluoroethylene and hexafluoropropylene. As FEP coatings are non-porous, they are extremely chemically resistant, making them suitable for food processing industries as this coating is resistant to hot water, fats steams, and oils. In addition, it is an excellent insulator with unique mechanical, chemical, and thermal properties.

The polyvinylidene fluoride (PVDF) segment accounted for a significant market share in 2023 and is projected to grow moderately during the assessment period. The growth is attributed to the various advantages of PVDF such as high mechanical strength and good processability. It is utilized in various applications, including electrical and electronic devices, chemical processing equipment, and filtration and separation equipment. In addition, it is gaining attention in more advanced applications such as pyroelectric sensors and laser beam profile sensors. Due to its chemical and thermal stability and good mechanical strength, it is becoming an ideal ingredient in electric vehicle applications, including a binder for cathodes and anodes and as a battery separator in lithium-ion batteries. With such a wide array of functionalities and application range, the PVDF segment is projected to grow moderately over 2024-2032.

By Application Analysis

Coatings Application Segment to Account for Major Share due to Beneficial Properties offered by Fluoropolymers

On the basis of application, the market is segmented into coatings, films, additives, and others.

Fluoropolymer coatings application dominated the market growth in 2023 and may continue its dominance during the forthcoming years. These coatings are a blend of high-performance resins and lubricants. It produces a hard, smooth, and slick coating with excellent chemical and corrosion resistance. Other key benefits include reduced friction, non-stick resistance to galling, non-wetting, abrasion resistance, and electrical resistance. These coatings are applied to various OEM and fasteners components to provide a longer life before replacement. It is also used in different architectural coating formulations, preferably for exterior applications, due to its resistance against unfavorable weather. Polyvinylidene fluoride (PVDF) and fluoroethylene vinyl ether (FEVE) are widely used in architectural coatings.

In addition, these coatings are applied to the wiring insulation in airplanes. It protects the wiring and reduces the risk of fire on aircraft. In the food industry, coatings are used in trays and molds, which aids in the production of cheese, candy, bread, and other products by preventing sticking and making the trays and molds easy to clean.

The films application segment may witness a significant growth rate during the forecast period. This factor is attributed to properties such as high-temperature tolerance, chemical resistance, weather & UV resistance, high insulation, moisture resistance, low surface energy, non-flammable, and low-coefficient of friction. Due to such unique characteristics, the application is extensively used in the pharmaceutical & medical, food packaging, aerospace, and electronics industries. These factors are driving the market growth.

By End-Use Analysis

Industrial Equipment Segment to Account for Major Share owing to Rising Product Demand for Corrosion Resistance

On the basis of end-use, the market is segmented into industrial equipment, automotive, construction, electrical & electronics, and others.

Industrial equipment may account for a major share during the forecast period. It is widely used in industrial applications such as chemical processing, pharmaceutical processing equipment, membrane & filtration, and heat exchangers. Fluorine-based polymers are mostly used to provide corrosion and thermal resistance in industrial applications. Chemical processing equipment is successfully coated for various products, including small vessels, filter tanks, reactors, flanges piping, and valves. Molecular weights with controlled viscosity and high purity levels make these polymers an excellent choice for membranes & filtration applications. The chemical processing industry uses corrosion-resistant fluid handling equipment and components.

Growing population, rapid urbanization, rising infrastructure spending, and supportive regulations to promote building & construction development shall boost the industry growth. Films exhibit good tear strength, puncture strength, and good resistance properties, making them suitable for various construction applications. Fluoropolymers provide thermally stable, durable, and easy-to-clean building materials that reduce building cooling costs and energy use. For instance, the Denver International Airport utilizes Birdair’s innovative steel cable systems and durable PTFE teflon-coated fabric membrane. These are chemically inert, provide a long lifecycle with minimal service, and are highly resistant to pollution and dirt. The airport roof consists of 34 steel masts, ten miles of structural steel cable, 3.8 miles of aluminum clamping, and 660,000 square feet of PTFE fiberglass architectural membrane.

REGIONAL INSIGHTS

Asia Pacific fluoropolymers market growth is attributed to increasing demand from pharmaceutical, construction, and electrical industries. Rising demand for polyvinylidene fluoride (PVDF) and fluorinated ethylene propylene (FEP) for manufacturing wire & cable insulation, coatings, and semiconductors applications shall drive the regional market growth. With a growing demand for medicines, the pharmaceutical sector is skyrocketing. Improving the standard of living and increasing demand for home healthcare devices may propel the pharmaceutical industry in the region. The growing pharmaceutical sector in India and South Korea due to increasing government spending shall augment the market growth in this region during the forthcoming years.

North America is expected to witness significant growth due to growing demand from the electrical & electronics, and aerospace industries. As manufacturers and designers continue to innovate electronic devices, the demand for these products is lucrative. High-performance polymers enable the development of smaller, faster, and more durable transistors, microprocessors, and semiconductors, thus driving the industry's growth. The International Trade Administration (ITA), the aerospace industry, contributed USD 151 billion in export sales to the U.S. in 2018. The U.S. aerospace industry is the largest globally. It offers extensive distribution systems, an educated and skilled workforce, diverse offerings, and support at the national and local levels for promotion and policy. An increase in airport infrastructure and rising aviation security markets in the U.S. shall augment the demand for fluoropolymers.

Europe is anticipated to witness significant growth during the forecast period due to the growing demand from the automotive industry. Europe is the world's leading producer of motor vehicles and represents the biggest private investor in R&D. To strengthen the regional automotive business competition, the European Commission is supporting the global technological harmonization and providing funds for automotive research and development. According to the European Automobile Manufacturers’ Association (ACEA), with growing industry investments and national support measures, the electrically-chargeable cars accounted for 14.6% market share in 2023.

Latin American market may show a slow growth rate during the forecast period. The rising penetration of FEP and PVDF for its usage in the wire and cable insulation, semiconductor manufacturing, and construction coating applications shall lead the regional growth towards material development and product innovation.

The Middle East & Africa market may account for a favorable market share during the forecast period due to the rise in the chemical processing and oil & gas industries. Growing investment in the oil & gas industry and rapid increase in energy consumption in Saudi Arabia shall drive the market growth. As per the Organization of the Petroleum Exporting Countries, Saudi Arabia will account for around 17% of the world’s proven petroleum reserves in 2020. In addition, the country’s oil and gas sector accounts for around 50% of GDP and around 70% of the export earnings in the same year.

List of Key Companies in Fluoropolymers Market

Key Players Form Crucial Strategies to Maintain Their Market Position

The fluoropolymers market share is fragmented and competitive, with prominent players engaged in the industry. Most companies are involved in strategic partnerships, capacity expansion, new product development, acquisition, and forming new organizations to promote production. For instance, In May 2020, Daikin Industries Ltd., AGC Inc., and Chemours Company LLC formed a new organization, the Performance Fluoropolymer Partnership (PFP). The mission of PFP is to promote the use, management, and production of fluoropolymers.

LIST OF KEY COMPANIES PROFILED

• The Chemours Company (U.S.)


• INOFLON (India)


• DAIKIN INDUSTRIES (Japan)


• Solvay SA (Belgium)


• Arkema SA (France)


• NexGen Fluoropolymers Pvt. Ltd. (India)


• 3M (U.S.)


• Shandong Dongyue Polymer Material Co, Ltd. (China)


• Saint-Gobain (France)


• KUREHA CORPORATION (Japan)


• HaloPolymer (Russia)


• AGC Chemicals (Japan)


• Honeywell International, Inc. (U.S.)

KEY INDUSTRY DEVELOPMENTS

• August 2023 - The Kureha Group announced plans to increase its production capacity for polyvinylidene fluoride (PVDF) at its Iwaki Plant in Fukushima, Japan. The expansion has been planned to align with the growing demand for PVDF, used as an adhesive material for lithium-ion batteries (LiB) and as an engineering plastic for various industrial applications.


• January 2022 – Arkema announced plans to revise its previously planned fluoropolymer capacity expansion from 35% to 50% at its Changshu site in China to meet the strong demand for lithium-ion batteries.


• June 2021 - Arkema launched a new sustainable Kynar CTO polyvinylidene fluoride grade. These new grades are 100% renewable attributed carbon derived from crude tall oil bio-feedstock. The product would be produced at Arkema’s Pierre-Bénite plant in France for European consumers, focusing on the lithium-ion battery market.


• November 2019 – Solvay launched Solef PVDF AM filament for additive manufacturing (AM). The new specialty product targets fused filament fabrication (FFF) processes and is available globally through Solvay’s e-commerce platform for AM materials.


• July 2020 – Guarniflon spA entered the high-tech fluoropolymer films market in China through a new joint venture. The company produces PTFE and fluorinated copolymers in collaboration with Juhua Group Co. Corporation; the company produces fluorochemicals in China. This factor will increase the production in the Zhejiang provinces of Quzhou, Zhoushan, Ningbo, Jiangsu, and Zhuji facilities.

REPORT COVERAGE

The global fluoropolymers market research report provides a detailed analysis of the market and focuses on crucial aspects such as leading companies, products, and applications. Also, the report offers insights into key market trends and highlights vital industry developments. This report includes historical data & forecasts revenue growth at global, regional, and country levels, and analyzes the industry's latest market dynamics and opportunities. In addition to the factors mentioned above, the report encompasses various factors contributing to the market's growth in recent years.

Report Scope & Segmentation