The Asia Pacific region will continue to be the largest market in the world for fluorochemicals, according to new research from Comtex.
A recent Comtex report found that the region will account for more than half of worldwide demand through to 2016 and will continue to grow at the fastest rate of any other region.
Global demand for fluorine-containing chemicals is forecast to rise 3.9 per cent per year through to 2016.
This increase equals 3.5 million metric tonnes, which is valued at $19.7 billion.
The report said the gains will be fuelled by the increased production of refrigeration and cooling equipment worldwide, as well as an acceleration in primary aluminium output. However, there are a number of challenges facing fluorochemical suppliers.
The first is obtaining access to key raw materials such as fluorspar, as exports from China, by far the world’s leading producer, face more restrictions.
The ever-shifting regulatory environment for fluorocarbons are subject to multiple global and national regulations which vary by region.
Competition from product alternatives is intensifying, particularly in the area of blowing agents and commercial refrigeration, which is placing further pressure on fluorochemical suppliers serving these markets.
In the fluorocarbon segment, demand will rise at slightly below the overall fluorochemical average through to 2016.
However, there are significant shifts taking place among individual products.
Due to Montreal Protocol requirements, developed world countries are in the final stages of phasing out ozone-depleting HCFCs, while restrictions for developing countries will begin to take effect in 2015.
As a result, HCFC demand will decline through 2016.
The HFC market, which grew considerably during the 2001-2011 decade, will continue its strong advances as HFCs replace HCFCs in the developing world.
Concerns about the global warming potential (GWP) of HFCs will begin to limit demand, particularly in western Europe, presenting opportunities for low-GWP HFO fluorocarbons to capture a portion of the market.
Among other fluorochemical products, fluoropolymers will see the most rapid gains in demand, driven by expanding opportunities for high-performance materials in the motor vehicle, chemical processing, electronics, and coatings markets.
China will continue to post particularly strong gains in fluorochemical demand, further increasing its position as the world’s largest national market, as will other Asian countries such as India.