Global Industry Analysts (GIA) has released a new report on the market for Fluorochemicals which is projected to reach 3.5 million metric tons by 2020.
GIA said the market is being driven by robust demand for refrigeration equipment and blowing agents, as well as the growing adoption of high-performance fluoropolymers in motor vehicle production.
Fluorochemicals, which are compounds with fluorine as a key component, are stable and highly resistant to chemicals and heat.
Due to their inert properties and stability, they are used in a wide range of industries such as automotive, electrical, performance coatings, chemical processing, semiconductor and aerospace.
Strong demand from major application areas, including HVAC, refrigeration, steel, and electronic consumables which bodes well for the market in the coming years.
GIA said the gradually rebounding automotive sector, and growing use of PTFE in construction, chemical processing and electronics, will help boost demand for fluorochemicals.
"Supported by advancements in technology, application of fluorochemicals has expanded into pharmaceutical manufacturing, and industrial filtration, among others," the research report said.
"The drive towards development of alternative refrigerants to HFCs, in compliance with environmental regulations, is expected to benefit demand especially in developed countries.
"The market is expected to gain from the increase in production of automobiles and HVAC equipment in both developed and developing economies."
Fluorochemicals are broadly classified into organic fluorochemicals, inorganic fluorochemicals and fluoropolymers. Organic fluorochemicals include aliphatic and aromatic fluorine compounds.
While aliphatic compounds comprise fluorocarbons such as CFCs and its replacements (HCFCs, HFCs), aromatic fluorocompounds include ring-substituted and side-chain substituted aromatics, and fluorobenzene.
Inorganic fluorochemicals, such as fluorosilicate, aluminum fluoride, cryolite and silicofluoride are commonly utilized in steel making, aluminum production, fumigation, pesticides and herbicides.
The growth in this market will be driven by increased use of lightweight materials such as aluminum in automobile production.
Entitled "Fluorochemicals: A Global Strategic Business Report", the research found that the Asia Pacific region dominates the global market.
Registering a CAGR of 5.0 per cent, the region also represents the fastest growing market, led by rapid industrialization, increased disposable income, urbanization and strong demand for refrigeration and air conditioning equipment in China, India and other Southeast Asian countries.
The report identifies key players in the marketplace including 3M Company, 3M Advanced Materials, Arkema, Daikin Industries Ltd., DuPont de Nemours & Co., Honeywell International and Solvay Fluor GmbH, among others.