Despite the HFC phasedown and rising demand for natural refrigerants, the fluorochemical market is still growing at a CAGR of 5.1 per cent.
The global fluorochemicals market is expected to reach $US28.12 billion by 2026, according to a new report by research firm Reports and Data.
Refrigeration is driving demand this demand. “Rising temperatures along with demand for cold storage systems across the globe and climate control systems have stimulated the demand for HVAC and refrigeration systems, which is having a positive impact on the fluorochemicals market,” the report said.
There has also been an increase in R&D expenditure in the pharmaceutical sector as well as strong demand for aluminum production.
Additionally, growing demand for blowing agents which use fluorochemicals in manufacturing foamed plastics has opened a window of opportunity in the market.
The report identified environmental concerns as the biggest obstacle to the market but said this is being addressed by the development of less harmful fluorocarbons that are currently in the R&D phase.
Other report findings include:
Organic products contributed to the largest market share in 2018 with a growth rate of 5.0% in the forecast period. Fluorocarbons held a market size of around 50% in 2018. It is likely to lose share to inorganic and polymer counterparts as a result of regulations to phase out CFC and HCFC compounds.
Refrigerant applications held the largest market share of around 45% in 2018. The increasing prominence of clean air systems in manufacturing industry coupled with rising installation of HVAC systems in automobiles is anticipated to support market growth in the forecast period.
The market in the APAC region contributed around 40% of the market share in 2018.
The large quantity of aluminum reserves in countries like China, India, and Australia together with the regulatory inclination to promote FDI in the domestic metal sector is anticipated to increase its application in the upcoming year. The Asia Pacific region is forecast to experience significant gains in the period 2019-2026.