Fluoroelastomers Market is segmented By Product Type (Fluorosilicone elastomers, Perfluoroelastomers, Fluorocarbon elastomers), By Application (Automotive, Aerospace, Oil and Gas, Energy and Power, Semiconductor, Pharmaceutical, Food Processing, Chemical Processing, Others), and By Region (North America, Latin America, Europe, Asia Pacific, Middle East, and Africa) – Share, Size, Outlook, and Opportunity Analysis, 2024-2031
Market Overview
The Fluoroelastomers Market is expected to grow at a CAGR of 3.7% during the forecast period (2024-2031).
Fluoroelastomers are the chemical resistance fluorine contained polymers made of fluorocarbon and synthetic rubber.
Market Summary
| Metrics | Details |
| Market CAGR | 3.7% |
| Segments Covered | By Product Type, By Application and By Region |
| Report Insights Covered | Competitive Landscape Analysis, Company Profile Analysis, Market Size, Share, Growth, Demand, Recent Developments, Mergers and acquisitions, New Product Launches, Growth Strategies, Revenue Analysis, and Other key insights. |
| Fastest Growing Region | North America |
| Largest Market Share | Asia Pacific |
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Market Dynamics
The market is driven by the rising demand for fluoroelastomers by rising demands in electric vehicles, aerospace & defence as well as other semiconductor materials
Fluoroelastomers are used as gaskets and rings in many industries including automotive cars, building, aerospace, and aeronautics. As per the International Energy Agency in 2018, electric passenger cars have an estimated sales of around 5 million globally with a 63% increase as compared to the previous year. Furthermore, with an increase in the adoption of fluoroelastomers in aerospace & defence, the semiconductor industry requires fluoroelastomers in a huge amount. The semiconductor industry has been growing with a very high rate due to its ever-increasing demand. As per the Semicon Europa Organization in 2021, the semiconductor industry has shown significant growth with around USD 500 billion which impels the demand for the fluoroelastomers for semiconductor equipment productions.
There is a rise in the launch of new innovative elastomers technology based on fluoroelastomers for the oil and gas industry. For instance, in October 2018, Greene Tweed Company had received patented for molded articles and rapid gas decompression resistant fluoroelastomers. This product provides a competitive advantage for the seals and engineered components by energy-saving, and maintaining integrity in the automobile application by ensuring health, and environmental safety.
Environmental concerns and high price of fluoroelastomers are the two major factors restraining the growth of the market. As fluoroelastomers are non-biodegradable, their use and production have to be limited to some extend in order to preventing them from harming the environment. The high price of the fluoroelastomers is also a cause which is hampering the growth of the market as it repels potential customers.
COVID-19 Impact on Market
The COVID-19 pandemic has had a negative impact on the global fluoroelastomers market. The automotive industry and the aviation industry, two of the biggest consumers of fluoroelastomers, have suffered due to COVID-19. China is a production hub for raw materials, auto products and finished goods. But due to the COVID-19 pandemic, the supply chains were disrupted from China to other countries of the world. The outbreak of COVID-19 pandemic also forced many automotive companies to halt their manufacturing operations. The overall situation of the manufacturing units due to the pandemic has reduced the sales of the fluoroelastomers. As for the aviation industry, the severe restrictions in inter-country and intra-country travel paralyzed the whole industry. Major losses were faced by airplane companies. For example, according to a report from Yahoo Finance, the price per share of Boeing fell from 345.4 billion in February 2020 to 95.01 billion in March 2020 due to COVID-19. Consequently, the global fluoroelastomers market also saw a fall in its growth. But the post-pandemic situation has improved and both the automotive and the aviation industry have recovered and are set to grow, thereby driving the growth of the fluoroelastomers market.
Market Segmentation Analysis
The global fluoroelastomers market is segmented based on product type, application, and region.
Depending on the application, the global fluoroelastomers market is segmented into Automotive, Aerospace, Oil and Gas, Energy and Power, Semiconductor, Pharmaceutical, Food Processing, Chemical Processing, and others
Among these, the automotive segment has the highest market share in 2019. This growth is anticipated due to rising in the production of electric vehicles and the growing adoption of EVs among the people from the developing region like China, India, and Brazil. For example, in the 2019 fiscal year, the Company Maruti Suzuki sold more than 6 Lac cars with automated manual transmission In India. Also in India, from 4.8 per cent market share in fiscal year 2020, Tata Motors had a market share of over 9 per cent in fiscal year 2021, with a 69 per cent growth in sales. In general, the automotive industry has been growing at a very fast rate. According to the International Energy Agency, in 2019, global electric vehicle production has been reached around 140 million vehicles, excluding two and three-wheelers.
Similarly, aerospace, oil, and gas, energy and power, semiconductor, pharmaceutical, food processing, chemical processing segments are also growing at a faster pace owing to the surge in population and modernization of the technology.
In terms of product type, the global fluoroelastomers market is bifurcated into Fluorosilicone elastomers, Perfluoroelastomers, and fluorocarbon elastomers
Among this, the fluorocarbon elastomers segment had the highest share in 2019 owing to increasing usage in the manufacturing of electric vehicles and the aerospace industry. Fluorocarbon has excellent chemical properties to sustain high temperatures in automobiles. Fluorocarbon elastomers are resistant to automotive oils and fuels, aircraft jet fuels and lubricants, hydraulic fluids, chlorinated solvents, aromatic solvents, etc. It is being increasingly used in vehicles and airplanes. Hence, a growth in the automotive industry and aviation industry will result in the growth of the fluorocarbon elastomers segment. For instance, as per the International Energy Agency, the global electric car sales are projected to reach above 130 million vehicles by 2030. This propels the demand for the fluoroelastomers market during the forecast period.
Similarly, Fluorosilicone elastomers and Perfluoroelastomers segments are also increasing at a fast pace owing to a surge in the usage in aerospace and other chemical industry around the globe.
Market Geographical Share
By region, the global fluoroelastomers market is segmented into North America, South America, Europe, Asia-Pacific, Middle-East, and Africa
Among all of the regions, Asia Pacific dominated the global fluoroelastomers market and is expected to grow at the highest CAGR during the forecasted period due to the presence of manufacturing facilities for rubber-based elastomers in the automotive industry. As per the International Organization of Motor Vehicle Manufacturers (OICA), in 2019, India and China had the largest manufacturing facilities for cars and commercial vehicles which required fluoroelastomers as the basic material in Asia Pacific region. As per this organization in 2019, China has manufactured over 21.36 million cars and 4,360,472 commercial vehicles followed by India with 3,623,335 cars produced and 892,682 commercial vehicles manufactured. This surge in automotive vehicle sales and production will boost the demand for the fluoroelastomers market during the study period.
The North America region is expected to have positive market growth due to the growing technological advancement in the aerospace and defence industry, especially in the United States. According to the Aerospace Industry Association in 2018, the United States has spent around USD 374 billion for its total GDP in the Aerospace & Defence industry. The increasing adoption of fluoroelastomers adoption for the aerospace industry due to high heat-carrying capacity with a surge in manufacturing facilities for this industry will boost the demand for the fluoroelastomers over the forecasted period.
Market Companies and Competitive Landscape
The global fluoroelastomers market is highly competitive with the presence of several international and local markets. Product diversification, revenue generation, and opportunities intensify the market competition. Shanghai Fluoron Chemicals Co. Ltd., Zrunek Gummiwaren GmbH, Zhonghao Chenguang Research Institute of Chemical Industry, Solvay SA, Asahi Glass Co. Ltd, 3M Company, Eagle Elastomer, Dongyue Group Ltd, Daikin Industries, Dupont De Nemours & Company and Chenguang Fluoro & Silicone Elastomers Co., and HaloPolymer OJSC. are the leading market players with significant market share.
Furthermore, Companies are entering into collaborations, acquisitions, mergers, and licensing for increasing their market penetration. For instance, in December 2019, DuPont was acquired by Desalitech Ltd. Major players are increasing the production capacity of fluoroelastomers due to an increase in the usage in many industry verticals like automobiles, semiconductors, and aerospace. For instance, in October 2019, 3M company has set up a plan to increase fluoroelastomers production capacity. It built an additional reactor for enhancing FKM polymerization capacity to existing Decatur, Alabama and France plant. This has helped to maintain the growing global demand in various applications including chemical & process gaskets, calendaring sheets, automotive turbocharger hoses, fuel line hose, battery valves/seals, valve-stem seals, wire coatings and wearable.
3M Company
Overview: 3M is an American company which operates in the fields of industry, worker safety, US health care, and consumer goods
Product Portfolio: The company products include abrasives, adhesives, sealants, fillers, automotive parts, etc.
Key Development:
In October 2019, 3M completed the acquisition of Acelity, Inc. and its KCI subsidiaries worldwide for a total enterprise value of approximately $6.7 billion, including assumption of debt and other adjustments.
