Modest Growth Projected for Fluoroelastomers
Demand from the automotive industry and the development of new grades of fluoroelastomers are creating attractive opportunities for growth.
Global demand for fluoroelastomers reached over 26,000 tons valued at $1 billion in 2018, according to a recent report from Fact.MR. The report projects that the market will grow at a 2.7% CAGR from 2019-2029. Growth can be attributed to developments in the automotive industry, including the replacement of old non-fluoroelastomer materials and the increasing adoption of fluoroelastomers by automobile manufacturers due to stringent automotive emission standards across the globe.
Though the global automotive industry was virtually flat in 2018, the industry is expected to bounce back in the short-term forecast. Regional slowdowns are also expected to come back to life, with developments toward regional stability and decreasing tariff wars between global economies. For instance, Germany experienced disruption in car production due to the introduction of new Worldwide Harmonized Light Vehicle Test Procedure (WLTP) emission standards. With developments in new compatible engines and transmission systems, vehicle production is expected to normalize in Germany.
The development of new grades of fluoroelastomers is also creating attractive opportunities for growth. Companies are developing new crosslinked combinations of fluoroelastomers to increase areas of application. Some manufacturers have also developed grades of fluoroelastomers to address specific regional and end-use requirements.
The East Asia region is expected to retain its status as the largest consumer and producer of fluoroelastomers from 2019-2029. Many regional and global players in the fluoroelastomers market have announced production capacity expansions in the East Asian region to meet rising demand in local and neighboring regions such as India.
Growth in the East Asia market can be attributed to the strength of the automobile industry in the region. Macroeconomic factors such as a rise in population and increased disposable income have also driven the market. In addition, new developments in applications (e.g., fluoroelastomer-based bands for high-end smart watches) are also expected to increase demand for fluoroelastomers over the forecast period.
Additional details are available at www.factmr.com.