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.