Fluorinated Ethylene Propylene Market size is forecast to reach $2.1 billion by 2025 after growing at a CAGR of 9.1% during 2020-2025. Fluorinated ethylene propylene films are copolymers of tetrafluoroethylene and hexafluoropropylene. Fluorinated ethylene propylene has significant use in chemical processing applications, as well as the petroleum and oil and gas industry. Growing power demand, awareness of renewable energy and decreasing solar energy price should driving the overall market growth of fluorinated ethylene propylene.
- Asia-Pacific dominates the fluorinated ethylene propylene market owing to increasing demand from Oil & Gas sector.
- Increasing demand for Fluorinated Ethylene Propylene coatings in critical fluid transport tubing applications and gaining momentum in the trend of fluorinated ethylene propylene lab-ware are likely to create opportunities for the market in the coming years.
- Increasing environmental concerns and stringent fluorinated ethylene propylene regulations are likely to hinder the markets growth.
By Product Type– Segment Analysis
Films & Sheets segment held the largest share in the fluorinated ethylene propylene market in 2019 as it is widely used in Fiber optics coating. Fluorinated ethylene propylene films offer all the benefits of fluorinated films, such as high temperature and chemical resistance, non-stick properties, and superior dielectric performance. Fluorinated ethylene propylene sheets are chemically inert and solvent resistant to most chemicals. They also have superior anti-stick and low friction properties. Fluorinated ethylene propylene films can be heat-sealed, thermoformed, laminated to various substrates, and serve as a melt adhesive. The demand for films & sheets is witnessing massive growth in the field of protective linings, chemical and medical equipment, and extruded insulation and glazing film for solar panels application. They are highly versatile and are available in various forms including printed, non-printed, single, multi-layered, and in combination with other materials. They are rapidly gaining popularity across the global market. Favorable cost performance coupled with durability and versatility would remain a key demand driver across several application segments. Tubes are the second largest share in the fluorinated ethylene propylene market. Fluorinated ethylene propylene tubing is a clear tubing that is an economical choice for applications requiring chemical resistance and a broad temperature exposure.
By Application – Segment Analysis
Medical equipment has been the primary application for Fluorinated ethylene propylene market. Fluorinated ethylene propylene exhibit very good lubricity compared with other plastics having coefficients of friction of less than 0.2. In the medical industry, fluorinated ethylene propylene finds wide use as packaging for medical liquids and sprays. It is characterized by high resistance to bases, solvents and acids. The medical sector in growing globally due to the growth of smart hospitals and developments in the home care segment and medical tourism. Chemical processing equipment sector are the second largest share in the fluorinated ethylene propylene market. Fluorinated Ethylene Propylene is used for manufacturing tubes and pipelines.
By End Use Industry – Segment Analysis
Automotive sector has been the primary market for fluorinated ethylene propylene in 2019 growing at CAGR of 10.2%. The growth of the fluorinated ethylene propylene market can be attributed to the rise in production of automobiles. Fluorinated ethylene propylene granules are well-suited for manufacturing the brake line tubing used in vehicles and widely deployed to boost coolant circulation. According to International Organization of Motor Vehicle Manufacturers the total production of automobile (commercial as well as Personal) in Asia-Pacific in the year 2018 was 52,449,078 units compare to 53,395,211 units in 2017. The increase in the global automobile production is a major factor leading to the growth of fluorinated ethylene propylene market in terms of volume across the globe. Medical sector has been the second largest market for fluorinated ethylene propylene. Fluorinated Ethylene Propylene resin can be provided with radio-opaque fillers such as barium to create catheters which are visible under fluoroscopy. Fluorinated ethylene propylene heat shrink is used as a manufacturing aid to reflow softer materials such as nylon for catheter jackets during catheter construction.
Geography – Segment Analysis
Asia-Pacific (APAC) dominated the fluorinated ethylene propylene market with share of 40% followed by North America and Europe. The economy of APAC is mainly influenced by the economic dynamics of countries such as China and India, but with growing foreign direct investment for economic development of South East Asia, the current scenario is changing. Countries in South East Asia are witnessing high growth in automotive and Oil & Gas industry. China was the leading regional market, due to the availability of raw material and cheap labor. India is the second major market after china. Automotive sector has been the primary market for fluorinated ethylene propylene. According to International Organization of Motor Vehicle Manufacturers the total production of automobile (commercial as well as Personal) in Asia-Pacific in the year 2018 was 52,449,078 units compare to 53,395,211 units in 2017.
The increase in the global automobile production is a major factor leading to the growth of fluorinated ethylene propylene market in terms of volume across the globe. Oil and Gas industry is the second major market for the fluorinated ethylene propylene. Being able to maintain chemical composure in extreme temperatures and resist damage from chemical, fluorinated ethylene propylene is suitable choice for making semi-finished products like pipes, round bars, sheets for lining containment vessels, gas scrubbers and tanks. The coronavirus pandemic has had far-reaching consequences beyond the spread of the disease and efforts to quarantine it. As the pandemic has spread around the globe, concerns have shifted from supply-side manufacturing issues to decreased business. The current epidemic outbreak has deeply influenced consumers’ daily life and in addition to the impact on automotive sector. South Korea, Italy and Japan are the most affected among the major industrialized economies. Consequently, 80 percent of automotive and related companies report that Coronavirus will have a direct impact on their 2020 revenues. 78 percent of companies do not have enough staff to run a full production line. More than 80 percent of the world’s auto supply chain is connected to China. In January 2020 China’s car sales plunged by 18 percent. The China Passenger Car Association (CPCA) considers that the first two-month sales could decline by 40 percent or more compared to the same period in 2019. Production shortfalls resulting from supply chain disruptions in China will impact global automakers. This will hamper for the growth of the market for the year 2020. After the condition become normal it will grow with a steady rate in the forecast period.
Drivers – Fluorinated Ethylene Propylene market
- Increasing demand of Fluorinated Ethylene Propylene in the Electronics & Electrical Industry
The increase in global Electronics & Electrical industries is a major factor which influence the growth of fluorinated ethylene propylene market across the globe. Fluorinated ethylene propylene is used as insulation and jacket material for wire and cable. Fluorinated ethylene propylene exhibits outstanding resistance to chemicals, has a wide temperature range and excellent electrical properties. In terms of its flexibility, fluorinated ethylene propylene holds a slight edge over any other material. Therefore, many electrical manufactures are using fluorinated ethylene Propylene as a primary material for their products. This will drive the fluorinated ethylene propylene market near future.
- Cost-effective Alternative in Non-stick Applications of the Food Industry
Fluorinated ethylene propylene is used in non-stick coating for food utensils. Fluorinated ethylene propylene is great option to use for non-stick because it is corrosion resistant and chemical resistant. Fluorinated ethylene propylene coatings melt and flow during baking to provide smooth non-porous films with excellent abrasion resistance because the coating is non-porous its chemical resistance is superb. Fluorinated ethylene propylene coatings are extremely non-wetting and have a very low coefficient of friction. This coating has excellent release properties and is often used as a mold release coating. This will drive the market fluorinated ethylene propylene of near future.
Challenges – Fluorinated Ethylene Propylene market
Fluorinated Ethylene Propylene is expensive, with the lowest strength and stiffness of all the fluoro plastics
The manufacturing cost of fluorinated ethylene propylene is high, this is a major factor which influence the market growth of fluorinated ethylene propylene across the globe. Secondly, the raw material which is used in the production of fluorinated ethylene propylene is also costly. These are the major restraint which affect the market of fluorinated ethylene propylene in near future.
Technology launches, acquisitions and R&D activities are key strategies adopted by players in the market of fluorinated ethylene propylene. In 2019, the market of fluorinated ethylene propylene has been consolidated by the top five players accounting for xx% of the share. Major players in the fluorinated ethylene Propylene are 3M, Amtek Inc., Solvay, Dow, Polyfluor Plastics and Others.
- In In December 2018, PPG announced its agreement for the acquisition of Whitford Worldwide Company. PPG is a global manufacturer that specializes in low-friction and nonstick coatings for industrial applications and consumer products.