H1 2023: The main producers of Fluoroelastomer in H1 2023 were Solvay SA, Shandong Huaxia Shenzhou New Material Co., Ltd., and Gujarat Fluorochemicals Limited (GFLC). During H1 2023, Fluoroelastomer prices continually increased in the Asia Pacific region, supported by the rise in downstream demand. The automobile sector displayed a market spike which increased purchases of fluoroelastomers. The automobile industry's growth was gradual, but a rise was observed in February as the sector's industrial output and sales dramatically increased in Asia pacific. However, the automotive industry's growth momentum slowed down in March 2023 in the Asia Pacific region. In March 2023, Gujarat Fluorochemicals Limited (GFLC) had its site at Dahej, Gujarat, India, shut for 10 days for maintenance. The site reopened in the same month as well. In Asian countries, overstock and increasing market competition, excess inventories, and supply of fluoroelastomers led to a decrease in prices in April and June 2023. However, high demand from the downstream industries was what propelled Fluoroelastomers’ price increase in May. The market value of fluoroelastomers increased as a result of a resurgence in consumption and the robust growth of the automotive industry in Asian nations. In the German market, Fluoroelastomers prices sharply inclined from February 2023 as China's market finally opened up. Fluoroelastomer demand in the automotive sector increased as a result of increased output and increased supply. Additionally, the European market witnessed increased auto sales till March 2023, which eventually increased queries for fluoroelastomers in Europe. In the remaining three months of H1 2023, the fluoroelastomers market witnessed ups and downs in the European nations.
H1 2022: In the H1 2022, Gujarat Fluorochemicals Ltd. (GFL) announced about expansion of the FKM facilities at Dahej, Gujarat, India, along with other expansions at the location. The company is now expanding its fluoropolymer production by 57%, including vital materials like PVDF, FKM, and other products. The investment by the Gujarat Fluorochemicals Ltd. was worth USD 32.5 million (INR 2500 crores) and the company’s focus is on expanding the fluoropolymers due to their unique properties. However, the top players of FKM in H1 2022 were Solvay SA, Shandong Huaxia Shenzhou New Material Co., Ltd., Inner Mongolia 3F Wanhao Fluorochemical Co., Ltd., Changshu 3F Zhonghao, and Chenguang Fluoro & Silicone Elastomers Co., Ltd. Additionally, in January 2022, AGC Chemicals Americas Inc. (AGCCA) announced an expansion of its facility located at Thorndale, Pennsylvania. The production facility was aimed to increase manufacturing space, a lab for quality control, and office space.. The multipurpose building was proposed to accommodate future production expansions and new capabilities as well as the expanding needs of its business. However, regionally, Asia Pacific consumed the majority of the Fluoroelastomer market in H1 2022. However, Europe also held significant market shares which was around 24% in H1 2022.
H2 2022: During H2 2022, production reached around 16 thousand tonnes, which was slightly higher than H1 2022. However, the price of Fluoroelastomer declined in Europe in H2 2022, with the lowering of sale of automotives in response to the anticipated recession. Since, Fluoroelastomer is employed as a raw material to produce automobile components, the decrease in the sale of automotive directly affected the market. Furthermore, falling price of natural gas across Europe was also a contributing factor to the lowering of prices. In addition, port congestion and shipyard congestion were reduced, ensuring a well-functioning supply chain and a regular flow of material to the Fluoroelastomer market. As a result, downstream industry demand easily met with the inventory levels. A similar market behavior was observed in the Asia Pacific region with the decrease in the sale of the vehicles. With the lowering of price of crude oil and natural gas, the cost of producing Fluoroelastomer also lowered, thus, resulting in declined prices of Fluoroelastomer across Asia Pacific region. Due to the market's subpar performance in terms of sales and industrial output at this time, the demand for Fluoroelastomer from the downstream aerospace and automotive sectors fell. However, Asia Pacific was still leading in terms of volume for consuming Fluoroelastomer in H2 2022, across the globe.
The global Fluoroelastomer (FKM) market has touched the number of around 37 thousand tonnes in 2022 and is expected to grow at a CAGR of 3.47% during the forecast period until 2032. The Solvay group has recently announced that they will increase the productivity of fluoroelastomers by 30% at the company’s site in Spinetta Marengo, Italy. The new capacity is expected to expand the supply of FKM with Europe and international export to the US and China.
FKM is a fluoro-carbon-based elastomer material composed of vinylidene as the monomer. It is a kind of synthetic rubber with properties to be functional at high temperatures. This polymer is resistant to chemical attack by fuel, oxidation, oil, and acids. The operational temperature range is -20 degrees Celsius to up to 200 degree Celsius. FKM can withstand strong bases, oils, aromatic hydrocarbons, and steam. Even in adverse circumstances, FKM offers long-term reliability. Some industrial applications of FKM include O-ring seals, valve liners, fuel hoses, shaft seals, gaskets, manifold gaskets, and shaft seals. FKM is far better than regular rubber in terms of functionality and resistance. The rate of development of fluoroelastomers is expanding globally due to recent developments. The need for fluoroelastomers has expanded due to their numerous applications in the industrial application (sealing), oil and gas, automotive and chemical processing industries. The market size is estimated to reach roughly 51 thousand tonnes in 2032.
Based on demand by region, Asia Pacific is dominating the FKM market and held a market share of approximately 52% in 2022. The second largest consumer was Europe back in 2022 and is expected to maintain its position in the forecast period. On the global level, China held the largest production capacity of FKM and it is anticipated that China will lead the FKM production in the forecasted period.
Based on the end-user industry, the global FKM market is segmented into different industrial sectors that include Automotive, Chemicals & Petrochemicals, Industrial, Aerospace, and others. However, automotive is the dominating sector as the consumer of FKM and is anticipated to remain the leading consumer in 2032. In the automotive industry, FKM is employed to manufacture electrical connectors, diaphragms, shaft seals, check valve balls, clips for jet engines, lathe-cut gaskets, and more. The demand for FKM in the Aerospace sector is expected to soar in the forecast period. The components made with FKM are premium in quality that remains stable during extreme conditions such as low and high temperatures. In the Aerospace sector, FKM is utilized to create O-ring seals, valve stem seals, fuel injector O-rings, fuel hoses, valve liners, sheet stock gaskets, and many more components. Fluoroelastomers are utilized in the chemical processing sector to prevent corrosion.
Major players in the production of Global FKM are Shandong Huaxia Shenzhou New Material Co. Ltd., Dongyue Group, Inner Mongolia 3F Wanhao Fluorochemical Co. Ltd., Changshu 3F Zhonghao, Gujarat Fluorochemicals Limited (GFLC), Solvay SA, and Juhua Group Corporation.
Years considered for this report:
Historical Period: 2015- 2022
Base Year: 2022
Estimated Year: 2023
Forecast Period: 2024-2032
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Objective of the Study:
• To assess the demand-supply scenario of Fluoroelastomer which covers production, demand and supply of Fluoroelastomer market in the globe.
• To analyse and forecast the market size of Fluoroelastomer
• To classify and forecast Global Fluoroelastomer market based on end-use and regional distribution.
• To examine competitive developments such as expansions, mergers & acquisitions, etc., of Fluoroelastomer market in the globe.
To extract data for Global Fluoroelastomer market, primary research surveys were conducted with Fluoroelastomer manufacturers, suppliers, distributors, wholesalers and Traders. While interviewing, the respondents were also inquired about their competitors. Through this technique, ChemAnalyst was able to include manufacturers that could not be identified due to the limitations of secondary research. Moreover, ChemAnalyst analyzed various segments and projected a positive outlook for Global Fluoroelastomer market over the coming years.
ChemAnalyst calculated Fluoroelastomer demand in the globe by analyzing the historical data and demand forecast which was carried out considering the consumption of raw material to produce Fluoroelastomers. ChemAnalyst sourced these values from industry experts and company representatives and externally validated through analyzing historical sales data of respective manufacturers to arrive at the overall market size. Various secondary sources such as company websites, association reports, annual reports, etc., were also studied by ChemAnalyst.
Key Target Audience:
• Fluoroelastomers manufacturers and other stakeholders
• Organizations, forums and alliances related to Fluoroelastomers distribution
• Government bodies such as regulating authorities and policy makers
• Market research organizations and consulting companies
The study is useful in providing answers to several critical questions that are important for industry stakeholders such as Fluoroelastomers manufacturers, customers and policy makers. The study would also help them to target the growing segments over the coming years, thereby aiding the stakeholders in taking investment decisions and facilitating their expansion.
Report Scope:
In this report, Global Fluoroelastomers market has been segmented into following categories, in addition to the industry trends which have also been detailed below:
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Attribute
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Details
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Market size Volume in 2022
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37 thousand tonnes
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Market size Volume by 2032
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51 thousand tonnes
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Growth Rate
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CAGR of 3.47% from 2023 to 2032
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Base year for estimation
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2023
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Historic Data
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2015 – 2022
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Forecast period
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2024 – 2032
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Quantitative units
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Demand in thousand tonnes and CAGR from 2023 to 2032
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Report coverage
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Industry Market Size, Capacity By Company, Capacity By Location, Production By Company, Demand by End- Use, Demand by Region, Demand by Sales Channel, Demand-Supply Gap, Company Share
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Segments covered
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By End-Us: (Automotive, Chemicals & Petrochemicals, Industrial, Aerospace, and others.)
By Sales Channel: (Direct Sale and Indirect Sale)
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Regional scope
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North America; Europe; Asia Pacific; South America; Middle East & Africa
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Pricing and purchase options
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Available Customizations:
With the given market data, ChemAnalyst offers customizations according to a company’s specific needs.
In case you do not find what, you are looking for, please get in touch with our custom research team at sales@chemanalyst.com
