Market Insights
The automotive fluoropolymers market is estimated to cross the unprecedented landmark figure of US$ 1.2 billion by 2025.
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Market Dynamics
Introduction
A Fluoropolymer is a polymer with a carbon backbone. It has fluorine for strong carbon-fluoride bond forming. This particular polymer is known to offer great performance during high-temperature or corrosive environments and hence is able to meet the challenges of extreme environments.
Currently, the automotive industry accounts for less than 16% of the total fluoropolymers consumption in terms of volume; however, the industry is indisputably one of the fastest-growing end-use segments of fluoropolymers, outpacing the average industry growth, propelled by an incessant rise in the penetration of fluoropolymers in various applications, including seals and hoses, especially for charge air coolers.
The demand for charge air coolers has been at its pinnacle because of the rising demand for turbocharged vehicles in both gasoline as well as diesel vehicles, giving an impetus to the demand for fluoropolymers and creating new revenue pockets for the market participants.
In the year 2020, automotive production has been facing severity in the first quarter, which may be expected to prolong for the entire year. The outbreak of coronavirus has led to the shutdown or has idled several auto assembly plants, especially in China. A couple of months after the outbreak, the impact of the novel coronavirus has also started visibly in other Asian countries and European markets.
For instance, Hyundai, which has one of the world’s largest plant networks in South Korea, having a production potential of 1.4 million units, has shut down its plants in South Korea on account of a shortage of parts from China and the widespread of the virus in South Korea. Similarly, the leading European auto giants, such as FCA, Renault, and BMW, are also shutting down plants in Europe owing to the increasing spread of the virus in European countries.
Despite the decline in the past two years and the expected decline in 2020, the long-term outlook of the automotive fluoropolymers market still looks favorable with an expected bounce back in the market from 2021 onwards.
Market Drivers
The demand for the global automotive fluoropolymers market depends on various factors, including:
- Expected growth of the automotive industry: The growth in the demand for fluoropolymers in the automotive industry has been outpacing the growth of the overall automotive industry for the last two eons. An expected recovery of automotive production from 2021, a paradigm shift from combustion vehicles to electric vehicles, introduction of stringent carbon emission standards by major economies, a growing trend towards engine downsizing, increasing penetration of turbochargers, and rising safety, as well as friction reduction requirements for reduced maintenance, are some of the key whys and wherefores behind the exceptional growth in the demand for fluoropolymers in the automotive industry. Lucrative expected future growth of the automotive market is compelling the market participants to expand their existing production capacities. For instance, on October 2019, The 3M Company announced to increase in the capacity of FKM at its plant in Decatur, Alabama (the USA), which is scheduled to begin operation by 1st quarter of 2021. Similarly, in late 2019, Solvay S.A. announced that it would increase the production of its Solef® PVDF (polyvinylidene fluoride) high-performance polymers in Changshu, China, by more than 50%. The operation is scheduled for the first half of 2022.
- Rising trends of emission-free mobility, fuel-efficiency, and connected vehicles: Rising global temperature, changing customer requirements, the introduction of stringent government regulations regarding safety and emission reductions, and rising traffic congestion are some of the factors that are compelling all the automotive industry to build more sustainable business environments. Among many megatrends, the most noticeable ones are autonomous, emission-free mobility, fuel efficiency, sharing, and connected vehicles. Today, almost all the major automakers are putting efforts into the development of vehicles addressing most of these trends. The development of fuel-efficient vehicles is equally imperative, which has efficaciously been being unraveled by automakers by making essential changes in the materials, vehicle design, geometry, aerodynamics, etc. They have been meticulously leveraging the potential of fluoropolymers in the critical sections of the vehicle to address the tightening carbon emission standards of governments or regulatory authorities regarding fuel efficiency enhancements.
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Key Players
The supply chain of this market comprises raw material suppliers, fluoropolymer manufacturers, tier players, system manufacturers, and automotive OEMs.
Some of the well-known fluoropolymer manufacturers for the automotive industry are-
- The Chemours Company
- Daikin Industries Limited
- The 3M Company
- Solvay S.A
- AGC Inc.
- Arkema SA
- Dongyue Group Co., Ltd.
- Kureha Corporation
New product development, advancements in automotive fluoropolymer properties, and collaboration with OEMs or tier players are the key strategies adopted by the major players to gain a competitive edge in the market.
Note: The above list does not necessarily include all the top players in the market.
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Segment Analysis
Segmentations
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List of Sub-Segments
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Segments with High Growth Opportunity
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Vehicle Type Analysis
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Passenger Car, Light Commercial Vehicle, and Medium- & Heavy-Duty Commercial Vehicle
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Passenger car is expected to remain the largest vehicle type over the next five years.
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Product Type Analysis
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PTFE, FKM, PVDF, and Others
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FKM is likely to remain the most dominant fluoropolymer type in the automotive industry during the forecast period.
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System Type Analysis
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Powertrain, Fuel System, Air Management System, and Others
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The fuel system is the major application area of fluoropolymers and is likely to maintain its dominance in the market in years to come.
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Regional Analysis
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North America, Europe, Asia-Pacific, and Rest of the World
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Asia-Pacific is projected to remain the largest automotive fluoropolymers market during the forecast period in terms of both value and volume.
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By Vehicle Type
The automotive fluoropolymers market is segmented based on vehicle type as passenger car, LCV, and M&HCV. Passenger car is expected to remain the largest vehicle type over the next five years. The vehicle type (passenger car) is also likely to witness the highest growth during the same period. Large production of cars coupled with high penetration of fluoropolymers has led to the huge dominance of the segment in the market.
By Product Type
Based on the product type, the market is segmented as PTFE, FKM, PVDF, and others. FKM is likely to remain the most dominant fluoropolymer type in the automotive industry during the forecast period. The segment is also likely to witness the highest growth during the same period. FKM is a preferred choice of material in various fuel system applications, such as fuel cap main seals, fuel rail seals, fuel filler hoses, fuel pump seals, and fuel injector seals.
By System Type
Based on the system type, the market is segmented as a powertrain system, fuel system, air management system, and others. The fuel system is the major application area of fluoropolymers and is likely to maintain its dominance in the market in years to come, whereas the air management system is likely to be the fastest-growing segment of the market during the same period. The key applications of fluoropolymers in air management systems, such as SCR injector seals, muffler seals, EGR stem seals, turbocharger hoses and seals, throttle seal, oxygen sensor seal, and air intake manifold gasket, are experiencing significant growth; thereby, pushing the growth of the segment.
Regional Insights
In terms of region, Asia-Pacific is projected to remain the largest automotive fluoropolymers market during the forecast period in terms of both value and volume. China and India are the growth engines of the Asia-Pacific market. The recent outbreak of novel coronavirus has had a severe impact on automotive production, especially in China. Many of the auto assembly plants have been shut down or are idled, which may significantly impact the demand for fluoropolymers in the region’s automotive industry in the year 2020.
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Research Methodology
- This strategic assessment report from Stratview Research provides a comprehensive analysis that reflects automotive fluoropolymers market realities and future market possibilities for the forecast period.
- The report segments and analyzes the market in the most detailed manner in order to provide a panoramic view of the market.
- The vital data/information provided in the report can play a crucial role for market participants as well as investors in the identification of the low-hanging fruits available in the market as well as to formulate growth strategies to expedite their growth process.
- This report offers high-quality insights and is the outcome of a detailed research methodology comprising extensive secondary research, rigorous primary interviews with industry stakeholders, and validation and triangulation with Stratview Research’s internal database and statistical tools.
- More than 1,000 authenticated secondary sources, such as company annual reports, fact books, press releases, journals, investor presentations, white papers, patents, and articles, have been leveraged to gather the data.
- We conducted more than 15 detailed primary interviews with market players across the value chain in all four regions and industry experts to obtain both qualitative and quantitative insights.
Report Features
This report provides market intelligence in the most comprehensive way. The report structure has been kept such that it offers maximum business value. It provides critical insights into market dynamics and will enable strategic decision-making for existing market players as well as those willing to enter the market. The following are the key features of the report:
- Market structure: Overview, industry life cycle analysis, supply chain analysis.
- Market environment analysis: Growth drivers and constraints, Porter’s five forces analysis, SWOT analysis.
- Market trend and forecast analysis.
- Market segment trend and forecast.
- Competitive landscape and dynamics: Market share, Service portfolio, New Product Launches, etc.
- COVID-19 impact and its recovery curve
- Attractive market segments and associated growth opportunities.
- Emerging trends.
- Strategic growth opportunities for the existing and new players.
- Key success factors.
Market Segmentation
This report studies the market covering a period of 12 years of trend and forecast. The report provides detailed insights into the market dynamics to enable informed business decision-making and growth strategy formulation based on the opportunities present in the market.
The market is segmented into the following categories.
By Vehicle Type
By Product Type
By System Type
- Powertrain System
- Fuel System
- Air Management System
- Others
By Application Type
- Seals
- Hoses
- Gaskets
- Others
By Region
- North America (Country Analysis: USA, Canada, and Mexico)
- Europe (Country Analysis: Germany, France, The UK, Italy, Russia, and Rest of Europe)
- Asia-Pacific (Country Analysis: Japan, China, South Korea, India, and Rest of Asia-Pacific)
- Rest of the World (Country Analysis: Brazil, Argentina, and Others)
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Report Customization Options
With this detailed report, Stratview Research offers one of the following free customization options to our respectable clients:
Company Profiling
- Detailed profiling of additional market players (up to 3 players)
- SWOT analysis of key players (up to 3 players)
Market Segmentation
- Current market size (2019) of the automotive fluoropolymers market in any of the system types by product type.
Competitive Benchmarking
- Benchmarking of key players on the following parameters: Product portfolio, geographical reach, regional presence, and strategic alliances.
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