Published: November 2019 | Report Code: CM11760 | Available Format: PDF | Pages: 139
The global polytetrafluoroethylene (PTFE) market stood at $2,197.8 million in 2018, and it is expected to reach $2,953.6 million by 2024, demonstrating a CAGR of 5.0% during the forecast period (2019–2024).
Geographically, Asia-Pacific (APAC) is expected to witness the fastest volumetric growth in the industry, with a CAGR of 5.9%, during the forecast period. The rapid growth in the electrical and electronics industry, driven by macroeconomic growth and increasing demand for innovative products in the developing nations of APAC, has boosted the production of electrical and electronic devices. This, along with an increase in the adoption of polytetrafluoroethylene coatings for semiconductors, wires and cables, electrical tapes, and insulations, is expected to drive the material demand in the coming years.
Dynamics of PTFE Market
The key trend being observed in the global market is the rising application of the material in the medical sector. Since PTFE is a biocompatible material, it has replaced traditional plastics in several medical applications. In the recent past, the its adoption for medical devices has rapidly gained pace. Companies have also invested in research and development (R&D) and launched improved PTFE-based products. For instance, in May 2019, Bal Seal Engineering Inc., a manufacturer of custom sealing solutions for medical applications, announced its achievement of USP Class VI compliance for its SP-191 (filled PTFE) and SP-23 (polymer with polytetrafluoroethylene base) seal materials. These materials prevent leakage and protect components in powered surgical tools, pumps, catheters, and other medical equipment.
The increasing demand for PTFE from the electrical and electronics sector is one of the major factors providing a boost to the market. It has application in battery binders, cable ties, circuit breakers, brush holders, barb insulators, connectors, and fabrication of semiconductor devices. According to the Semiconductor Industry Association (SIA), the global demand for semiconductors reached a new height in 2018 — a shipment of over one trillion units. Furthermore, the annual sales of semiconductors in China increased by over 20.5% in 2018 from its value in 2017.
The adoption of polytetrafluoroethylene in beauty products is expected to serve as a huge growth opportunity for the market. In the recent times, it has been observed that using the polymer of tetrafluoroethylene in cosmetics, such as anti-aging creams and lotions, pressed powders, blushes, and bronzers, can help in providing a smooth texture to the skin. With the rapid increase in the consumer interest in new and premium products and online spending on beauty products, the demand for such cosmetics is likely to grow, and in turn, serve as an opportunity for the global market in the coming years.
PTFE Market Segmentation Analysis
Based on type, granular segment held the largest volume share in the global market, of approximately 55.0%, in 2018. Although granular and powdered types have similar applications, granular is preferred over the powder variant since it is relatively difficult to mix solids with fine-powder PTFE to form a uniform blend; additionally, fine powder is more expensive. Moreover, granular type is ideal for compression molding for the production of rods, tubes, and sheets.
Based on application, coatings category held the largest share in the global market, in terms of volume, in 2018. The demand for its coatings is predicted to reach 90.5 KT by 2024, with the highest CAGR during the forecast period among all applications. The increasing demand for PTFE-coated valves, seals, and rings in the industrial processing sector have created a huge spur in the demand for the coatings of the chemical compound.
Based on end use, the industrial processing sector held the largest volumetric share in 2018. This is majorly attributed to the high demand for PTFE-coated gaskets, linings, piping in chemical processing sector, and the ability of the material to improve the chemical and heat resistance, reduce friction and sticking, and enhance the electrical load bearing capacity of the base material. The demand for the chemical in the electrical & electronics sector is expected to grow at the highest CAGR, of 6.4%, during the forecast period.
Geographical Analysis of PTFE Market
Globally, APAC was the largest market during the historical period (2014–2018) and is expected to maintain the lead during the forecast period. This can be mainly attributed to the exponential demand for the compound from the regional automotive and electrical & electronics sectors. In January 2018, The Consumer Electronics Association (CEA), a watchdog in the electronics sector, estimated the consumer electronics retail revenue to be $351.0 billion in 2018, an increase of 3.9% from 2017. China is expected to lead the market in APAC region during the forecast period, generating revenue worth $1,594.0 million in 2024.
APAC is also expected to witness the fastest growth during the forecast period, owing to the increasing demand for consumer electronics, surging industrial processing activities in the region, and rising production of automobiles. China is expected to witness the fastest growth in the region, at a CAGR of 6.5% by revenue and 6.6% by volume, during the forecast period.
Competitive Landscape of PTFE Market
The global market for the chemical compound is highly concentrated in nature and has a small number of players. The key players in the market are The Chemours Company, Gujarat Fluoropolymers Ltd., 3M Company, Daikin Industries Ltd., AGC Inc., Juhua Group Corporation, Solvay SA, Zhonghao Chenguang Research Institute of Chemical Industry, and Shandong Dongyue Polymer Material Co. Ltd. The production is also quite limited to the APAC region, primarily China. Several players are backward integrated and with their own raw material production facilities and even process PTFE to produce high-value-added products.
Shamrock, Jinhua Yonghe Fluorochemical Co. Ltd., DuPont (Changshu) Fluoro Technology Co. Ltd., and Liaocheng Fuer New Material Technology Co. Ltd. are other key players in the global PTFE market.
Recent Strategic Developments of Major PTFE Market Players
In recent years, the major players in the global polytetrafluoroethylene market have taken several strategic measures, such as mergers and acquisitions, in order to gain a larger share in the global market. For instance, in Aug 2017, Daikin Industries Ltd. acquired Heroflon S.p.A., an Italian manufacturer of fluoropolymer compounds. Heroflon’s product portfolio comprises fluoropolymer compounds and micro-powders centering on the chemical.
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