Fluoroelastomer Market Size, Share & COVID-19 Impact Analysis, By Type (Fluorocarbon Elastomers [FKM], Fluorosilicone Elastomers [FVMQ], and Perfluorocarbon Elastomers [FFKM]), By End-Use (Automotive, Industrial, Aerospace, Oil & Gas, and Others) and Regional Forecast, 2020-2027

The global fluoroelastomer market size was USD 1,356.4 million in 2019 and is projected to reach USD 1,794.1 million by 2027, exhibiting a CAGR of 3.7% during the forecast period.

Fluoroelastomers are highly fluorinated carbon-based polymers used in major applications such as sealing, chemical resistance and oils, and high heat stability. This market is experiencing a high demand from the automotive industry owing to its superior mechanical properties than conventional rubbers. Additionally, its advantageous properties such as electrical insulation, resistance to heat, and degradation will further boost the market's growth. The aerospace industry contributes significantly to the market growth due to the high demand for products including gaskets and hoses. Factors such as increasing environmental concern and hazardous manufacturing conditions will act as the restraint for the market.

Halt on Manufacturing Activities to Dampen Fluoroelastomers’ Demand During Pandemic

The impact of the COVID-19 on the market is estimated to be significant on the automotive and aerospace industries. The pandemic has led to an abrupt stoppage in manufacturing activities, supply chains, and shutdown of the factories. As a result, the automotive industry is struggling with the generation of revenue. China is a prominent region for the market, and the lockdown resulted in a stall in the production of the fluoroelastomer. Several companies with manufacturing facilities located in China were temporarily shut down due to the COVID-19 outbreak. Moreover, the aircraft manufacturers also reduced their production rates due to global lockdown. The decrease in production numbers also affected the OEMs that use fluoroelastomer as raw material.

FLUOROELASTOMER MARKET TRENDS

Development of Fluoroelastomer Products Specific to the Application will Drive the Market

Materials with high resistance capabilities towards chemical and heat for specific application areas are expected to boost fluoroelastomers’ demand during the 2020-2027 period. Companies are upgrading their products' existing chemistry to make them perform better at specific application areas and under extreme conditions. Several companies have introduced food-grade, and pharmaceutical-grade products, which have been approved by the regulatory bodies for use. In August 2019, the US FDA sanctioned the AFLAS series by AGC, Inc. for food contact. The FDA granted Food Contact Notification for AFLAS Series 150P, 100S, and 100H, which can be used as a part of food processing equipment.

FLUOROELASTOMER MARKET GROWTH FACTORS

Rising Demand for Fuel Efficient Vehicles to Drive Market

With the rise in climate change, depleting fossil fuel reserves, and fluctuations in crude oil prices, the automotive industry is witnessing increasing demand for fuel-efficient vehicles from consumers. Automotive manufacturers are investing heavily in research and development to modify their existing designs and to focus on lightweight materials to achieve the desired efficiency. Therefore, the manufacturers are diminishing the size of engine and powertrain components and incorporating air circulatory systems to improve proficiency. These changes in dimensions expose the vehicles' components to elevated temperatures and corrosive fluids & fumes. Due to the compatibility of fluoroelastomer with a wide variety of chemicals and resistance to an extensive temperature range, it is projected to witness a surge in demand. Additionally, the inability of conventional elastomers to sustain high temperatures will drive the fluoroelastomer market growth.

RESTRAINING FACTORS

Increasing Concerns about Environment to Hinder the Market Growth

The changing temperatures, rising water levels, and increasing amount of greenhouse gases in the environment pose a threat to humans’ wellbeing and the planet. With the rise in awareness regarding sustainability and recyclability, consumers and manufacturers are opting for biodegradable materials. Due to the presence of fluorine atoms in the molecular structure, fluorocarbons are termed non-biodegradable. Even though fluoroelastomer have verified their effectiveness for industrial applications, they pose a threat to the environment, which is expected to hamper fluorocarbon elastomers' consumption.

FLUOROELASTOMER MARKET SEGMENTATION ANALYSIS

By Type Analysis

Fluorocarbon Elastomer (FKM) Segment Dominated the Market in 2019

Based on type, the market is segmented into FKM, FVMQ, and FFKM. The FKM segment held the dominant share of the market in 2019. The FKM segment's dominance is attributed to its extensive usage in automobiles and aircraft components. The properties of FKM, including resistance to chemicals & heat, low compression set, and excellent aging characteristics, has made it a vital constituent for the manufacturing of seals.

FVMQ segment is estimated to observe significant demand from automotive and aerospace industries owing to its ability to resist fuels and solvents at varying temperatures. The need for FFKM is increasing from the food, and pharmaceutical, and food processing industries. FFKM is a chemical resistant product and is used to provide low contamination where FDA compliance is required.

By End-User Analysis

Automotive Segment to Generate Highest Revenue

In terms of end-user, the market is segmented into automotive, industrial, aerospace, oil and gas industries, and others. The automotive segment is expected to have a dominant share in the market during the forecast period. The automotive industry consumes the majority of fluoroelastomer due to the extensive production of automotive components. Vehicle components such as drive trains and fuel handling systems integrate fluoroelastomer to improve fuel efficiency and decrease emissions. All the mentioned factors will boost the automotive segment growth.

The aerospace segment's growth is related to the increasing use of O-rings, seals, gaskets, and hoses in the aircraft’s fuel systems, where they act as obstruction against emissions and provide resistance from fuels. Due to the superior oil resistance and sealing applications, the oil & gas segment is expected to grow significantly during the forecast period.

REGIONAL FLUOROELASTOMER MARKET ANALYSIS

The market size in Asia Pacific stood at USD 541.93 million in 2019. Asia Pacific occupies the largest fluoroelastomer market share due to major consuming countries in the region. Rising investments in the pharmaceutical, food processing, chemical processing, and coating industries by developing countries such as India and China will propel its growth. The market in North America is characterized by the increasing demand from automotive and aerospace industries due to fuel emissions regulations.

Due to major automotive and aerospace manufacturers such as Dassault Aviation, and Airbus, the demand for these elastomers is surging in Europe. Countries including Germany, France, and the UK were the major contributors to the fueling demand. The rest of the World contributed substantially to the market growth owing to the widespread usage in oil & gas and chemical industries and is anticipated to boost the demand during the forecast period.

KEY INDUSTRY PLAYERS

Serving Numerous Markets Has Increased the Presence of Key Players in the Market

The global market is fragmented. The key players invest in research activities to develop new products with enhanced performance and quality for specific applications. For example, AGC, Inc. introduced the AFLAS series for food processing applications approved by the US FDA. Moreover, the companies are implementing expansion and acquisition strategies to strengthen the presence in the market. Many manufacturers are establishing new plants in developing countries to serve growing needs and upcoming opportunities.

LIST OF KEY COMPANIES PROFILED IN FLUOROELASTOMER MARKET:

• Solvay S.A. (Belgium)


• The Chemours Company (U.S.)


• Daikin Industries Ltd. (Japan)


• 3M (U.S.)


• AGC, Inc. (Japan)


• Shin-Etsu Chemical Co., Ltd. (Japan)


• Eagle Elastomer Inc. (U.S.)


• HaloPolymer (Russia)


• James Walker & Co. (UK)


• Air Boss Rubber Solutions (Canada)


• Dynafluon (India)


• Other Players

KEY INDUSTRY DEVELOPMENTS:

• October 2019- Solvay increased the production capacity of Tecnoflon FKM peroxide curable fluoroelastomer by 30% at its plant in Spinetta Marengo, Italy, to serve the rising demand for high-performance sealing applications in the automotive, oil & gas, and semiconductor industries. The expansion is expected to get completed by May 2021.


• October 2019- 3M to add new fluoroelastomer capacity in response to the increasing global demand. The expansion includes the addition of a new FKM polymerization capacity and a new reactor at the company’s existing production plant in Decatur, Alabama.

REPORT COVERAGE

The market research report provides a detailed analysis of the market and focuses on key aspects such as leading companies, product types, and leading applications of the product. Besides this, the report offers insights into the market trends and highlights key industry developments. In addition to the aforementioned factors, the report encompasses several factors that have contributed to the developed market's growth over the recent years.

Report Scope & Segmentation