4.6% CAGR Anticipated for Polytetrafluoroethylene (PTFE) Market During 2016 - 2024
The global polytetrafluoroethylene (PTFE) market is highly concentrated, with the large-scale manufacturers at the fore. Some of the most prominent names in the market are 3M, Solvay, Daikin Industries, Chemours Company, and Asahi Glass Co., Ltd., finds Transparency Market Research (TMR) in a new study. These companies cumulatively held over 62.7% in the global market in 2015. Besides this, small- and medium-scale companies are present in the market, however, they are much limited in number.
In order to gain stronger foothold, a majority of companies operating in the market focus on expanding existing production sites, exploring new regions, and product development. A common aspect among the companies holding dominance, is their widespread regional footprint. On account of having penetrated into untapped markets, these companies enjoy greater sales prospects, which have inevitable contribution towards their lead in the global PTFE market.
TMR has provided refined outlook for the market, aimed at providing better perspective to the existing companies as well as new entrants. It forecasts the global PTFE to exhibit a CAGR of 4.6% between 2016 and 2024. At this pace, the market valuation, which stood at US$3.48 bn in 2015, will reach US$5.18 bn by the end of 2024. By type, the market was led by the micro powder segment with a share of 30.8% in 2015. Regionally, Asia Pacific emerged as the clear lead in 2015, holding over 44.3% of the global PTFE market in 2015. Through the course of the forecast period, the region’s dominance is forecast to remain unaffected.
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Demand for Non-stick Cookware to Drive Growth
The global PTFE market is majorly gaining from the increasing demand for non-stick coatings in the cookware market. Urbanizations, increasing willingness to spend on products making lifestyle easier, and changing food habits will provide significant impetus. Furthermore, the cookware industry is prophesized to expand further in the coming years, thereby creating lucrative prospects for increased PTFE applications.
In addition, PTFE’s excellent dielectric properties make it an ideal insulation materials for connector and cable assemblies. Hence PTFE is also used as a substitute for polyethylene, which has a low melting point and is used in low cost applications. As countries around the world upgrade existing grids by upgrading them to smart grids, the use of PTFE will rise on account of its aforementioned properties. Spurred by this, the global PTFE market will exhibit strong growth during the forecast period.
Besides this, the market will gain from the extensive use of PTFE in the automotive industry. In the last few years, globally the manufacturing of lightweight vehicles has significantly increased in order to provide better fuel-efficiency and high performance. This is expected to fuel the use of PTFE as lining material for hoses, hydraulic systems, airbrake systems, and other car components.
Fluctuating Raw Material Prices may Dwindle Growth
On the downside, the unstable prices of raw materials are expected to render the market unwieldy. PTFE is derived from hydrogen fluoride, which is derived from calcium fluorite also referred to as fluorspar. China is a major producer of fluorspar, however, export restrictions imposed by the government to seal China’s dominance has created a demand and supply gap. Such laws will exacerbate situations for the market players. Also stringent regulations imposed to curb the use of perfluorooctanoic acid (PFOA) will have adverse impact on the market. Although PTFE does not contain PFOA, however, there may be some traces, which could create obstacles for the market.
Nevertheless, penetration in untapped markets, product development, and diversification holds the key for market players to ensure sustainable growth. These strategies if adopted can smoothen much effects from the aforementioned bottlenecks.
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