Fluorosurfactants market size is forecast to reach US$936.8 million by 2026, after growing at a CAGR of 7.1% during 2021-2026. Fluorosurfactants belongs to the class of coating additives which enhances the properties of formulations such as wetting, levelling, controlling foam, thermal stability and also offers low surface tensions in the coating systems. They are soluble and compatible with most of the polymers and remain active throughout the curing and drying process. Better performance of fluorosurfactants in these applications as compared to other surfactants and the use of short-chain fluorosurfactants in developed economies are driving the fluorosurfactants market globally. In addition, the growing use of fluorosurfactants as wetting & leveling agents drives the market for fluorosurfactants in this application. Furthermore, stringent regulations on VOC emissions by regulatory bodies, such as EPA (U.S.) and REACH (Europe), are driving the market for short-chain fluorosurfactants.
The emergence of COVID-19, had a noticeable impact on regional economic growth. According to the International Monetary Fund, the global GDP is declined by 3% in 2020. According to the World Trade Organization (WTO), global trade volumes declined between 13% and 32% in 2020 as a result of the economic impact of COVID-19. The ongoing COVID-19 pandemic hence impacted many end user industries globally. As a result of the scenario, several firms across regions had to shut down their production facilities and services as countries have adopted partial or absolute lockdown policies to deal with the pandemic. Companies throughout the world also halted or postponed large M&A ventures. In addition, the COVID-19 pandemic also affected crude oil prices, well-drilling and production activities, and the oil and gas supply chain. The decline in production activities further negatively affected the prices for fluorosurfactants the short to medium term.
Fluorosurfactants Market Segment Analysis – By Type
The anionic surfactants segment held the largest share in the fluorosurfactants market in 2020 up to 65% by revenue and is estimated to grow at a CAGR of 6.4% during 2021-2026, due to their excellent wettability and permeability, and also provide better leveling. Anionic fluorosurfactants are widely preferred in coatings and specialty detergents, as they provide excellent cleaning and help achieve lower surface tension as compared to the other types. The growing demand for coatings is expected to increase the demand for anionic fluorosurfactants globally. Anionic surfactants are a negatively charged hydrophilic group and are used during the drilling process in the oil & gas industry. The growth of this commodity is also due to the increasing demand for crude oil and increased production of petroleum.
Fluorosurfactants Market Segment Analysis – By Application
The paints and coatings segment held the largest share in the fluorosurfactants market in 2020 and is forecasted to grow at a CAGR of 5.9% during 2021-2026. Fluorosurfactants are widely preferred in coatings due to their superior leveling and wetting properties in comparison to other surfactants. The growing demand for coatings is expected to increase the demand for fluorosurfactants globally. Fluorosurfactants are used in very low concentration to increase the wetting, leveling and oil repellency in applications such as adhesives, coatings, waxes, polishes, cleaners, and films. These applications drive the fluorosurfactants market globally. Stringent regulations over VOC emissions and the high cost of fluorosurfactants reportedly act as restraining factors for the growth of the fluorosurfactants market.
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Fluorosurfactants Market Segment Analysis – By Geography
North America held the largest share in the fluorosurfactants market in 2020 up to 34.7% by revenue. The growing demand for oilfield surfactants is expected to increase the demand for fluorosurfactants in North America. The country has abundant oil resources both as shale formations and offshore production in Gulf of Mexico. The method of extraction from the oil reservoirs include fracking, horizontal drilling and multi-well pad drilling that require considerable usage of oilfield specialty chemicals as surfactants, emulsifiers, foaming agents and lubrications. According to global Energy yearbook statistics, In the year 2019, U.S was the largest crude oil producer in the world, producing about 745 megatonne. The oil production led by the shale boom will be dominant in U.S. in the next decade that will provide significant boost to the fluorosurfactants market in the country. Furthermore, new developments have contributed to the region’s increase in productivity in 2019 in the Offshore Federal Gulf of Mexico (the U.S. protected waters in the Gulf of Mexico). Seven new ventures were introduced online by oil and natural gas companies in 2019, and EIA estimates that nine more will be launched in 2020. The crude oil output of the Offshore Federal Gulf of Mexico increased by 126,000 b/d in 2019, resulting in the area’s highest annual total production of 1.88 million b/d. The growing production and development in oil field tends to increase the drilling activity. In order to reduce the friction while drilling, the demand of fluorosurfactants is also increasing, which is leading to fluorosurfactants market growth in North American region.
Fluorosurfactants Market Drivers
Growing Oil and Gas Industry
Global oil and natural gas production have been increasing steadily since the last decade with oil production recording 92.6 million barrels per day (BPD) in2018, with the US being the largest oil-producing country in the world. According to the Interstate Natural Gas Association of America, in the U.S and Canada, a total of US$791 billion investments in new oil and gas infrastructure will be made from 2018 to 2035. In addition, according to International Monetary Fund, by 2023, oil demand will reach 104.7 mb/d, up by 6.9 mb/d from 2017. According to the Australian Trade and Investment Commitment, Mexico is the world’s 10th largest producer of oil and holds approximately 11.1 billion barrels of oil reserve. Mexico’s oil production is predicted to double to 5 million barrels per day by 2030. According to the Projections of UK Oil and Gas Production and Expenditure Report the oil and gas production over the period 2016–2050 is projected to be 3.9 billion barrels of oil equivalent higher than projections four years ago (in March 2015). According to the Organization of Petroleum Exporting Countries (OPEC), the global demand for oil was estimated to be 86.5 Mb/d in 2015 and, as a result of population growth and the rise in the number of vehicles anticipated in the future, the demand for oil is projected to grow at an annual rate of 0.6 percent pa by 2040, which translates to an increasing requirement of 100.7 Mb/d in 2040. Fluorosurfactants are used to improve fluid recovery after fracturing. They help prevent hole emulsions and help to increase long-term post-fracture production. Surfactants help to cope with undesirable gas-water surface stress in shale gas or low permeability reservoirs. These statistics suggest that as oil production, extraction, and exploration activities are increasing, thus there is clearly an enormous growth potential for fluorosurfactants to meet this high demand.
Growth of Global Electronics Industry
The Global Consumer Electronics Manufacturing industry is expected to grow at an annualized rate of 2.2% to US$1.4 trillion over the five years to 2025, including a 1.2% decrease in 2020 alone. Innovative products, falling prices, growing household incomes and rising consumer sentiment have supported demand for consumer electronics. However, the decrease in 2020 can be mainly attributed to the ongoing COVID-19 (coronavirus) pandemic, which has caused many manufacturing facilities to either shut down or decrease their operations. This decrease in manufacturing activity has caused the industry’s profit to slightly decline in 2020. This industry manufactures electronic audio and video equipment for consumer end use, including home entertainment systems, public address and musical instrument amplifications as well as mobile devices such as cellular phones and tablets. Examples of products include TVs, stereo equipment, speaker systems, consumer video cameras, jukeboxes and video game consoles. Innovation can help drive total industry sales, but it can also lead to greater competition. The increase in competition and the decline in overall prices for industry products are conflicting trends, contributing to only moderate growth compared with historical trends. Still, the industry is expected to expand more rapidly than the previous five-year period amid anticipated accelerations in global consumer spending and per capita income. Fluorosurfactants are used in electronic coatings due to their stability to aggressive chemicals, high dielectric strength and optical clarity of protective films and hence the fluorosurfactants will witness a significant growth opportunity in the electronic industry.
Fluorosurfactants Market Challenges
The Fluctuating Crude Oil Prices
The price and availability of raw materials are major factors that affect the price of the end products. Fluorosurfactants are derived from crude oil after various processing and refining procedures. And there has been a rise in the price volatility of crude oil in the past year. For instance, the price of crude oil has decreased from US$98.95/bbl in 2014 to US$52.39/bbl in 2015 and increased from US$43.73/bbl in 2016 to US$71.31/bbl in 2018 and then decreased to US$64.21/bbl in 2019, according to the BP Statistical Review of World Energy. The prices of crude oil being low and the market being unstable may pose a serious threat to the fluorosurfactants market. The operating expenses for the production of these surfactants will fail to meet the market price restricting the market to grow. Thus, fluctuation in the crude oil price is a major factor restricting fluorosurfactants market growth.
Hazardous Effect of Long-chain Fluorosurfactants
Fluorosurfactants are active components of firefighting foams used to extinguish hydrocarbon fires. Nonetheless, the outdoor application of perfluorochemicals based on perfluorooctanoic acid and perfluorooctane sulfonate has created concerns of environmental pollution and health issues. Long-chain perfluorosurfactants have high stability, high transportability, high solubility, long half-life of human serum elimination, high bioconcentration factor in fish and substantial aquatic toxicity. As a consequence, these chemicals have been phased out and replaced by short-chain fluorosurfactants. However, this replacement or alleviation of environmental concerns is not happening across all key geographic regions and countries due to lack of enforcement of laws or regulations in the first place.
Fluorosurfactants Market Landscape
Technology launches, acquisitions, and R&D activities are key strategies adopted by players in the fluorosurfactants market. Major players in the fluorosurfactants market are Chemours, 3M Company, Merck, DIC Corporation, Omnova, Maflon, Advanced Polymer, Inc., The Dow Chemical Company, and Chemguard.
North America dominates the fluorosurfactants market, owning to the high demand of fluorosurfactants from paints and coatings, adhesives sectors as well as the shale and offshore reserves existing in this region.
Fluorosurfactants are excellent, non-toxic and non-bioaccumulative wetting and leveling agents for household and industrial cleaners, and thus are extensively utilized as cleaners, which is aiding its market growth.
Rising investments in the construction sector, along with the growing electronics industry in various regions are driving the demand for fluorosurfactants. As the use of fluorosurfactants in construction and electronics applications is increasing, the growth in these industries will support fluorosurfactants market growth.
A. Anionic Surfactants Market
B. Amphoteric Surfactants Market
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