The market for Polyvinylidene Fluoride (PVDF) is anticipated to register a CAGR of around 5% during the forecast period. The factors driving the growth of the market studied are desirable properties of PVDF in comparison to other fluoropolymers, increasing demand of PVDF-based materials from the military and aerospace sector, and increasing demand for PVDF resins as a binder in lithium-ion battery manufacturing.
- On the flip side, the impact of COVID-19 pandemic on the various end-user industry’s growth and the supply chain disruptions may hinder the growth of the market studied.
- Asia-Pacific dominated the global market with the majority of the consumption coming from China, ASEAN Countries, and Japan, among others.
Key Market Trends
Pipes and Fittings Segment to Drive the Market Growth
- PVDF piping systems are environmentally sound, easy to install, chemical-resistant, and cost-effective. They are used for chemical distribution systems, which require no reaction with fluids or ingredients in the piping system. Furthermore, PVDF pipes have high mechanical strength and dielectric properties, which make it an ideal material for chemical processing and oil and gas industry.
- Additionally, owing to their unique performance advantages, such as ease of handling and installation, long service life, and chemical resistance over other conventional materials; demand for PVDF in small- and medium-size diameter pipes are increasing at a significant rate.
- Rebounding building construction expenditures are further expected to increase the demand for thermoplastic pipes, which are used as a conduit, for gas distribution, drain, waste, and vent pipes.
- PVDF can also be used in outdoors, due to its UV inhibiting characteristics against ultraviolet radiation. Moreover, PVDF materials are resistant to various ordinary chemicals, such as acids, bases, salts, and oxidants.
- Globally, PVDF pipes and fittings find their applications in pharmaceutical grade water system, acid distribution system, UPW and HUPW (Hot) ultrapure water return loops in microelectronics, chemical applications, and sanitization with ozone, steam, or hot water. They are widely used in the building and construction industry, chemical processing, oil and gas, and in other end-user industries.
- Asia-Pacific is the hub for chemical processing. Chemical industry in countries, such as China, India, and Japan, has been growing rapidly.
- The United States has also been witnessing strong growth in chemical industry, due to improvement in major end-user markets, thereby, leading to rise in demand for chemicals. Access to abundant feedstock and energy resources has been further increasing the profitability of the domestic chemical industry. Such lucrative growth of chemical industry in the country has attracted investment into the sector, which has led to noteworthy chemical expansion and greenfield projects in the country.
- Therefore, the growing chemical industry is expected to drive the demand for the market studied in coming years. However, with the recent outbreak of COVD-19, the restriction of social movement and lockdown all over the world is expected to negatively affect the growth of the chemical industry temporarily, which, in turn, is expected to restrain the market studied.
- Offshore oil and gas production has some of the most demanding conditions. Therefore, pipes and fittings used in it have to be equipped likewise. With recovery prices becoming visible in the oil and gas industry, the exploration and production have started increasing across the world.
- The major increase in oil and gas offshore exploration and production activities can be mainly noticed majorly in Asia-Pacific and North America.
- Although India has been a major oil importing country, it is also set to witness a moderate growth in the oil and gas industry, as it focuses on reducing its reliance on oil imports. The Oil and Natural Gas Corporation (ONGC) has produced a new blueprint, in order to increase the crude oil production by 4 million metric ton and to double its natural gas production by 2021. Saudi Aramco, one of the largest oil exporters, has been planning to invest in refineries and petrochemicals in India, as it had been looking forward enter a strategic partnership with the country. The oil and gas industry is one of the major consumers of PVDF pipes and fittings.
- The United States stands to be one of the leading countries, globally, in terms of exploration of unconventional crude oil reserves and application of hydraulic fracturing for the same. The amount of oil produced from hydraulically fractured wells have been significantly increasing, in comparison to the oil produced from conventionally fractured wells. This, in turn, has been increasing the consumption of pipes and fittings in the exploration and production activities.
- Therefore, these growing activities in the oil and gas industry is expected to boost the demand for the PVDF pipes and fittings from the oil and gas sector in the coming years. However, due to the COVID-19 pandemic, the oil and gas sectors have been getting affected due to the temporary lock down in almost all countries, which is expected to hamper the growth of the market till mid 2021.
Asia-Pacific Region to Dominate the Market
- China is the world’s largest economy, in terms of PPP (purchasing power parity). However, it is the second-largest economy, when calculated in terms of nominal GDP. The country’s growth slowed down in the past few years, and it recorded 6% GDP growth in 2019, which has been the slowest rate in the country’s economic history since 1990. This growth rate is moderating, due to the maturing of China’s economy, combined with tensions over the country’s trade disputes with the United States.
- Although China was the first country to be affected by COVID-19 and its consequent lockdown, it became the first country to lift the lockdown. Currently, it is on its long journey toward normalcy. However, a major chunk of the Chinese economy is linked to foreign exports, which are witnessing low demand. This factor may negatively affect the Chinese industry in the near future.
- The Chinese construction industry is still strong, but growth is slowing, as is economic growth. While growth may not be occurring as quickly as in previous years, the country is still very strong economically. According to the global data, the construction industry in China is expected to grow at more than 4.5% during the forecast period.
- Demographics in China is expected to continue to spur the growth in residential construction. Rising household income levels, along with population migrating from rural to urban areas, are expected to continue to drive the demand for the residential construction sector in the country. Increased focus on affordable housing by both public and private sectors may drive growth in the residential construction sector.
- However, China, being a major manufacturing hub across the world, has been severely affected by the recent break down of COVID-19. Owing to the stalling of manufacturing activities across the country, the scenario is expected to affect the global economy very widely and also the demand for the market studied in 2020.
- On the bright side, as of March 2020, China has lifted the lockdown in the country and is likely to start various industrial operations in the country, while other countries are still aggressively engaged in lockdowns and treatments. This scenario is expected to regain the manufacturing sector in the country prior to the other countries, resulting in the increasing demand for the market studied from various end-user applications.
- Also, there are around 1,944 municipal wastewater treatment plants across China’s city/urban regions and 1,599 municipal wastewater treatment plants across China’s counties, accounting for daily processing capacities of 140 and 29 million cubic meters, respectively. In the 13th FYP, China aims to spend around CNY 559 billion or 0.75% of its GDP on its water treatment industry, driving the demand for the market studied.
- According to China National Petroleum Corp. (CNPC), the gas consumption in China is expected to rise to 320 billion cubic meters (BCM) in 2020. Further, it is expected to surge to around 600 BCM by 2040. In order to meet the growing gas demand, the country is planning to double is gas production to 325 BCM till 2040. With such future plans, the country is likely to witness numerous pipeline construction projects over the long run.
- Besides, there are numerous chemical plants lined up for construction within the period of next five years in the country. For instance, in November 2019, BASF started construction of its USD 10 billion integrated petrochemicals project, located in the southern province of Guangdong in China.
- Hence, all such oil and gas projects and chemical plants lined for development are likely to significantly add to the demand for PVDF for pipes, chemical equipment and storage tanks, and other applications in the country over the forecast period.
- China has the world’s largest electronics production base and offers a tough competition to the existing upstream producers, such as South Korea, Singapore, and Taiwan. Electronic products, such as smartphones, OLED TVs, and tablets, have the highest growth rates in the consumer electronics segment of the market, in terms of demand. With the increase in the disposable incomes of the middle-class population, the demand for electronic products is projected to increase steadily in the future, thereby, driving the market studied.
- Thus the growth in various end-user industries is, in turn, boosting the demand for PVDF for various applications.
The global PVDF market is consolidated, and the top four players accounted for a market share of over 90% of the global market. Key players in the PVDF market include SABIC, Arkema Group, Solvay, Kureha Corporation, and Dyneon LLC (3M Company), among others.
Reasons to Purchase this report:
- The market estimate (ME) sheet in Excel format
- 3 months of analyst support