Industry Outlook

Fluorinated solvents market value expected to witness the CAGR of 5.8% during the forecast period from 2021 to 2029. Fluorinated solvents are fluorine based solvent, a direct replacement of chlorinated and brominated solvents that have negative impact on the environment. Fluorinated solvent includes CFCs, HCFCs, HFCs, HFOs, HFEs, etc. Chlorofluorocarbons (CFCs) are not available for routine industrial usage owing to their negative impact on human health and the environment, next generation fluorinated solvents such as HFO’s and HFEs are gaining traction across the world owing to their zero ozone depletion rate (ODP) and low global warming potential (GWP). Moreover, fluorinated solvent have low-odor and low toxicity that results in safer workplace environment leading to less government regulation and lower compliance costs.

Fluorinated solvents are compatible with broad range of materials such as plastics, elastomers, metals, and other substrates. Fluorinated solvents are mostly preferred for cleaning as they evaporate quickly and leave very little residue. Fluorinated solvents applications are expected to rise in coming years as they pose a lower threat to the environment, and are excellent substitutes for ozone-depleting chemicals. Fluorinated solvents have been displaying advantages such as proving to be a direct alternative for chlorinated and brominated degreasing solvents, with regard to meeting regulatory compliance from most of the regulatory bodies worldwide.

Factors such as low toxicity/flammability, low environmental risk, and improved cleaning and deposition are driving the fluorinated solvent growth across the globe. However, there are few restraining factors such as high cost, flammability, production of toxic by-product, and availability of natural alternatives projected to hamper the market growth over the forecast period. Solvent industry has been moving toward more environmentally materials and processes that has led to the phasing out and/or replacement of many industrial chemicals, including industrial solvents. Fluorinated solvents have been displaying advantages such as proving to be a direct alternative for chlorinated and brominated degreasing solvents, with regard to meeting regulatory compliance from most of the regulatory bodies worldwide. Besides, a very high chemical stability of fluorinated solvents makes them an excellent option for solvent recovery and recycling programs. Major players operating in the fluorinated solvents market includes 3M, The Chemours Company, AGC Chemicals, Honeywell International, Inc., The Dow Chemical Company, Solvay SA, and Arkema SA among others.

"HFEs Solvent Expected To Surpass the HFCs Market Share By 2029"

HFCs dominated the fluorinated solvents market by type in 2020. Phasing out of CFCs and HCFCs in developed economies such as North America and Europe has resulted in the use of environment friendly alternatives such as HFCs. HFCs is proven alternatives to ODSs however, HFCs exhibits more than 10 year of atmospheric lifetimes that violates the laid down environment regulations. As a result, market players have introduced HFEs with reduced atmospheric lifetimes. HFEs replacing many high GWP materials from different applications that includes precision cleaning, coating deposition, and heat transfer fluids.

HFE solvent emissions are significantly lower than those of the material it replaces which in turn propelling its market growth. HFE is also identified as the fastest growing type during the forecast period. Whereas, HFOs are also expected to exhibit robust growth during the forecast period owing to its minimal environmental impact.

"Electronics Cleaning Led the Application Segment in 2020"

Electronics cleaning dominated the fluorinated solvent application market in 2020 and expected to maintain its dominance throughout the forecast period. Fluorinated solvents find promising application in electronic component cleaning such as audio and video heads, reflector glasses for laser printers, lenses and high-precision plastic. These solvents has excellent solvency with wide range of cutting oils, greases, silicone oils, press oils, asphalt pitches, refrigerant oils, and fluxes that’s make it an ideal cleaning material for electronics industry. They also act as a solvent carrier for silicone oils, hard disk lubricants, fluorinated greases, and anti-rust agents. Precision cleaning application is identified as the fastest growing segment during the forecast period. Other application includes coating deposition solvent, lubricant carrier, refrigerants, etc.)

"Asia-Pacific to Remain Dominant Region during the Forecast Period"

Asia-Pacific was the largest regional market for fluorinated solvents in 2020, also expected to see strong gains in coming years as well, on account of flourishing end-use industries such as electronics manufacturing in China, Korea, and Taiwan. Moreover, rising disposable income, surge in the electronics demand in recent years, and manufacturers inclination towards offering products that meet the environment regulations laid down by governments and several organizations expected to boost the fluorinated solvent market growth. Asia-Pacific market is closely followed by North America and Europe in terms of value and volume consumption. Rising automotive manufacturing activities in China, India, Indonesia, and Malaysia is predicted to propel the application of fluorinated solvents in HVAC systems for vehicles, thereby adding to regional demand. The abundance of metal reserves in Asia-Pacific economies such as China, India, and Australia along with the government initiatives to promote FDI in the domestic metal sector driving the demand for fluorinated solvent in the region for metal cleaning application. Asia-Pacific is also identified as the fastest growing region during the forecast period.

"New Product Development is the Preferred Strategy Adopted by Key Players in Fluorinated Solvents Market"

On account of rising environment regulation in developed economies on using eco-friendly solution which has low GWP and ODS coupled with hydro chlorofluorocarbons (HCFCs) and hydrofluorocarbons (HFCs) phasedown under global treaties such as the Montreal Protocol pushing manufacturers and end-users to shift towards green solvents thus making new product development the preferred strategy among market players of fluorinated solvents. For instance, in order to comply with environment regulations and consumer demand for green solvents, AGC in introduced AMOLEA™ AS-300 in October, 2020, this launch helped AGC to respond the demand for CFCs and HFCs substitute with minimal environment impact. Key players operating in fluorinated solvents market includes Enviro Tech International, Inc., The Chemours Company, Solvay SA, 3M, Honeywell International, Electrotube, and AGC Chemicals among others.

Historical & Forecast Period

This study report represents analysis of each segment from 2023 to 2033 considering 2024 as the base year. Compounded Annual Growth Rate (CAGR) for each of the respective segments estimated for the forecast period of 2025 to 2033.

The current report comprises of quantitative market estimations for each micro market for every geographical region and qualitative market analysis such as micro and macro environment analysis, market trends, competitive intelligence, segment analysis, porters five force model, top winning strategies, top investment markets, emerging trends and technological analysis, case studies, strategic conclusions and recommendations and other key market insights.

Research Methodology

The complete research study was conducted in three phases, namely: secondary research, primary research, and expert panel review. key data point that enables the estimation of Fluorinated Solvents market are as follows:

• Research and development budgets of manufacturers and government spending
• Revenues of key companies in the market segment
• Number of end users and consumption volume, price and value.
• Geographical revenues generate by countries considered in the report
• Micro and macro environment factors that are currently influencing the Fluorinated Solvents market and their expected impact during the forecast period.

Market forecast was performed through proprietary software that analyzes various qualitative and quantitative factors. Growth rate and CAGR were estimated through intensive secondary and primary research. Data triangulation across various data points provides accuracy across various analyzed market segments in the report. Application of both top down and bottom-up approach for validation of market estimation assures logical, methodical and mathematical consistency of the quantitative data.

Key questions answered in this report

• What are the key micro and macro environmental factors that are impacting the growth of Fluorinated Solvents market?
• What are the key investment pockets with respect to product segments and geographies currently and during the forecast period?
• Estimated forecast and market projections up to 2033.
• Which segment accounts for the fastest CAGR during the forecast period?
• Which market segment holds a larger market share and why?
• Are low and middle-income economies investing in the Fluorinated Solvents market?
• Which is the largest regional market for Fluorinated Solvents market?
• What are the market trends and dynamics in emerging markets such as Asia Pacific, Latin America, and Middle East & Africa?
• Which are the key trends driving Fluorinated Solvents market growth?
• Who are the key competitors and what are their key strategies to enhance their market presence in the Fluorinated Solvents market worldwide?