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The Fluorinated Ethylene Propylene (FEP) Market size is forecast to increase by USD 486.51 million, at a CAGR of 8.41% between 2022 and 2027. The market growth hinges on rising demand for FEP coatings, serving as a cost-effective substitute for PTFE (Polytetrafluoroethylene) in nonstick applications within the food industry. This demand surge is particularly pronounced in developing nations, where industrialization and urbanization are accelerating. FEP's versatility and performance attributes make it a preferred choice, driving its adoption across various sectors. As industries seek efficient and reliable solutions, FEP's qualities, including chemical resistance and nonstick properties, become increasingly appealing. This trend underscores a pivotal shift towards FEP as a favoured material, driven by its ability to meet evolving market demands while offering a competitive edge in cost and performance.
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The market is driven by the widespread use of Teflon and PFA as non-stick coatings, especially in cookware applications. These coatings offer exceptional wear resistance and withstand temperatures up to 500º F, making them ideal for various industrial and consumer applications. Additionally, FEP exhibits resistance to oxidation, sunlight, and hydrochloric acid, further expanding its utility as an insulation material for outdoor electrical wires, optical fiber cables, and electrical fittings. However, challenges such as market saturation and environmental concerns surrounding fluorinated compounds pose potential hurdles to the market's growth. Our researchers analyzed the data with 2022 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
Increasing demand for FEP coatings is the key factor driving the growth of the market. FEP coatings are important coating materials in the chemical industry due to their ability to transport harsh chemicals used in industrial manufacturing processes. Photolithography, etching, cleaning, thin film deposition, and polishing are some of the processes used to manufacture semiconductor integrated circuits.
A typical integrated circuit requires approximately 270 chemicals and gases to be manufactured. Many of these substances are exceedingly corrosive, including nitric acid, hydrochloric and hydrofluoric acid, and ozone. Thus, FEP is required for the transportation of these chemicals, which drives the demand for FEP in the manufacture of semiconductor integrated circuits as well. Thus, all the aforementioned factors imply that the market for FEP will expand during the forecast period.
Capacity expansion by key end-users is the primary trend in the market. Capacity expansion by end-users has always been one of the key factors driving the market growth. FEP is used in the form of coatings and films in end-use industries such as automotive and aerospace, construction, consumer products, and food and beverage packaging.
For instance, in January 2020, Airbus SAS (Airbus) announced an increased investment of more than USD 1 billion for the expansion of aircraft manufacturing in the US. The company announced its plan to produce 63 A320 family aircraft per month in 2021. Hence, the ramping up of production capacities by major vendors will drive demand for FEP during the forecast period. Such a trend is likely to propel the growth of the market in focus during the forecast period.
Stringent regulations on the use of perfluorooctanoic acid (PFOA)-related material are major challenges to the growth of the market. FEP releases PFOA and perfluorinated compounds upon decomposition. PFOA poses a potential environmental risk as it is highly hazardous and risks contaminating groundwater, surface water, and air. Various governments have imposed strict regulations on the use of PFOA and related compounds. For instance, in June 2020, the EU published Regulation (EU) 2020/784, which amended the EU legislation on restricting the use of persistent organic pollutants (POPs). The new regulation restricted the use of PFOA, its salts, and PFOA-related compounds.
The regulation came into force on July 4, 2020. The regulation sets a maximum concentration of 0.025 mg/kg for PFOA and any of its salts and a maximum concentration of 1 mg/kg for PFOA-related compounds. Vendors need to comply with the regulations and replace traditional FEP with low-PFOA-containing FEP. The EU imposed restrictions on PFOA usage as it is a persistent organic pollutant based on its ubiquitous, persistent, bioaccumulative, and reprotoxic nature. This will negatively impact various end-users that make use of FEP. Thus, such factors are expected to hinder the growth of the global FEP market during the forecast period.
The market forecasting report includes the adoption lifecycle of the market research and growth, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth and forecasting strategies.
Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
3M Co.: The company offers fluorinated ethylene propylene (FEP), namely 3M Dyneon FEP.
The report also includes detailed analyses of the competitive landscape of the market and information about 15 market companies, including:
Qualitative and quantitative analysis of vendors has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize vendors as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize vendors as dominant, leading, strong, tentative, and weak.
The market share growth by the cookware and food processing segment will be significant during the forecast period. In the kitchen and cookware industry, FEP is used as a nonstick coating on utensils. Fluoropolymer coatings are commonly applied to cookware to give it an anti-stick surface.
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The cookware and food processing segment was valued at USD 253.48 million in 2017 and continued to grow until 2021. PTFE is well-known for its cookware applications. Nonstick cookware is becoming increasingly popular as it facilitates cooking with the minimum use of oil. Moreover, during the pandemic, people started considering cooking as a hobby during the lockdown, which increased the demand for cookware during 2020-2021. Also, as a part of the recovery strategy from the COVID-19 crisis, vendors expanded their nonstick cookware product portfolios. For instance, in September 2020, Meyer Corp. announced the launch of new accent designer nonstick cookware. The launch of new products is done to expand into other regions such as India, the US, the UK, Australia, Hong Kong, Korea, and Japan. Such factors will increase segment growth during the forecast period.
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North America is estimated to contribute 42% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. In North America, FEP is used in applications such as cookware and food processing, electrical and electronic equipment, medical equipment, automotive, furniture, and pharmaceuticals. Some FEP coating end-users, such as furniture manufacturers, are expanding their presence with new businesses in the region. For example, in October 2020, IKEA announced plans to open smaller stores in New York, Los Angeles, and Chicago. Such expansion by furniture manufacturers is expected to increase the demand for his FEP in the region during the forecast period.
The market report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
The market is witnessing significant growth, driven by its versatile applications across various industries. Teflon type non-stick cookware coatings and jacketing material for wires and cables are prominent uses, leveraging FEP's chemical resistance and nonstick properties. Additionally, FEP finds extensive usage in appliances, semiconductors, and the electrical & electronics sector due to its excellent electrical insulation properties and high breakdown voltage. Despite its widespread adoption, challenges such as the high cost of FEP and regulatory hurdles concerning trade regulations and reimbursement scenarios in the medical and healthcare sector hinder market growth. However, technological innovations and geographic expansions, particularly in developing economies, present lucrative opportunities for market players to capitalize on the growing demand for FEP in industries like automotive & transportation, cookware & food processing, and the telecom industry, especially with the advent of 5G services and smart city initiatives.
Market Scope |
|
Report Coverage |
Details |
Page number |
165 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 8.41% |
Market growth 2023-2027 |
USD 486.51 million |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
8.13 |
Regional analysis |
North America, APAC, Europe, Middle East and Africa, and South America |
Performing market contribution |
North America at 42% |
Key countries |
US, Canada, China, Germany, and UK |
Competitive landscape |
Leading Companies, market growth analysis, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
3M Co., AGC Inc., Compagnie de Saint Gobain, Daikin Industries Ltd., DuPont de Nemours Inc., Gasco Inc., Gujarat Fluorochemicals Ltd., HaloPolymer OJSC, Hindustan Organic Chemicals Ltd., Hubei Everflon Polymer Co. Ltd., ITAFLON s.r.l, Jiangsu Meilan Chemical Co. Ltd., Poly Plast Chemi Plants India Pvt Ltd., RTP Co., Shandong Hua Fluorochemical Co. Ltd., Shanghai Huayi 3F New Materials Co. Ltd., The Chemours Co., Zeus Co. Inc., Zhejiang Fotech International Co. Ltd., and ZheJiang Yonghe Refrigerant Co. Ltd. |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period. |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by End-user
7 Market Segmentation by Product
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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