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The sulfur hexafluoride (SF6) market size is forecast to increase by USD 111.9 million at a CAGR of 7.45% between 2023 and 2028. The market's growth hinges on several factors, including the rising demand for electricity in developing nations, the development of upgraded applications in the electronics industry, and the increasing integration of integrated circuits (ICs) in automobiles. As developing nations undergo rapid industrialization and urbanization, the demand for electricity surges, driving investments in power generation and distribution infrastructure. In the electronics industry, the development of upgraded applications, such as advanced consumer electronics, industrial automation, and smart devices, fuels demand for semiconductor components, including ICs. Moreover, the growing integration of ICs in automobiles supports advancements in vehicle safety, connectivity, and performance, contributing to market expansion.
It also includes an in-depth analysis of market trends and analysis, market growth analysis and challenges. Furthermore, the report includes historic market data from 2018 - 2022.
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The market is integral to industries such as gas-insulated substations and generating stations, where its properties as a warming gas are leveraged for various applications. Renowned for being odourless, colourless, and nontoxic, SF6 serves as a crucial etching aid in semiconductor manufacturing and as a flat panel insulator in the automotive sector. Despite facing challenges like economic downturns and shipping delays, the market continues to witness steady growth, fueled by factors such as equipment reliability and data bridge solutions. Expert analysis and growth rate projections contribute to informed decision-making, while procurement levels and distributor mapping ensure efficient supply chain management in this vital industry segment.Our researchers analyzed the market research and growth data with 2023 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.
One of the key factors driving the market growth is the rising demand for electricity in developing nations. The major reason for the rising demand for electricity is urbanization and industrialization in these developing countries. The higher GDP-to-population ratio has enabled citizens in developing countries to spend more on energy-consuming products and services that enhance their productivity, leisure, and comfort. The increase in per capita income, the growing demand for digitally connected devices, and the increased electrification of the transport sector have contributed to the increased consumption of electricity. The industrial sector in the above developing countries, which were once primarily rural or agricultural economies, has grown faster than the overall economy.
According to the International Monetary Fund (IMF) reports, APAC has shown the strongest growth in industries, and the value-added in this sector was 6.5% in 2021. Industrial growth is also driven by faster growth in energy-intensive industries, such as chemicals, oil and gas refineries, iron and steel, non-metallic minerals, cement, and paper. As the economies in developing countries are growing significantly, this boosts the demand from energy-intensive industries. Furthermore, developed countries in North America and Europe, as well as developing countries, are investing substantially in the development of energy from sustainable resources. These factors are expected to drive the growth of the market during the forecast period.
Increasing interest in semiconductor devices is one of the key market trends that is expected to impact the market positively during the forecast period. Market Companies are investing in the semiconductor industry to meet surging customer demand for ICs, smartphones, and flat-panel devices. For instance, in February 2022, Intel announced an agreement to acquire Tower Semiconductor, a leading foundry for analog semiconductor solutions, at the cost of approximately USD 5.4 billion.
The acquisition will help Intel create a stronger technology portfolio, expand its geographic reach, and provide services-first operations. The challenges faced during the fabrication of ICs, such as an increase in the volume of electrical losses and poor reliability, can be overcome by using sulfur hexafluoride in the manufacturing of semiconductor devices. Such factors will further support the market growth in the coming years.
One of the key challenges impeding market growth is the hazardous effects on the environment. Sulfur hexafluoride is a man-made gas with a global warming potential (GWP) that is 235,000 times more than that of carbon dioxide and has a 3,200-year atmospheric lifetime. Every particle released from sulfur hexafluoride forms a thick atmospheric blanket, which will continue to warm the Earth for more than 100 years.
Thus, the US Environment Protection Agency (EPA) established a voluntary initiative known as SF6 Emission Reduction Partnerships for Electric Power System in 1999, which is active even now. In addition, the California Air Resources Board (CARB) imposed regulations that are aimed at reducing emissions from gas-insulated switchgear, in which the maximum emission rate does not exceed 1%. Thus, these factors can restrain the growth of the market in focus during the forecast period.
The market forecasting report includes the adoption lifecycle of the market, 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.
Market 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.
Advanced Specialty Gases LLC: The company offers sulfur hexafluoride that is used in the electrical utility industry that provides cooling, insulating, and arc quenching capabilities in potentially high temperature applications such as electrical breakers.
The research report also includes detailed analyses of the competitive landscape of the market and information about 20 market companies, including:
Qualitative and quantitative analysis of companies 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 companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The market share growth by the electronic grade segment will be significant during the forecast period. Electronic-grade sulfur hexafluoride is majorly used to manufacture integrated circuits (ICs), semiconductors, and particle accelerators. It is also used as a chamber-cleaning gas in the semiconductor industry. Sulfur hexafluoride gas generates an optimum amount of F radicals to remove silicon-based layers from plasma chamber walls, which, in turn, increases the demand for electronic-grade sulfur hexafluoride.
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The electronic grade segment was valued at USD 81 billion in 2018. Electronic-grade sulfur is particularly suitable for application in both high-voltage and medium-high-voltage power circuit breakers, as well as in high-voltage cables, transducers, transformers, particle and electron accelerators, X-ray equipment, and ultra-high frequency (UHF) transmission systems. Such factors will propel the growth of the electronic-grade segment of the market during the forecast period.
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APAC is estimated to contribute 55% 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.
The demand for semiconductors and electronics is increasing from several end-user industries, such as smartphones and other mobile devices, automotive, consumer, and healthcare, primarily because of advances in wired and wireless technologies, the growing implementation of IoT, and increasing automation across industries. A crucial factor for the growth of the regional market is the increasing investments by the Chinese government in enhancing the domestic production of semiconductors in the country, rather than depending on imports from other nations. The Chinese government has laid out several plans and strategies that focus on improving the domestic semiconductor manufacturing industry in the country.
The market research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD million" for the period 2024-2028, as well as historical data from 2018 - 2022 for the following segments.
High Voltage Equipment Market: High Voltage Equipment Market Analysis APAC, Europe, North America, South America, Middle East and Africa - US, China, India, Germany, UK - Size and Forecast
Electronic Chemicals and Materials Market: Electronic Chemicals and Materials Market by Product, Application, and Geography - Forecast and Analysis
Chlorine Trifluoride (CIF3) Market: Chlorine Trifluoride (CIF3) Market Analysis APAC, North America, Europe, South America, Middle East and Africa - US, China, South Korea, India, Germany - Size and Forecast
The market plays a pivotal role as a warming gas with properties like being nonflammable, electrical insulator, and insoluble in water. Its high density makes it ideal for use as a tracer compound in various applications, including echocardiograms and noninvasive operations in the medical sector. With the increasing prevalence of chronic illness and changing lifestyles due to an expanding population, SF6 is extensively utilized in power distribution and transmission networks, serving as a dielectric medium in switchgears and other electrical equipment.
Despite challenges such as economic downturns and fluctuating procurement levels, the market remains buoyant, driven by its indispensable role in industries ranging from clean energy and communications to military systems and semiconductor manufacturing. The economic downturn has prompted increased scrutiny at the procurement level, particularly regarding materials like silicide, known to emit warming gases, necessitating more sustainable sourcing practices.
Market Scope |
|
Report Coverage |
Details |
Page number |
181 |
Base year |
2023 |
Historic period |
2018 - 2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 7.45% |
Market growth 2024-2028 |
USD 111.9 million |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
6.41 |
Regional analysis |
APAC, North America, Europe, Middle East and Africa, and South America |
Performing market contribution |
APAC at 55% |
Key countries |
US, China, Japan, Germany, and Canada |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Advanced Specialty Gases LLC, AGC Inc., Air Liquide SA, Air Products and Chemicals Inc., ATCO Atmospheric And Speciality Gases Pvt. Ltd., Axcel Gases, Concorde Specialty Gases Inc., DILO Co. Inc., Electronic Fluorocarbons LLC., Fujian Shaowu Yongfei Chemical Co. Ltd., Kanto Denka Kogyo Co. Ltd., Linde Plc, Mitsubishi Chemical Group Corp., Qingdao Ruiming Blue Sky Energy Co. Ltd., Resonac Holdings Corp., SEMA Gases, Shouguang Weidong Chemical Co. Ltd., SicgilSol India Pvt. Ltd., Solvay SA, and Vizag Chemical International |
Market dynamics |
Parent market analysis, Market Forecast, 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 market report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this market research report to meet your requirements.
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Product
7 Market Segmentation by End-user
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Opportunity/Restraints
11 Competitive Landscape
12 Competitive Analysis
13 Appendix
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