Market Trends of Perfluoroalkoxy Alkane (PFA) Industry
Chemical Processing Application to Dominate the Market
- Perfluoroalkoxy alkane, or PFA, is used a lot in the chemical processing industry because it can withstand high temperatures, mechanical shock, and thermal stress.
- PFA is used for corrosion protection liners and coatings because it has good chemical resistance and low permeation, good light transparency, good resistance to UV and visible light, smooth surface, low surface energy, good resistance to weathering, high temperature and thermal stability, water repellent and anti-staining, high purity, great electric properties, and doesn't burn and makes little smoke.
- Some of the applications of PFA in the chemical processing industry include seals, O-rings, gaskets, braided packing, mechanical seals, valve seats, valve stem packing, lined valves, fittings, pumps, sight glasses, flow meters, lined pipes, dip pipes, columns, tanks, expansion joints, bellows, hoses, tubing, convoluted tubing, filters, de-misters, strainers, column packing, heat exchanger tubing, and lining and tracing heating cables.
- The United States is one of the world's leading producers of chemical products. Chemical volumes in the United States are expected to increase by 3.2% in 2022, and capital spending in the chemical industry increased by 11.9% to USD 30.6 billion in 2021 and 3.1% in 2022.
- Furthermore, according to the Bureau of Economic Analysis, the value added by the chemical products industry in the United States in the third quarter of 2022 was around USD 468.3 billion, a 5% rise over the same time the previous year. The industry for chemical products added slightly more than USD 1,400 billion in value over the first three quarters of 2022.
- Furthermore, with the rising chemical processing sector, several big firms throughout the world have begun to develop their operations or enter the chemical processing industry. For example, as of December 2022, Saudi Aramco had cooperated with TotalEnergies, a French oil company, to develop a petrochemical complex in Saudi Arabia for an anticipated USD 11 billion investment. Construction on the petrochemical complex is expected to begin in the first quarter of 2023, with commercial operations beginning in 2027.
- Thus, it's likely that the chemical processing application will lead the market during the next few years.
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Asia-Pacific to Dominate the Market
- Asia-Pacific has grown to be the hub for chemical processing across the world. The chemical industry in countries such as China, India, and Japan has been growing rapidly. The largest proportion of the global chemical market is held by Asia. Over the last decade, the region has continuously accounted for more than half of the global chemical market.
- China is not just the largest market for chemicals, but it is also one of the fastest expanding. According to the European Chemical Industry Council (CEFIC), China's share of global chemical sales is expected to climb to over 49% by 2030, up from 41% currently. Because of China's chemical production capacity, many big global corporations have chemical plants there.
- India, on the other hand, is the third-largest consumer of polymers, the fourth-largest producer of agrochemicals, and the sixth-largest producer of chemicals across the world. The demand for chemicals is expected to expand by 9% per year by 2025. According to IBEF, the chemical industry is expected to contribute USD 300 billion to India’s GDP by 2025.
- Perfluoroalkoxyalkane (PFA) is also used in semiconductors because it lasts longer under changing loads. Also, its better electrical properties and resistance to cracking under stress make it a great choice for the semiconductor industry. According to the India Electronics and Semiconductor Association, the country's semiconductor component business will be valued at USD 32.35 billion by 2025. The government's ongoing "Make in India" campaign is likely to lead to investments in the country's semiconductor industry.
- With Japan accounting for more than 30% of global semiconductor manufacturing equipment and material sales, an event, SEMICON Japan 2022, was held that brought together Japanese and international companies from across the microelectronics manufacturing supply chain in December 2022 at Tokyo Big Sight for insights into the latest technological innovations, developments, and trends. The growing efforts in the country to make more semiconductors are driving up the demand for PFA in the country.
- PFA has a low coefficient of friction and is resistant to heat and chemicals. This makes it a popular choice for seals, gaskets, and slide bearings in the oil and gas industry. China is the world's second-largest consumer of oil and gas, yet it ranks just sixth in terms of output. Domestic crude oil output is estimated to reach 205 million tons in 2022, the first time it has surpassed 200 million tons since 2016. Natural gas output was estimated to reach 221.1 billion cubic meters, a 6.5% rise year over year.
- Thus, because of the above factors, it seems likely that Asia-Pacific will lead the market being studied during the forecast period.
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