The highly concentrated vendor landscape of the global polytetrafluoroethylene (PTFE) market is attributable to the presence of prominent manufacturers at the fore. Transparency Market Research (TMR) has identified Chemours Company, 3M, Daikin Industries, Solvay, and Asahi Glass Co., Ltd. as the leading players in the market. These companies cumulatively held over 62.7% of the global polytetrafluoroethylene market in 2015. The market also showcases the presence of small and medium-scale enterprises, however, they are limited in numbers.
In order to gain a competitive advantage, a majority of the market players are expanding their production capacities. Besides this, they are exploring untapped markets to gain a strong hold. Some of the leading companies in the global polytetrafluoroethylene market are investing in product development to gain edge over competition in the coming years. Their strategies for expanding regional footprint also help in strengthening their foothold in the global polytetrafluoroethylene market.
On the downside, dwindling prices of raw materials may limit their scope for expansion to an extent. Be it as it may, the prevalence of untapped opportunities, especially across developed nations will continue providing fodder for growth. Against this backdrop, the global polytetrafluoroethylene market is expected to rise at 4.6% CAGR between 2016 and 2024. At this pace, the market is forecast to reach US$5.18 bn by 2024, as against its valuation of US$3.48 bn in 2015.
PTFE is available commercially in fine powder, micro powder, granular, and other forms. Of these, the market was led by micro powder PTFE, which held a share of nearly 30.8% in 2015. While the segment will continue leading the market through the course of the forecast period, the demand for granular PTFE is expected to gradually rise. Regionally, Asia Pacific emerged dominant in the global PTFE market, with a share of 44.3% in 2015. The region’s dominance is expected to remain constant through the forecast period.
Rising Use in Non-stick Cookware Fuels Demand
The demand for PTFE is rising with the growing demand for non-stick coatings in cookware range. Various factors are fanning this trend. For instance, urbanization and the rising willingness of customers to spend on products propagating easier, cleaner, and healthier lifestyle will fuel the demand for non-stick coatings in cookware, subsequently enabling the global polytetrafluoroethylene market gain impetus. The cookware industry is poised to show exponential growth in the coming years, thus indicating towards increasing scope for PTFE applications.
PTFE is also considered as an ideal insulation material due to its excellent dielectric properties. Hence their use as a substitute polyethylene is rising. In addition to this, the market is expected to gain from the increasing demand from the automotive industry. The rising demand for lightweight vehicles is expected to bolster PTFE applications in the industry. Spurred by this, the global PTFE market is forecast to exhibit a steady growth during the course of the forecast period.
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Stringent Regulations to Curb China’s Dominance Pose Threat
On the flip side, the fluctuating price of raw materials can render the global PTFE market unwieldy. A point to consider here is that PTFE is obtained from hydrogen fluoride, which is in turn derived from fluorspar. China has emerged as a major producer of fluorspar, however, in order to curb its dominance, several restrictions have been imposed on the country. This has in turn created a gap between demand and supply. As per TMR such laws can exacerbate the prevailing situation for companies operating in the global PTFE market.