Global Fluorobenzene Market - 2024-2031

Overview

Global Fluorobenzene Market reached US$ 657.0 million in 2023 and is expected to reach US$ 1,402.6 million by 2031, growing with a CAGR of 10.2% during the forecast period 2024-2031.

The market for fluorobenzene is mostly driven by the expansion of the semiconductor and electronics industries. A necessary ingredient in the creation of specialty chemicals and solvents used in the semiconductor manufacturing process is fluorobenzene. The semiconductor industry depends on fluorobenzene-based goods due to the growing need for more sophisticated and compact electronic devices, as well as the quick development of new technologies like 5G technology.

Additionally, the market for fluorobenzene is mostly driven by the growing need for specialty polymers, which include fluoropolymers like polyvinylidene fluoride (PVDF) and polytetrafluoroethylene. The high-performance polymers, renowned for their remarkable chemical resistance and thermal stability, are produced using fluorobenzene as a basic building block. Several industries, including the automotive, aerospace and construction sectors, use these specialized polymers.

Asia-Pacific is among the growing regions in the global fluorobenzene market covering more than 1/3rd of the market. The Asia-Pacific is growing increasingly developed and urbanized, which is driving the expansion of the chemical industry and the fluorobenzene market in especially. Investments in industry, infrastructure and R&D are increasing in the region's growing economies, which is increasing demand for chemicals and specialized materials.

Dynamics

Growing Demand for Pharmaceuticals

The rising demand in the pharmaceutical industry is one of the main factors driving the global fluorobenzene market. Derivatives of fluorobenzene are essential steps in the production of multiple medicinal substances. Because of its special chemical properties, fluorobenzene has applications in the pharmaceutical industry because it may be used to create molecular structures that improve the efficiency of medications.

The pharmaceutical industry is experiencing fast expansion and innovation, which means there will be a steady need for fluorobenzene. The persistent need for this chemical is fueled in part by the continuous creation of innovative medication formulations and the investigation of fresh treatment approaches. Overall, one of the main factors driving the expansion of the globally fluorobenzene market is the growing demand in the pharmaceutical industry.

Growing Semiconductor and Electronics Industries

The growing electronics and semiconductor industries have a big impact on the globally fluorobenzene industry. Fluorobenzene is used to make specialty chemicals and solvents that are needed for the procedures involved in making semiconductors. Fluorobenzene-based products are in high demand in the semiconductor sector due to emerging technologies like 5G and a growing demand for smaller, more efficient electronic devices.

According to reports, Gujarat Fluorochemicals, a significant player in the Indian chemicals industry, would spend between ₹ 4500 and 5000 crores over the next three years on the supply chain for electrolyzers, solar panels, hydrogen fuel cells and EV batteries. The integrated battery chemistry complex will be in addition to the ₹ 2,500 crore we have spent in GFL over the previous two to three years to upgrade different capacities and establish new facilities. By 2031, it is predicted that the global opportunity for EV battery chains will reach US$300 billion. We can compete with any global player because we have a first-mover advantage from India.

Compliance with Safety Standards and Environmental Regulations

The growing focus on environmental effects and regulatory limitations is a major impediment to the global fluorobenzene industry. Included in the larger class of fluorinated chemicals, which are well-known for their environmental persistence and possible role in global warming, are fluorobenzene and its derivatives.

Fluorobenzene production and application may be impacted by strict environmental restrictions, such as those of the usage of fluorinated gases. Environmental sustainability is becoming a top priority for governments throughout the world. As a result, manufacturers may find it difficult to comply with regulations, which might result in extra expenses and stop them from expanding their markets.

Safety and Health Issues

The market for fluorobenzene is further restricted by worries about the health and safety of people exposed to specific fluorinated substances. Although the chemical fluorobenzene itself may not be very harmful, several of its byproducts and derivatives produced during production may harm human health. The covers possible risks including breathing problems and skin and eye discomfort.

Restrictive laws of occupational health and safety may call for extra precautions in handling and disposal, which might have an effect on business operations and increase production costs. The market for fluorobenzene may expand more slowly as a result of intensified regulatory oversight brought on by worries about worker safety and possible environmental damage.

Segment Analysis

The global fluorobenzene market is segmented based on product, purity, application, end-user and region.

Rising Demand for Flurobenzene-based Products in the Electronics Industry

The electronics segment is among the growing regions in the global fluorobenzene market covering more than 1/3rd of the market. The production of specialty chemicals and solvents used in the semiconductor manufacturing process requires fluorobenzene as a crucial ingredient. The semiconductor industry is facing a surge in demand for fluorobenzene-based goods due to the growing need for smaller and more efficient electronic devices. The products are crucial throughout different phases of semiconductor manufacture.

Additionally, Fluorobenzene is utilized in the synthesis of electronic materials, such as liquid crystals and polymers, which are crucial in the manufacturing of electronic components like displays, LEDs and photovoltaic cells. The expanding market for consumer electronics, as well as advancements in display technologies and renewable energy applications, further drives the demand for fluorobenzene.

Geographical Penetration

Growing Demand for Fluorobenzene in Electronics and Pharmaceutical Sectors in Asia-Pacific

Asia-Pacific has been a dominant force in the global fluorobenzene market. Due to rising production and demand, the Asia-Pacific is a major factor in the growth of the global fluorobenzene market. The end-user industries' strong expansion, especially in the electronics and pharmaceutical sectors, is one important cause.

The growing healthcare and agricultural industries in Asia-Pacific have resulted in a spike in demand for items like agrochemicals and medicines, which require fluorobenzene as a critical component. Furthermore, the demand for fluorobenzene is driven by the region's significance in the electronics sector, which is fueled by nations like China, Japan and South Korea. The nations produce specialized chemicals and polymers that are utilized in electronic components.

For Instance, in 2023, AGC Inc. invested 35 billion yen to expand its Chiba Plant in Japan to fulfill the growing demand for fluorochemical products, especially in the semiconductor sector. The expansion is part of AGC's aggressive plan to boost production capacity and reach sales in the Performance Chemicals sector of more than 200 billion yen by 2024. It is slated to start in Q2 2025. AGC's determination to remain at the forefront of the industry and meet the changing demands of sectors that depend on fluorochemical applications is reflected in this action.

In another instance, in 2024, A wholly-owned subsidiary of Gujarat Fluorochemicals Ltd., GFCL EV Products Ltd. plans to invest INR 6000 Crores over the next four to five years, with about INR 650 Crores. The significant investment demonstrates GFCL EV's dedication to the growing industry for energy storage and electric cars by supporting the manufacture of about 200 GWh annually in energy storage system (ESS) and electric vehicle (EV) battery solutions.

COVID-19 Impact Analysis

The global market for fluorobenzene has been significantly impacted by the COVID-19 pandemic, which has resulted in supply chain interruptions, demand variations and difficulties with manufacturing and transportation. Lockdowns, travel restrictions and a lack of workers were brought on by the pandemic, which also made it more difficult to transfer raw materials and completed goods and disrupted production processes.

The extent of uncertainty around the pandemic's length and intensity has also had an impact on investment choices and general market confidence. The global industry's demand for fluorobenzene and associated chemicals changed as a result of closures or scaled-back operations to adhere to safety regulations.

Additionally, different industries that utilize a lot of fluorobenzene, such as polymers, electronics and medicines, were affected to varied degrees. Some products in the pharmaceutical business witnessed more demand, whereas other industries suffered lower production and slower economic growth. Fluorobenzene and its derivatives saw price and market circumstances fluctuate due in part to these variables.

Russia-Ukraine War Impact Analysis

The dispute between Russia and Ukraine may have effects on the globally fluorobenzene business, including supply chain interruptions, heightened geopolitical uncertainty and possible economic penalties. Russia and Ukraine are both significant players in the global chemical industry; Russia is a major supplier of raw materials, while Ukraine is a major manufacturer of chemical products.

The difficulties in the manufacture or shipping of products linked to fluorobenzene from these countries may result in shortages and higher costs on the international market. In addition to impacting investor confidence and causing swings in commodity prices, geopolitical tensions and unpredictability surrounding the war may further exacerbate market volatility.

Restrictions and impediments to trade that are applied to one or both of these nations may make these problems worse. Furthermore, the cost and availability of essential resources required in the manufacture of fluorobenzene may be impacted by the conflict's increasing focus on energy security.

By Product

• Monofluorobenzene
• Difluorobenzene
• Trifluorobenzene
• Tetrafluorobenzene

By Purity

• 99% to 99.9%
• Greater than 99.9%

By Application

• Pharmaceutical Intermediates
• Agrochemicals
• Solvents
• Polymer Production
• Industrial Chemicals
• Reagents
• Dyes
• Others

By End-User

• Pharmaceuticals
• Agriculture
• Chemicals
• Plastics and Polymers
• Electronics
• Others

By Region

• North America
  • U.S.
  • Canada
  • Mexico
• Europe
  • Germany
  • UK
  • France
  • Italy
  • Russia
  • Rest of Europe
• South America
  • Brazil
  • Argentina
  • Rest of South America
• Asia-Pacific
  • China
  • India
  • Japan
  • Australia
  • Rest of Asia-Pacific
• Middle East and Africa

Key Developments

• On July 07, 2023, Oxford Science Enterprises (OSE) awarded £3 million in early investment to FluoRok, a deep-tech company creating innovative methods for efficiently, safely, cleanly and sustainably accessing fluorochemicals. A novel approach to the direct synthesis of high-value fluorochemicals from fluorspar (CaF2) is being developed by FluoRok. Using naturally occurring fluorite mineral or fluorinated waste material as a feedstock, its patented technique directly accesses high-value chemicals that are essential to the world's food supply, health and energy transition.

Competitive Landscape

The major global players in the market include Merck KGaA, Otto Chemie Pvt. Ltd., Matrix Fine Chemicals GmbH, Biosynth, Molekula Group, AccuStandard, CPAChem, CHANGZHOU HARVECHEM LTD, Shanghai Up-Fluorochem Co., Ltd. and Alpha Chemika.

Why Purchase the Report?

• To visualize the global fluorobenzene market segmentation based on product, purity, application, end-user and region, as well as understand key commercial assets and players.
• Identify commercial opportunities by analyzing trends and co-development.
• Excel data sheet with numerous data points of fluorobenzene market-level with all segments.
• PDF report consists of a comprehensive analysis after exhaustive qualitative interviews and an in-depth study.
• Product mapping available as Excel consisting of key products of all the major players.

The global fluorobenzene market report would provide approximately 70 tables, 70 figures and 216 Pages.

Target Audience 2024

• Manufacturers/ Buyers
• Industry Investors/Investment Bankers
• Research Professionals
• Emerging Companies