Polytetrafluoroethylene (PTFE) Films Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

Polytetrafluoroethylene (PTFE) Films Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The Global Polytetrafluoroethylene (PTFE) Films Market was estimated to be USD 343.82 million in 2020 and the market is expected to register a CAGR of 4.82% during the forecast period (2021-2026).

The market was negatively impacted by COVID-19 in 2020. The declining automotive industry, along with the temporary shutdown of automotive manufacturing units and various industrial activities due to the ongoing pandemic scenario, declined the consumption of PTFE films, thus creating a negative impact on the market studied. According to the International Organization of Motor Vehicle Manufacturers (OICA), automotive production witnessed a 16% decline from 92,175,805 units in 2019 to reach 77,621,582 units in 2020.

Key Highlights

• Over the medium term, the growing demand from the electrical and electronics industry and rising demand for pharmaceutical packaging are expected to drive the market growth of polytetrafluoroethylene (PTFE) films through the years to come.
• On the flip side, decreasing automotive production across most nations in the world, along with the unfavorable conditions arising due to the COVID-19 outbreak are expected to hinder the market growth to some extent in the short to medium term.
• Asia-Pacific dominated the global market, with the largest consumption from countries, such as China, Japan, India, and ASEAN countries.

Key Market TrendsIncreasing Demand from the Electrical and Electronics Industry

• PTFE films exhibit excellent dielectric properties with outstanding thermal and chemical resistance. Moreover, these films offer high tensile strength, weatherability, and anti-static properties, along with load-bearing ability in heavy structures.
• Such properties of PTFE films make it an extensively preferred material for application in the electrical and electronics industry. High-performance PTFE films are used in the production of integrated circuits, and as dielectric components in energy storage devices like capacitors and batteries.
• PTFE films are extensively used in semiconductor processing, where PTFE thin films are used on silicon wafers. Besides, it also finds application in cables and wires used in the telecommunication industry.
• Such applications of PTFE films in the electronics and semiconductor industry, along with advancements in technologies, have been contributing to the demand for PTFE films in the global market.
• According to Zentralverband Elektrotechnik- und Elektronikindustrie e.V. (ZVEI), the German Electrical And Electronic Manufacturers' Association, the global electronics production was at EUR 4.2 trillion in 2017, which increased to EUR 4.4 trillion in 2018 and further reached EUR 4.5 trillion in 2019. However, the industry declined to EUR 4.4 trillion by the end of 2020, due to severely affected demand by the COVID-19 pandemic.
• While in 2020, the electronics industry recorded a dip of 3% in terms of revenue, 2021 is expected to be the year of recovery. The growth during 2021 is likely to be about 6%, fueled by an increase in global production which was severely affected by the social restriction imposed to curb the spread of the virus.
• In Europe, Germany dominated electronics production, which was valued at EUR 147.3 billion in 2019. The industry which is currently suffering is expected to recover in 2021 with a growth rate of around 5%.
• The United Kingdom is the largest European market for high-end consumer electronics products, with about 18,000 UK-based electronics companies in the market. According to the Department for International Trade, the electronics sector in the United Kingdom is worth GBP 16 billion, each year, to the local economy. The industry which is currently suffering is expected to recover in 2021 with a growth rate of around 4%.
• The French electronics industry benefited from an improving economic environment, which resulted in an increase in production by 5.4% in 2017 and 3.3% in 2018, and around 4% in 2019. The growth, which declined to -13% in 2020, is expected to recover at a huge pace through 2021 (around 11%).
• The American electronics industry is also expected to register a growth of around 7% in 2021. Hence, all such factors are expected to offer recovery in demand for PTFE films in the global market.

Asia-Pacific Region Dominated the Market

• The Asia-Pacific region dominated the global market. Owing to the increasing demand from pharmaceutical packaging and the electrical and electronics industry, PTFE films are expected to witness a healthy growth rate in the region.
• According to the Government of India, large projects for manufacturing PTFE film-coated electronic chips, with a view to creating an ecosystem that lays the focus on high-end innovation, are likely to boost the demand for the market studied.
• The Indian electronics market is expected to reach USD 400 billion by 2025. Additionally, India is expected to become the fifth-largest consumer electronics and appliances industry in the world by 2025 which is expected to increase the market demand for PTFE films.
• Additionally, the healthcare segment in India is also growing and will boost the demand for the market studied in the country. The healthcare sector in the country is expected to reach USD 372 billion by 2022, mainly driven by increasing health awareness, access to insurance, rising income, and diseases. The world’s largest government-funded healthcare scheme, Ayushman Bharat, was launched in September 2018, augmenting the market demand for different applications during the forecast period.
• Other prominent end-user industries, such as Industrial and Aerospace & Defense, are likely to boost the consumption of polytetrafluoroethylene (PTFE) films with upcoming projects in countries, such as China, India, and Japan.
• The Chinese aerospace policy represents one of the most comprehensive attempts to enter the top levels of aerospace development and production. China is expected to be the world’s largest single‐country market for civil aircraft sales, over the next 20 years.
• Under the plan ‘Made in China 2025’, it is expected that China is likely to supply over 10% of home-made commercial aircraft to the domestic market by 2025. This is expected to propel the demand for PTFE Films in the aerospace sector during the forecast period.
• Moreover, Japan plans to increase its defense strength to keep China’s increasing air force capability at bay. In March 2020, the country was observed taking the initiative toward military modernization, for which the country has authorized USD 102 million. This budget is planned to be dedicated towards “Japan-led development of a new aircraft with international collaborations”.
• In 2020, the electronics and IT industry exports in South Korea were valued at USD 183.58 billion, which registered a growth rate of 3.8% compared to 2019. The export of displays decreased by 5.1% to USD 20.72 billion in 2020. The decreasing exports of displays and the outbreak of the coronavirus pandemic have had a huge impact on the electronics industry. The electronics industry is estimated to recover by mid-2021, which is likely to drive the market during the forecast period.
• All the aforementioned factors are expected to drive the demand for polytetrafluoroethylene (PTFE) films, during the forecast period.

Competitive Landscape

The polytetrafluoroethylene (PTFE) films market is partially fragmented, with the top five players accounting for a 45-50% share of the market. Key players in the market include Nitto Denko Corporation, Rogers Corporation, Lenzing Plastics GmbH & Co. KG, 3M, and Saint-Gobain Performance Plastics.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support

Companies Mentioned

3M
CHUKOH CHEMICAL INDUSTRIES, LTD.
DUNMORE Corporation
Guarniflon SpA
Jiangsu Taifulong Technology Co. Ltd
Jiangxi Aidmer Seal and Packing Co. Ltd
Lenzing Plastics GmbH & Co. KG
Ningbo Taifno PTFE Plastic Products Corporation
Nitto Denko Corporation
Polyflon Technology Ltd
Rogers Corporation
Saint
Gobain Performance Plastics
Technetics Group

Please note: This publisher does offer titles that are created upon receipt of order. If you are purchasing a PDF Email Delivery option above, the report will take approximately 2 business days to prepare and deliver.