Polyvinylidene Fluoride (PVDF) Market - Growth, Trends, COVID-19 Impact, and Forecasts (2023 - 2028)

Polyvinylidene Fluoride (PVDF) Market - Growth, Trends, COVID-19 Impact, and Forecasts (2023 - 2028)

The polyvinylidene fluoride (PVDF) market is expected to reach over 77,628 tons by the end of this year. It is expected to register a CAGR of less than 21% during the forecast period.

The COVID-19 pandemic in 2020 harmed the market for a short while. However, the industry also recovered from that time onward. Steady growth in the electronics, automotive, aerospace, oil and gas, and chemical processing industries positively impacted the market since then, thereby driving the market-studied growth.

• The factors driving the studied market growth are the desirable PVDF properties compared to other fluoropolymers, increasing demand for PVDF-based materials from the electrical and electronics sector, and increasing demand for PVDF resins as a binder in lithium-ion battery manufacturing.
• On the contrary, the presence of substitute products is hampering the market growth.
• Technological advancements in various applications of PVDF is expected to provide growth opportunity in the future.
• Asia-Pacific dominated the global market, with most of the consumption coming from China, ASEAN Countries, and Japan.

• One of the critical areas in which Polyvinylidene Fluoride (PVDF) is used in lithium-ion batteries is binders. In lithium-ion batteries, the binder can be considered a key component. The primary function of the binders in lithium-ion batteries is to act as an effective dispersion agent to connect the electrode species and then steadily adhere them to the current collectors.
• Lithium-ion batteries are used in various applications, such as power backup/UPS, mobiles, laptops, and other commonly used consumer electronic goods. They can last way longer between charges while maintaining a high current output. It makes it the perfect battery for most modern needs. As people spend more time on mobile phones and laptops, lithium-ion batteries can ensure they are on the go and spend minimal time attached to a charging cord.
• The value added by producing electrical equipment, appliances, and components in the United States in the third quarter of 2022 was roughly USD 73.8 billion, up almost 8% from the same period the year before, according to the Bureau of Economic Analysis. The country's total value added during the first three quarters was nearly USD 220 billion.
• It is projected that by 2030, the global demand for lithium-ion batteries will increase elevenfold, reaching over 2 TWh in 2030. Much of this growth can be attributed to the rising electric vehicles popularity, which predominantly rely on lithium-ion batteries for power.
• The global lithium-ion battery market is expected to grow significantly as well. The market should reach the size of around USD 91.9 billion in 2030. Lithium-ion battery production capacity worldwide is thus projected to increase significantly, reaching over 2 TWh in 2028. Thus, the PVDF demand from battery manufacturing is expected to grow simultaneously.
• Lithium-ion batteries can also be energy storage systems that rely on insertion reactions. Energy storage systems, usually batteries, are essential for all types of electric vehicles, including hybrid electric vehicles (HEVs), plug-in hybrid electric vehicles (PHEVs), and all-electric vehicles (EVs). These batteries also include a high power-to-weight ratio, high energy efficiency, high-temperature performance, and low self-discharge, so their applications in electric vehicles rapidly increased.
• According to IEA, in 2030, global electric vehicle sales are expected to reach 23 million as per the New Policies Scenario (excluding two-/three-wheelers). In the EV30@30 Scenario, in 2030, around 70% of vehicle sales in China are likely to be EVs. Also, it is estimated that the global market share of EVs will reach 30% (245 million vehicles) by 2030.
• Such developments are expected to drive the market through the forecast period.

• China primarily dominated the Asia-Pacific region. The end-user industries involving polyvinylidene fluoride (PVDF) usage in China include oil and gas, electrical and electronics, chemical processing, automotive, aerospace and defense, and building and construction industries.
• The automobile industry in the country is witnessing switching trends as consumer inclination toward battery-operated vehicles is on the rise. China is the highest producer as well as consumer of electric vehicles, covering approximately half the market all around the globe. According to the China Association of Automobile Manufacturers, the total production of new energy vehicles in China in 2022 was estimated to be about 7 million units. It saw a whooping increase of close to 97% compared to the production of vehicles in 2021 (3.54 million units).
• This rise in the electric vehicles segment causes an exponential increase in demand for lithium-ion batteries. The PVDF use is higher in lithium-ion batteries. China's lithium-ion battery shipments exceeded 600 GWh in 2022, representing a 97.7% year-on-year rise and accounting for 1.5% of worldwide lithium-ion battery shipments.
• Additionally, China controls 80% of the world's lithium refining and 77% of the world's cell capacity, dominating lithium-ion battery production in the global market.
• China is the most extensive base for electronics production in the world. Electronic products, such as smartphones, TVs, and other personal devices, recorded the highest growth in the electronic sector. The country serves the domestic demand for electronics and exports electronic output to other countries.
• Semiconductors form a significant part of the electronics segment involving PVDF usage. The semiconductor sales value in China stood at USD 15.66 billion in June 2021, while in May 2021, it stood at USD 15.51 billion.
• China is one of the largest aircraft manufacturers and one of the largest markets for domestic air passengers. Moreover, the country's aircraft parts and assembly manufacturing sector is multiplying rapidly, with over 200 small aircraft parts manufacturers. Chinese airline companies are planning to purchase about 7,690 new aircraft in the next 20 years, valued at approximately USD 1.2 trillion. It is further expected to raise the market demand for PVDF in the country.
• Thus, the factors above are expected to augment the PVDF industry growth in the country during the forecast period.

The polyvinylidene fluoride (PVDF) market is highly consolidated, and the top four players account for a significant share. The top players include (not in any particular order) Arkema, Solvay, Kureha Corporation, 3M, and Dongyue Group.

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