Hydrofluoroether Market

Hydrofluoroether Market Outlook (2023 to 2033)

The global hydrofluoroether market, as detailed in the study by Fact.MR, is valued at US$ 543 million in 2023. From 2023 to 2033, the market is projected to expand at 13.1% CAGR and reach a size of US$ 1.86 billion by 2033-end.

Important Market Growth Drivers

• Many global agreements and government regulations, including the Kigali Amendment to the Montreal Protocol, are predicted to push for the phase-out of high-GMP refrigerants that include HFCs (hydrofluorocarbons). Certain alternatives, such as hydrofluoroether (HFE), align with environmental regulations.
• Hydrofluoroether is used extensively to cool electronic components in multiple applications, including telecommunication, aerospace, and data centers. This growing demand for different high-performance cooling solutions is leading to increased adoption of HFE.

Hydrofluoroether is used as a cleaning solvent in many industries where conventional solvents pose health risks and cause harm to the environment. Precision cleaning, optics, and electronics are some popular applications of hydrofluoroether. In addition, the increasing use of hydrofluoroether in the defense and aerospace sectors for different applications, including heat transfer fluids, cleaning agents, and hydraulic fluids is predicted to generate lucrative opportunities for players.

Several scientific R&D laboratories use hydrofluoroether as an electronic cooling agent and heat transfer fluid. Some unique properties of hydrofluoroether make it an ideal option for use in multiple applications in R&D activities. In chemical and material processing, HFE is utilized as a heat transfer medium where precise temperature is pivotal.

Significant growth in the automotive sector is predicted to lead to the growing need for effective heat transfer fluids. The excellent compatibility and thermal stability of hydrofluoroether with automotive materials make it a suitable solution for heating and cooling applications.

Hydrofluoroether finds application in the production of insulating concrete forms, which is further predicted to drive lucrative opportunities for market players over the coming years. In the renewable energy sector, HFEs are widely used in geothermal technologies and heat transfer systems.

Report Attributes	Details
Hydrofluoroether Market Size (2022A)	US$ 480 Million
Estimated Market Value (2023E)	US$ 543 Million
Forecasted Market Value (2033F)	US$ 1.86 Billion
Global Market Growth Rate (2023 to 2033)	13.1% CAGR
Cleaning Solvent Application Segment Share (2033)	35%
Pure HFE Segment Share (2033)	80%
North America Market Share (2023)	30%
Revenue Share of Top Four Manufacturers (2023)	80%
Key Companies Profiled	Tianhe Chemicals Group Limited; Juhua Group Corporation; SICONG Chemical; China Fluro Ltd.; Shandong Huaxia Shenzhou New Material Co., Ltd.; AGC Inc.; 3M; The Chemours Company, Solvay SA; Honeywell International Inc.; Halocarbon Products Corporation; Daikin Industries Ltd.; AGC Inc.; Shanghai 3F New Materials Company Limited

What’s Bolstering Worldwide Sales of Hydrofluoroether?

“Extensive Use of Hydrofluoroether in Immersion Cooling Due to its Non-flammability Property”

In recent years, there has been a significant increase in the number of data centers across the globe. These data centers bear tremendous costs, including the prices of energy consumption, water use, and footprint.

• According to data provided by the United States Environmental Protection Agency (EPA), data centers in the United States account for a substantial amount of electricity consumption, approximately 2% of the total energy consumption.

Most of this energy is consumed to run chiller units and fans to cool computer hardware. Therefore, data centers are using immersion-cooling techniques to maintain the cost and performance requirements. Hydrofluoroethers are used extensively in immersion cooling systems as a dielectric liquid due to their non-inflammability and thermal conduction properties.

“Reduced Harmful Emissions Compared to HFCs and CFCs”

The properties of hydrofluoroether closely resemble those of hydrochlorofluorocarbons (HCFCs) and chlorofluorocarbons (CFCs). HFEs are used prominently in industrial cleaning applications as a replacement for some solvents, including n-propyl bromide and CFC – 113. HFEs emit fewer harmful substances compared to their alternatives.

HFEs have a lower potential for global warming, which further contributes to their adoption. In addition, prohibition on the use of HCFCs and CFCs is forecasted to positively impact growth opportunities for players in the next ten years.

What Challenges Do Suppliers of Hydrofluoroether Need to Tackle?

“Absence of Regulations and Standards Governing Hydrofluoroether Emissions”

No standards or regulations are imposed to govern to emission of hydrofluoroether. The low atmospheric life of hydrofluoroether along with its few compounds has considerable potential for global warming compared to carbon dioxide. Therefore, rising use of hydrofluoroether can contribute to global warming in the coming decade, thus adversely impacting market growth opportunities.

Which Market Trends are New Companies Capitalizing On?

“Focus on Advancements in Purification and Synthesis Techniques”

Hydrofluoroethers find applications in various emerging industries, including pharmaceuticals and renewable energy. The renewable energy sector requires effective heat transfer fluids to ensure optimal performance. Hydrofluoroethers provide excellent thermal stability, which makes them suitable for application in wind and solar power generation. In the pharmaceutical sector, it is used in inhalation drug formulation where its good solvency power and low toxicity are advantageous.

Ongoing R&D activities are focusing on enhancing the performance and properties of hydrofluoroether. Advancements taking place in purification offerings, improved synthesis methods, and formulation technologies are projected to lead to improved product offerings.

Country-wise Insights

North America is predicted to account for 30% share of global market revenue in 2023. Rising adoption of hydrofluoroethers in many industries, including electronics, an increasing number of data centers, and the prohibition on HCFCs and CFCs are projected to support demand for hydrofluoroether.

What Makes the United States the Epicenter of Hydrofluoroether Demand in North America?

“Stringent Environmental Regulations Encouraging Use of Eco-friendly Chemicals”

The United States is predicted to hold a dominant position in the market for hydrofluoroether. The country has stringent environmental regulations to encourage the use of eco-friendly alternatives. In addition, the presence of the well-established automotive and electronics sectors is also projected to fuel demand for hydrofluoroethers. An increased focus on sustainable solutions in multiple sectors, including energy, is also forecasted to contribute to market expansion.

What’s Bolstering Demand for Hydrofluoroether in South Korea, Japan, and China?

“High Demand for Hydrofluoroether Due to Increased Lithium-ion Battery Production”

China, South Korea, and Japan are prominent countries in Asia Pacific that account for high demand for hydrofluoroether. This is owing to the increasing production of lithium-ion batteries in China, South Korea, and Japan.

For instance :

• According to an article published by Forbes, in August 2019, China held a significant share of the global production of lithium cells.

Category-wise Insights

Fact.MR, a market research and competitive intelligence provider, asserts in its recently published study that as a cleaning agent, hydrofluoroethers are utilized extensively in multiple industries, including aerospace and electronics, owing to their non-flammable and less toxic features.

Which Type of Hydrofluoroether is Forecasted to Account for Substantial Revenue Streams?

“Low Viscosity and High Density of Pure Hydrofluoroether Boosting Product Sales”

Pure HFEs are forecasted to account for an 80% share of the global market in 2033. These hydrofluoroethers are plastic-safe, non-flammable, and leave no residue. They are used widely as non-conductive cleaning degreasers applied on live circuits. Low viscosity, low surface tension, and high density of pure HFEs are anticipated to boost their application compared to other hydrofluoroether forms.

What is the Primary Application of Hydrofluoroether?

“Wide Use of Hydrofluoroether as Cleaning Solvent Due to its Safety and Cost-effectiveness”

Based on application, the cleaning solvents segment is predicted to account for 35% share of global market revenue in 2033. This is attributed to the rising use of hydrofluoroether as a cleaning solvent due to its safety profile. It is less toxic and non-flammable and helps address issues related to workers’ safety.

The supreme environmental profile of HFE is predicted to boost its demand as a solvent. The cost-effectiveness of hydrofluoroether is forecasted to further support market growth. The chemical inertness, high resistivity, corrosiveness, and good material compatibility of hydrofluoroethers are estimated to boost their use in cleaning ICs.

Market Competition

Suppliers of hydrofluoroether are adopting multiple strategies to gain a competitive edge, including ensuring quality control of products, new developments, and efficient management of supply chain systems. Collaborations, new product launches, partnerships, etc., are some prominent initiatives adopted by companies to increase their profit margins.

• The top four manufacturers of hydrofluoroether account for 80% share of the market in 2023.
• 3M is one of the prominent players operating in the market. The company offers a wide variety of products, including 72DE, 7100 Engineered Fluid, and 3M Novec 71 DE HFE fluid.

Tianhe Chemicals Group Limited, Juhua Group Corporation, SICONG Chemical, China Fluro Ltd., Shandong Huaxia Shenzhou New Material Co., Ltd., AGC Inc., 3M, The Chemours Company, Solvay SA, Honeywell International Inc., Halocarbon Products Corporation, Daikin Industries Ltd., AGC Inc., and Shanghai 3F New Materials Company Limited are key players in the hydrofluoroether market.

Segmentation of Hydrofluoroether Market Research

• By Product :

  • Pure HFEs
  • HFE Blends
  • Co-solvent Systems

• By Application :

  • Cleaning Solvents
  • Refrigerants
  • Blowing Agents
  • Dry Etching Agents
  • Heat Transfer
  • Coatings & Lubricants

• By Region :

  • North America
  • Europe
  • Asia Pacific
  • Latin America
  • Middle East & Africa
  • South Asia & Oceania