U.S. Anhydrous Hydrogen Fluoride Market (2023 - 2030)

Market Size & Trends

The U.S. anhydrous hydrogen fluoride market size was valued at USD 655.6 million in 2022 and is anticipated to grow at a compound annual growth rate (CAGR) of 4.9% from 2023 to 2030. This is attributable to the growing utilization of anhydrous hydrogen fluoride in fluorine chemistries such as fluorogases and fluoropolymers as they are used in consumer goods, semiconductors, and automobiles. Growing demand for consumer goods like air conditioners, refrigerator gases, electronics products, and automobiles are anticipated to trigger market growth during the forecast period. Furthermore, the demand for the product is anticipated to be driven by the growing chemical industry in the U.S. region and growing manufacturing units, subsidiaries, and several mergers and acquisitions in the region. For example, Arkema partnered with the giant fertilizer producer Nutrien Ltd. for the supply agreement of anhydrous hydrogen fluoride.

The U.S. has emerged as one of the fastest-growing markets for anhydrous hydrogen fluoride in the world. It has been dominating the anhydrous hydrogen fluoride market over the past few years owing to the rapid growth of the chemicals industry in the region. Moreover, the U.S. has been witnessing surged demand for chemicals that are used in metal extraction and metallurgical applications. This is anticipated to eventually contribute to the growth of the anhydrous hydrogen fluoride industry in the U.S. over the forecast period. The growth of the market in the U.S. is supported by a significant rise in fluorochemical production in the country owing to the easy and adequate availability of large volumes of raw materials such as fluorite. Thus, manufacturers of anhydrous hydrogen fluoride are shifting and expanding their production units to the U.S.

The surging demand for electronic goods such as refrigerators and air conditioners in the country is fueling the growth of the U.S. anhydrous hydrogen fluoride market. The key players operating in the market are involved in extensive research and development activities to offer highly efficient products to maintain their position in the market.

Anhydrous hydrogen fluoride is witnessing a surged demand from the chemicals industry in the U.S., as it is a primary building block in the production of several fluorine-containing chemicals. These chemicals produced are widely used in automobiles, household utensils, etc. For instance, Teflon, a fluoropolymer is used widely in several applications such as electrical appliances, household cookware, fabrics, semiconductors, and automobiles owing to its high thermal stability, good chemical resistance, and effective electrical properties.

Application Insights

The fluorogases segment accounted for the largest revenue share of 62.8% in 2022 and is expected to grow at the fastest CAGR of 5.0% over the forecast period. Its high share of the segment is attributable to its wide range of industrial applications including commercial refrigeration, air-conditioning systems, and industrial refrigeration.

The fluoropolymerse segment is expected to grow at a CAGR of 4.8% over the forecast period. Fluoropolymers are fluorocarbon-based polymers, which contain a group of plastics comprising carbon and fluorine. Fluoropolymers are widely used in the automotive, semiconductors, and electronics industries, as well as in common household appliances owing to their unique, non-adhesive, and low-friction properties. Moreover, fluoropolymers also offer superior heat, chemical, and weather resistance and better electrical properties than other polymers.

Fluorine-based polymers are grouped because they have several useful properties from an industrial and commercial perspective because of the addition of fluorine. Fluoropolymers offer high resistance to solvents, acids, and bases. The best-known fluoropolymer is polytetrafluoroethylene, also known as Teflon. It is synonymous with being non-stick and not reacting with other chemicals. It can withstand high temperatures.

Regional Insights

Southwest region dominated the market and accounted for the largest revenue share of 32.8% in 2022 and is expected to grow at the fastest CAGR of 5.3% during the forecast period. This is attributed to the presence of multiple chemical manufacturing companies in the region. Southwest, Texas accounts for the largest production of anhydrous hydrogen fluoride owing to the presence of a well-established chemicals industry and the enhanced production capacities of leading players such as Solvay S.A. in the region.

The growth of the anhydrous hydrogen fluoride market in Southwest of the U.S. can also be attributed to a high penetration rate of U.S. consumer goods brands and an increase in demand for electronics and automobiles in the region owing to technological awareness among the population in Southwest.

Southeast accounted for a revenue share of 23.7% in 2022. The chemicals industry in this region of the country is expected to grow at a rapid pace over the forecast period due to increasing demand for chemicals from North America and the APAC region. This is anticipated to lead to a surged demand in Southeast of the U.S. A number of manufacturers of anhydrous hydrogen fluoride, including Honeywell International, have their manufacturing plants in the Southeast U.S.

Louisiana, Florida, North Carolina, and South Carolina, are some of the key producers of chemicals in this region owing to increasing the presence of chemical manufacturers and subsidiaries in these states. The rising demand for air conditioners and other electronic appliances such as refrigerators in Southeast of the U.S. is also contributing to the consumption of anhydrous hydrogen fluoride in this region.

Key Companies & Market Share Insights

The manufacturers are more focused on increasing the production capacity of anhydrous hydrogen fluoride to meet the increasing demand from the end-use industries. These manufacturers are engaged in continuous R&D activities to develop various product ranges of high quality.

Multiple manufacturers are constantly aiming to increase their production capacities by merger and acquisition or partnering with local producers. For instance, In June 2020, Arkema announced its partnership with an agricultural company, Nutrien Ltd to supply anhydrous hydrogen fluoride to the former at Calvert City to meet the demand. As a part of this partnership, Arkema aims at investing USD 150 million in a 40 KT/year anhydrous hydrogen fluoride (AHF) production plant of Nutrien in Aurora, North California. In January 2022, Honeywell International Inc. and Navin Fluorine International Limited, a division of the Padmanabh Mafatlal Group, officially joined forces in a strategic partnership. This collaboration aimed to produce Honeywell's exclusive Solstice line of hydrofluoroolefins (HFO) within India.

U.S. Anhydrous Hydrogen Fluoride Market