Nafion Market

Fuel Cell Demand to Bolster Nafion Sales Globally Over 2022-2032

The global nafion market is set to reach a market value of US$ 776.9 million in 2022, and is projected to grow at a CAGR of 5.0% to reach US$ 1,265.5 million by the end of 2032.

Nafion currently accounts for less than one percent of total polymer market, but has potential to increase its application area beyond conventional use cases. Resultantly, over the span of next ten years, nafion is slated to increase its contribution in global advanced polymer business.

Report Attributes	Details
Nafion Market Size (2021A)	US$ 747.5 Million
Estimated Market Value (2022E)	US$ 776.9 Million
Forecasted Market Value (2032F)	US$ 1,265.5 Million
Global Market Growth Rate (2022-2032)	5.0% CAGR
North America Market Share (2022)	~20.3%
Europe Market Share (2022)	~18.6%
China Market Share (2022)	~31.7%
Market Share of Top 3 Countries	~42.6%
Key Companies Profiled	The Chemours Company Solvay SA AGC Inc. Dongyue Group Ltd.

Nafion Market’s Historic and Future Performance Analysis

Nafion materials are manufactured from copolymers of tetrafluoroethylene and perfluorinated monomers containing sulfonic acid end groups available in three forms which are resin, dispersion, and membrane. Nafion is also known as perfluorosulfonic acid polymer or perfluorinated sulfonic acid (PFSA), specially designed to be used as a nafion membrane in fuel cell applications.

Attributed to its universal chemical resistivity and high thermal stability nafion is used in a range of chemical applications, including Chlor alkali, as a super acid resin, as a catalyst, and also in surface treatment of PTFE membranes to mention a few.

Nafion is used in a variety of electrochemical cells and electrolytic devices under a variety of operating conditions due to its exceptional resistance to impurities and efficient power consumption. Because of its ability to boost production efficiency in a more environment friendly manner, it has become the membrane of choice for Chlor alkali manufacturers, which will significantly increase demand for nafion in the years to come.

• Short Term (2022 Q2 to 2025): To reduce greenhouse gas emission levels and to meet stringent government norms, automotive manufacturers have shifted their focus towards fuel cells which seem to be a promising solution in heavy-duty vehicles. Nafion is a key material used in fuel cells, and surging demand for fuel cell is poised to drive the market growth.
• Medium Term (2025-2028): Proliferating the semiconductor industry to penetrate the global demand for the market. Further, the demand from emerging economies will bolster the market’s growth.
• Long Term (2028-2032): New entrants coupled with key strategies adopted by market players to enhance their sales and customer portfolio, offer immense growth opportunities to the market.

According to the Fact.MR, a market research and competitive intelligence provider, the market is projected to exhibit growth at 5.0% CAGR between 2022 and 2032.

Market share analysis of nafion based on form and region is provided in a nutshell in the above image. Under the form segment, the membrane sub-segment dominates with a 68.8% market share in 2022.

“Increasing Usage of Fluoropolymers Across Industries to Create Progressive Environment for Market”

Global consumption of fluoropolymers has continuously increased in a range of industries, including chemical, automotive, electrical/electronics, and semiconductor industries.

• The scenario is projected to continue as fluoropolymers are becoming the center of attraction in emerging markets such as e-Mobility, renewable energies, 5G, and others.

One of the primary reasons for increased consumption is their universal chemical resistivity and weather resistance coupled with dielectric properties.

This in turn is leading to increased consumption of fluoropolymers in a range of applications such as seals, sensors in machines, aircraft & vehicle construction, linings, universal hoses, and coatings in the chemical and pharmaceutical industries.

• The global fluoropolymers market is mainly driven by polytetrafluoroethylene (PTFE), which accounted for over half of the global demand. Perfluorinated sulfonic acid (PFSA) has emerged as an ideal ingredient in energy applications such as fuel cells, hydrogen production, and energy storage.

It is also used as an ion exchange membrane in the Chlor alkali industry, as a supercatalyst, as a coating material, and also in the semiconductor industry.

The aforementioned facts about fluoropolymers and the increasing consumption of PFSA for a range of applications are set to drive the global nafion market during the forecast period.

“Growing Preference for Clean Hydrogen Production to Fuel Market Growth”

Hydrogen is the most abundant and lightest element. Hydrogen has the highest energy content among common fuels and nearly three times more than gasoline.

Traditionally, hydrogen is produced from fossil fuels which have also increased carbon dioxide emissions in the last decade. Momentum towards clean hydrogen production and investments in new technological advancements by countries across the globe are set to fuel the hydrogen market in the coming years.

For instance, in June 2020, the German government planned to increase hydrogen production to control the country’s greenhouse gas emissions. As currently three fourth of the global hydrogen is produced from fossil fuels, the German government has plans to encourage its production generated by renewable energy sources.

Other countries such as Japan, China, and South Korea invested heavily in hydrogen technology. Hydrogen produced from water electrolysis is poised to emerge as a sustainable alternative to the conventional method.

Nafion ion exchange membranes used in electrochemical cells offer an environment-friendly and sustainable solution to produce large amounts of hydrogen without carbon dioxide emission.

Momentum towards clean hydrogen production and increased adoption of nafion ion exchange membrane in an electrochemical cell is projected to amplify the market growth during the foreseen period.

“Sustainable Alternative Product Offerings by Competitors to Squeeze Demand”

Nafion material is largely used as ion exchange membranes in fuel cells and it is poised to remain an ideal ion exchange membrane in fuel cell applications during the forecast period.

However, sustainable alternative offerings by other membrane manufacturers such as 3M, Gore Fuel Cell Technologies, etc. may squeeze the demand for nafion materials.

These companies offer membranes for the photon exchange membrane fuel cell industry laced with high durability and power density, which are designed for the most demanding fuel cell applications across the globe.

GORE-SELECT membrane offered by Gore and ion exchange membranes offered by FUMATECH BWT is capable to align with the fuel cell market standards. Other key manufacturers such as 3M, Advance Systems Inc., Alfa Laval, and American Fuel Cell offer highly efficient ion exchange membranes used in the fuel cell industry.

There are limited players in the nafion market, whereas the global membrane market is filled with numerous market players. Attributed to this fact and other aforementioned attributes, the demand for nafion is expected to hamper during the forecast period.

“High-Cost Production and Low Demand to Limit Market Growth”

For over 35 years, nafion material has been on market and is highly used in fuel cells for space travel applications. Owing to its numerous advantages, it is becoming the choice of material in the range of applications.

A large number of production steps and hazardous monomer involvement in the production of nafion, have limited its scope till now. Along with production, its precautions for safe handling are costly.

The primary reason for high-cost production is its low-scale production, which is ultimately due to its low demand. As nafion is primarily used in the fuel cell, which is in its initial phase of the product life cycle has resulted in its low demand.

Owing to high cost and low-scale production recent studies are focused on other non-fluorinated polymers such as polyethersulfone (PES), polybenzimidazole (PBI), polyaryleneethers, sulfonated polyetheretherketone (SPEEK), sulfonated polysulfone (SPSF), polyphosphazene, and polyimides, among others.

These materials offer good thermal, mechanical, and chemical properties and a cost-effective solution over nafion. The aforementioned facts may hinder the market growth during the forecast period.

Country-wise Insights

Will the Huge Semi-Conductor Industry in the China Drive High Demand for Nafion?

The proliferating semiconductor industry in China paves the way for market's growth across the country in recent years and it is estimated that the semiconductor industry will witness booming growth opportunities in China over the projection period.

• About 3.8% of the world's semiconductor sales, or US$ 13.0 million, were made in China only. Further, according to the Semiconductor Industry Association (SIA) analysis, the Chinese semiconductor industry encountered an outstanding annual growth rate of 30.6% in 2020, growing to US$ 39.8 million in absolute yearly sales.
• By 2020, China had overtaken Taiwan for two years in a row and IS closely following Japan and the EU, which each had 10% of the total market share. China projects a jump of 9.0% in the global semiconductor market in 2020.
• The supply chain for semiconductor manufacturing in China continues to expand rapidly, with 28 new fab construction projects totaling US$ 26 million in new planned funding announced in 2021.

The semiconductor industry has a high demand for the nafion due to its properties and uses in chip manufacturing. Thus, surpassing semi-conductors demand augments the market's growth across the country.

Why is the India Nafion Market Expected to Be Highly Lucrative?

The emerging and evolving electric-vehicle industry in India sets a lucrative market for the Nafion industry, as nafion has high adoption across the fuel cell used in electric vehicles for power. Thus, proliferating the electric vehicles industry to supplement the market's growth across the country.

• For instance, by 2025, it is estimated that India's market of electric vehicle (EV) is estimated to be worth US$ 7.09 million. As per the data from CEEW Centre for Energy Finance study, India could see a US$ 206.0 million market for electric vehicles by 2030.

Category-wise Insights

How does PEM Growth Bolster Membrane by Form Growth?

Polymer electrolyte membranes (PEM) also known as proton-exchange membranes are used in proton-exchange membrane fuel cells to convert stored chemical energy in hydrogen fuel to produce electrical energy with water as a byproduct.

The efficacy to offer pollutant-free alternate solution polymer electrolyte membrane has emerged as a choice of the membrane in fuel cells. To compete with conventional combustion engines, fuel cells offer clean energy solutions but at a high cost.

This has restrained its consumption. However, owing to initiatives and a global mission to reduce greenhouse gas emissions, much research has been done to reduce its production cost and make it scalable.

Increasing demand for proton exchange membrane fuel cells from the automotive sector is set to augment the market growth during the forecast period.

Currently, nafion and sulfonated aromatic polymer are the mostly used electrolytes for the production of proton exchange membrane fuel cells, in which nafion accounts for a major share. However, owing to their low mechanical strength at high temperatures, the application of these two electrolytes is limited to below 100°C.

Despite the development of alternate membranes, nafion remained an ideal choice among fuel cell manufacturers owing to its exceptional chemical stability, thermostability, durability, and mechanical strength. The aforementioned facts and scenarios are poised to boost the global proton exchange membrane market and so the nafion market.

Why Chlor Alkali has High Demand in the Market?

Increasing demand for Chlor alkali as a feedstock in the vinyl chain such as ethylene dichloride, vinyl chloride monomer, and polyvinyl chloride has surged the global market. The scenario is projected to continue as it accounts for over one-third of global chlorine consumption.

As chlorine is largely used in the construction industry, its demand is concurrently driven by the construction industry and GDP. Another key chlorine consumer is organic chemical industries such as propylene oxide, epichlorohydrin, TDI, MDI, polycarbonate, and chlorinated intermediates.

Caustic soda serves more widespread applications than chlorine due to its exceptional neutralizing power as a strong base and as an absorbent. Alumina production has driven the consumption of caustic soda in other manufacturing sectors such as paper and pulp, detergents & soap, chemical production, and petroleum products, among others.

Over three fourth of the chlor-alkali is produced by membrane technology and is poised to gain more attention in forthcoming years. Nafion membranes offer excellent power consumption and resistance to impurities, owing to which it is set to become the choice of the membrane in chlor alkali industries.

Key Growth Stratagems Analysis

Prominent market players are the Chemours Company, Solvay SA, AGC Inc., and Dongyue Group Ltd., among others.

Industrial giants have increased their focus on strategic partnerships with end users and with distributors to allow them to expand their market presence across the globe. Investment in product launches has remained a key strategy by market players to leverage versatile product portfolios in a range of end-use industries.

Players operating in global Nafion need to anchor presence across conventional application areas due to surging demand for PEM membrane fuel cells and nafion chlor alkali membrane. Investment towards vertical integration would increase the profit margins for market players and players can invest in new emerging sectors like semiconductor, drying, and humidification applications.

Fact.MR has provided detailed information about the price points of key manufacturers of nafion positioned across regions, sales growth, production capacity, and speculative technological expansion, in the recently published report.

Segmentation of Nafion Industry Research

• By Form:

  • Dispersion
  • Resin
  • Membrane  

• By Application:

  • Energy
    • Fuel Cells
    • Hydrogen Production
    • Energy Storage
  • Chemical Processing
    • Chlor Alkali
    • Catalysts
    • Ion Exchange
    • Semiconductors
    • Waste Recovery
    • Others
  • Drying & Humidification
    • Single Tubing Systems
    • Multi Tubing Systems
  • Others

• By Region:

  • North America
  • Latin America
  • Europe
  • East Asia
  • South Asia & Oceania
  • MEA