BLOWING AGENTS MARKET ANALYSIS

Stringent regulations promoting the use of eco-friendly blowing agents

The market is segmented on the basis of product type into hydrochlorofluorocarbons (HCFC), hydrofluorocarbons (HFC), and hydrocarbons. Hydrofluorocarbons accounted for the largest share in the market, owing to its low ozone depletion potential. Furthermore, stringent regulations barring the use of HCFC, in 2003 EPA issued baseline for production and import of HCFC-22 and HCFC-142b. Moreover, the UK government made it mandatory to recover and recycle the HCFC used in the refrigeration unit. Owing to its contribution towards ozone depletion coupled with a potential phase out in the near future, HCFC is expected to have a positive impact on eco-friendly blowing agents over the forecast period. However, phasing out of HCFC results in high technology shifting costs, which is expected to restrain market growth to a certain extent.

Due to low operating cost and global warming potential, the hydrocarbons segment is expected to witness substantial growth over the forecast period. Thus increasing its use in various end-use industries. However, abrupt changes in climate, global warming, and ozone depletion are the primary environmental issue, so the global agreement such as Montreal and Kyoto protocol which limits severely in the use of blowing agents.

The blowing agents market is expected to exhibit below average growth in North America and Europe, owing to mature end-use industries in these regions. Furthermore, stringent regulations by EPA in 2003, and by UK to limit the use, recovery, and reuse of HCFC. Governing the use of blowing agents is expected further expected to hamper growth over the following few years. However, gradual recovery of the construction industry—one of the key end-use industries for blowing agents—in both the regions, is expected to have a positive impact on market growth.

However, increasing CFC emissions is expected to hinder the market growth. For instance, a study published in the journal Nature in May 2019, ‘Increase in CFC-11 Emissions from Eastern China Based on Atmospheric Observations,’ found that the provinces of Shandong and Hebei on the northeastern coast of China are a source to 7,000 metric tons per year of CFC-11 (trichlorofluoromethane) emissions.