Sulfur hexafluoride (SF6) Market Overview.
Sulfur hexafluoride (SF6) Market size was worth USD 259.9 Billion in 2021, accounting for a CAGR of 5.48% during the forecast period (2022-2030), and the market is expected to be worth USD 420.09 Billion by 2030.
Sulfur hexafluoride (SF6) is a fluorinated gas that is used in a variety of applications including electrical insulation, medical imaging, and as a tracer gas in various scientific and industrial processes. It is an extremely stable, non-toxic & non-flammable gas with excellent insulating properties, making it ideal for use in electrical equipment. Due to its suitable properties Sulfur hexafluoride is applied in high-voltage circuit breakers, gas-insulated substations, and other electrical equipment to prevent electrical arcs and to insulate high-voltage electrical cables additionally in the medical sector, SF6 is also used extensively in non-invasive surgeries and in Echocardiography in order to determine the exact cause and location of an ailment.
Governments all over the world are investing hefty amounts in Development of first-hand energy transmission infrastructure. Expansion of transmission infrastructure is crucial for the transformation from traditional energy to clean energy. For instance, according to Yale University it was stated that transmission infrastructure must be increased 5 folds from its current levels. Then only complete transformation into green energy could became reality. This push for infrastructure development is estimated to be one of the most potent driver for the demand for Sulfur hexafluoride (SF6) Market. SF6 has dielectric properties which are very crucial to function as the prime insulator in circuit breakers and switch gears. High voltage of transmission power lines prerequisite High voltage circuit breakers. Thus the demand for SF6 is correlated to the adoption of green energy. Making it one of the main driver.
Market Dynamics:
Driver:
- Demand from semiconductor industry :-
Sulfur hexafluoride (SF6) is used in the semiconductor industry as a plasma etching gas in the manufacturing of semiconductor devices. Plasma etching is a process used to remove materials from the surface of a substrate. Semiconductors have crucial roles across the electronic industry and the industry is growing at an exceptional rate. Major countries are building in-house semiconductor manufacturing facilities in order to reduce dependency on china. These factors are estimated to push the demand for sulfur hexafluoride for several coming years.
- Rising demand form medical industry :-
This gas has very crucial applications in diagnostic segment of medical industry. It is used as a tracer gas in respiratory medicine and as a contrast agent (substance used to increase the contrast of structures or fluids within the body in medical imaging) especially in ophthalmology. In addition, SF6 is extensively used medical devices such as ultrasound machines and MRI machines and CT scanners to provide cooling for the equipment.
- Current applications in power transmission:-
Sulfur hexafluoride is extensively used in the power transmission mainly as an insulators in high voltage circuit breakers and power grids. It has excellent insulating properties it has 2.5 times more dielectric properties than that of air.
Restraint:
Main restraining factor for the growth of this industry is its harmful nature as a greenhouse gas. SF6 is most damaging greenhouse gas which is currently in use.
If SF6 somehow escapes into the atmosphere it will cause extreme damage to the environment. This gas is estimated to poses 23000 times more infra radiation entrapping properties then carbon di oxide gas. This harmful nature could attract several restrictions from government agencies. Apart for its harmful nature the production is also capital intensive due to its complex production process. Furthermore, elements like sulfur, fluorine, cobalt (III) bromine, and fluoride are used as the precursor for the development of SF6 gas which are expensive and have highly volatile prices. These two challenges pose as major restraining factor in the development of this industry.
Covid-19 Impact:
COVID pandemic had mixed impact on the Sulfur Hexafluoride (SF6) Market .Due to the restrictions and lockdowns imposed by governments all over the world. Several end user industries were impacted due to labor shortage. Which disrupted the production activity. These ceased production activities resulted into significant drop in the demand for SF6 from electronics and semiconductor industry. On the other hand a rapid surge was witnessed from diagnostic equipment manufactures like CT scanners. CT scanners had crucial application in covid screenings. Moreover, the medical equipment industry was reckoned as crucial industry thus was operating during the pandemic. These were few reasons behind rapid surge for the demand for SF6 form this industry. Now with reopening of economy the demand is back at pre covid levels.
Sulfur hexafluoride Report Coverage:
| Report Attributes | Report Details |
| Study Timeline | 2016-2030 |
| Market Size in 2030 (USD Billion) | 420.09 Billion |
| CAGR (2022-2030) | 5.48% |
| By Type | Standard, Electronic, and UHP |
| By Application | Power, Medical, Manufacturing, Semiconductor and Others |
| By Geography | North America, Europe, Asia Pacific
Latin America, Middle East and Africa |
| Key Players | Air Liquide, Air Products and Chemicals, Inc., The Linde Group, Showa Denko K.K., Kanto Denka Kogyo Co.Ltd., AGC Chemicals, Solvay. |
Market Segmentation:
By Type
The type segment is divided into standard, electronic, and UHP. In this segment the largest market share was capture by standard grade SF6 gas. The standard grade SF6 is mainly employed in electric transmission industry and is used as an insulator in circuit breakers, ground switches and disconnectors. The main use of sf6 is seen in high voltage circuit breakers.
The use of electric grade SF6 is mainly limited to the semiconductor and electronic devices manufacturer. This grade has slightly higher quality than standard grade. Moreover, this grade SF6 also has applications in particle accelerator and integrated circuit manufacturing.
The UHP type sulfur hexafluoride is mainly used in medical industry for diagnosis applications. It is used as a tracing agent in non-invasive medical procedures. This grade is considered to be highest quality among all the kind and is only used for critical medial applications.
By Application
The application segment is categorized into Power & electricity transmission, Medical, Manufacturing, Semiconductor and Others. The power segment predominantly dominated the market share in the forecasted period. This segment consumes more than 80% of total global SF6 production. Mainly SF6 is used as a prime insulator in circuit breakers and high voltage switches. Moreover, the semiconductor industry is expected to gain significant market share in coming years.
The medical application segment is expected to attain fastest growth rate in the forecasted period. Technological advancement and medical facilities development in Asian region is anticipated to drive the demand for Sf6 in coming years.
Manufacturing sector is also witness growth in recent years and several heavy metal industries have demand for Sf6 as it inhibit the rapid oxidation of metals. With expansion of metal industry the demand for SF6 is also expected to rise.
By Region
The regional segment includes Asia Pacific, Europe, North America, the Middle East, and Africa & Latin America. Asia Pacific region was found to capture the largest market share. This regions it is estimated to be 53% of total market size. Asia region has largest demand for electricity. That the reason for presence of world’s largest electricity transmission infrastructure. China’s electricity grids were found to be approximately equal to the grids of all western industrialized countries combined. This massive electricity infrastructure makes this region the biggest consumer for Sf6 in the world.
Furthermore, the North American and European region is expected to gain significant market share in the forecasted period. The main driver for the growth in this region will be electric transmission expansion due to green energy shift. Developed countries are heavily investing in green energy ecosystem. A large chunk of this investment is expected to reach into transmission infrastructure development. The transmission expansion will further push the demand for SF6 in this region because it is crucial in high voltage electric lines.
Sulfur hexafluoride (SF6) Market Competitive Landscape:
The Sulfur hexafluoride (SF6) Market has been analyzed in detail according to its competitive landscape, with main players profiled in the report. These players are propelling the market through their investments in R&D and product innovation. The report includes company overviews, financials, revenues, market potential, global presence, production sites and capacities, strengths and weaknesses, product launches, product diversity, application and others. Following are key market players:-
Air Products and Chemicals, Inc.
Showa Denko K.K.
Kanto Denka Kogyo Co.Ltd.
AGC Chemicals
Solvay
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