Potassium Zirconium Fluoride Market Trends

Growth Drivers

• Extensive Growth in the Automotive Industry – Potassium zirconium fluoride is considered to be an imperative component by vehicle manufacturers for producing high-quality vehicles along with electric vehicles and hybrid electric vehicles owing to its advantages such as high tensile strength, increased durability, enhanced conduction, and others. In addition, many parts of vehicles are made with aluminum which is also estimated to increase the utilization rate of potassium zirconium fluoride. Thus, the expansion of the automotive industry is projected to bring lucrative growth opportunities for market growth during the forecast period.  Recently, it has been calculated that the global automotive industry manufacturing industry amounted to almost USD 3 trillion by the end of 2021.
• Rapid Growth of the Construction Industry – One of the most common applications of potassium zirconium fluoride is as a flux in the welding and brazing process which is highly beneficial for the construction industry. Thus, with the growing construction industry, the global potassium zirconium fluoride market is also estimated to expand considerably in the upcoming years. For instance, the global construction industry amounted to almost USD 6 trillion in 2020, and it is expected to reach almost USD 14 trillion by 2030.
• Escalation in the Chemical Industry – As per recent statistics, it has been revealed that the revenue generated by the global chemical industry stood at around USD 5 trillion in 2021 which is forecasted to grow during the near future.
• Increased Investment in the Research & Development (R&D) Sector – As per the World Bank, the Research and Development expenditure accounted for 2.63% of total GDP in 2020. This was a rise from 2.13% of the total GDP in 2017.
• The Surge in Demand for Electronics & Electrical Devices - With the growing economies and the penetration of electric manufacturing services (EMS), the demand for electronics and smart devices has considerably grown up. For instance, the sale of mobile phones in 2021 across the globe totaled approximately 1740 million units, accounting for 7800 million mobile people users, or about 20% of the world's population, buying a mobile in that particular year. The recent shift towards introducing technologically advanced electronic products along with the rising investment in the electrical sector has bought significant growth in the electronic industry which is anticipated to increase the demand for potassium zirconium fluoride for the proper functioning of the products.

Challenges

• Increasing Cost of Potassium Zirconium Fluoride – The high cost of potassium zirconium fluoride is propelling the global consumer base to shift towards more cost-efficient alternatives that are available in the market. Also, a high initial investment is required for the manufacturing process of potassium zirconium fluoride which is again estimated to lower the adoption rate among the population with low-income and small businesses. All these factors are projected to couple up to pose a challenge to the growth of the global market during the forecast period.
• Long Manufacturing Cycles
• Requirement of Higher Initial Investment