Chemicals Industry Today

HFC 365MFC Market Set to Grow at an Impressive CAGR of 4.4% Through 2035 | USD 1,200 Million

HFC-365mfc is a hydrofluorocarbon used primarily as a blowing agent in polyurethane and phenolic foams. It offers low toxicity, non-flammability, and better environmental compatibility than older HCFCs, making it suitable for insulation, refrigeration, and specialty industrial applications.
Published 31 October 2025

HFC-365mfc (1,1,1,3,3-pentafluorobutane) is a hydrofluorocarbon blowing agent used widely in foam insulation, refrigeration, and specialty solvent applications. It has been considered a transitional alternative to ozone-depleting substances such as HCFC-141b and CFCs due to its zero ozone depletion potential (ODP). HFC-365mfc provides excellent thermal insulation, low toxicity, stable physical properties, and favorable foam expansion characteristics, making it suitable for polyurethane and phenolic foam manufacturing.

The HFC 365MFC Market Size was valued at 700 USD Million in 2024. The HFC 365MFC Market is expected to grow from 800 USD Million in 2025 to 1,200 USD Million by 2035. The HFC 365MFC Market CAGR (growth rate) is expected to be around 4.4% during the forecast period (2025 - 2035).

Over the past decade, the HFC-365mfc market has grown due to expanding demand in construction, automotive, and refrigeration sectors. However, tightening global environmental regulations to limit high-GWP (global warming potential) refrigerants and blowing agents have pushed the market toward more sustainable substitutes. Despite these challenges, HFC-365mfc continues to play a critical role in markets where performance reliability and regulatory allowances remain intact, often in blends with other refrigerants such as HFC-227ea and HFO-1234ze.

Market Dynamics

Market Drivers

a. Growth of Insulation and Construction Industry

Rising urbanization, improving building standards, and global focus on energy-efficient insulation systems support demand for polyurethane rigid foams, where HFC-365mfc is a key blowing agent.

b. Transition from Ozone-Depleting Substances

As industries phase out CFCs and HCFCs, transitional blowing agents like HFC-365mfc continue to fill application gaps requiring stable, high-performance chemicals.

c. Automotive Sector Expansion

Vehicle weight reduction and thermal management requirements have increased the use of polyurethane foams in automotive insulation, strengthening market demand.

d. Strong Performance Advantages

HFC-365mfc offers low thermal conductivity, controlled cell structure in foams, non-flammability (in blends), and favorable boiling point characteristics, making it a preferred choice for precision insulation applications.

Market Restraints

a. High Global Warming Potential (GWP)

Despite zero ODP, HFC-365mfc has a high GWP value, contributing to greenhouse gas emissions—creating significant regulatory pressure under the Kigali Amendment, EU F-Gas Regulation, and EPA SNAP rules.

b. Availability of Cost-Effective Alternatives

Hydrofluoroolefins (HFOs), hydrocarbons like n-pentane, and CO₂-based foaming technologies are increasingly replacing HFC-365mfc because of lower environmental impact.

c. Regional Production Limitations

Restrictions on HFC production and quotas in several developed regions may cause supply fluctuations, impacting pricing and availability.

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Opportunities

a. Continued Use in Critical Applications

Some niche applications still require non-flammable or thermally stable formulations where alternatives may not meet performance requirements—maintaining a sustained demand segment.

b. Growth of Blended Solutions

Blends combining HFC-365mfc with low-GWP components can extend its utility while reducing environmental impact, enabling compliance in transitional markets.

c. Expanding Use in Developing Economies

In regions where regulatory frameworks are still evolving, the demand for HFC-365mfc remains relatively stable in construction and appliances manufacturing.

d. R&D Toward Low-Emission Variants

Ongoing research into optimized production processes and improved blowing formulations creates opportunities for more sustainable versions or lower-GWP blends.

Key Companies in the HFC 365MFC Market Include:

  • Linde
  • Lanxess
  • Refrigerant Solutions
  • Arkema
  • Koura
  • Mitsubishi Chemical
  • AGC Chemicals
  • Honeywell
  • Daikin
  • Trane Technologies
  • RefriChem
  • Navin Fluorine
  • Chemours
  • Solvay
  • BASF

Emerging Trends

  • Shift Toward Ultra-Low-GWP Blowing Agents
  • The market is steadily moving toward HFO-based solutions and natural refrigerants.
  • Circular and Sustainable Insulation Materials
  • Manufacturers are exploring recyclable foam systems to address climate and waste management concerns.
  • Higher Energy-Efficiency Standards Worldwide
  • Global energy policies are boosting foam insulation demand, offering transitional opportunities for HFC-365mfc.
  • Technology Improvements in Blended Agents
  • Enhanced safety, lower toxicity, and better fire resistance in blends aim to maintain product competitiveness.
  • Localized Manufacturing in Asia
  • Rising foam production facilities in Asia-Pacific increase domestic demand for transitional blowing agents.

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Future Outlook

The future of the HFC-365mfc market will be shaped largely by environmental legislation. As the global transition to low-GWP substances accelerates, demand for HFC-365mfc in many developed categories is projected to decline gradually.

However, the following factors help sustain a controlled market presence:

1. Continued use in performance-critical applications

2. Strong demand in developing markets undergoing industrial growth

3. Transitional role in foam thermal insulation manufacturing

4. Adoption in optimized blends to meet evolving standards

Asia-Pacific is expected to remain the key demand center, whereas Europe and North America will witness sharper declines due to regulatory bans and availability of alternatives.

While mature segments face constraints, HFC-365mfc maintains importance as a bridging solution, supporting the insulation and refrigeration industries during the global low-emission transformation.

HFC-365mfc has been a vital transitional blowing agent for insulating foams, offering strong performance benefits and compliance with earlier ozone protection standards. The market remains influenced heavily by environmental policy shifts, particularly restrictions targeting high-GWP substances.

Despite emerging challenges, opportunities persist in applications where alternative formulations are not yet fully adopted, especially in developing economies and niche industrial sectors. Future growth will depend on innovation in optimized blends, sustainable chemistry, and strategic supply management in aligned regions.

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