Revenue Impact (RI) Story Chemical and Materials
New Revenue Opportunities Identified for Market Penetration, Leading to Global Expansion of Footprint

Client’s Goals

Our client, a top multinational conglomerate, was looking to increase its market penetration in HCFC/HFC. Markets and Markets was engaged to identify revenue opportunities and provide crucial information for the growth of the company. This, in turn, helped the senior management to take a host of crucial decisions. Few of the problems solved by us were-

  1. Identification of lucrative application-wise segments.
  2. Competitive intelligence on major formulators across Malaysia, Singapore, and Thailand
  3. Build value proposition for target customers

Our Approach

Our analyst hours were used for an outside-in perspective on the market potential in various application areas such as dry lubricants, aerosol, fluorocarbon coatings, and others based on key product types. Further, our client services helped them identify the highest potential application areas in each country. We also helped them better understand the competitive landscape as well as the business models & strategies that different players adopted to win in these markets. This, in turn, helped them devise a differentiated product offering. Interviews with a host of potential customers in different application areas were conducted to understand their unmet needs, pull for target products, and what they looked for in a product supplier. We helped our client refine their value proposition to quickly gain a market share.

A detailed analysis of adjacent niche markets, with our Artificial Intelligence market intelligence platform, KnowedgeStore, helped in the identification of new revenue sources. Factors leading to shifts in revenue sources of our client, client’s clients, and their clients and the known and unknown unknowns arising in the ecosystem were studied.

Revenue Shifts Identified

HFC is considered to be a great substitute for HCFC application and as the government is encouraging the phasing down of HCFC, the demand for HFC will increase with the phasing out of HCFC. There is an opportunity for NIK (not-in-kind) alternatives such as hydrocarbons, CO2 and ammonia during the projected Montreal Protocol phasedown of HFCs in small-room air conditioners and refrigerators prevalent in emerging markets. HFE cleaners are extensively accepted as a replacement of HCFC-225 due to its fast-drying and nonflammability properties.


According to Stage II of the HPMP for Malaysia, consumption of HCFC is anticipated to be reduced by 42.9% of the baseline by 2022 (consisting of HCFC-141B and HCFC-22). NIK alternatives which can replace high-GWP HFCs and also have the potential to significantly decrease energy use in the refrigeration and air conditioning sectors. Major substitution for HFCs are hydrofluoro-olefin (HF0), HFO Blends, LPG, Hydrocarbons, Co2, Ammonia, water and other natural refrigerants.

Unknowns Identified

HCFC is gradually being phased out in three subsequent stages. By the end of 2022, HCFC consumption is anticipated to be very minimal. HFC is often used in the form of refrigerants as a substitute of HCFC.

Revenue Impact (RI)

Our findings helped the client to penetrate a USD 47 million market in Malaysia, USD 19 million market in Singapore, and USD 84 million market in Thailand. They also projected revenue of USD 2.3 million, USD 1 million, and USD 4.2 million in the respective countries over 5 years. The client was further able to establish and grow their HCFC/HFC business in the targeted countries.


More Revenue Impact stories

See how future revenue sources change for these companies Protection Status