Flame Retardant Market Share to Increase at 7.5% CAGR by 2031.

Introduction

"Flame retardants" are compounds added to manufactured goods like plastics, textiles, surface treatments, and coatings. Flame retardants become active when an ignition source is present and work in various physical and chemical ways to prevent or delay the spread of ignition. They may be used as a copolymer during the polymerization process, when molding or extruding, or (particularly for textiles) as a topcoat. In contrast to organohalogen and organophosphorus chemicals, which can either be reactive or additive, mineral flame retardants are normally additive. Many fundamental mechanisms of flame retardancy exist depending on the flame retardant and the substrate. Additive or reactive compounds that can extinguish the fire can do so in either the vapor (gaseous) or condensed (solid) phases.

Market Dynamics

Favorable Regulatory Scenario Drives the Global Market

One of the major factors propelling the growth of significant end-use industries is the global market for flame retardants. Major manufacturers are making R&D investments in developing innovative compounds for applications that can overcome the drawbacks of flame retardants, including BASF SE, Clariant, LANXESS, and others. Fire safety is a major concern for governments. Over the forecast period, key end-use industries like the automobile, construction, and electrical industries will likely employ flammable materials like plastics more frequently. The risk of fire will increase in many end-use industries as a result. Flame retardants shield the environment from smoke emissions and stop fires from spreading. They lengthen the time needed to escape because they are flame-resistant. The international fire safety regulations that have been created must be followed by end-use businesses. This breakthrough is anticipated to benefit the market for flame retardants.

An increase in the End-User Industry Creates Tremendous Opportunities

Among end applications, electrical and electronics had the highest penetration and growth rate in 2020. Flame retardants are used in various electrical and electronic devices, such as printed circuit boards, wires and cables, computers, and electrical sockets. The use of flame retardants in these products helps producers to follow stringent fire safety regulations. Construction lagged behind electrical and electronic end-use industries regarding growth rate and penetration. Governments have created guidelines and rules for fire safety, requiring businesses in the construction industry to use flame-retardant materials.

Automobiles, transportation, and other end uses, including furniture, had a low penetration in 2020 due to the ongoing COVID-19 epidemic. However, these sectors are anticipated to develop quickly over the forecast period, mostly due to the vast unrealized potential in the transportation industry. However, the rapid substitution of plastics for metals in transportation is projected to raise the demand for flame retardants.

Regional Analysis

Asia-Pacific is the most significant global flame retardant market shareholder and is estimated to exhibit a CAGR of 8% over the forecast period. Production facilities in the Asia Pacific region account for a substantial percentage of the flame retardant market. China and India dominate the flame retardant markets in this region. The rise of the Asia-Pacific flame-retardant market can be attributed to a rise in awareness of flame retardants and safety regulations and ongoing infrastructure-building programs in developing countries like India, China, and Japan. China has the largest and fastest-growing market for flame retardants in Asia-Pacific. It is a significant producer of flame retardants that are chlorinated and antimony-based.

Additionally, phosphorous and brominated flame retardant production is predicted to rise in China over the projection period due to increased local production and the replacement of halogen-based compounds. The nation has recently restricted the use of brominated flame retardants due to escalating environmental concerns. China's market for specialty flame retardants appears to be fragmented due to the large number of small and medium-sized businesses that produce them. Additionally, the country exports antimony-based flame retardants.

Europe is anticipated to exhibit a CAGR of 6.6% over the forecast period. The area is home to several developed countries, including Germany, France, the UK, Spain, Italy, and Norway. Developments in manufacturing, notably in the automotive, transportation, and construction industries, have led to a growth in the region's need for flame-retardant materials. Major producers, such as BASF SE, Clariant, Italmatch Chemical S.p.A., DSM, and Lanxess, are introducing new and improved products across their portfolio of flame-retardant chemicals and investing in the development of existing or new manufacturing lines to fulfill the growing demand from customers. For instance, in September 2018, BASF SE developed Ultrason, a polyethersulfone particle foam.

Furthermore, the foam's lightweight, rigidity, and exceptional strength make it well-suited for usage in intricately curved elements of automobiles, airplanes, trains, and other vehicles. This is due to the significant demand for fire-resistant products in end-use industries like buildings, furnishings, transportation, and automotive. Significant domestic producers of flame retardants and increasing exports of flame retardant products and their derivatives to Europe and other countries are expected to fuel market growth over the projection period.

Key Highlights

• The global flame-retardant industry size was valued at USD 8.62 billion in 2022. It is estimated to reach USD 16.53 billion by 2031, growing at a CAGR of 7.5% during the forecast period (2023–2031).
• Based on the product, the global flame-retardant market is bifurcated into halogenated and non-halogenated flame rThe Non-Halogenated Flame Retardants segment dominates the global market and is projected to exhibit a CAGR of 8.4% over the forecast period.
• Based on application, the global flame-retardant market is bifurcated into polyolefin, epoxy resins, unsaturated polyester, polyvinyl chloride, engineering thermoplastics, rubber, and styrene. The polyolefin segment owns the highest market share and is predicted to exhibit a CAGR of 8.1% over the forecast period.
• Based on end-use, the global flame-retardant market is divided into construction, transportation, and electrical electronics. The electrical electronics segment is the most significant contributor to the market and is estimated to exhibit a CAGR of 7.7% over the forecast period.
• Asia-Pacific is the most significant global flame-retardant market shareholder and is estimated to exhibit a CAGR of 8% over the forecast period.

Competitive Players

1. Albemarle Corporation
2. Chemtura Corporation
3. Clariant AG
4. DuPont de Nemours, Inc.
5. ExxonMobil Chemical Company
6. Huntsman Corporation
7. Kemira Oyj
8. Lanxess AG
9. Mitsubishi Chemical Holdings Corporation
10. Nippon Chemical Industrial Co., Ltd.
11. Olin Corporation
12. PetroChina Company Limited
13. Sabic
14. Sumitomo Chemical Co., Ltd.
15. Tosoh Corporation

Recent Developments

• May 2024- Researchers have developed a flame-retardant transparent bamboo material that outperforms silica glass, offering a sustainable alternative in the global flame-retardant market. The material exhibits high transparency, thermal stability, and fire resistance, making it suitable for applications such as windows and displays.
• April 2024- Finolex Cables has introduced a range of environmentally friendly wires under the FinoGreen brand. The FinoGreen industrial cables are engineered to reduce safety hazards in electrical installations and prevent accidents, particularly fires, by being flame-retardant and halogen-free.

Segmentation

1. By Product
   1. Halogenated Flame Retardants
      1. Brominated
      2. Chlorinated Phosphates
      3. Antimony Trioxide
      4. Others
   2. Non-Halogenated Flame Retardants
      1. Aluminum Hydroxide
      2. Magnesium Dihydroxide
      3. Phosphorus Based
      4. Others
2. By Application
   1. Polyolefin
   2. Epoxy Resins
   3. Unsaturated polyester
   4. Polyvinyl Chloride
   5. Engineering Thermoplastics
   6. Rubber
   7. Styrenics
   8. Others
3. By End-User
   1. Construction
   2. Transportation
   3. Electrical and Electronics
   4. Others