Flame Retardant Chemicals Market

Market Overview

The global flame retardant chemicals market size was valued at USD 7.72 billion in 2021. It is projected to reach USD 11.71 billion by 2030, growing at a CAGR of 4.73% during the forecast period (2022-2030). 

Bromine, chlorine, phosphorus, nitrogen, metals, and boron are the most common types of flame retardants. The need for flame retardants is anticipated to rise as more end-use industries, including electrical and electronics, transportation, and construction, employ fire-resistant goods regularly. One of the significant factors that contribute to mortality is house fires. Due to strict fire safety regulations, the market for flame retardant chemicals is driven by the use of fire-retardant chemicals in construction materials and other products. These sectors are progressively using products based on flame retardants to comply with fire safety and prevention standards. Another factor driving product demand is a greater consumer understanding of why it is critical to improve the fire safety of combustible materials and items.

Market Dynamics

Global Flame Retardant Chemicals Market Drivers

Rising Safety Standards in Building Construction

During this prolonged period, buildings are subject to a range of natural and man-made threats (fire, explosion, etc.), which can cause a partial or complete collapse of the structure and the immobilization of building operations. Residents' lives could be in danger in the event of a hazard, such as destruction or incapacitation, which would cause significant direct and indirect financial losses. A fire hazard in a structure can start intentionally or accidentally and endanger life, the building's structural integrity, and property. Due to rapid global growth, fire risks in buildings have changed dramatically in terms of their severity and adaptability, and they have been an increasing worry in recent years. Cities in the Philippines create 70% of the nation's GDP, with Metro Manila contributing 50% of this total. Housing, essential services, efficient transportation, and employment are all still in high demand. These factors are anticipated to drive market growth during the forecast period.

Rising Consumer Electrical and Electronic Goods Manufacturing

Increasing competition is driving down the price of producing electronics, lowering the cost of goods for customers. Chemicals that act as flame retardants are essential in the electrical and electronic industries. One of the leading causes of residential and commercial fires worldwide is electrical fires. Modern electronic devices like televisions and laptops can utilize flame retardants to comply with fire safety regulations. A halogenated flame retardant called tetrabromobisphenol-A (TBBPA) is used to enclose electrical and electronic components. Printed wire boards, housings, cables, connectors, and flame retardants with phosphorous, inorganic, and nitrogen (PIN) bases are some of the major electrical and electronic application fields. The WEEE and RoHS Directives in Europe are the results of increased political focus over the past ten years on the fate of electronic trash and its potentially hazardous substances. With the help of these regulations, electronic waste should be appropriately collected and recycled.

Global Flame Retardant Chemicals Market Restraint

Environmental and Health Concerns regarding Brominated and Halogenated Flame Retardants

An increasing number of restrictions have limited the use of brominated and halogenated flame retardants since the 1970s. These substances have been linked to various harmful health effects in humans and animals, including cancer, endocrine, thyroid disruption, immunotoxicity, reproductive toxicity, and adverse effects on fetal and child development and neurologic function. Many of these substances are now recognized as environmental contaminants. Some flame retardants, such as polybrominated diphenyl ethers (PBDEs), have been banned or phased out by manufacturers due to their toxicity and environmental persistence, only to be replaced by newer organohalogens with unknown toxicity.

The usage of organohalogen retardants is expanding globally despite certain nations' restrictions on their continuous manufacturing. One of the halogenated flame retardants, Polybrominated Diphenyl Ethers (PBDEs), has been shown in numerous studies to have the ability to interfere with the thyroid, ovarian, and androgen functions in frogs, birds, fish, mice, and rats. These factors are anticipated to hamper the market growth during the forecast period.

Global Flame Retardant Chemicals Market Opportunities

Growing Demand in Building and Construction Segment

Flame retardants are incorporated into construction materials and consumer goods as a result of stringent fire safety standards. Flame retardants are commonly utilized in the insulation of structures. Insulations like these are utilized to keep the heat in during the winter and the cold out during the summer. Polyurethane foams, particularly liquid ones, typically feature flame retardants based on the element phosphorus. Additive liquid flame retardants, reactive liquid flame retardants, and solid flame retardants are the three types of flame retardants utilized for stiff PU foams. Regional fire codes are fueling the demand for flame retardants. Rigid PU foams and all other building materials in Europe must comply with the European Standard for Building Materials, or EN 13501.

Regional Analysis

The global flame retardant chemicals market is bifurcated into four regions, namely North America, Europe, Asia-Pacific, and LAMEA.

Asia-Pacific Dominates the Global Market

Asia-Pacific is the most significant shareholder in the global flame retardant chemicals market and is expected to grow at a CAGR of 5.56% during the forecast period. China is the largest economy in the Asia-Pacific area in terms of GDP. The nation's primary end-use sector for flame retardant chemicals is electrical and electronics. White products like refrigerators and washing machines and brown items like phones and televisions frequently include flame retardant chemicals. The electronics sector saw the fastest rise in goods, including cell phones, T.V.s, portable computing devices, gaming systems, and other personal electronic gadgets. With an average yearly GDP contribution of nearly 9%, the construction sector in India ranks as the second-largest sector of the economy. Due to a significant improvement in the infrastructure sector, the country's whole construction industry is on the road to recovery. The country's flame-retardant market may see a significant boost in demand as a result.

Along with the Production Linked Incentive, the government introduced two new programs to encourage the manufacture of electronics in India: the Scheme for Promotion of Electronic Components and Semiconductors (SPECS) and the modified Electronics Manufacturing Clusters (EMC 2.0). (PLI). As manufacturers increase their production in India, the government is expected to provide incentives, with USD 5.5 billion available over five years, according to the PLI scheme. Due to these factors, the flame retardant chemicals market in the nation is anticipated to grow during the forecast period.

Europe is expected to grow at a CAGR of 10.9%, generating USD 25 billion during the forecast period. With 41 assembly and engine production facilities, Germany dominates the European automotive market and produces one-third of all the cars sold on the continent. Makers from many areas, including equipment manufacturers, suppliers of materials and components, manufacturers of engines, and integrators of complete systems, are located in Germany, one of the top manufacturing hubs for the automobile industry. The German aerospace industry consists of more than 2,300 companies dispersed around the country, with the north having the greatest concentration of companies. The U.K. has one of the most secure economies in all of Europe. The building industry is predicted to rise due to rapid urbanization, increased population growth, and tourism, particularly in the residential and leisure industries. The government has been increasing investment in transportation infrastructure, moving forward with essential projects more quickly, and expanding opportunities for the service industry.

North America is anticipated to grow steadily during the forecast period. The focus on creating high-end products has led to a noticeable rise in the number of manufacturing facilities and development centers in the United States. This is anticipated to increase the market's need for flame retardants. Strong exports of aircraft components to France, China, and Germany, as well as healthy consumer spending in the U.S., boost the aerospace industry's production activities, creating a favorable market for flame-retardant chemicals. The most considerable portion of the nation's demand for flame retardants is predicted to come from the building and construction industry. The second-largest construction business in North America, Canada, is anticipated to continue improving and expanding through 2024. Government initiatives and increased immigration to Canada are the main factors driving a considerable increase in commercial and residential development activities.

In the Middle East and Africa, Brazil is one of the top producers of business and regional planes. This region produces a variety of aerospace goods, such as turboprops, general aviation, business, commercial, and helicopters. In addition, Embraer, Brazil's national aircraft manufacturer, played a significant role in the country's rise in aircraft manufacturing industries. During the quarantine and customer isolation at home, Samsung, Lenovo, and L.G. saw strong market growth. The global flame retardant chemicals market in the projection period is further anticipated to grow and be driven by the electric-electronics sector. Argentina, at the moment, has a significant structural housing shortfall. Approximately 25% of Argentine families, according to the Department of Urban Development and Housing, require better housing. Therefore, it is anticipated that renovation activity will also boost demand for the global flame retardant chemicals market.

Segmental Analysis

The global flame retardant chemicals market is segmented by product and end-user industry.

Based on Product Type, the global market is bifurcated into non-halogenated and halogenated flame retardant chemicals.

The non-halogenated flame retardant chemicals segment is the highest contributor to the market and is expected to grow at a CAGR of 5.05% during the forecast period. One of the most widely used flame retardants is aluminum hydroxide, also known as aluminum trihydroxide, hydrated alumina, or alumina trihydrate (ATH), and it is produced using bauxite. In addition to glass-reinforced plastics, artificial marble, electrical cables and wires, and electrical insulators, ATH is an excellent flame retardant with many applications. Magnesium hydroxide is a new kind of inorganic, halogen-free flame retardant recently introduced. It performs various tasks, including filling, smoke suppression, drip prevention, and flame retardance.

Due to its thermal stability and non-toxic makeup, red phosphorus is an efficient flame retardant in polyamides, polycarbonates, and polyesters. Significant research efforts have been concentrated on halogen-free flame retardants due to growing concerns regarding the dangers of halogen-based flame retardants, which have resulted in the development of several aromatic phosphates. The Environmental Protection Agency (EPA) has also banned flame retardants based on pentabromodiphenyl ether and octabromodiphenyl ether, which has a favorable effect on the demand for phosphorous-based flame retardants.

A variety of items can be made less combustible by adding brominated flame retardants. They are primarily utilized in electrical and electronic equipment, textiles, and plastics. As the interior circuitry of such devices can heat up and, over time, gather dust, brominated flame retardants are mainly used on the outer housings of TV sets and computer displays. Brominated flame retardants guard against electrical and electronic faults and short circuits. High amounts of chlorine are found in chlorinated flame retardants, which function chemically in the gas phase. They are frequently employed as a synergist with antimony trioxide. The primary use of products containing chlorinated alkyl phosphate is on rigid and flexible polyurethane foam, typically supplied at a concentration between 5% and 15%, depending on the foam's density and the severity of the test.

Based on the End-User Industry, the global market is bifurcated into electrical and electronics, buildings and construction, transportation, textile, and furniture.

The buildings and construction segment owns the highest market share and is expected to grow at a CAGR of 4.48% during the forecast period. Flame retardants are primarily employed in structural insulation in the building and construction industry. Insulation is employed in homes and other buildings to keep interior spaces at a pleasant temperature and save energy. Polyolefin foams used in buildings for HVAC purposes, such as sound insulation, thermal insulation for pipes, and others, also have significant uses for flame retardants. Three types of flame retardants, including additive liquid, reactive liquid, and solid, are available with rigid polyurethane foams. Rising construction activity in the Asia-Pacific region, more acceptance of new technologies, and innovative building techniques are just a few factors driving the market's rise. The massive GIFT (Gujarat International Finance Tec-City) project was designed with a specific goal in mind: to advertise India as a financial superpower. It is expected to cost USD 20 billion and assist the nation in becoming a regional and global center.

Chemicals that act as flame retardants are crucial to the electrical and electronics industries. Electrical fires are one of the leading causes of accidental home and workplace fires worldwide. Flame retardant chemicals must be widely used to prevent such accidents. Flame retardant materials are employed in a variety of electrical equipment, from tiny computer components to enormous electrical grids. Flame retardants increase the resistance to internal and external heat sources. One of the key factors influencing this market segment is the rise in safety regulations for producing electrical and electronic equipment. Despite substantially improving performance, halogen-based flame retardants are gradually being replaced by halogen-free versions due to the European Commission's ban on halogenated flame retardants.

Recent Developments

• July 2022- Combining their non-halogenated flame retardant additive expertise, BASF and THOR GmbH have offered customers a complete solution that will improve particular plastic compounds' performance and sustainability while meeting strict requirements for fire safety regulations.