Global Flame Retardant Chemicals Market - 2024-2031

Overview

Global Flame Retardant Chemicals Market reached US$ 7.2 billion in 2023 and is expected to reach US$ 10.5 billion by 2031, growing with a CAGR of 4.8% during the forecast period 2024-2031.

Flame retardant chemicals include chlorine, bromine, phosphorous or nitrogen-based and are used to keep materials from catching fire. The chemicals' exceptional thermal insulation qualities are driving up demand, propelling the flame retardant chemicals market. Major end-users of flame retardant chemicals, such as transportation, building & construction and electrical & electronics, are experiencing a boom that has increased output.

As reported by Eurostat, in February 2022, production in the European civil engineering construction sector climbed by 8.6%. With such a fast increasing building and construction sector, demand and usage of flame retardant chemicals have surged, propelling market growth over the projection period. Furthermore, expanding automobile production and augmenting expansion in the electrical and electronics sectors are driving the growth of the flame retardant chemicals market.

In 2023, North America is expected to be the second-dominant region with over 20% of the global flame retardant chemicals market. U.S. dominates the regional market, followed by Canada. It can be linked to large-scale production and the expansion of the electrical and electronics, automotive and construction sectors in U.S. Increased expenditures in EVs and private construction projects have led to development in the automobile and construction industries.

Dynamics

Growing Automotive & Aircraft Production

Owing to their great heat resistance, fire protection chemicals are largely used to make automotive and aircraft seats, as well as their interior components, fire resistant. The transportation sector has grown significantly over the years as a result of increased production in major transportation industries such as automotive and aerospace. According to figures published by the European Automobile Manufacturers Association, global automotive output in 2021 amounted at 79.1 million vehicles, representing a 1.3% rise in comparison to 2020.

Furthermore, the General Aviation Manufacturers Association said that overall aircraft manufacturing and shipment reached at 1,174 units in the first half of 2022, up 9.9% from the same period in 2021. With such an increase in automobile and airplane production, the need for flame retardant chemicals in the transportation industry has surged, consequently positively impacting market growth during the forecast period.

Booming Electronic & Electronics Sector

Electronic components include circuit boards, wires and cables, connections and switches. All of these are thought to be possible origins of ignition. Flame retardant chemicals are given to these components during the casting process to keep them from catching fire during larger fire situations. The electrical and electronics sector has expanded significantly due to rising demand for electrical equipment and consumer gadgets such as cellphones, televisions and computers.

According to data released by US Census Bureau, electronic component production in U.S. increased by 14.8% in July 2022 when compared to the same month in 2021. Furthermore, the India Brand Equity Foundation estimates that India's electronics manufacturing business will be worth US$ 520 billion by 2025. With such robust growth in the electrical and electronics sector, demand for flame retardant chemicals will increase during the forecast period.

Stringent Regulations

Though flame retardant chemicals are useful in avoiding fires, the compounds employed in them are highly hazardous. When these chemicals come into touch with humans, particularly youngsters, they can cause cancer, weaken the immune system and create neurological problems. Because of the harmful health implications, governments in several nations have enforced specific regulations.

According to a statement issued by U.S. Fire Administration, in January 2022, the Family and Firefighter Protection Act was approved in New York, which prohibits the use of flame retardants in consumer items. Furthermore, according to a statement issued by China's Ministry of Ecology and Environment in June 2021, the government would ban the use of halogenated flame retardant chemicals like hexabromocyclododecane due to their harmful nature beginning in December 2021. Such regulations are expected to constitute a challenge for the market expansion of flame retardant chemicals.

Segment Analysis

The global flame retardant chemicals market is segmented based on type, material, grade, application, end-user and region.

Rising Investments in Construction Drives the Segment Growth

Building & construction is expected to be the dominant segment with over 30% of the market during the forecast period 2024-2031. Household fires are a major cause of human fatalities. Flame retardants are utilized in building materials and products to comply with stringent fire safety rules. Flame retardants are commonly utilized in buildings for structural insulation. Insulation is used in homes and other buildings to keep the temperature comfortable while conserving energy.

Rapid urbanization, advantageous investment and expansion in architectural locations have fueled the growth of building and construction. According to the National Bureau of Statistics of China, construction investment rose by 6.7% in the first half of 2022. The Indian government established the National Infrastructure Pipeline in 2021, with an investment of US$ 1.4 trillion projected, with 24% allocated to renewable energy, 19% to roads and highways, 13% to railroads and 16% to urban infrastructure.

Geographical Penetration

Technological Advancements from Various Industries in Asia-Pacific

Asia-Pacific is expected to be t he dominant region in the global flame retardant chemicals market covering over 20% of the market. Automotive production technology has advanced and there is a growing demand for residential units in major Asia-Pacific economies including China, India, Japan and Australia. In accordance to the International Organization of Motor Vehicle Manufacturers, Chinese automobile output climbed by 3% in 2021, whereas India increased by 30%.

Furthermore, figures from Japan's Ministry of Land, Infrastructure, Transport and Tourism show that house development increased by 6% in March 2022 compared to the same month in 2021. With the rapid development of these key end-users of flame retardant chemicals, the demand and consumption of such compounds are expected to rise. It will enhance the development of the flame retardant chemicals market during the forecast period.

Competitive Landscape

The major global players in the market include BASF SE, LANXESS, ICL Group, Albemarle Corporation, Akzo Nobel, Huber Engineered Materials, Clariant AG, Italmatch Chemicals, Budenheim Chemicals KG and Henkel.

COVID-19 Impact Analysis

The construction industry, a significant consumer of flame retardants, has faced a downturn due to project delays, labor shortages and financial uncertainty. It resulted in a temporary fall in demand for flame retardant chemicals. As economies reopened and activity resumed, demand recovered. The need for infrastructure projects as an aspect of economic recovery plans increased demand in the last stages of the pandemic.

The car industry experienced severe production halts and lower sales during the pandemic, affecting demand for flame retardants. As production began and customer demand improved, the market gradually recovered. As more individuals worked from home, there was a greater need for electronic devices and household appliances, which frequently required flame retardant materials.

Russia-Ukraine War Impact

The war has affected the supply of essential raw materials used in the production of flame retardant chemicals. Russia and Ukraine are major providers of numerous chemicals and raw materials. The war has resulted in shortages and higher pricing for these vital supplies. It disrupted transportation lines, particularly in Eastern Europe, resulting in delays and increased prices for transferring raw materials and completed goods. Disruptions in ports and rail networks have exacerbated these concerns.

Russia is an important exporter of oil and natural gas and the conflict caused fluctuations in energy prices. Increased energy costs have resulted in higher production costs for flame retardant chemicals, as energy is a key component in their manufacturing processes. The war's broader economic impact, including sanctions and trade restrictions, has helped to drive up globally prices. It has resulted in increased costs for raw materials, transportation and other industrial inputs.

By Type

• Halogenated Flame Retardants
• Phosphorous Flame Retardants (PFRs)
• Nitrogen-based Flame Retardants (NFRs)
• Inorganic Flame Retardants
• Others

By Material

• Polyvinyl Chloride
• Epoxy
• Polyester
• Polyamide
• Thermoset Resins
• Others

By Grade

• Technical
• Industrial

By Application

• Wires & Cables
• Filler & Fixtures
• Foams
• Seat Covers
• Bumpers
• Interior Components
• Others

By End-User

• Building and Construction
• Electrical and Electronics
• Plastic
• Textiles
• Rubber
• Automotive and Transportation
• Others

By Region

• North America
  • U.S.
  • Canada
  • Mexico
• Europe
  • Germany
  • UK
  • France
  • Italy
  • Russia
  • Rest of Europe
• South America
  • Brazil
  • Argentina
  • Rest of South America
• Asia-Pacific
  • China
  • India
  • Japan
  • Australia
  • Rest of Asia-Pacific
• Middle East and Africa

Key Developments

• In January 2022, Huber Engineered Materials has purchased Magnifin Magnesiaprodukte GmbH, an Austrian developer of flame retardant chemicals. The acquisition would allow Huber to produce flame retardant chemicals that are ecologically acceptable and used in a variety of polymer applications.
• In July 2021, Trelleborg has launched a new lightweight fire-resistant material that can withstand temperatures up to 1500°C for up to seven hours and has an extremely high cryogenic performance rating of 192°C.
• In July 2021, Perimeter Solutions bought Magnum Fire & Safety System, a maker of firefighting foam equipment. The acquisition would increase the company's ability to develop fire-resistant foam globally.

Why Purchase the Report?

• To visualize the global flame retardant chemicals market segmentation based on type, material, grade, application, end-user and region, as well as understand key commercial assets and players.
• Identify commercial opportunities by analyzing trends and co-development.
• Excel data sheet with numerous data points of flame retardant chemicals market-level with all segments.
• PDF report consists of a comprehensive analysis after exhaustive qualitative interviews and an in-depth study.
• Product mapping available as excel consisting of key products of all the major players.

The global flame retardant chemicals market report would provide approximately 78 tables, 84 figures and 220 pages.

Target Audience 2024

• Manufacturers/ Buyers
• Industry Investors/Investment Bankers
• Research Professionals
• Emerging Companies