TAGS: Flame Retardants
The global flame retardants market size was valued at USD 7.46 billion in 2020 and is forecast to grow at a compound annual growth rate (CAGR) of 8% from 2021 to 2028. The demand for flame retardants is anticipated to be driven by the growing usage of fire-resistant products in various end-use industries, such as electrical & electronics, transportation, construction, and others.
These industries are increasingly using flame retardant-based materials to meet the fire safety and prevention regulations. The product demand is also fueled by the growing awareness among consumers about improving the fire safety of combustible materials and products. In offices and homes, flame retardants eliminate the risk of fire from an increasing number of electrical and consumer goods.
Polyolefins Application Segment Dominates FR Market
The polyolefins application segment dominated the market with a revenue share of 26.13% in 2020 owing to the growing use of polyolefins as plastics in numerous applications. The product is added to polyolefins to
reduce the spread of flame, prevent the polymer from dripping, and suppress smoke formation. Construction fabrics, mattress covers, roofing and siding, components in trains and planes, carpet backing, automotive fabrics, and others are a few examples of products that require flame retardants in polyolefin fabrics.
The electrical & electronics end-use segment dominated the market with a revenue share of 38.15% in 2020. Its high share is attributed to an increased usage of the product in the plastic casing of electric products for consumer safety and to reduce the risk of fire.
The construction end-use segment is another major segment, which accounted for 28.1% of the overall revenue share in 2020. With the growing construction industry and rising awareness regarding the importance of fire protection, the demand for fire retardants is anticipated to increase over the forecast period.
The rapidly developing transportation industry and the need to address fire safety in the automobile industry are expected to boost the product demand. The rising environmental concerns are expected to propel the demand for halogen-free flame retardant products across various industries.
Regional Insights
Asia Pacific led the global market with a revenue share of more than 55% in 2020 and is anticipated to grow at the fastest CAGR over the forecast period of 2021 to 2028. This is attributed to the stringent regulations regarding fire safety and high product demand from the end-use markets, such as automotive, electrical & electronics, construction, and others.
The production facilities in Asia Pacific account for a large share of the product market. The market is led by China and India. The market growth can also be attributed to the rising awareness about safety regulations and the ongoing infrastructure development projects in emerging economies, such as India, China, and Japan.
The major driver of the market in North America includes the rising demand for electrical components in numerous applications, such as power cables, wiring, and connectors, mainly used in building, transportation, and electronic devices. The U.S. dominates the North America regional market followed by Canada. This can be attributed to the large-scale production and the growing electrical & electronics, automotive, and construction sectors in the U.S. The growth in the automotive and construction sectors is witnessed due to increasing investments in EVs and private construction projects.
Key Companies & Market Share
Key companies are constantly undertaking new initiatives to develop innovative products as an alternative to halogen-based flame retardants to strengthen their position in the global market. The rising demand for halogen-free products is attracting new manufacturers to the market.
The existing companies are entering into the manufacturing industry to gain significant market share against their competitors. An extensive product portfolio enables the manufacturers to meet the rising demand from new and existing customers. Some prominent players in the global flame retardant market include: Clariant, LANXESS, BASF SE, ICL, Abermarle Corp., DuPont, DSM.
View All FRs for Popypropylene
Source: Grand View Research