TAGS: Innovation in Flame Retardants
The global flame retardant market size is expected to reach USD 9.3 billion by 2027, as per a new report by Grand View Research Inc., expanding at a CAGR of 3.6% from 2020 to 2027. The market is expected to be majorly driven by expanding demand from the end-use industries, such as transportation, construction and building, and electrical and electronics, across the regions.
Fire safety standards and regulations formulated across the globe are expected to positively impact the product demand.
Aluminum Hydroxide-based Flame Retardants
Aluminum hydroxide-based flame retardants emerged as one of the prominent product segments in 2019. The growth in this segment can be attributed to its low-cost advantages and efficient applications. Furthermore, restrictions on the usage of halogenated flame retardants, such as brominated - hexabromocyclododecane (HBCD) and other chlorine-based compounds, have added on to the rising demand for non-halogenated flame retardants.
Regional Outlook of Flame Retardant Market
Asia Pacific held a dominant revenue share in 2019 owing to expanding electrical and electronics and automotive industries in China and India. According to the Semiconductor Industry Association (SIA), China accounted for around 50% share in the global semiconductor market, a sub-market of electrical and electronics, in terms of value in 2019.
In North America, the market is majorly driven by the consumption in U.S., with strict fire safety regulations. Brominated compounds are expected to be the most important product segment in U.S. In other regions such as Europe and Middle East and Africa, the product demand is primarily driven by the standards and regulations that differ from country to country. Furthermore, bolstering building and construction industry in the Middle East region project lucrative growth opportunities for the market in near future.
Acquisition of local players is expected to be prominent among the global players in the near future in an attempt to increase local footprint. A strong focus towards product innovation and business integration is observed among the players trying to strengthen market position.
Regulatory scenario in some of the prominent regions, such as Europe, has led to a gradual shift towards non-halogenated compounds amongst the global players. In addition, trade halts, supply chain disruptions, and industrial shutdowns owing to the widespread outbreak of COVID-19 in some of the major economies, such as U.S. and China, are likely to project significant challenges for the market in 2020.
Source: Grand View Research