Flame Retardant Chemicals Market - Forecast (2024 - 2030)
Flame retardant chemicals are chlorine-, bromine-, phosphorous- or nitrogen-based and are applied to the materials to prevent them from catching fire. The high thermal insulation properties of these chemicals are creating a surge in their demand, thereby propelling the Flame Retardant Chemicals Market growth. Major end-users of flame retardant chemicals such as transportation, building & construction and electrical & electronics are experiencing a boom that has boosted their productivity. According to Eurostat, in February 2022, production in building construction increased by 8.6% in the civil engineering construction sector of the European region. In addition to this, growing automotive production and bolstering growth in the electrical & electronics sector are also driving the growth of the flame retardant chemicals industry. However, stringent government regulations on flame retardants to counter health & environmental concerns are anticipated to pose a challenge to market growth, thereby restricting the Flame Retardant Chemicals Market size during the forecast period. The disruptions caused by COVID-19 reduced the productivity of major end-users of flame retardant chemicals across transportation and building & construction, which decreased its market revenue and negatively impacted the Flame Retardant Chemicals industry outlook.
Flame Retardant Chemicals Market Report Coverage
The “Flame Retardant Chemical Market Report – Forecast (2022–2027)” by IndustryARC, covers an in-depth analysis of the following segments in the Flame Retardant Chemicals Market.
By Type: Halogenated Flame Retardants [Chlorinated Flame Retardants (CFRs), Brominated Flame Retardants (BFRs), Tetrabromobisphenol-A (TBBPA) Flame Retardant and Others)], Phosphorous Flame Retardants (PFRs), Nitrogen-based Flame Retardants (NFRs), Inorganic Flame Retardants (Aluminum, Zinc, Magnesium, Antimony and Others) and Others (Nano Composites and Intumescent).
By Material Type: Polyvinyl Chloride, Epoxy, Polyester, Polyamide, Thermoset Resins, Rubber and Others.
By Grade: Technical Grade and Industrial Grade.
By Substrate: Plastic, Wood, Fiber, Metal and Others.
By Application: Wires & Cable, Filler & Fixtures, Foams, Seat Covers, Bumpers, Interior Components, Upholstery, Mattress and Others.
By End-use Industry: Building & Construction (Residential Building, Commercial Building, Industrial and Institutional), Transportation [Automotive [Light Passenger Vehicles (LPV), Light Commercial Vehicles (LCV) and Heavy Commercial Vehicles (HCV), Aerospace and Others], Electrical & Electronics [Wiring and Cable, Electric Enclosures (Television, Desktop or Notebook Computers, Monitors, Printers Copiers, Household Appliances and Others), Electric Installation and Components (Connectors, PCB Connectors, Terminal Blocks, Insulation Displacement Connectors, Crimp-on-Terminals, Plug and Socket Connectors, Component and Device Connectors), Switches and Switch Gear (Rotary Switches, Light Switches, Light Voltage Switchgear and Others)], Textiles, Furniture and Furnishing and Others.
By Geography: North America (the USA, Canada and Mexico), Europe (the UK, Germany, France, Italy, the Netherlands, Spain, Belgium and the Rest of Europe), Asia-Pacific (China, India, Japan, South Korea, Australia, New Zealand, Indonesia, Taiwan, Malaysia and the Rest of APAC), South America (Brazil, Argentina, Colombia, Chile and the Rest of South America) and Rest of the World (the Middle East and Africa).
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Key Takeaways
Flame Retardant Chemicals Market Segment Analysis – by Grade
The industrial grade held the largest share in the Flame Retardant Chemicals Market in 2021 and is expected to grow at a CAGR of 5.1% during the forecast period 2022-2027. Industrial-grade flame retardants such as chlorine, bromine or nitrogen-based have higher fire resistance and thermal insulation. Due to these properties, they are used in electric wires & cables, automotive seats, interior components and building foams. Rapid growth in automotive production, residential construction and consumer electronic manufacturing has boosted the market demand for industrial-grade flame retardant chemicals, which is significantly contributing to its segment growth in the Flame Retardant Chemicals Market during the forecast period.
Flame Retardant Chemicals Market Segment Analysis – by End-use Industry
The building & construction sector held the largest share in the Flame Retardant Chemicals Market in 2021. It is expected to grow at a CAGR of 6.4% during the forecast period 2022-2027. Chlorine, Bromine or nitrogen-based flame retardant chemicals can withstand high temperatures and flames and are ideal for residential & commercial buildings to provide structural insulation and maintain a comfortable temperature. Rapid urbanization, favorable investment inflows and development in architectural sites have increased the growth of the building & construction sector. According to Statistics Canada, in November 2021, investments in commercial construction increased by 1.4% in comparison to 2020. Furthermore, according to the December 2021 report of the European Union, building construction increased by 4.6% from 2020. With such a rapidly growing building & construction sector, the demand and usage of Flame Retardant Chemicals have also increased, thereby boosting its market growth during the forecast period.
Flame Retardant Chemicals Market Segment Analysis – by Geography
Asia-Pacific dominated the Flame Retardant Chemicals Market with a 41% market share. The demand for flame retardant chemicals in building & construction for insulating foam and in the transportation sector for seat covers & interior components application is fueling its market demand in the Asia-Pacific region. Technological advancement in automotive production and growing demand for residential units have surged in such sectors in major Asia-Pacific economies such as China, India, Japan and Australia. According to the International Organization of Motor Vehicle Manufacturers, in 2021, China’s automotive production increased by 3%, whereas India showed a 30% increase. Furthermore, according to the data provided by Japan’s Ministry of Land, Infrastructure, Transport and Tourism, in March 2022, housing construction saw a 6% increase in comparison to the same month in 2021. With such rapid development in these major end-users of flame retardant chemicals, the demand and usage of such chemicals are also anticipated to increase. This would boost the growth of the Flame Retardant Chemicals Market during the forecast period.
Flame Retardant Chemicals Market Drivers
Growing Automotive & Aircraft Production:
Due to their high thermal resistance, fire protection chemicals are primarily applied on automotive & aircraft seats and also in their interior components to make them fireproof. The transportation sector has shown significant growth over the years due to the increase in production seen in major transports such as automotive and aerospace. According to the data provided by the European Automobile Manufacturer’s Association, in 2021, global automotive production stood at 79.1 million units, showing a 1.3% increase in comparison to 2020. Also, according to the data provided by the General Aviation Manufacturers Association, in the first half of 2022, total aircraft manufacturing & shipment stood at 1,174 units, showing a 9.9% increase in the first half of 2021. With such an increase in automotive and aircraft production, the demand for flame retardant chemicals has also increased in the transportation sector, thereby positively impacting the growth of the Flame Retardant Chemicals industry during the forecast period.