Flame Retardant Chemicals Market - Growth, Trends, and Forecasts (2023 - 2028)

The flame retardant chemicals market size was estimated at around USD 7.7 billion in 2021, and the market is projected to register a CAGR of less than 5% during the forecast period (2022-2027).

The market was negatively impacted by COVID-19 in 2020. However, the construction industry is recovering fast and is estimated to rise in the coming years, which will stimulate the demand for the flame retardant chemical market.

Key Highlights

• Over the short term, increasing infrastructure activities in Asia-Pacific, a rise in safety standards in building construction, and rising consumer electrical and electronic goods manufacturing are expected to drive the market's growth.
• Environmental and health concerns regarding halogenated flame retardants and the non-suitability of hydroxides for high-temperature applications are expected to hinder the market's growth.
• The building and construction segment is expected to dominate the global market and grow during the forecast period due to the increasing construction activities across the world.
• Asia-Pacific dominated the market across the world due to the high construction activities in the region.

Flame Retardant Chemicals Market Trends

Building and Construction Segment to Dominate the Market

• Household fires are one of the biggest causes of the loss of human life. Flame retardants are used in building materials and products due to strict fire safety regulations.
• In buildings, flame retardants are majorly used in structural insulation. Insulations are used in homes and other buildings to maintain a comfortable temperature and to conserve energy.
• Phosphorus-based flame retardants are the most commonly used flame retardants in polyurethane foams, especially liquid substances.
• Flame retardants used for rigid PU foams are available in three forms: additive liquid flame retardants, reactive liquid flame retardants, and solid flame retardants.
• Various fire standards around the world are driving the market for flame retardants. In Europe, all materials for building and construction (including rigid PU foams) have to meet the fire requirements according to EN 13501. Building materials in United States have to be tested according to ASTM E 84.
• The pace of growth in the global construction industry is expected to increase during the coming years in regions such as the Middle East and Africa. This reflects the huge investment in building and infrastructure that is taking place in Saudi Arabia, the United Arab Emirates, and Qatar.
• Therefore, the aforementioned factors are expected to significantly impact the flame retardant market in the coming years.

Asia-Pacific Region to Dominate the Market

• The Asia-Pacific region dominated the global market share. Flame retardant chemicals are extensively used in the construction sector in developing insulation, structural elements, cables, and electrical wires.
• They form an integral part of the construction sector. Flame retardant chemicals aid in increasing the threshold temperature of the material at which it catches fire, hence reducing the rate of spreading of fire and providing the critical escape time required to escape from the surroundings.
• China was leading in the construction industry. However, with the Evergrande debt crisis, the country's construction industry seems vulnerable.
• In transportation, flame retardants are used in interior parts, seats, cables, electronic connections, and various textiles. As of Q3 2019, China produced 18.17 million vehicles and reached 16.96 million vehicles by Q3 2020, registering a decline rate of about 6.66%, which, in turn, negatively impacted the demand for the regional flame retardant chemicals market.
• The electronics industry is another major end user of flame retardants in the country. The production of consumer electronic goods, such as mobile phones and laptops, in the country has declined since 2010.
• The production of cell phones and laptops has also considerably declined as the country's electronics giants like Sony, Panasonic, and Toshiba were not able to compete with their Chinese and South Korean counterparts.
• Therefore, the aforementioned factors are expected to impact the market in the coming years significantly.

Flame Retardant Chemicals Market Competitive Analysis

The flame retardant chemicals market is a fragmented market, with the top five players accounting for a significant share in the market studied. The major companies (in no particular order) include ICL Group, LANXESS, BASF SE, Albemarle Corporation, and Jiangsu Yoke Technology Co. Ltd.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support