The flame retardant chemicals market size was estimated at around USD 7. 5 billion in 2020, and the market is projected to register a CAGR of over 5% during the forecast period (2021-2026).
New York, July 20, 2021 (GLOBE NEWSWIRE) -- Reportlinker.com announces the release of the report "Flame Retardant Chemicals Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)" - https://www.reportlinker.com/p06106028/?utm_source=GNW
The market was negatively impacted by COVID-19 in 2020. Due to the pandemic scenario, the construction and automotive manufacturing works were on a temporary halt during the government-imposed lockdown, which negatively impacted the demand for respective flame retardants. 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.
- 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 to 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.
- Rising awareness regarding environment-friendly flame retardants is likely to act as an opportunity in the future.
- Asia-Pacific dominated the market across the world due to the high construction activities in the region.
Key Market Trends
Increasing Demand for Building and Construction
- 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 the United States have to be tested according to ASTM E 84.
- In 2019, the total value of new construction put in place was about USD 1365 billion in the United States and reached about USD 1429 billion in 2020, with a growth rate of about 4.5%, which, in turn, increases the demand in the flame retardant chemicals market.
- The pace of growth in the global construction industry is expected to increase during the coming years in regions such as 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. They aid in increasing the threshold temperature of the material at which it catches fire, 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 with market size of USD 1092.9 billion in the year 2019, registering a growth rate of 14.71% compared to the previous year.
- Furthermore, the total new construction in Japan was accounted for about 127.55 million square meters in 2019 and reached about 113.74 million square meters in 2020, with a decline rate of about 10.5%, thus led to a decrease in consumption of flame retardant chemicals used in the construction materials.
- In transportation, flame retardants are used in interior parts, seats, cables, electronic connections, and various textiles. As of Q3 2019, China had 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 impacts the demand for the regional flame retardant chemicals market.
- Therefore, the aforementioned factors are expected to impact the market in the coming years significantly.
The flame retardant chemicals market is a consolidated market, with the top five players accounting for a significant share in the market studied. The major companies include ICL Group, LANXESS, J.M. Huber Corporation, Albemarle Corporation, and Jiangsu Jacques Technology Co. Ltd, among others.
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