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Increasingly Stringent Regulations and Tightening Standards to Drive Demand
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Steady economic growth, increasing urbanization, rising disposable income, and rapid proliferation of eCommerce have augured well for growth in the demand for automotive and consumer products, including appliances and electronic goods. Stringent regulations and rigorous standards pertaining to the environment, energy consumption, and health and safety have engendered several Mega Trends, including lightweighting and metal-to-plastic conversion. Plastics and polymers are endowed with impeccable properties that enable significant weight and cost reduction without compromising on aesthetics and functionality. The global demand for plastics has increased nearly 1.2 times over the past five years, registering a steady CAGR of about 4%. However, the increasing use of plastics, polymers, and composites has rendered the average home and vehicle all the more susceptible to fire hazards.Although the overall flame retardants market has grown steadily during the past five years, certain individual chemistries have been under the scanner for their probable toxicity and associated ill-effects such as neurodevelopmental problems, reproductive harm, endocrine disruption, and risk of cancer. This study seeks to quantify the consumption of various flame retardants across prominent end-use industries and gauge the level of impact that market developments are expected to have on the demand for various flame-retardant chemistries. It quantifies the consumption of various flame retardants based on product types and across a considered set of applications during the 2018–2025 period.Key flame retardants and material groups considered in the study include Alumina Trihydrate (ATH), brominated, chlorinated, phosphorus-based, Antimony Trioxide, and others (melamine-based, zinc-based, and magnesium hydroxide). Product types considered in the study include reactive and polymeric; and additive. The applications considered include thermoplastics, thermosets, and CASE and others. The key end-use industries considered are construction, wire and cable, automotive, electrical and electronics, and others.Asia-Pacific, by far, dominates the global flame retardants market due to the concentration of key end-use industries in the region. It also dominates the global production of consumer electronics and electrical appliances. Increasing urbanization and a growing middle class population are expected to drive growth in the demand for such products in the region. This will augur well for growth in the demand for flame retardants. While the level of regulatory stringency in Asia-Pacific is lower, owing to the global nature of supply chains and the fact that a significant share of its production is destined for the highly regulated markets in Europe and North America, manufacturers in the region are increasingly adopting either European or American fire safety standards. Moreover, an evolving regulatory scenario in APAC, especially China, is expected to create growth avenues for the flame retardants market in the region. Considering the need to adhere to the stringent regulations and ensure optimal performance, industry stakeholders are likely to exhibit a growing preference for sustainable flame-retardant synergists. Moreover, as effective alternatives to low-molecular-weight and volatile flame retardants, manufacturers are promoting polymeric flame retardants characterized by high molecular weight, low volatility, and no bioaccumulation.The study analyzes the current market size in terms of volume and revenue based on the weighted average prices of products. It also presents a seven-year growth forecast (CAGR) for the segments under consideration.
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