Global Flame Retardants Market To Generate Revenue worth $12,028.4 Million by 2030

The global flame retardants market is projected to generate $12,028.4 million revenue in 2030, advancing at a CAGR of 5.3% between 2021 and 2030. This can be directly credited to the growth of end-use industries, such as building & construction, automotive & transportation, and electrical & electronics. Moreover, the rapid technological advancements, extensive R&D activities, growing health concerns because of the usage of halogenated chemicals, and increasing strictness of the regulations for fire safety drive the market.

Automotive & Transportation Industry To See Second-Fastest Growth

The automotive & transportation industry will witness the second-highest growth rate in the market during the forecast period. This can be attributed to the stringent regulations on automotive fire safety enforced by government authorities. Therefore, these chemicals are used in automobiles, aircraft, and trains' seats, seat covers and fillings, bumpers, overhead compartments, and other components.

The building & construction industry accounted for the largest revenue share in 2021, of around 40%, and it is expected to maintain its dominance during the forecast period. This can be ascribed to the growing construction activities in developing nations and increasing public awareness on the importance of complying with fire safety standards.

Non-halogenated flame retardants contributed the larger revenue to the market in 2021, and they are expected to maintain the same trend during the forecast period. Owing to their stronger fire resistance and smoke suppression properties, they are more suitable than halogenated flame retardants. Furthermore, the environmental standards that limit the usage of halogens propel the demand for non-halogenated variants across industries.

Geographically, APAC holds the largest revenue share in the market, and it will advance with the highest CAGR during 2021–2030. This will be due to the high construction rate, rapidly growing transportation sector, and a large number of manufacturers of flame-retardant materials in the region. Moreover, APAC has the world’s largest electronics manufacturing base, dominated by Japan, China, South Korea, and Taiwan.

Additionally, China contributes the majority of the revenue to the regional market as it has a huge transportation sector and is constructing infrastructure on a massive scale, due to its rising population.

Apart from APAC, North America has been witnessing significant growth in the industry owing to the surging demand for electronic components in the construction, transportation, and consumer gadget sectors. The U.S. dominates the regional market due to its large electrical & electronics and automotive & transportation manufacturing base and the growing building & construction industry.

Strategic Developments of Key Players in Market

Collaborations, partnerships, acquisitions, and product launches are the major strategic developments in the flame retardants market. For instance, in July 2022, BASF SE and THOR GmbH have entered into a collaboration to offer comprehensive solutions that enhance the performance of specific plastic compounds.

Similarly, in January 2022, Huber Engineered Materials (HEM) acquired Martinswerk GmbH's ownership stake in their JV, MAGNIFIN Magnesiaprodukte GmbH & Co. KG. HEM has been selling the latter’s halogen-free fire retardants, specialty aluminum oxides, and smoke suppressants via its fire-retardant additives (FRA) business unit.

Some of the major players in the market are BASF SE, Clariant AG, The Dow Chemical Company, Israel Chemicals Ltd., LANXESS AG, and Albemarle Corporation.