Flame Retardant Masterbatches Market By Flame Retardant Type (Alumina Trihydrate ), By Application (Engineering Plastics, Rubber, Epoxy Resins, Polyvinyl Chloride (PVC), Others), By End-Use Industry (Automotive, Construction, Textile, Electronics, Aerospace, Paints & Coatings, Packaging, Others) - Growth, Future Prospects & Competitive Analysis, 2018 – 2026

In terms of revenue, the global market for flame retardant masterbatches was valued at US$ 1,625.2 Mn in 2017, which is expected to reach US$ 3,667.9 Mn by 2026, witnessing CAGR of 9.6% during the period. Asia Pacific accounted for the major share in the flame retardant masterbatches market in 2017, followed by North America.

Flame retardants are the chemicals added to different material such as fabrics, plastics, etc. to increase their resistance to ignition, reduce flame spread & suppress smoke. In plastic industry, these chemicals are added during masterbatches formulation and then incorporated as additives with different polymers such as polyolefins, polycarbonate, polyamides, polyester & other polymers. Flame retardants are available in different types such as alumina trihydrate, antimony trioxide, phosphorus flame retardants and so on, that are added to masterbatches with other additives depending upon the requirements to provide them flame resistance and other necessary property such as smoke and flame reduction. Masterbatches are raw compounds of plastic that consist of high coloring pigments and additives. These are used to color plastics and to impart other essential properties to the materials. Flame retardant masterbatches are a type of masterbatches formulated to prevent detonation/spread of the flame when added to plastic products. They are used as additives in manufacturing materials including plastics, textiles, surface finishes, foam, and coating that delay the chances of the fire from spreading.

Robust growth of the construction industry is one of the key driving factors of the global flame retardant masterbatches market at present. Flame retardant masterbatches incorporated with plastics find major use as building materials and products and also help to comply with important fire safety regulations. Flame retardant masterbatches in plastics improve threshold temperatures at which the substance ignites and restricts the flame from spreading. These flame retardants are selected as per codes laid down by the National Fire Protection Act (NFPA). These codes are set for building, residential, fire, electronic components, roofing, decking, ventilation systems, several combustible exterior products and fire resistance rated assemblies. Robust growth of the construction industry in the major countries such as India, China, Germany, Japan and U.S. is a major factor driving the demand for flame retardant masterbatches. The global construction sector is expected to grow at an average of 2.8% per annum. U.S. is one of the largest construction markets in the world with expenditures crossing the US$ 1 trillion mark in 2017. Further, construction spending in the private sector amounted to more than US$ 950 Bn in 2017.

Market Synopsis

"Alumina Tryhydrate is Expected to Continue Dominating the Global Flame Retardant Masterbatches Market Throughout the Forecast Period"

Based on flame retardant type, alumina tryhydrate accounted for the major market share in 2017 and is expected to retain the leading position throughout the forecast period. Further, this segment is also expected to project the fastest growth during the forecast period. Alumina trihydrate or aluminum trihydroxide is derived from bauxite ore. It is a white odourless and powdery substance that has high smoke suppressing and flame retardant properties. Alumina trihydrate is a better alternative to antimony trioxide since the latter emits toxic antimony fumes when enacted upon a flame. It is used to retard fire even at 220˚C and is also a better alternative to halogenated flame retardant masterbatches. Synthetic latex in carpet backing, polyester sheet molding use alumina trihydrate as a filler. ATH is also blended with polymers to inhibit the spread of flame.

The demand for ATH was significantly high in developing economies like China, India, Brazil, and South Africa amongst others. Reason for high demand is because of high demand for thermoplastics, its low smoke properties and corresponding changes in government regulations on usage of flame retardants. Brominated flame retardants are restricted due to their adverse effect on environment as stated by WEEE (waste electrical & electronics consumption) and ROHS (restriction of hazardous substances). Alumina hydrate is widely utilized in paints & coatings, electronics, aerospace and construction industries. In construction industry, it is used as a filler which prevents spread of flame. Polyester laminates in home decoration (for walls, rooftops, enclosures, etc.) also use alumina hydrate as a flame retardant.

"Engineering Plastics Expected to Project the Fastest Growth during the Forecast Period"

Based on application, engineering plastics accounted for the major market share in 2017 and are expected to witness the fastest growth during the forecast period. Engineering thermoplastics are subsets of plastic materials that are used in applications that require higher performance in areas demanding heat resistance, chemical resistance, fire retardancy and mechanical strength. The demand for flame retardant masterbatches based thermoplastics is poised to rise, majorly due to rising need for fire safety across all industries. Flame retardant masterbatches based thermoplastics find extensive use in clothing, home furnishings, engineering domain owing to its good chemical stability and superior mechanical properties.

Increasing use of flame retardant masterbatches in automotive and electronics industry owing to its property of sustaining high temperatures during the production of plastic parts is anticipated to be a significant factor for market growth.

"Construction Sector Emerged as the Dominant Segment and is Expected to Retain Market Dominance Throughout the Forecast Period"

Based on end-use industries, the construction sector accounted for the largest market share in 2017 and is expected to retain market dominance throughout the forecast period. In construction industry, building engineers and architects find creative ways to inculcate flame retardants masterbatches during the construction of homes and public buildings. These flame retardant masterbatches are selected as per codes laid down by National Fire Protection Act (NFPA). These codes are set for building, residential, fire, electronic components, ventilation systems, decking, roofing, various combustible exterior products, fire-resistance rated assemblies. Furthermore, as per REACH Annex XV report, Brominated Floor Retardant Compounds such as hexabromocyclododecane(HBCDD) finds 90% usage in construction industry as it provides rigid thermal insulation to buildings and other constructions. Hexabromocyclododecane(HBCDD) is further synergized with dicumyl peroxide to enhance its compressive strength for more usage in roofs and ceilings, floors, walls and foundations. In buildings, at certain temperature, steelwork often loses its ability to bear weight, and can buckle or collapse. In any event of fire, flame retardant masterbatches on steel prevent structural integrity by insulating from heat.

"Asia Pacific is Expected to Continue Dominating the Flame Retardant Masterbatches Market Throughout the Forecast Period"

Asia Pacific dominated the global flame retardant masterbatches market in 2017 and is expected to retain market dominance throughout the forecast period. Robust growth of the automotive, packaging, and construction industry is one of the key factors responsible for the growth of the flame retardant masterbatches market in the region. Growing construction and automotive sector in countries such as India, China and Japan is greatly fuelling market growth of flame retardant masterbatches in the region. The automotive industry in Asia Pacific is under constant development of lightweight transport systems, as light vehicles require far less energy. Thus, accumulation of additional plastics and polymer composites would consider more use of flame retardant master batches. Seats in automobiles are required to fulfill smoke density requirements and smoke toxicity requirements. Therefore, expandable graphite in combination with liquid phosphates, melamine foam is added as additives to flame retardants to maintain a fire-blocking layers in seats.

China is the leading country for the sale of light vehicles. Global sale of passenger vehicles stood at 94 million units in 2017, with China accounting for nearly 30% of the total volume sales. The growing automotive industry in China has lured several international brands to enhance their production in the country. High technological developments, and low production costs is a key factor responsible for the growth of the automotive sector in China, which in turn is fuelling market growth for flame retardant masterbatches in the country.

"Capacity Expansion is one of the Key Strategy of the Companies Associated with Flame Retardant Masterbatches"

Some of the key players operating in the global flame retardant masterbatches market include Akzonobel N.V., Albermarle Corporation, BASF S.E., Clariant S.E., Dover Corporation, Lanxess A.G., DowDupont Inc., Polyplast Muller GmbH, Ampacet Corporation and Cromex S.A. among others. Product innovations, joint venture & partnerships, mergers & acquisitions, and geographical expansions are some of the key strategies adopted by these companies to ensure long term sustenance in the flame retardant masterbatches market.

In April 2016, Clariant S.E., one of the key players operating in the global flame retardant masterbatches market started an additional capacity for phosphate esters at its plant in Gendrof, Germany in order to extend the existing production at its Knapsack facility for specialty chemicals and flame retardants.

Historical & Forecast Period

Our study analyzed each market segment during the period of 2016 to 2026 with 2017 as the base year. Forecast period between 2018 and 2026 considered for the CAGR calculation.