"High demand for halogen free flame retardant PP in construction sector is projected to drive the market growth over the forecast period"
The global low smoke halogen free flame retardant polypropylene (PP) market was worth USD 412.7 million in 2015 and is expected to witness a significant growth owing to its usage in industries such as construction, automotive, industrial, and electrical & electronics. Growing safety concern regarding fire has resulted in the rise of the demand for PP based flame retardant products.
The fire has been a major threat to the industrial and commercial sector for a long time. To overcome these issues, various fire safety regulations are introduced across the globe. The end-use industries need to comply with these regulations to gain sustainability in the market. There has been an increase in the usage of polypropylene in the key end-use industries, such as automotive, construction, and electrical applications. Flame retardant polymers, such as polypropylene, restrict the spread of fire and thus protect the device as well as the immediate environment.
Government regulatory support for halogen-free flame retardants is presumed to play a critical role in aiding the global market. Concerns regarding the environmental, health and fire safety issues of halogen based flame retardants are touted to result in a shift towards consumption of their halogen-free counterparts. The growth of the major end-use industries such as construction and automobiles, particularly in emerging regions such as China, India, Russia, and Brazil are slated to drive the regional as well as global low smoke halogen free flame retardant polypropylene market.
Manufacturing low smoke flame retardant PP products is a relatively expensive process, and volatility in raw material prices is expected to restrain industry expansion. However, technology advancement and development of alternative raw materials are expected to open new avenues over the forecast period.
U.S. low smoke halogen free flame retardant polypropylene (PP) market revenue by application, 2014 - 2024 (USD Million)
"Construction application was the largest segment in 2015"
The construction industry dominated the global industry. In 2015 the demand in construction industry was valued at USD 131.2 million. The industry is growing at a significant pace owing to its development in emerging and developing countries such as Brazil, Indonesia, Malaysia, Chile, Thailand, and India. The construction industry is one of the major contributors to the growth in the GDP in these countries.
The automotive industry is also witnessing a substantial growth from past few years. With the growing trend and development for latest technology, the demand for halogen-free PP products is rising in the sector.
The application for flame retardant PP products in the other areas such as industrial, textile, furniture, packaging, and labeling is also observing a potential growth. With a rise in fire safety concern and increasing government regulations regarding this, these industries are also trying to develop the new and advanced technology.
"Asia Pacific is expected to surpass North America to become the largest market by 2024"
North America low smoke halogen free flame retardant PP market led the global industry and accounted for 32.5% of global demand in 2015. The region is one of the biggest manufacturers of the product with the presence of latest technology, innovation and effective government rules and regulation.
Asia Pacific is expected to surpass North America to lead the global industry over the next eight years. The region has potential developing & emerging countries such as India, China, Indonesia, Malaysia, Sri Lanka, and Thailand. These countries are witnessing a major growth in construction and electrical & electronics industry due to which low smoke PP market is also expected to grow.
An economic slowdown in China has resulted in the shift of all foreign investments in the Southeast Asian countries. Due to this, there is a growth in the construction industry, owing to which the halogen-free PP industry is also growing.
"The market is highly consolidated in nature this makes it highly comparative"
The low smoke halogen free flame retardant polypropylene (PP) industry is a highly consolidated market. The industry is dominated by big players, which are less in number. Many of these companies are regional and does not have a global presence. The technology for manufacturing product is highly cost driven. Moreover raw material and initial investment cost are also very high. Due to which it is tough for new companies to enter the market.
The competition among giant companies is very high resulting in the high cost of the product. The presence of less number of manufacturer and distributors in the market makes it highly competitive. Major industry participants include Huber Engineered Materials, Israel Chemicals Ltd., Chemtura Corporation, Clariant International Ltd, BASF SE, Thor Group, and Lanxess A.G.
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