Flame retardants restrain or delay flame production to avert the spread of fire. These are added (additive) or chemically bonded (reactive) to the base material to induce fire retardancy to the manufactured products, mostly polymers and textiles. Non-halogenated flame retardants are devoid of halogens, which were earlier considered essential in flame retardants’ composition. Efficiency of some non-halogenated retardants is still compared to that of halogenated options available. However, with technology innovations, this gap has also been covered by many manufacturers. Flame retardants address the needs of durability, safety and insulation in various applications. These produce less smoke and heat emissions apart from being recyclable, therefore being more preferable over bioaccumulation causing halogens hazardous for human health and environment. In addition to strict regulatory policies, many countries have banned the use of halogenated retardants, thus supporting the growth of this industry. REACH and WEEE in Europe, Environmental Protection Agency in USA and CEPA in Canada are a few associations safeguarding consumers and environment by regulating flame retardant policies. The market conditions have been favorable, presenting growth opportunities for the non-halogenated flame retardants market. However, processing them involves high loading levels and many drawbacks. These factors are likely to hinder its market growth.
Aluminium hydroxide was the highest consumed segment of non-halogenated flame retardants in terms of volume and is expected to be the dominating segment for the forecasted period 2014 to 2020 growing at an estimated CAGR of 7.1%. Phosphorous based retardants segment has emerged with a revenue contribution of over 50% in 2013. Growing at an estimated CAGR of 8.3%, it is likely to be the highest revenue generator in the products’ segment in spite of being the lowest consumed segment.
Key applications of non-halogenated flame retardants have been in the segment of polyolefins, followed by epoxy resins and UPE in terms of revenue as well as volume in the year 2013. These 3 segments are expected to continue this trend, growing at an estimated CAGR above the estimated industry CAGR of 7.3% (volume) and 8.2% (revenue). The lowest performing segment has been that of styrenics in terms of volume share and revenue while rubber is expected to be the slowest growing segment with an estimated CAGR of 6.4% (volume) and 6.5% (revenue) for the forecasted period of 2014 to 2020. PVC, ETP and other niche applications make up for rest of the segmentation.
End Use Industry Insights
Non-halogenated flame retardants were used widely in the construction sector. This consumption produced proportional share with over 35% revenue generated in the year 2013. The fastest growing is the electrical segment with an estimated CAGR of 7.8% in volume and 8.7% in revenue, both well above the consolidated market CAGR till 2020. Volume and revenue share was least for furniture and textiles in 2013 and is expected to perform similarly for the forecasted period.
North America, with its strict safety legislations, was a dominant consumer of this market with over 40% of the volume share and is expected to continue with an estimated CAGR of 7.0% till 2020. It is followed by Europe and Asia Pacific. Volume consumption was least for RoW with share little over 2%. This can be attributed to the leniency followed in fire control regulations. However it is the fastest growing regional segment with an estimated CAGR of 8.9% in terms of volume and 10.1% in terms of revenue for the forecasted period of 2014 to 2020 as new approaches of fire control and safety are being adopted increasingly.
Non-halogenated flame retardants market is fragmented with a number of players accounting for more than 60% of the market share. Some of the leading companies operating in the global market include Albemarle, ICL, Chemtura, Clariant International Ltd., Italmatch Chemicals, Albemarle Corporation, Huber Emgineered Materials, BASF, Thor Group Ltd., Lanxess AG, DSM, FRX Polymers, Nabaltec AG, Delamin and Dupont.