At 5.7% CAGR, Asia Pacific Flame Retardants Market is Projected to be Worth US$ 5,259.71 Million by 2031, says Business Market Insights

According to Business Market Insights’ research, the Asia Pacific flame retardants market was valued at US$ 3,382.13 million in 2023 and is expected to reach US$ 5,259.71 million by 2031, registering a CAGR of 5.7% from 2023 to 2031. Soaring demand from electrical & electronics industry and advancements in flame retardant technologies are among the critical factors attributed to driving the Asia Pacific flame retardants market growth.

The soaring demand from the electrical & electronics industry is propelling the need for flame retardants, primarily due to the increasing complexity and ubiquity of electronic devices. As the global market for electronics grows, fueled by consumer demand for smartphones, tablets, laptops, and other smart devices, the need for materials that ensure these products are safe and reliable becomes paramount. According to the International Data Corporation (IDC), 41.6 billion Internet of Things (IoT) devices capable of generating 79.4 zettabytes (ZB) of data will be in use by 2025. This exponential increase in data traffic over the Internet is due to the growing penetration of smartphones and other consumer electronics that can be connected to the Internet due to the rising popularity of IoT. The increasing penetration of IoT devices, which include smart home gadgets, wearable technology, industrial sensors, and connected appliances, is becoming ubiquitous in both consumer and industrial settings. According to Invest India, the global electronics manufacturing services market is anticipated to reach US$ 1,145 billion by 2026, at a CAGR of 5.4% during 2021–2026. The India Brand Equity Foundation states that the Indian electronics manufacturing industry is projected to reach US$ 520 billion by 2025. Flame retardants are essential in this context because they help prevent fires by inhibiting or slowing the spread of flames. This protection is critical in devices that generate heat or are prone to electrical faults, ensuring that they meet stringent safety standards and regulatory requirements. Additionally, the trend toward miniaturization and higher performance in electronic devices amplifies the demand for flame retardants. As devices become smaller and more powerful, they generate more heat, increasing the risk of fire hazards. To mitigate these risks, flame retardants are integrated into various components such as circuit boards, connectors, casings, and cables. The increasing adoption of electric vehicles, renewable energy systems, and smart home technologies also contributes to this demand. These applications require robust safety measures to protect against potential electrical fires, making flame retardants indispensable in their production. Consequently, the rapid expansion of the electrical & electronics industry, driven by technological advancements and consumer demand for safer and more reliable devices, is a key driver for the growing flame retardants market.

On the flip side, stringent regulations on flame retardants hamper the growth of Asia Pacific flame retardants market.

By type, the Asia Pacific flame retardants market is bifurcated into halogenated and halogen-free. In addition, halogenated is sub segmented into bromine-based and chlorine-based, and halogen-free is sub segmented into phosphorus-based, aluminum hydroxide, magnesium hydroxide, and others. The halogenated segment held 61.1% share of Asia Pacific flame retardants market share in 2023, amassing US$ 2,066.42 million. It is projected to garner US$ 3,128.63 million by 2031 to register 5.3% CAGR during 2023–2031.

In terms of end-use industry, the Asia Pacific flame retardants market is segmented into building and construction, automotive and transportation, electrical and electronics, textiles, and others. The building and construction segment held 28.0% share of Asia Pacific flame retardants market share in 2023, amassing US$ 947.34 million. It is projected to garner US$ 1,500.61 million by 2031 to register 5.9% CAGR during 2023–2031.

Based on country, the Asia Pacific flame retardants market is categorized into Australia, China, India, Japan, South Korea, and the Rest of Asia Pacific. Our regional analysis states that China captured 59.2% share of Asia Pacific flame retardants market in 2023. It was assessed at US$ 2,002.63 million in 2023 and is likely to hit US$ 3,212.87 million by 2031, registering a CAGR of 6.1% during 2023–2031.

Key players operating in the Asia Pacific flame retardants market are ADEKA CORPORATION; AIR WATER INC; Albemarle Corp; Alpha Calcit Füllstoff GmbH & Co. KG; Avient Corp; BASF SE; Celanese Corp; Clariant AG; Domo Chemicals GmbH; Georg Nordmann; Greenchemicals S.r.l; ICL Group Ltd; Italmatch Chemicals S.p.A; J.M. Huber Corporation; Konoshima Chemical Co., Ltd.; Lanxess AG; Marubeni Corp; Nabaltec AG; RTP Company; and THOR Group Ltd; among others.

• In June-2024: CAI Performance Additives announced the launch of cost effective and sustainable flame retardant synergist that delivers exceptional performance and cost savings for a wide range of plastic applications.

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