Gains will be driven by increasingly stringent fire codes and flammability requirements, especially in building materials and consumer products. An improved economic outlook in key applications, such as wire and cable insulation and jacketing, electronics housings, and aerospace products, will fuel demand.
Phosphorus-based flame retardants will grow at the fastest pace, driven by increasing trends toward non-halogenated products. However, brominated compounds will continue to lead the market in total value, as the regulatory climate in the United States is unlikely to undergo dramatic changes in the near future. Rapid gains are also expected for smaller-volume flame retardants, such as magnesium hydroxide, which is finding increased use in polypropylene and engineering resins. Alumina trihydrate (ATH) will remain the largest-volume flame retardant through 2011, comprising 45% of demand and growing in line with the market as a whole.
Construction products were the largest market for flame retardants in 2006, accounting for one-third of demand by volume. Strongest gains are projected for flame retardants in wire and cable applications, representing a substantial turnaround from declining demand during 2001 to 2006. A similar improvement is expected in electrical and electronic product demand for flame retardants. Smaller-volume outlets such as aerospace products and furniture will grow at an above-average pace, driven by strict flammability regulations. Flame retardants demand in motor vehicle and textile markets will advance at a slower rate, although not much below overall growth for the industry.
For further details, contact Corinne Gangloff at 440/684.9600.