Market Study: Flame Retardants (5 th ed.)

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1 Market Study: Flame Retardants (5 th ed.)

2 Dear decision-makers, Nowadays, information is available in overwhelming amounts. But what is the best way to find the crucial data? Thousands of companies use our knowledge. Based on our experience, we provide decisive data for our clients. Our extensive and practiceoriented studies offer precise market analyses and forecasts! Why should you make use of our knowledge? Our understanding of the markets helps you to assess potentials, products, and technologies, but also competitors. Our studies will help you save time and prevent costly wrong decisions. That way, you can create an ever more effective and efficient future for your company. We are your experts Ceresana has been the most trusted market research company for the industrial sector already for 15 years. We would be pleased to assist you in this challenging market environment as well! Oliver Kutsch, CEO Ceresana Our Market Studies Your Strategic Planning Your Success Your competent partner for market studies: Experienced and neutral experts Quantitative and qualitative primary and secondary market research Reliable and objective survey, analysis, forecast, and preparation of data Expertise in branches, legal situation, innovations, and technologies The basis for your strategic planning: Analysis of attractiveness and current situation of the market Analysis of the future development of the market Analysis of competitors Analysis of customer industries Analysis of supply industries With our studies you will recognize: Current market trends and developments on time Ideal procurement and sales markets Relevant future markets and target groups Risks and market chances on time Candidates for mergers and acquisitions as well as divestments The strategic planning enables you to: Restructure your product portfolio Evaluate current and potential locations Plan and develop new marketable products Better adapt to needs and requirements of customers Deal with future markets 2

3 The catastrophic fire at Grenfell Tower in London has shown how important fire protection is. Flame retardants can delay the development of fires: They provide the fire department and those affected with crucial minutes and seconds for the rescue. Flame retardants act in chemical and physical ways by interrupting the burning process in different phases, i.e. during heating, thermal degradation, combustion, or spread of flames. Overall, about 2.21 million tonnes of flame retardants per year are used in plastic products, electronic devices, construction material, and textiles. Ceresana analyzed the world market for the fifth time already: for brominated and chlorinated flame retardants, as well as ATH, organophosphorus, ATO, and other types. The present study provides both figures of demand and revenues for the overall market as well as demand volume for the particular types of flame retardants and their applications. Use of Flame Retardants - Often Indispensable The construction industry is the most important sales market: About 30% of global demand originate in this segment. Flame retardants are often used in insulating foams made of expandable polystyrene (EPS), extruded polystyrene (XPS), polyvinyl chloride (PVC) or polyurethane (PUR). Flame retardants are also used in numerous onstruction materials made of rubber, in adhesives as well as in paints and varnishes. In the electronics industry, they are used for components such as circuit boards, computer casings, as well as household and telecommunication devices. They are utilized in engineering plastics such as ABS, polyamide, epoxy, and polycarbonate. Other applications are wires, cables, and products for the automotive industry. Until 2024, Ceresana expects demand for flame retardants in the segment transportation to experience the strongest percentage growth. However, construction materials will continue to be the largest application in the upcoming eight years. One Flame Retardant, Many Applications Aluminum trihydroxide (ATH) was by far the bestselling flame retardant in recent years. ATH is used in the pharmaceutical industry, as a chemical intermediate, as a filler in plastics, rubber, cosmetics, and paper, as a glass additive, and in ceramics. Additionally, ATH is used as a non-smoke emitting, low toxicity, halogen-free flame retardant used for plastics, paints, adhesives, sealants, and rubber. Demand for the flame retardant ATH in Europe and the Americas amounts to over 45%. Brominated compounds, used in electronic and electrical products as well as foams, are in second place. Brominated flame retardants are very effective but also controversial. Due to legal provisions, there are significant regional differences: In Western Europe and North America, brominated compounds had market shares of only 6.4% and 12%, respectively, while accounting for 28% in Asia. The Study in Brief: Chapter 1 provides a description and analysis of the global market for flame retardants including forecasts up to 2024: Demand and revenues are provided for each world region. Chapter 2 analyzes the 16 most important countries and their flame retardants revenues and demand in detail. Demand is split by single applications and product types. Additionally, all important manufacturers of flame retardants are listed according to countries. Chapter 3 offers a substantiated analysis of the application for flame retardants: construction materials, electrical & electronics, cables, transport industry, and others. Chapter 4 examines demand for individual types of flame retardants: ATH, brominated compounds, chlorinated compounds, organophosphorus, antimony compounds (ATO), and other. Demand is clearly arranged for each of the 16 countries analyzed in chapter 2 and all world regions. Chapter 5 provides company profiles of the largest manufacturers clearly arranged according to contact details, revenues, profit, product range, production sites, profile summary, and products. In-depth profiles of 82 producers are given, including Akzo Nobel N.V., Aluminum Corp. of China Limited (CHALCO), BASF SE, Huber Engineered Materials, INOVYN ChlorVinyls Limited, Rio Tinto Group, Saudi Basic Industries Corp. (SABIC), The Dow Chemical Company, Tosoh Corp., and Wanhua Chemical Group Co., Ltd. 3

4 1 Market Data 1.1 World Demand Revenues 1.2 Western Europe Demand Revenues 1.3 Eastern Europe Demand Revenues 1.4 North America Demand Revenues 1.5 South America Demand Revenues 1.6 Asia-Pacific Demand Revenues 1.7 Middle East Demand Revenues 1.8 Africa Demand Revenues 2 Country Profiles 2.1 Western Europe France Germany Italy Spain United Kingdom Other Western Europe 2.2 Eastern Europe Poland Russia Turkey Other Eastern Europe 2.3 North America Canada Mexico USA 2.4 South America Brazil Other South America 2.5 Asia-Pacific China India Japan South Korea Other Asia-Pacific 1,000 tonnes Global demand for flame retardants from 2008 to split by applications 3 Applications 3.1 World Construction Materials Electrical & Electronics Wires & Cables Transportation Other Applications 3.2 Western Europe 3.3 Eastern Europe 3.4 North America 3.5 South America 3.6 Asia-Pacific 3.7 Middle East 3.8 Africa 4 Product Types 4.1 Aluminum Trihydroxide (ATH) World West Europe East Europe North America South America Asia-Pacific Middle East/ Africa 4.2 Brominated Compounds 4.3 Chlorinated Compounds Example from chapter 1 Market analyses of demand and revenues Construction Materials Electrical & Electronics Wires & Cables Transport Industry Others 4.4 Organophosphorus 4.5 Antimony Compounds(ATO) 4.6 Other Flame Retardants 5 Company Profiles 5.1 Western Europe Austria (1 Producer) Belgium (3) France (2) Germany (7) Italy (1) Sweden (1) Switzerland (1) The Netherlands (3) United Kingdom (5) 5.2 Eastern Europe Czechia (1) Poland (1) Russia (1) Slovakia (1) Turkey (1) 5.3 North America USA (12) 5.4 Asia-Pacific Australia (1) China (9) India (4) Japan (24) Taiwan (1) 5.5 Middle East Israel (1) Saudi Arabia (1) 4

5 1.4 North America 1,000 tonnes Chapter 1: Market data for 7 world regions and major countries: Total demand Total revenues the next eight years. Given the below-average growth rate, the North American share of global demand is likely to decline to about XXX% in The market value of flame retardants sold in North America rose at an average rate of XXX% p.a. to USD XXX billion in We forecast revenues to continue to rise by XXX% p.a. in the upcoming eight years. Graph: Demand for flame retardants in North America from 2008 to 2024 in million tonnes billion USD billion EUR Canada X X X X X X X X X X% p.a. Mexico X X X X X X X X X X% p.a. Graph: Revenues generated with flame retardants in North America from 2008 to 2024, in billion USD and billion EUR USA X X X X X X X X X X% p.a. Total X X X X X X X X X X% p.a. Table: Demand for flame retardants in North America from 2008 to 2024 split by major countries Around XXX million tonnes of flame retardants were processed in North America in North America is the second largest sales market, surpassed only by Asia-Pacific. The North American demand is dominated by the USA; this country accounts for about XXX% of total demand. We expect demand to increase to approx. XXX tonnes during France Demand on the part of French processors of flame retardants amounted to XXX tonnes in Thus, market volume had decreased by an average of XXX% p.a. since We forecast demand to increase to approx. XXX tonnes by the end of our forecasting horizon. In 2016, flame retardants were most commonly used in the segment construction materials. Between 2016 and 2024, demand in the segment electrical & electronics is likely to experience the strongest percentage growth at a rate of XXX% p.a. In 2016, French economic growth amounted to 1.2%; for the year 2017, we also expect further growth by approx. 1.4%. Mainly private consumption and the companies willingness to spend were responsible for the growth in Private investments are mainly reflected by the rising construction economy but also by the sales of long-lived consumer goods. In 2016, wage level rose and prices decreased. This combination led to rising consumption. In 2017, private consumption and investments of companies will continue to be two important factors for GDP growth. Furthermore, the continuously sinking unemployment rate and the progressing modernization of the industry promised by the new government will contribute to another growth. Therefore, we expect GDP growth to rise constantly in the upcoming years and to amount to approx. 1.7% in Rising private consumption will also increase demand for E&E and thus demand for flame retardants in this segment. With the exception of 2011, investment in both structural engineering and underground construction declined since However, due to increasing building permits as well as rising numbers of sales of apartments, an upward trend has been perceivable since The number of beginnings of new constructions is rising as well: In 2014, beginnings of new constructions rose to approx. 359,000 units. In 2015, this amount even rose slightly, and in 2016, further increases compared to the previous year were registered as well. We forecast another growth for 2017 as well. Residential demand of up to apartments every year until 2030 will presumably persist. In the years to come, about EUR 2 billion are to be invested in residential construction and city development in Greater Paris. The positive development of the construction industry will also have positive effects on the demand for flame retardants. As in the previous year, the French automotive industry recovered in Due to increasing demand originating in the South European countries, production of passenger cars as well as the sales of new cars rose. In the first five months of 2017, sales of passenger cars and light commercial vehicles continued to increase as well. Sales of trucks and buses also accounted for high growth rates, among others due to the ban on old commercial vehicles. The total number of new vehicle registrations increased further and amounted to around 2.48 million units in However, the emissions scandal had a negative impact on the sales of diesel vehicles. Accordingly, sales of vehicles with a diesel engine decreased considerably in We assume that the market for diesel vehicles will continue to decline in the future after the introduction of the new environmental badges in July In contrast, demand for electric cars increased further due to high subsidies. Thus, France became the largest European market for hybrid and electric cars in the first quarter of The upswing of the French automotive industry continued in The market analysts of Ceresana expect vehicle production to increase further. The supply industry was also able to increase its revenues. Especially suppliers of components could generate a strong growth in the past years due to the increasing demand from the German automotive industry. In the upcoming years, this will have a positive effect on the demand for flame retardants in these segments. 5

6 in 1,000 tonnes Construction Materials Electrical & Electronics X X X X X X X X X X% p.a. X X X X X X X X X X% p.a. Wires & Cables X X X X X X X X X X% p.a. Transportation X X X X X X X X X X% p.a Applications - Electrical & Electronics Flame retardants are used in a wide variety of electronic products, including single components such as printed circuit boards, housing for monitors, computers, domestic appliances, and telecommunications equipment. They can mainly be found in engineering plastics such as ABS, polyamide, polycarbonate, and PUR, but also in products made of conventional plastics like polyethylene, polypropylene, and PVC. Other X X X X X X X X X X% p.a. Total X X X X X X X X X X% p.a. Table: Demand for flame retardants in France from 2008 to 2024 split by applications in 1,000 tonnes ATH X X X X X X X X X X% p.a. Brominated compounds Chlorinated compounds Organophosphorus Chapter 2: Data for 16 countries: Total demand Total revenues Demand split by applications Demand split by products Manufacturers of flame retardants X X X X X X X X X X% p.a. X X X X X X X X X X% p.a. X X X X X X X X X X% p.a. ATO X X X X X X X X X X% p.a. Other X X X X X X X X X X% p.a. Total X X X X X X X X X X% p.a. Table: Demand for flame retardants in France from 2008 to 2024 split by types of flame retardants Worldwide, about XXX tonnes of flame retardants were consumed in the segment electrical & electronics in We forecast global consumption of flame retardants in this segment to increase at an average rate of XXX% p.a. to a volume of approx. XXX million tonnes in ,000 tonnes Chapter 3: Demand per region & country split by applications: Construction Materials Electrical & Electronics Wires & Cables Transportation Other Applications Western Europe Eastern Europe North America South America Asia-Pacific Middle East Africa Revenues generated with flame retardants amounted to EUR XXX million in We expect market value to increase by XXX% p.a. during the next eight years. XXX and XXX are two important producers of flame retardants in France. Graph: Global demand for flame retardants in the segment electrical & electronics from 2008 to 2024 split by regions Major consumers of flame retardants are Asian-Pacific countries, processing XXX tonnes in 2016, followed by Western Europe and North America. In 2024, Asian-Pacific demand will continue to assume the leading position with presumably XXX tonnes. Between 2016 and 2024, strongest percentage growth is projected for the Middle East. in 1,000 tonnes Western Europe X X X X X X X X X X% p.a. Eastern Europe X X X X X X X X X X% p.a Products Aluminum Trihydroxide - Asia-Pacific In 2016, about XXX tonnes of ATH were processed, constituting an average increase of XXX% p.a. when compared to About XXX% of the ATH consumed in this region were processed in China. During the next eight years, India will experience the strongest percentage growth at average rates of XXX% p.a. Over the next eight years, total demand for ATH will increase at an average of XX% p.a. to approx. XXX tonnes. North America X X X X X X X X X X% p.a. South America X X X X X X X X X X% p.a. Asia-Pacific X X X X X X X X X X% p.a. Middle East X X X X X X X X X X% p.a. Africa X X X X X X X X X X% p.a. Total X X X X X X X X X X% p.a. Table: Global demand for flame retardants in the segment electrical & electronics from 2008 to 2024 split by regions in 1,000 tonnes China X X X X X X X X X X% p.a. India X X X X X X X X X X% p.a. Japan X X X X X X X X X X% p.a. South Korea X X X X X X X X X X% p.a. Other X X X X X X X X X X% p.a. Total X X X X X X X X X X% p.a. Table: Demand for ATH in Asia-Pacific from 2008 to 2024 split by major countries Chapter 4: Demand split by products: Aluminum Trihydroxide (ATH) Brominated Compounds Chlorinated Compounds Organophosphorus Antimony Compounds (ATO) Other Flame Retardants 6

7 Financial Key Data (in billion EUR) ,16 0,19 0,17 0,05 Lanxess AG Kennedyplatz Cologne Germany Tel.: Web: Jahresergebnis Umsatz General Information about the Company Divisions, Product Range The company is active in the following business segments which are grouped into the three sectors High Performance Materials, Advanced Intermediates, and Performance Chemicals. Additives Advanced Industrial Intermediates Inorganic Pigments Liquid Purification Technologies High Performance Materials Leather Material Protection Products Rhein Chemie Saltigo Urethane Systems Chapter 5: Data and facts on 82 producers, clearly arranged by: Financial key data Production sites Profile summary 7,70 7,90 8,00 8,30 Production Sites Profile Summary The company operates 52 production sites located in: Europe (Belgium, Germany, France, the United Kingdom, Italy, the Netherlands, Austria, Poland, Russia, Switzerland, Slovakia, Spain, Turkey, the Ukraine, and Hungary) North America (Canada, USA) Latin America (Argentina, Brazil, Mexico, and Uruguay) Asia (Australia, China, India, Japan, Singapore, South Korea, and Vietnam) The Middle East (United Arab Emirates) Africa (South Africa) LANXESS is a company for specialty chemicals rooting back to 1863, when Bayer was founded as well. In the process of restructuring the business activities of Bayer in early 2005, the majority of the chemistry and about a third of the plastics business units were spun-off and transferred to the newly founded company LANXESS. LANXESS is listed on the MDAX on the Frankfurt Stock Exchange. In 2016, 16,721 people were employed. In December 2016, total assets amounted to EUR 9.88 billion and about EUR 131 million were invested in research and development. Split by business segments, 27.8% of the 2016 sales were generated in the segment Performance Chemicals, 22.6% in Advanced Intermediates, 13.7% in High Performance Materials, 35.2% in ARLANXEO, and 0.6% in Reconcilition. Split by regions, 29.3% of the 2016 sales were generated in the EMEA (Germany excluded), 26.5% in Asia-Pacific, 16.8% in Germany, 17.2% in North America, and 10.2% in Latin America Specific Information about Flame Retardants Lanxess' flame retardants are part of the business division additives in the segment High Performance Materials. The company markets a broad range of flame retardants based on phosphorus, bromine, and antimony. This includes product lines like Durethan, which is the brand name for Polyamid 6 Chapter 5: Detailed profiles of the most important producers, such as Akzo Nobel, BASF, CHALCO, Dow Chemical, Huber, INOVYN, Rio Tinto, SABIC, Tosoh, and Wanhua. and Polyamid 66 as well as Pocan. Brominated flame retardants are marketed under the brand name "Firemaster" for the electronics and construction industries and under the brand name "Emerald Innovation". In 2017, the products "Firemaster" and "Emerald innovation" were integrated into This study is useful for: Manufacturers and distributors of aluminum trihydroxide (ATH), brominated compounds, chlorinated compounds, organophosphorus, antimony compounds (ATO), and other flame retardants Manufacturers of construction material, electrics & electronics, cables, vehicles, and many more Associations and institutes Executive board, technology and production, strategic planning, R&D, market research, marketing, sales and distribution, procurement Place your order now: Market studies or Free reading samples Online at or via order@ceresana.com - quickly and easily. 7

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9 The following list includes all market studies by Ceresana. By clicking on the respective topic, you will get further information: Adhesives - Europe Adhesives - World Ammonia - World Antioxidants - World Automotive Coatings - World Automotive Plastics - World Bags & Sacks - Europe Bags & Sacks - World Benzene - World Biocides - World Bioplastics - World Bitumen - Europe Butadiene - World Butadiene Rubber (BR) - World Butanol - World Caps & Closures - Europe Carbon Black - World Catalysts - World Chelating Agents - World Composites (CFRP & GFRP) - World Construction Plastics - World Corrugated/ Solid Board/ Carton - Europe Crop Protection - World Engineering Plastics - World Ethylene - China Ethylene - USA Ethylene - World Expandable Polystyrene - World Fertilizers - Europe Fertilizers - World Fillers - World Flame Retardants - World Flavors - World Flexible Packaging - Europe Food Packaging - Europe Fragrances - World Hydrofluoric Acid & Fluorochem. - World Insulation Material - Europe Insulation Material - World Labels - Europe Masterbatches - World Paints & Varnishes - Europe Paints & Varnishes - World Petrochemicals & Plastics - Iran Pigments - World Pipes - Europe Plastic Additives - World Plastic Bottles - Europe Plastic Caps & Closures - Europe Plastic Caps & Closures - World Plastic Containers - Europe Plastic Containers - World Plastic Extrusion - World Plastic Films - Europe Plastic Films - World Plastic Injection - World Plastic Pipes - Europe Plastic Pipes - World Plastic Windows - World Plasticizers - World Plastics - Europe Plastics - World Polyamide (PA6 & PA66) - World Polyethylene (HDPE) - World Polyethylene (LDPE) - World Polyethylene (LLDPE) - World Polypropylene - World Polystyrene - World Polyurethanes & Isocyanates - World Polyvinyl Chloride (PVC) - World Printing Inks - Europe Printing Inks - World Propylene - China Propylene - USA Propylene - World PUR - Adhesives & Sealants - World PUR - Paints & Coatings - World Rigid Metal Packaging - Europe Silicones - World Solvents - World Stabilizers - World Styrene - World Styrene-Butadiene Rubber (SBR) - World Surfactants - World Synthetic Rubber - World Thermoplastic Elastomers - World Titanium Dioxide - World Toluene - World Urea - World Windows & Doors - Europe Xylene - World

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