Flame Retardant Polyamide Market Size, Share & COVID-19 Impact Analysis, By Type (Halogen Type, and Halogen-free Type, By Application (Electrical Application, Automotive, and Others), and Regional Forecast, 2021-2028

The global flame retardant polyamide market size was USD 736.4 million in 2020. The market is projected to grow from USD 809.1 million in 2021 to USD 1,468.5 million in 2028 at a CAGR of 8.9% during the 2021-2028 period. The global impact of COVID-19 has been unprecedented and staggering, with the product witnessing a negative demand shock across all regions amid the pandemic. Based on our analysis, the global market exhibited a decline of 6.2% in 2020. The sudden rise in CAGR is attributable to this market’s demand and growth, returning to pre-pandemic levels once the pandemic is over.  

Flame retardant polyamide is a specialty polymer with fire inhibiting properties. These chemicals are added to products such as foams, computers, mattresses, electric wires, automotive parts, and insulation materials. The growing product utilization in electrical & electronic components such as printed circuit boards, electronic castings, and circuit processing are anticipated to surge the market growth. The implementation of stringent fire regulations concerning the safety of the consumer is driving the adoption of the polymer. Furthermore, the technological advancements in polyamide will boost the demand from the automotive industry. However, the environmental impact associated with halogen-based flame retardants will hamper the market growth.

COVID-19 IMPACT  

Reduced Demand for Consumer Electronics to Decline the Demand for Flame Retardant Polyamide

Several countries, including the U.S., India, and China imposed restrictions on the movement of both material and men, leading to disorganization in the supply chain of the product manufacturers. The sales of several companies have been thoroughly distressed by COVID-19, as the polyamide manufacturers faced a shortage of supply owing to trade restrictions in industrial countries, including India and China. In response to this shortage of raw materials, the manufacturers limited flame-retardant polyamide production. The market players dealt with a decline in demand as the electronic industry faced a shortage of raw material, labor and sink in consumption of consumer electronics. Additionally, disturbances in the automotive industry also affected the demand for flame retardant polyamide.  

LATEST TRENDS

Rising Adoption by the Automotive Industry to Fuel Market Growth

The rising use of flame retardant polyamide in the automotive industry is projected to offer impetus to the market. Parts and components of an automotive such as HV connector, AC contactor, and automotive panel contain some quantity of the product. Advantages including ignition prevention due to overheating and improved toughness & mechanical strength will boost the adoption of flame retardant polymers. Strict fire and safety rules employed by the government and the associations are increasing the product consumption by the automotive manufacturers. Furthermore, technological advancement in polyamides will support the product demand in the automotive industry. Various players in the market are developing efficient flame-retardant polyamide to meet consumer requirements. In 2021, Asahi Kasei has innovated LEONA SN, an E&E qualified Polyamide 66, which features surface quality and superior laser printability.

DRIVING FACTORS

Increasing Demand from Electronics Industry to Flourish Market Development

This market is growing rapidly owing to the product’s demand from the electronics industry. Characteristics of the polymer such as flame retardant characteristics, hardness, and thermal stability drive the incorporation of the product in electric appliances. The product is mainly adopted in electric connectors and batteries. The rapidly growing demand for smartphones, tablets, and laptops has created an ever-increasing need for high-density energy storage and rapid energy restoration. The demand for flame retardant polyamide grew with the increase in energy density, the risk of fire from overheating or short circuits rises, necessitating improved battery enclosure fire safety and protection. Additionally, the expansion of the electronics industry due to increased consumer spending on electronic products will boost the consumption of the polymer.

RESTRAINING FACTORS

Stringent Regulations over Use of Halogenated Products to Hamper Market Growth

Halogenated compounds play an important role in the market. Several electronic, consumer, and commercial products are treated with halogenated flame retardants to prevent them from burning when exposed to a spark. However, the halogenated type of flame retardant exerts detrimental effects on human and environmental health. As per National Center for Biotechnology Information, exposure to halogens leads to severe human health issues such as reproductive toxicity, thyroid disruption, neurologic dysfunction, and cancers. Such factors have forced several governments to pass stringent regulations for the use of halogen-based products. These factors could affect product consumption slightly.

SEGMENTATION

By Type Analysis

Halogen Type to Witness High Demand during the Forecast Period

Based on type, the market is classified into halogen type and halogen-free type. The halogen type segment held the largest share of the market in 2020. This type includes bromine and chlorine-based flame retardants that resist heat and fire damage for polyamide products. The segment's growth is associated with its widespread use in the electrical & electronics industry. Halogenated-flame retardant polyamide is used to manufacture electronic castings, printed circuit boards, and circuit processing.

The halogen-free flame retardants include compounds such as phosphorus and metal oxides added to polyamide to impart flame retardant properties to the polymer product. The segment is calculated to witness rising demand owing to the increasing awareness about the impact of petroleum-based flame retardant on the environment.

By Application Analysis

Electrical Appliances Segment to Exhibit Fastest Growth Due to Rising Consumer Goods Demand

Based on application, the market is segmented into electric appliances, automotive, and others. The growth of the automotive segment is characterized by the technological advancements in the industry and the increasing incorporation of sustainable and energy-saving products. For automotive applications, technological breakthroughs and innovations in flame-retardant polyamide will provide a better consumer experience.

The growth of the electric appliances segment can be attributed to the increasing use of the product as plastic casings of electronic equipment such as televisions, gaming systems, and washing machines. Flame retardants reduce accidents occurred through electric sparks, overheating, and melting. The others segment includes the use of the polymer in wire & cables, building & construction, and transportation applications where polyamides are used for outer covering, furniture, textile, and insulation applications. Rising consumerism has resulted in high product consumption, thereby leading to segment growth.

REGIONAL INSIGHTS

The flame retardant polyamide market share in Asia Pacific stood at USD 362.7 million in 2020. The region is the largest hub of electrical & electronics products, and most consumer electronics are manufactured and consumed in the region. Moreover, the presence of major manufacturers and the rising construction activities resulting from population growth are driving the market in this region.

Implementation of stringent rules and regulations about fire safety is driving the product demand in North America. This factor has provoked the manufacturers to incorporate flame retardant additives in polymers to enhance the properties and durability of finished goods to use in high-temperature conditions.

The product demand in Europe is governed by the increasing use of the polymer for automotive applications, combined with regulations by countries emphasizing the use of fire retardants in automotive components. In Latin America, the growth is attributed to flame retardant polyamide for manufacturing airplane and ship parts such as flooring, seats, lavatories, ceilings, and sidewalls bag racks. The rise in construction and industrialization activities in the developing countries of the Middle East & Africa will aid in the expansion of the market in the region.

KEY INDUSTRY PLAYERS

Innovation of New Products to Offer Strategic Growth to Market Players          

The leading companies in the market are Dupont, BASF, Ascend Performance Materials, DOMO Chemicals, and DSM. The companies included adopt strategies such as new product launches, increasing global presence by capacity improvement, and acquisition for gaining a competitive advantage in the market. For example, In September 2021, Evonik expanded its portfolio of polyamide 12 molding compounds for insulating electrical conductors with the product VESTAMID LX9050 OR.

LIST OF KEY COMPANIES PROFILED:

• DuPont (U.S.)


• BASF (Germany)


• Ascend Performance Materials (U.S.)


• DOMO Chemicals (Germany


• DSM (Netherlands)


• Evonik Industries (Germany)


• Celanese (U.S.)


• Kingfa (China)


• Julong (China)


• PRET Advanced Materials, LLC (China)


• Keyuan (China)


• Asahi Kasei Europe GmbH (Germany)


• SUNNY (China)


• Oceanchem Group Limited (China)

KEY INDUSTRY DEVELOPMENTS:

• June 2021: Celanese entered into a definitive agreement to acquire the Santoprene TPV elastomers business of Exxon Mobil Corporation. The Santoprene business of ExxonMobil is a leading global producer of TPV serving a variety of end-uses, including automotive, construction, appliance, medical, and industrial.


• July 2021: DuPont acquired Laird Performance Materials, a world leader in high-performance electromagnetic shielding and thermal management solutions. This acquisition will integrate the Laird Performance Materials into DuPont Electronics & Industrial's Interconnect Solutions (ICS) business.

REPORT COVERAGE

The global flame retardant polyamide market research report delivers a detailed analysis of the market. It focuses on significant aspects such as prominent companies, chemistry, the compositions used to produce these products, and leading product applications. Besides this, the market study provides insights into the market, current trends, and highlights of the important industry developments. In addition to the said factors, the report comprehends several factors that have contributed to the market growth rate over recent years.

Report Scope & Segmentation