Flame retardant resin market forecast at $7 billion by 2026
Raipur, India – The Flame retardant resin market in the composites industry witnessed a contracted growth of 2% from 2019 to 2020 according to StratView Research. In the long run, the market is likely to generate a myriad of opportunities for its stakeholders by reaching an unprecedented figure of US$ 7.0 billion in 2026. The primary growth drivers are the stringent fire and safety standards along with the increased need for FR4 laminates in the electronics industry.
Based on end-use industry type, the FR resin market in the composites industry is segmented as marine, transportation, electrical & electronics (E&E), building & construction, aerospace & defense, pipe & tank, and others. Over the next five years, E&E is likely to remain the largest market segment, witnessing growth at a significant pace. In the E&E business, the FR resins are largely used in the manufacturing of printed circuit boards (PCB). The PCBs are made with a variety of laminates, including paper, FR-4, CEM, and polyamide. The most prevalent varieties are FR-4 and CEM, both of which predominantly use FR epoxy resins.
On the basis of resin type, the market is bifurcated into epoxy, phenolic, polyester, and others. Among these segments, epoxy is expected to maintain its market dominance during the forecast period. The FR epoxy resins have several superior properties, including strength, adhesiveness, adaptability, moisture absorbency, and minimal volumetric shrinkage, as a result of which, this resin is gaining popularity in the composites market. The most common application for FR epoxy resins is printed circuit boards (PCBs).
In terms of fiber type, the market is classified as glass fiber and other fibers. Glass fiber is expected to remain dominant over the next five years. The fiber type is extremely preferred across all the end-use industries. The other fibers segment is expected to grow at a higher pace, during the forecast period, driven by the increasing penetration of carbon composites due to a higher requirement of lightweight components.
In terms of regions, Asia-Pacific is expected to generate the largest demand for FR resins during the forecast period. This is because of several factors including the gradual shift of the E&E industry from the developed global economies to the developing countries in Asia, rising demand for high-speed trains and metro rails, indigenous development of commercial and regional aircraft, and increased construction activities. In the forthcoming years, the region is also likely to remain the most appealing market across the globe.
In recent years, there were several key strategic alliances and M&As in the market with the purpose to strengthen product portfolio, widen geographical reach, increase the customer base, enhance product development and technical capabilities, etc. For example, in 2019, INEOS acquired the composites business of Ashland Global Holdings Inc. This transaction, when combined with Ashland’s cost reduction program, helped Ashland to be in a better position to deliver sustained growth earnings and significant value for shareholders. In addition, in 2020, Huntsman Advanced Materials completed the acquisition of CVC Thermoset Specialties (CTS), a North American specialty chemical manufacturer, serving industrial composites, adhesives, and coating markets.