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Flame Retardant ABS Market Overview
The Flame Retardant ABS Market size is forecast to reach US$1.1 billion by 2027, after growing at a CAGR of 5.5% during the forecast period 2022-2027. Flame retardant ABS (acrylonitrile-butadiene-styrene) is a type of thermoplastic that has flame-resistant properties. It is mainly composed of certain amounts of ABS resin, polyvinyl chloride resin and stearic acid in which the flame retardant property is obtained through the process of blending aluminum hypophosphite with certain ingredients. Flame retardant ABS is primarily used in a wide range of industries which include automotive, aerospace, marine, construction, electrical & electronics and other industries. In 2020, the COVID-19 lockdown had significantly reduced production activities as a result of the country-wise shutdown of manufacturing sites, shortage of labor and the decline of the supply and demand chain all over the world, thus, affecting the market. However, a steady recovery in automobile production has been witnessed across the world since 2021. Flame retardant ABS is primarily used in interior parts and components of an automobile, owing to its excellent process stability, high impact resistance and heat distortion temperature. According to the International Organization of Motor Vehicle Manufacturers (OICA), the total global automobile production reached 80.2 billion units in 2021, an increase of 3% as compared to 77.7 billion units in 2020. An increase in automobile production along with the surging demand from the aerospace industry acts as the major driver for the market. On the other hand, the availability of substitutes may confine the growth of the market.
Flame Retardant ABS Market Report Coverage
The “Flame Retardant ABS Market Report – Forecast (2022-2027)” by IndustryARC, covers an in-depth analysis of the following segments in the Flame Retardant ABS Industry.
Key Takeaways
- Non-halogen product type in flame retardant ABS industry held a significant share in 2021. Its wide range of properties and benefits such as high strength, non-toxicity and more is expected to increase its demand over other product types in the market.
- Transportation industry held the largest share in the Flame Retardant ABS Market in 2021, owing to the increasing demand for flame retardant ABS from the automotive, aerospace, marine and locomotive sectors across the world. For instance, in January 2021, FedEx Express invested around US$6.6 billion for the development of 24 medium and large Freighters from Boeing, which is expected to increase the demand for flame retardant ABS for use in interior applications of an aircraft.
- Asia-Pacific dominated the Flame Retardant ABS Market size in 2021, owing to its increasing demand from the transportation sector of the region. For instance, recent insights from OICA states that the total automobile production in 2021 in Asia-Pacific increased by 28% in comparison to 2020.
- A detailed analysis of strengths, weaknesses, opportunities and threats will be provided in the Flame Retardant ABS Market Report.
Figure: Asia-Pacific Flame Retardant ABS Market Revenue, 2021-2027 (US$ Billion)
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Flame Retardant ABS Market Segment Analysis – by Product Type
The non-halogen segment held a significant
portion of the Flame Retardant ABS Market share in 2021, owing to the range of
benefits it offers over other types of flame retardant ABS. For instance, non-halogenated
flame retardant ABS are non-toxic in nature and do not release harmful gases upon
combustion as opposed to halogenated flame retardant ABS. Moreover,
non-halogenated flame retardants are not persistent, owing to which, they do
not cause bioaccumulation as compared to halogenated flame retardants. They are
capable of functioning independently which is an added advantage, as they do
not require a synergist in order to provide the required performance.
Furthermore, non-halogenated flame retardant ABS are greener additives and are
not associated with any environmental or regulatory concerns in comparison to
halogenated product types. Hence, all of these benefits are driving its demand for
halogenated product types, which in turn, is expected to boost the market
growth during the forecast period.
Flame Retardant ABS Market Segment Analysis – by End-Use Industry
The transportation industry held the largest
portion of around 30% of the Flame Retardant ABS Market share in 2021, owing to the
increase in production from automotive, aerospace, marine and locomotive
sectors across the globe. For instance, recent insights from the European
Automobile Manufacturers' Association (ACEA) state that total passenger car
production during the fourth quarter of 2020 reached around 34 million in
Asia-Pacific, 14 million in Europe, 1.3 million in the Middle East/Africa, 1.7
million in South America and 9.6 million in North America respectively. In
February 2021, the construction work started for the development of the British
rail manufacturing facility in Goole, UK. The construction of this facility
will be completed by 2023. Moreover, Airbus delivered around 460 commercial
aircraft while Boeing delivered 230 commercial aircraft in 2021. In February
2021, A.P. Moller – Maersk, a Denmark-based shipping company, announced its
plan to launch its first carbon-neutral liner vessel in Denmark. The
construction of the new vessel is scheduled to be delivered in 2023.
Furthermore, in February 2021, the operations for the development of the
British rail manufacturing facility commenced in the UK. The development of
this facility is expected to be completed by 2023.
Flame retardant ABS thermoplastic is composed
of ABS resin, polyvinyl chloride resin, polycarbonate, aluminum hypophosphite and more and it is primarily used in various interior components of aircraft, automobile, marine and rail systems along with its electrical and
electronic components such as wires, cables and more, owing to their excellent resistance
to fire, chemicals along with high strength, durability, impact resistance and
other similar properties. Thus, such increasing production from the
transportation sectors is expected to increase the demand for flame retardant
ABS, which in turn, is expected to accelerate the growth of the market during
the forecast period.
Flame Retardant ABS Market Segment Analysis – by Geography
Asia-Pacific held the largest portion of the Flame Retardant ABS Market share in 2021 up to 31%. The consumption of flame retardant ABS
is particularly high in this region due to its increasing demand from the
transportation sector. For instance, recent insights published by the OICA
(International Organization of Motor Vehicle Manufacturers) during the fourth
quarter of 2020 state that around 25 million, 3.5 million, 8 million and 3.4
million units of vehicles were produced in China, South Korea, Japan and
India, respectively, which in turn, contributed to approx. 50% of the global
automobile production during the year 2020. In February 2022, Mitsubishi
Shipbuilding partnered with TotalEnergies for the construction of a liquefied
CO2 marine carrier in Japan. Its construction is scheduled for completion by
2023. Furthermore, in September 2021, the construction of a new fishing
training ship began in Taiwan. The government of Taiwan invested NT$840 million
(US$30.2 million) in the construction of the new ship which also complies with
international standards. Its construction is scheduled to be completed in 2023.
In this way, an increase in the production from the transportation sectors across multiple countries in the region is expected to increase the demand for flame retardant ABS, owing to their high strength, durability, impact resistance, along with excellent resistance to fire, chemicals other similar properties. This is anticipated to propel the growth of the market during the forecast period.
Flame Retardant ABS Market Drivers
An increase in automobile production is most likely to increase demand for the product
Flame retardant
ABS is primarily used in automobile
bodies along with its electrical and electronic components such as batteries,
wires and more. Its range of properties such as excellent
impact resistance, aesthetic qualities, high strength and fire resistance
makes it ideal for use in the automotive sector. According to a recent study
published by the German Association of Automotive Industry during the fourth
quarter of 2020, the new registration of motor vehicles reached up to 16,763
units in Europe, 37,467 units in Asia, 3080 units in South America, 17,421
units in North America, 12,733 units in Western Europe and 5180 units in other
regions worldwide. Likewise, in August 2021, Ford commenced the development of
its automobile plant in Germany. The new facility will be responsible for the
assembly of a new electric vehicle and aims at increasing electric vehicle
production in the country. The facility construction is scheduled to be
completed by end of 2022. Furthermore, according to recent insights from the
South Korean Ministry of Trade, Industry and Energy, automobile production in
South Korea amounted to 271,054 units in December 2021. It further states that
Hyundai Motor and GM Korea account for about 53.3% of total domestic automobile
production in the country. Hence, an increase in demand and production of
automobiles is expected to increase the demand for flame retardant ABS composed of ABS resin, polyvinyl
chloride resin, polycarbonate, aluminum hypophosphite and more, owing to their above-mentioned properties. This is most likely to
drive the growth of the market in the upcoming years.
Surging demand from the aerospace industry is most likely to increase demand for the product
The properties of flame retardant ABS such as
high tensile strength, durability, excellent impact resistance, fire resistance and low cost are driving its demand for use in various components of an
aircraft which include glare shields, side panel backing, cabin interiors, overhead
luggage storage compartment along with its electrical and electronic systems. For
instance, according to the Federal Aviation Administration (FAA), the total
commercial aircraft fleet is estimated to reach up to 8,270 by the end of 2037,
owing to the growth of air cargo activities. It further states that the development
of the US mainliner carrier fleet is estimated to increase at a rate of 54
aircraft per year. Furthermore, Airbus delivered around 460 commercial aircraft
while Boeing delivered 230 commercial aircraft in 2021.
Hence, an
increase in global aircraft production is expected to increase the demand for
flame retardant ABS for use in various interior components of an aircraft. This
is anticipated to drive the growth of the market in the upcoming years.
Flame Retardant ABS Market Challenges
Availability of substitutes may confine the growth of the market
In November 2021, Floreon launched its
halogen-free flame retardant bioplastic as an alternative to flame retardant ABS
thermoplastic composed of ABS resin, polyvinyl chloride resin, polycarbonate, aluminum
hypophosphite and more. Floreon affirmed that its high-performance PLA is an ideal alternative
to flame retardant ABS which is obtained from plants. Moreover, flame retardant
bioplastic is suitable for chemical and mechanical recycling as opposed to
flame retardant ABS which cannot be recycled, owing to concerns regarding its
halogen contamination. Furthermore, Floreon’s flame retardant bioplastic is
capable of significantly reducing the carbon footprint as compared to flame
retardant ABS, which makes it a safe and sustainable option for electrical
goods. The flame retardant ABS-like
properties of Floreon’s flame retardant bioplastic along with its reduced
carbon footprint makes it ideal for use in electronics, home furnishings and
other applications. Thus, such similar properties and performance of flame
retardant ABS substitutes may confine the growth of the flame retardant ABS
market size.
Flame Retardant ABS Industry Outlook
Technology launches, acquisitions and R&D
activities are key strategies adopted by players in the Flame Retardant ABS
Market. The top 10 companies in the Flame Retardant ABS Market include:
- Techno-UMG
- LyondellBasell
- LG Chem
- SABIC
- Rochling Group
- King Plastic Corporation
- LOTTE Chemical
- SENOPLAST Klepschi Co. GmbH
- Toray Industries
- CNPC
Relevant Reports
Report Code: CMR 0083
Report Code: CMR 0009
Report Code: CMR 17853
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