Magnesium Hydroxide Flame Retardant Market Trends

Growth Drivers

• Growing Construction Activities across the Globe – The construction industry is one of the largest consumers of magnesium hydroxide flame retardant. With the increasing urbanization and infrastructure development, the demand for flame retardant in construction materials, such as insulation, roofing, flooring, insulation, cables, and coatings to prevent fires. is expected to rise. For instance, according to the World Bank, value added by industry (including construction) was 26.63 trillion in 2021 which experienced an increase of 19.6% over 2020. Besides, according to the International Trade Administration, U.S. Department of Commerce, the construction industry value in Mexico was 72.89 USD Billions in 2020, 88.14 USD Billions in 2021, and 96.77 USD Billions in 2022.

• Increasing Demand from the Electrical & Electronics Industry– Magnesium hydroxide is a popular flame retardant in electronic devices, such as computers, televisions, and smartphones. It can be integrated into circuit boards to avoid fires caused by overheating or electrical malfunction. With the increasing demand for such products, the demand for flame retardants is also expected to increase. In 2021, 533.6 million units of shipments were recorded across the globe which included watches, hearables, and other aides, which experienced an increase of 20% over 2020. Besides, according to the Invest India, domestic production of electronics is expected to reach USD 300 Bn by 2026. In India, in the Union Budget 2022-23, the government allocated USD 315 million for the promotion of Electronics and IT Hardware manufacturing.

• Rising Production of Automobiles – The automotive industry is among the largest consumers of magnesium hydroxide flame retardant. It is used as a flame retardant in automotive parts such as dashboard components, seat cushions, and steering wheels. It is preferred over traditional flame retardants owing to its properties such as it does not emit harmful fumes when burned. For instance, according to the Society of Indian Automobile Manufacturers, the total automobile production was 22.6 million in 2020-21 and 22.9 million in 2021-22.

Challenges

• Low Effectiveness of Magnesium Hydroxide– One of the major challenges in using magnesium hydroxide flame retardant is its low effectiveness compared to other flame retardants. Magnesium hydroxide is a physical flame retardant that works by releasing water vapor when exposed to heat, which cools the surrounding material and suppresses the combustion process. However, the mechanism is less effective than the chemical reactions that occur with other flame retardants, such as halogenated compounds. As a result, higher loading levels of magnesium hydroxide are required to achieve the same level of flame retardancy as other flame retardants. This can result in increased material costs, as well as potential performance and processing issues, such as reduced mechanical properties, increased viscosity, and reduced processing speeds.

• Cost of Raw Materials

• Availability of Alternatives