Magnesium Hydroxide Market

Magnesium hydroxide is widely used with resin and fiber as a flame-retardant filler. The flame retardants are chemical additives used in the production of polymers to inhibit flame substances. The growing use of polymers in the building and construction industry has increased the risk of fires, which is expected to fuel the demand for flame retardants.

Polymers in the building and construction industry are extensively used to enhance the properties of composites, foams, textiles, and paints and coatings, among others. Plastics are used in profiles, cables, and films and sheets due to their durable, corrosion-resistance, and easy cleaning and repair characteristics. Insulation in the polyurethane foams, polystyrene foams, polyolefin or natural-based materials (cellulose fibers), and mineral wool helps to increase energy efficiency, minimize fossil fuel depletion, and reduce global warming. Flame retardants are used in these building materials and products to meet the fire safety standards and building codes. These flame retardants help prevent or slow the spread of fire and provide critical escape time, which is expected to increase their demand in the industry and consequently for magnesium hydroxide. According to the US Census Bureau, in 2017, the US invested around USD 255,499 million in the construction industry. Furthermore, according to the Association of Southeast Asian Nations (ASEAN), China, Japan, and countries of South-East Asia accounted for nearly 75% of investment in construction activities. According to the Building and Construction Authority (BCA) of Singapore, the construction investment in 2018 was USD 30.5 billion, which is expected to reach USD 32 billion by 2019 end. These trends exhibit that the construction industry is expected to grow at a remarkable pace positively influencing the application of magnesium hydroxide in flame retardants.

Furthermore, the demand for flame retardants is high in the electrical and electronics industry due to the high possibilities of fires. Polymers form the backbone for a variety of electronics such as wires and cables, electric enclosures, electric components (connectors and switches), and electrical circuit boards, which require flame retardants. Electrical wires and cables are used in consumer electronics (phones, computers, televisions, and air conditioners), elevators, industrial equipment, and throughout building structures vertically from floor to floor behind the walls. This increases the risk of fires due to short circuits and other electrical malfunctions. Also, the hidden cables and wires cannot be easily checked or maintained on a regular basis. Therefore, flame retardants are used in the outer plastic coverings of wires and cables to increase fire resistance in case of short circuits. Electronic enclosures, including consumer and information technology equipment such as televisions, computers, laptops, printers, and household appliances are made of different types of polymer resins. Thus, flame retardants are increasingly used by the manufacturers of electronic devices, as an effort to provide sustainable solutions that meet the stringent regulations, such as the RoHS (The Restriction of Hazardous Substances) and WEEE (Waste Electrical and Electronic Equipment) directives.

The growing electronics industry in countries such as Japan, South Korea, Taiwan, and China in Asia-Pacific is expected to ensure a steady revenue source for flame retardant manufacturers during the forecast period, positively influencing the magnesium hydroxide market. According to the German Electrical and Electronic Manufacturers' Association (ZVEI), the global electronic and electrical industry was valued at USD 4,499.22 billion in 2016 which is estimated to reach USD 5,180.00 billion by the end of 2019. Asia-Pacific is the leading producers of electronic products, which was valued at USD 3,312.39 billion, followed by Europe accounting for USD 622.45 billion in 2016. Thus, the increasing demand for electronic devices and growth in the construction industry are the key factors expected to boost the demand for flame-retardants and consequently fuel the growth of the global magnesium hydroxide market during the review period.

Halogenated flame retardant is based on bromine, chlorine, iodine, and fluorine chemical substances. Halogenated flame retardant comprises chlorine and bromine substances, which fail to meet the safety standards. In addition, the US and Europe governments have banned halogenated flame retardants which is promoting the growth of non-halogenated flame retardants. The usage of brominated fire retardants in Europe has been limited by Europe Commission under REACH (Registration, Evaluation, Authorization, and Restriction of Chemicals) and RoHS (The Restriction of Hazardous Substances Directive 2002/95/EC).

Less toxic and safe materials such as magnesium hydroxide and aluminum trihydroxide are high in demand in the flame retardants. The leading insulation companies are replacing halogenated flame retardant with non-halogenated flame retardant owing to limitations and stringent regulations on the use of halogenated flame retardant. In October 2018, the government of California signed a law to ban the use of flame retardants in children products and upholstered furniture. The bill AB2998 is applied on the use of all the fire-retardant materials used to resist or inhibit the spread of fire however it allows the application of certain inorganic and non-halogenated material application. Furthermore, the European Commission has implemented the Eco-design Directive (Directive 2009/125/EC) in 2019. According to the directive, halogenated flame retardants are banned in electronic display products. These regulations are expected to create new growth opportunities for the manufacturers of non-halogenated flame-retardant materials and consequently for the producers of magnesium hydroxide during the forecast period.

Magnesium hydroxide is extensively used with polymers such as nylon and polypropylene owing to its endothermic decomposition property. The high demand for magnesium hydroxide in the manufacturing of non-halogenated materials for flame retardants is expected to boost the global market growth. However, the high cost of magnesium hydroxide is expected to hamper its consumption; alumina trihydrate and magnesium hydroxide are collectively used in a concentration of 70% to 40%, respectively, due to the cost consideration. End-use industries are using magnesium hydroxide along with alumina trihydrate in flame retardant fillers materials instead of completely depending on magnesium hydroxide to produce flame retardant fillers due to the high cost of magnesium hydroxide. The technique involved in the processing of magnesium hydroxide to produce flame retardants fillers is cost intensive. The purity requirements for this application result in the need for purification steps, which substantially increase the final cost of the product. Thus, the high cost of magnesium hydroxide is expected to hinder the global market growth during the review period.