Fine Hydrate Market By Application (Cable Compounds, Sheet Molding Compounds, Bulk Molding Compounds, Others), & Region – Forecast 2021 - 2031
Fine Hydrate Market - Analysis, Outlook, Growth, Trends, Forecasts
- December 2021
- 162 pages
- Chemicals & Materials
Fine Hydrate Market Snapshot
[ 162 pages Report] The global fine hydrate market size is expected to reach US$ 371.6 Mn in 2021, projects Future Market Insights (FMI) in a recent market survey. With sales growing at a healthy 7.2% CAGR, the total volume of fine hydrates sold is expected to reach 951.1 Mn KT by 2031.
The fine hydrate market is expected to be driven by increasing adoption in the production of polyester resins, thermoplastics, and engineered plastic. As per FMI, sales of fine hydrates represented approximately 6.5% of the global alumina trihydrate market in 2020.
Growing applications of engineered plastics in consumer electronics and the automotive industry is anticipated to be a chief growth factor. Besides this, the introduction of nanotechnology in precipitated fine hydrates will continue complementing growth of the market over the forecast period.
Fine Hydrate Market Estimated Size in 2021
US$ 371.6 Million
Fine Hydrate Market Value-Based CAGR (2021-2031)
2020-2021 Fine Hydrate Market Y-o-Y Growth
TOP 5 Fine Hydrate Players Market Share
2016-2020 Fine Hydrate Market Growth in Comparison to 2021-2031 Outlook
Demand for fine hydrates is expected to increase at a 7.2% CAGR, in comparison to the 2.7% CAGR registered between 2016 and 2020. In terms of volume, sales of fire hydrate are projected to top 531.1 Mn KT in 2021.
Fine hydrate is widely being adopted in the production paints and coatings, varnishes, fire hydrants, plastics, PVC, and adhesives. In addition to this, they are in high demand across the electronics industry for the production of engineered plastic. This is expected to continue pushing sales of fine hydrates over the assessment period.
Sales in the fine hydrates market are projected to rise year-over-year by 7.40% between 2020 and 2021. After countering the initial slowdown in production induced by the COVID-19 pandemic, growing demand for fine hydrates in the automotive industry will augment the recovery of the market through 2031.
Benefits of precipitated fine hydrate include high chemical purity and relatively smaller particle size. They are commonly used in flame retardants and as fillers in wires & cables insulation, epoxy resins, polyester resins, cross-linked elastomers and thermoplastics.
Fine hydrate-based flame retardants are non-toxic, halogen-free and non-corrosive. They offer higher temperature and flame resistance in comparison to conventional alternatives. Increasing applications of fine hydrates as flame retardants in the paints & coatings industry will result in higher sales of fine hydrates through 2031.
How will the Automotive Industry Impact Sales of Fine Hydrates?
Fine hydrate is a non-halogenated flame retardant additive often used as coating on wires, cable compounds and paints & polymers in the automotive industry. It belongs to the class of find alumina trihydrate (ATH) compounds, which are eco-friendly and mineral-based flame retardants.
These compounds are utilized in the automotive industry for the production of lightweight automotive components. Demand for lightweight vehicles is on the rise, which is driven by stringent regulations imposed to control carbon emissions across the globe. Lightweight plastics reduce the overall weight of the vehicles, thereby making them more fuel efficient.
As per the U.S. Department of Energy, a 10% reduction in vehicle weight can result in improvement of fuel economy by 6-8%. By replacing conventional components with lightweight materials such as magnesium alloys, high strength steel, carbon fibre and polymer composites, a reduction by 50% in weight of the vehicle and chassis can be achieved. This results in higher fuel efficiency.
Fine hydrants are used for producing polymers for lightweight automotive components, especially plastic components that are found in the interiors and exteriors of the vehicle. Apart from this, fine hydrants are also used in the production of pigments for paints and coatings for automotive refinishing. Fine hydrants maintain the shine and lustre of paints and increase the transparency of coatings.
As applications of fine hydrates in the automotive sector continue to grow, sales of fine hydrates are projected to rise in tandem over the assessment period.
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Will the Introduction of Nanotechnology Impact Fine Hydrate Sales?
Non-flammability is a crucial property of nanoclays. The flammability of synthetic polymers impedes their applications in technical fields. The introduction of nanotechnology in polymers is resulting in reduced flammability of matrices. Nanoclays are cost-effective, easily available and eco-friendly, which in turn is driving their applications as non-halogenic flame retardants.
Rising trend of nanotechnology in polymers is expected to propel sales of fine hydrates. Polymer producers are utilizing flame retardants such as fine hydrates with nanoclays to improve the performance of polymer additives. Nanoclays substantially slow down fire and help in anti-dripping, and enhance the quality of non-halogenic fire retardants.
Nanocomposite polymers and nanoclays exhibit superior flame retardant properties. By reducing dripping, they help prevent the fire spreading to other objects in the surroundings. Nanoclays also promote the formation of chars, which are thermally insulating and acts as a strong barrier to flame propagation.
Increasing demand for fire hydrants in the consumer electronics industries, especially in Asia Pacific, is anticipated to fuel growth of the fine hydrate market. Besides this, expansion of the construction sector driven by rapid urbanizations is expected to propel demand for fire retardants, which in turn, will complement growth of the fine hydrate market.
Which Factors are Hindering Sales of Fine Hydrate?
The availability of alternatives such as zinc hydroxystannate (ZHS) and magnesium hydroxide are expected to hamper sales of fine hydrates over the assessment period. These alternatives offer better flame retardancy and smoke suppression than fine alumina hydrate, which is hindering the adoption of fine hydrates in flame retardants.
Further, stringent regulations regarding the usage of chemical-based flame retardants are expected to impact growth of the market over the forecast period. Growing concerns about air quality and the impact of toxic chemicals and additives on human health and the environment is another factor that might restrict sales of fine hydrates.
What is the U.S. Fine Hydrate Market Demand Outlook?
The U.S. is expected to exhibit high demand for fine hydrates owing to the presence of robust automotive and consumer electronics industries in the country. In North America, demand for fine hydrate is expected to soar at a 5.20% CAGR over the forecast period.
As per the Bureau of Transportation Statistics, sales of automotive in the U.S. totaled 11,571 thousand units in 2020. Rising demand for lightweight passenger vehicles, driven by stringent regulations on carbon emissions in the U.S. is expected to spur demand for fine hydrates. Fine hydrates are used in polymers to produce lightweight plastic components in automotive vehicles. This trend is expected to continue in the forthcoming years.
Fine hydrate is used in paints and coatings and plastic polymers in the automotive industry to enhance the shine and lustre. Growing preference for enhanced visual appeal of vehicles is driving sales of fine hydrates for automotive refining. Such developments are expected to bode well for the U.S. fine hydrate market over the assessment period.
Why is the Germany Fine Hydrate Market Considered Lucrative?
As per FMI, Germany is expected to emerge as one of the key exporters of fine hydrates over the forecast period. Sales of fine hydrate in Europe are projected to soar at a 6.4% CAGR through 2031.
Rapid expansion of residential and commercial building projects in Germany is expected to drive sales of fine hydrates. Due to optimal safety practices, sales of fire retardants are increasing, which is resulting in higher demand for fine hydrate.
Fine hydrates are used in building and construction materials such as electrical wires and cables, and insulation materials such as polystyrene and polyurethane insulation foams. Many fire retardants are now removed from the market for being toxic for human health and the environment. To address this, fine hydrates are used for making eco-friendlier fire retardants, which is expected to continue driving sales in Germany through 2031.
How will the China Fine Hydrate Market Fare?
Expansion of the consumer electronics sector in China is expected to propel demand for fine hydrates. As per FMI, China is expected to dominate the East Asia fine hydrate market, emerging as a key exporter of fine hydrate over the assessment period.
Fine hydrates are used in fire retardants for electronics and electrical devices such as mobile phones, laptops, computers, televisions and household appliances. They are widely being adopted in the production of wires and cables for improved insulation. Owing to this factor, sales of fine hydrate in China are expected to rise at a significant pace over the forecast period.
How will Increasing Applications in Cable Compounds Influence Sales?
In terms of applications, the cable compounds segment is expected to account for a dominant share in the global fine hydrate market over the assessment period. Growth can be attributed to increasing applications of fire hydrates as fire retardants in wires and cables used in various end-use industries.
Wire and cables require optimal flame retardance and low smoke generation. Alumina Trihydrate (ATH) offers outstanding flame retardancy and smoke suppression in cable compounds and wires. Fine precipitated hydrates have high purity and low conductivity, making them applicable in the insulation layer and jacketing compound for wires with varying voltage requirements.
The aforementioned factors are expected to propel sales of fine hydrates for cable compounds over the assessment period.
Key players in the global fine hydrate market are investing in mergers, acquisitions, joint ventures and collaborations to expand their production facilities. To gain a competitive edge in the market, players are also investing in research and development to improve their product portfolios, catering to the growing consumer pool. For instance:
- In May 2021, Huber Corporation signed an agreement with RHI Magnesita (RHIM) to acquire 50% ownership stake in the companies’ 50/50 joint venture, MAGNIFIN Magnesiaprodukte GmbH & Co. KG. As a part of this acquisition, MAGNIFIN, as a part of Martinswerk, became a part of the Huber Engineered Materials (HEM) Fire Retardant Additives (FRA) unit, which produces a wide range of halogen-free products for fire retardant and smoke suppression applications and aluminum oxides.
- In December 2020, Hindalco Industries Limited, a metal flagship owned by Aditya Birla Group, announced its plants to establish a 34,000 Tons extrusion plant at Silvassa, India. The new plant will service the fast-growing market for extruded aluminum products in the western and southern regions.
Scope of Report
Historical Data Available for
MT for Volume and US$ Mn for Value
Key Regions Covered
North America, Latin America, Europe, East Asia, South Asia, Oceania, and MEA
Key Countries Covered
United States, Canada, Brazil, Mexico, Germany, UK, France, Italy, Spain, Nordic, Russia, Poland, China, India, Thailand, Indonesia, Australia and New Zealand, Japan, GCC countries, North Africa, South Africa, others.
Key Market Segments Covered
Applications and Regions
Key Companies Profiled
Available upon Request
Fine Hydrate Market by Category
- Cable Compounds
- Sheet Molding Compounds
- Bulk Molding Compounds
- North America
- Latin America
- East Asia
- South Asia
- Middle East & Africa