Bromine Derivatives Market Size, Share & Trends Analysis Report By Application (Flame Retardants, Oil & Gas, Organic Intermediates), By Product (Tetrabromobisphenol A, Calcium Bromide), And Segment Forecasts, 2020 - 2025

Report Overview

The global bromine derivatives market size was valued at USD 3.93 billion in 2019 and is expected to expand at a compound annual growth rate (CAGR) of 4.3% from 2020 to 2025. The rise in utilization of bromine in controlling mercury emissions and upsurge in demand for halogenated flame retardants has spurred the growth of the market. Flourishing end-use industries such as agriculture, pharmaceuticals, and electronics, along with growing construction activities in the Middle East and Asia Pacific, is expected to provide a boost to the growth of the market.

Asia Pacific emerged as one of the largest consumers of bromine derivatives by volume and the demand is estimated to grow rapidly over the forecast period. Rising consumption in China and India along with growing manufacturing activities is anticipated to drive the market during the forecast period.

Some of the major manufacturers in the market are Albemarle, Lanxess, and Israel Chemicals Ltd. The three companies accounted for over 60.0% of the market in terms of revenue in 2017. Cost competitiveness achieved by these companies along with easy access to bromine deposits has cemented their position. These companies have also established collaborations and tie-ups with suppliers to increase their regional presence.

Regulatory bodies such as the United States Environmental Protection Agency (EPA) and the European Chemicals Agency (ECHA) implemented quick and more stringent regulations to stop the usage of methyl bromide in fumigants. Increasing consumption of non-halogenated flame retardants is projected to inhibit the growth of the market.

Bromine Derivatives Market Trends

Bromine is a chemical element which is denoted by the symbol Br. It exists in the form of red-brown liquid at room temperature and its evaporation form a similar color vapor. Its properties are similar to chlorine and iodine and it smells irritating. Bromine can be mixed with other chemicals such as sodium, calcium, and zinc to form its derivatives such as sodium bromide (NaBr), calcium bromide (CaBr) and others. The major application of bromine derivatives is to reduce the mercury emission. Along with that, bromine derivatives are widely used in flame retardants, oil & Gas, and organic intermediates.

Bromine derivative is a significant contributor in the reduction of mercury emission. According to World Health Organization, over 200,000 tons of mercury have been released into the atmosphere until 2016 from anthropogenic sources with coal-fired power plants being the major contributor. Mercury has been certified hazardous for humans as it travels through the air and even a small quantity can cause major harm to humans. Therefore, Bromine is used in combination with active carbons in power plants to reduce the negative impact of mercury emission. Rising demand from power plants globally is expected to excel the market growth for bromine derivatives over the projected years.

Bromine derivatives are widely used in oil & gas drilling industry as clear brine fluids. These fluids are used in drilling oil & gas wells. Brine fluids have high density and it help avoid migration of fluids between underground formation through the wellbore. The demand for brine fluids are expected to rise in the countries that are witnessing increase in oil & gas drilling activities. Rising oil & gas exploration across the globe and particularly in Asia Pacific and South America is creating highly conductive environment for the growth of bromine derivatives market.

Bromine derivatives are used in flame retardants to slow down the spread of fire. Flame retardants can disable the fire to grow and provides extra time for evacuation and escape from the place. Fire retardants are used for personal as well as commercial purposes and can be seen often in places such as offices, malls, theaters, trains, flights, cars and others. The increasing need to mitigate damages caused by fire across the globe is propelling the demand for bromine derivatives globally.

The hazardous nature of bromine derivatives has led the government to impose stringent regulations regarding its use and consumption. Strict regulatory policies in several countries have resulted in the prohibition in the use of the products such as halogenated retardants. Increasing involvement of government in the production and consumption of the chemical is likely to limit the market growth over the forecast period.

The increasing demand for bromine derivatives in the production of oil & gas and energy is expected to add a significant value to the market growth. Power plants across the globe are highly dependent on bromine derivatives to comply with government regulations by reducing the mercury emission. Increasing oil & gas exploration activities around the world has resulted in the rise in demand for the chemical. Aforementioned factors are expected to upscale the market growth for the chemical over the forthcoming years.

Product Insights

Brominated polystyrene is manufactured by a catalysis of polystyrene with bromine. It is majorly used in the manufacturing of flame retardants. It has high thermal stability and is employed in high-temperature applications. Production of these chemicals is mainly restricted to developing countries, given the implementation of stricter regulations regarding bromine-based flame retardants in developed regions such as the U.S. and Europe. China and other Southeast Asian countries are the leading countries involved in the production of these chemicals.

Zinc bromide (ZnBr₂) is a colorless salt that has many properties in common with zinc chloride (ZnCl₂). It is used as a transparent shield against radiation. ZnBr2 is used as an electrolyte in zinc bromide batteries that are rechargeable. The production cost of these batteries is lower than that of other batteries as zinc is available in abundance. All the aforementioned factors are fueling the demand of ZnBr₂ and the segment is poised to exhibit a CAGR of 4.7% in terms of value during the forecast period.

Sodium Bromide (NaBr) is a highly consumed inorganic high-melting white crystalline compound. It is used as a catalyst in TEMPO-mediated oxidation reactions. NaBr is chemically stable and is, thus, used with other solutions of bromides and chlorides. It is useful for the generation of chemical sensitivity. The demand for the product is slated to increase over the coming years owing to government initiatives and policies to handle concern issues and rising concerns regarding water purity.

Application Insights

Pharmaceutical is one of the promising applications of bromine derivatives owing to the increasing consumption of NaBr for making medicinal intermediates and as anti-epileptic drugs (AEDs) because of its anti-seizure properties. Increasing oil & gas exploration activities has been leading to extensive use of calcium bromide (CaBr) and NaBr as drilling fluid for the extraction of petroleum products, which is augmenting the overall bromine derivatives market.

Biocides are substances that kill microorganisms and are used to extend shelf life and maintain the quality of different products including cosmetics, coatings & dyes, glues & sealers, wood & paper, and cleaning materials. Several disinfectants are halogen-based. Aqueous solutions of halogens are disinfectants that effectively destroy the growth of microbes.

Biocides have several other applications. These biocides can be divided into two categories, oxidizing biocides, and non-oxidizing biocides. Oxidizing biocides include elemental bromine and other compounds. These biocides are often used for cooling towers, swimming pools, sanitary disinfection, and treatment of municipal sewage, whereas non-oxidizing biocides are usually more complex and expensive materials used mainly for glues and sealants, certain polymers, and industrial coatings & dyes.

Regional Insights

Asia Pacific is likely to represent over half of the overall revenue by 2025. It is also expected to be the fastest-growing region in terms of value as well as volume during the forecast. Multiple companies have full-scale operations in Asia Pacific and few companies such as Tosoh Corporation and Lanxess invest heavily in research & development activities that have led to improved product quality in the region.

Asia Pacific dominated the bromine derivatives market with the share of 49.1% in 2017 globally. The multinationals such as Tosoh Corporation and Lanxess are constantly involved in the product innovation through extensive research & development in the region. With this, Asia Pacific is also considered as the ideal region for foreign direct investments owing to the rising production and consumption of chemicals. Rapid technological innovations, mergers & acquisition, and new product development cater to niche application segments as a result contributing to the rapid growth of Asia Pacific bromine derivatives market.

China captures the largest market in Asia Pacific with the share of 45.7% in 2017. This trend in China is expected to continue owing to the fast moving end-use industries such as agriculture, electronics, and pharmaceuticals where bromine derivatives are widely used. China’s bromine derivatives market is likely to witness a steady growth in the foreseeable future on the account of constant innovation and huge foreign investments in the field which has led to many technological advancements in chemical industry in the country.

North America accounted for a significant share in the market in 2017. The region is one of the crucial producers of natural gas and has also been observing steady growth in the production of shale gas, which in turn is escalating the growth of the market. Another key factor stoking the growth of the market in North America is sizable foreign investments made by multinational companies. For instance, in July 2018, Lanxess announced multiple project expansion plans across the region by 2022, which also includes an investment of USD 60 million in the global bromine reservoir site.

North America accounts for the second largest market globally due to the rapid production of natural gas in the region. North America has been witnessing a steady growth in the production of shale gas. Production of such gases require clear brine fluids, which is expected to drive the market growth for the chemical such as sodium bromine and potassium bromine in the region over the forecast period.

The market in Central & South America is estimated to progress at a better rate compared to North America and Europe. The region approves limited utilization of flame retardants such as brominated polystyrene. However, the application of methyl bromide is restricted to agricultural purposes, majorly for the cultivation of vegetables, strawberries, and certain flowers.

Europe’s bromine derivative market is projected to witness an average growth on the account of its utilization by power plants to control the mercury emission. In addition, increasing oil & gas exploration activities in Europe is likely to propel the market growth for bromine derivative in the region in the coming years.

Rising utilization of bromine has compelled the government to regulate its use and consumption owing to the harmful properties of the chemical. As a result, companies producing and using bromine derivatives have to comply with regulatory policies, which is likely to act as a hurdle in bromine derivative’s market growth over the upcoming years.

Key Companies & Market Share Insights

The major bromine derivatives manufactured worldwide are metal derivatives such as ZnBr₂ and NaBr as well as other products including Hydrobromic acid and CaBr. Hydrobromic acid is anticipated to witness an increase in demand as it is an important material required for the manufacturing of metal-based bromides. Increasing applications in industries such as oil & gas drilling, water treatment, mercury control, food safety, and increasing utilization as precursors in the manufacture of specialty chemicals such as bromide salts and tertiary amines.

In May 2014, Tosoh Corporation merged with Nippon Polyurethane Industry Co., Ltd., a manufacturer and seller of PU raw materials. This merger was strategically done to sustain the isocyanates business, as the market will remain highly competitive in the future.

Furthermore, in February 2016, Israel Chemicals Limited and Albemarle Corporation entered into a definitive long-term agreement to supply polymeric flame retardants globally. These products are marketed by Albemarle under GreenCrest brand and by ICL under FR122P brand.

Bromine Derivatives Market Report Scope

Global Bromine Derivatives Market Segmentation

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of industry trends in each of the sub-segments from 2014 to 2025. For the purpose of this study, Grand View Research has segmented the global bromine derivatives market report on the basis of product, application, and region.

• Product Outlook (Volume, Kilotons; Revenue, USD Million, 2014 - 2025)

  • Brominated Polystyrene

  • Tetrabromobisphenol A

  • Calcium Bromide

  • Sodium Bromide

  • Zinc Bromide

  • Hydrobromic Acid

  • Decabromodiphenyl Ethane (DBDPE)

  • Others

• Application Outlook (Volume, Kilotons; Revenue, USD Million, 2014 - 2025)

  • Flame Retardants

  • Organic Intermediates

  • Oil & gas

  • Biocides

  • PTA Synthesis

  • Others

• Regional Outlook (Volume, Kilotons; Revenue, USD Million, 2014 - 2025)

  • North America

    • The U.S

    • Canada

    • Mexico

  • Europe

    • Germany

    • U.K.

    • Russia

  • Asia Pacific

    • China

    • India

    • Japan

  • Central and South America

    • Brazil

  • Middle East and Africa