[261 Pages Report] The global bromine market size is projected to grow from USD 3.2 billion in 2020 to USD 4.1 billion by 2025, at a CAGR of 5.0% from 2020 to 2025. The market growth is driven by the increasing demand for bromine in flame retardants, mercury emission control, water treatment, and oil & gas drilling.

COVID-19 Impact on the Global Bromine Market

The bromine market includes major Tier I and II suppliers like Israel Chemicals Ltd. (ICL), Albemarle Corporation, Lanxess Corporation, and Tosoh Corporation, among others. These suppliers have their manufacturing facilities spread across various countries across Asia Pacific, Europe, North America, South America, and RoW. COVID-19 has impacted their businesses as well.

In March 2020, ICL�s manufacturing facilities in China resumed operations post a mandatory shutdown initiated since January 2020 to control the spread of the infection

In April 2020, Albemarle Corporation has set up a cross-functional Global Response Team to tackle the challenges presented by the new coronavirus. The Covid-19 pandemic has affected operations globally, and hence the company has restricted all business-related travel and recommended the work from home option to its employees. The company has limited its manufacturing operations and project expansions based on the severity of the infection.

In March 2020, LANXESS increased its production capacity at its manufacturing site in Sudbury, UK, to boost the manufacture of its Vikron sanitizer. The company added a second shift at the manufacturing facility due to the increased demand for the product from China and other countries affected severely by the Covid-19 pandemic.

In May 2020, Tosoh Corporation is developing a test reagent to detect antibodies related to SARS-CoV-2, the strain of coronavirus responsible for the Covid-19 pandemic. The company aims for a simple, high-throughput means of detecting anti-SARS-CoV-2 antibodies utilizing its patented AIA-CL series analyzers in combination with the regent it has under development

Bromine Market Dynamics

Driver: Increasing demand for flame retardants due to stringent fire safety framework

Globally, properties worth billions of dollars are lost due to fire-related accidents every year. Insurance companies have to utilize a major share of their revenue in settling claims on assets, infrastructure, and human lives lost in fire accidents. This makes anti-inflammatory agents or flame retardants crucial chemicals since they minimize the fire-related risks for almost every manufactured commodity. Flame retardants prevent fire by delaying the combustion process by forming a layer of free radicals. They either release carbon dioxide or free radicals that combine with oxygen molecules, thus arresting the oxidation process.

EU countries are focused on the implementation of stringent fire safety regulations in the automotive, electronics, consumer goods, and textile industries. Apart from the EU, countries across the globe also follow different fire safety standards and regulations. Therefore, the manufacturers of automobiles, electronics, consumer goods, and textiles need to meet the fire safety regulations of the respective countries. These safety standards and regulations have, therefore, increased the demand for flame retardants globally. According to the Danish Building Regulation 2010 (BR10), buildings must also have adequate protection against fire and fire spread.

Halogenated flame retardants constitute a group of brominated and chlorinated flame retardants. The brominated flame retardants form a major share of the global flame retardants market due to rising demand, especially in North America and Asia Pacific. Brominated flame retardants are also steadily replacing the chlorinated flame retardants, which are known to release harmful chlorine gas under certain conditions.

Brominated flame retardants are widely used in everyday commodities, such as plastics, textiles, and rubber, to reduce their flammability. Therefore, growth in the consumption of these commodities, especially in the emerging markets of Asia Pacific and the Middle East, is expected to bolster the demand for brominated flame retardants, ultimately boosting the market for bromine.

Restraint: Toxicological effects of brominated compounds

Brominated compounds, such as flame retardants, have routinely been added to consumer products, such as electronics, plastics, and many more for several decades in a successful effort to reduce fire-related injuries and property damage. Recently, concerns regarding this class of chemicals have risen because of the harmful and toxicological effect it has on health and the environment. The widespread production and use of brominated flame retardants (BFRs) lead to increased contamination of the environment. These compounds also have an adverse effect on animals and wildlife. However, the current toxicology databases that exist are inadequate to understand the risk. Many of the studies that do exist involve commercial mixtures, but do not represent human exposure. The future course of such studies has to be focused toward the congeners, and potentially their metabolites or breakdown products, to understand the risk from commercially-used bromine derivatives.

Opportunity: Increasing use of hydrogen bromide in flow batteries

Hydrogen bromide flow batteries are included under the category of membrane-less flow batteries with a high-power density. EnStorage Inc. (Israel), a developer of large-scale electricity storage solutions, produced grid-connected 50.0 KW hydrogen-bromine (HBr) flow batteries, which were connected at the company�s test site in southern Israel to provide up to 100.0 kWh of energy. The grid became operational in March 2013. EnStorage Inc. flow batteries utilize HBr and H2 as storage chemicals. Hydrogen-bromine flow batteries are a reliable source of sustainable power for large scale industrial units. They are currently being used as reliable energy storage solutions in various industrial units around the globe.

Challenge: Significant fluctuation in oil & gas prices

In the oil & gas industry, clear brine fluids (CBF) are used extensively in well-drilling activities completion and workover operations. The business of CBF significantly depends on the prices of oil and gas. The Gulf of Mexico rig count is a useful indicator of the future demand for CBF products. The Gulf of Mexico rig count dropped during 2015 as a result of low oil and natural gas prices and remained low in early 2016. Therefore, the demand for CBF products in onshore and international markets was affected by the low prices. There was a significant drop in the prices of natural gas and oil since the beginning of 2014. As a result, drilling activities and capital expenditure levels declined in the domestic and international markets. The decline in activity in the natural gas and oil exploration and production industries resulted in a decline in the demand for CBF products and the services associated with them. An expected rebound in oil & gas prices in the near future will bring growth opportunities for CBF, thus driving the bromine market.

Based on application, flame retardants segment accounted for the largest market share in 2019

Based on the application, the flame retardants segment accounted for the largest share of the bromine market in 2019. Brominated flame retardants (BFRs) are bromine-containing compounds that are added to substances to inhibit or reduce their rate of combustion. Stringent fire safety regulations implemented by the regulatory bodies augment the consumption of flame retardants in various end-use industries, such as electronics & consumer goods, building & construction, automotive, textile, rubber, and elastomer. Although brominated flame retardants are less preferred nowadays due to the growing environmental concerns associated with them, their widespread application in the industries mentioned above is sustaining their market and increasing their demand by the day.

Based on the derivative, the organobromine segment accounted for the largest market share in 2019

Based on derivative, the organobromine segment accounted for the largest share in 2018, as it is widely used in the manufacturing of brominated flame retardants, pesticides, fumigants, and biocides for water treatment. The top players in the bromine market, such as Albemarle (US) and Israel Chemicals Ltd. (Israel), are taking initiatives to develop and market polymeric alternatives to hexabromocyclododecane (HBCD) flame retardants, which are being phased out due to toxicological concerns. The manufacturers of PVC in cable mantling, for instance, are now shifting toward the use of polymers that do not use brominated flame retardants.

Asia Pacific accounted for the largest share of the bromine market in 2019

By region, Asia Pacific is estimated to be the largest market for bromine in 2020. The demand for bromine in this region is mainly propelled by its increasing use in China, Japan, and India. Increasing infrastructural development and the rise in the disposable income of the middle-class population in Asia Pacific have boosted the demand for flame retardants, which are used extensively in insulation and fabrication of plastic and electronic components. China is expected to be the dominant and fastest-growing market for bromine in the Asia Pacific region, mainly due to the escalating demand for brominated flame retardants in the country. China, which had banned the export of bromine and its related compounds, is focusing only on imports to meet its domestic requirements.

Key Market Players

Israel Chemicals Limited (Israel), Albemarle Corporation (US), LANXESS Corporation (Germany), Tosoh Corporation (Japan), Tata Chemicals Limited (India), Gulf Resources Inc. (China), and TETRA Technologies, Inc. (US), are some of the leading players operating in the bromine market.

Scope of the Report:

Report Metric Details Market Size Available for Years 2016�2025 Base Year Considered 2019 Forecast Period 2020�2025 Forecast Units Value (USD Billion), Volume (Kiloton) Segments Covered Application and Derivative Geographies Covered North America, Asia Pacific, Western Europe, Central & Eastern Europe the Middle East & Africa, and South America Companies Covered Israel Chemicals Limited (Israel), Albemarle Corporation (US), LANXESS Corporation (Germany), Tosoh Corporation (Japan), Tata Chemicals Limited (India), Gulf Resources Inc. (China), TETRA Technologies, Inc. (US), Hindustan Salts Limited (India), Honeywell International Inc. (US), and Perekop Bromine (Republic of Crimea), among others

This research report categorizes the bromine market based on application, derivative, and region and forecasts revenues as well as analyzes trends in each of these submarkets.

Based on the application:

Flame Retardants

Oil & Gas Drilling

PTA Synthesis

Water Treatment & Biocides

Mercury Emission Control

Pesticides

HBr Flow Batteries

Plasma Etching

Pharmaceuticals

Others (Photography, Chemical Intermediates Synthesis, Adhesive Tapes, Rubbers, Fumigant Synthesis and Elastomers)

Based on the derivative:

Organobromine

Clear Brine Fluids

Hydrogen Bromide

Based on the region:

Asia Pacific

North America

Western Europe

Middle East & Africa

Central & Eastern Europe

South America

Recent Developments

In September 2019, Israel Chemicals Ltd. announced its plan to increase its bromine compounds capacity to approximately 25,000 metric tons annually. The company will invest approximately USD 50 million for this expansion and expects a return of USD 110 million. This expansion comes amidst the company�s strategic agreements signed with many customers from Asia.

In July 2019, Lanxess Corporation started using Emerald Innovation 3000 as a flame retardant for expanded (EPS) and extruded (XPS) polystyrene instead of hexabromocyclododecane (HBCD), which has now been banned. Emerald Innovation 3000 was earlier majorly used as a flame retardant in electronics and electrical applications. This product, manufactured via the bromination of an alternating polystyrene butadiene copolymer, helped decrease the use of hexabromocyclododecane (HBCD), which is hazardous for health.

Frequently Asked Questions (FAQ�s):

What is bromine?

Bromine is a highly toxic, volatile chemical that exists in a reddish-brown liquid state at room temperature.

What are the major derivatives of bromine?

Bromine is used to synthesize three major derivatives, namely, organobromine, clear brine fluids, and hydrogen bromide (hydrobromic acid).

What are the most promising high-growth opportunities for the bromine market by end-use industry?

The bromine market is expected to be fueled primarily by the manufacturing of flame retardants, oil & gas drilling, and purified terephthalic acid synthesis. Apart from these, bromine is also used for water treatment in HBr flow batteries, pharmaceuticals, pesticides, mercury emission control, and plasma etching.

Which are the key countries expected to fuel the bromine market?

The bromine market is expected to grow the fastest in China, followed by the US, India, and Israel.

What are the key driving factors for the bromine market? Why?

The increasing use of bromine in mercury emission mitigation in coal-fired power plants; the rising demand for flame retardants due to stringent fire safety framework is expected to augment the market growth further.

What are the major challenges which may hinder the growth of the bromine market?

Toxicological effects associated with bromine, the emergence of non-halogenated flame retardants, and fluctuations in oil & gas prices pose significant challenges for the growth of the bromine market.

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