The chemical industry is a major component of the economy. According to the U.S. Bureau of Economic Analysis, in 2020, for the U.S., the value added by chemical products as a percentage of GDP was around 1.9%. Additionally, according to the World Bank, Chemical industry in the U.S. accounted for 16.43% to manufacturing value-added in 2018. With the growing demand from end-users, the market for chemical products is expected to grow in future. According to UNEP (United Nations Environment Program), the sales of chemicals are projected to almost double from 2017 to 2030. In the current scenario, Asia Pacific is the largest chemical producing and consuming region. China has the world’s largest chemical industry, that accounted for annual sales of approximately more than USD 1.5 trillion, or about more than one-third of global sales, in recent years. Additionally, a vast consumer base and favorable government policies have boosted investment in China’s chemical industry. Easy availability of low-cost raw material & labor as well as government subsidies and relaxed environmental norms have served as a production base for key vendors globally. On the other hand, according to the FICCI (Federation of Indian Chambers of Commerce & Industry), the chemical industry in India was valued at 163 billion in 2019 and it contributed 3.4% to the global chemical industry. It ranks 6th in global chemical production. This statistic shows the lucrative opportunity for the investment in businesses in Asia Pacific countries in the upcoming years.
Rise in Cases of Structure Fires – With the recent development in various end-use industries, the probability of an infrastructure having a fire-related accident has increased considerably. As flame resistant fabrics inherit fire resistant properties, they make them a suitable shield against fire in an accident. Thus, the rising number of structural cases across the world is forecasted to augment the market growth. A recent statistics reported that in 2020, there were almost 500,000 structure fires in the United States, an increment of 2 percent from 2019. Also, the structure fires caused approximately USD 12 billion in property damage in the same period.
High Investment in R&D Activities – According to the World Bank the research and development expenditure accounted 2.63% of total GDP in 2020. This was a rise from 2.13% of total GDP in 2017.
Increased Expenditure on Advanced Materials and Chemicals – Latest data revealed that in 2019, the global research and development expenditure spending on advanced materials and chemicals was accounted for USD 40 billion.
High Employment Rate in the Field of Material Science – According to the U.S. Bureau of Labor Statistics, there were 6,700 active materials scientists in the United States in May 2019. Additionally, the employment rate of chemists and materials scientists in the region is anticipated to grow by 6% in the period from 2020 to 2030. Also, around 9,100 openings for chemists and materials scientists are projected each year over the next decade.
The flame resistant fabrics market is segmented and analyzed for demand and supply by end-use industry into industrial, oil & gas, building & construction, defense & public safety services, and transportation. Out of these, the oil & gas segment is anticipated to garner the highest revenue by 2031, owing to the expansion of oil and gas industry. According to recent estimates, the revenue generated by the United States’ oil and gas industry was about USD 110 billion in 2020, an increase from 2016 of USD 100 billion.
Regionally, the global flame resistant fabrics market is studied into five major regions including North America, Europe, Asia Pacific, Latin America and Middle East & Africa region. Amongst these, the market in Asia Pacific is projected to hold the largest market share by the end of 2031. The primary reason for the market growth in the region is the increasing demand and manufacturing of textiles by the burgeoning population. China is leading the charts of global textile exporters in 2021 with a value of approximately USD 120 billion, almost 55% of the total textile export market in Asia. Moreover, Bangladesh is also a leading textile exporter, with a value of around USD 39 billion. Also, the employment rate in the clothing industry in the region is another factor that is expected to propel the market growth. According to the International Labor Organization, around 65 million people are employed in the garment sector in Asia-Pacific, which accounts for 75% of all garment workers worldwide.
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The global flame resistant fabrics market is further classified on the basis of region as follows:
Our in-depth analysis of the global flame resistant fabrics market includes the following segments:
By End-use Industry
Lenzing AG company’s textile sector has secured 5 times growth sales of its unique lyocell filament yarn, TENCEL LUXE in 2021 and is on track to increase its existing production capacity by 25% in 2022 to cater to growing demand.
Kaneka Corporation has entered into a partnership with Kashima Antlers to work together to create a sustainable future.
In 2023, market players might incur losses due to huge gap in currency translation followed by contracting revenues, shrinking profit margins & cost pressure on logistics and supply chain.
Controlling Inflation has become the first priority for global economies from last quarter of 2022 and to be followed in 2023. With skewed economic situations, rise in interest rate by governments to control spending and inflation, spiked oil and gas prices, high inflation, geo-political issues including U.S. & China trade war, Russia-Ukraine conflict to intensify the global economic issues.
The interest rates in the U.S. may be less sensitive in 2023 as compared to 2022; sigh of relief for businesses. Positive business sentiments, healthy business balance sheets, growth in construction spending (private construction value in 2022 stood at $1,429.2 billion, 11.7 percent (±1.0 percent) above the $1,279.5 billion spent in 2021, Residential construction in 2022 was $899.1 billion, up by 13.3 percent (±2.1 percent) from $793.7 billion in 2021, non-residential construction touched $530.1 billion, 9.1 percent (±1.0 percent) above the $485.8 billion in 2021.) showcases minimal impact of recession in the country.
Similarly, spiked spending in the European and major Asia economics including, India, China & Japan to showcase less impact on the global demand.
Author Credits: Smruti Ranjan, Rajrani Baghel
Ans: The expansion of textile industry along with fire cases across the buildings are expected to propel the market growth.
Ans: The market is anticipated to attain a CAGR of ~6% over the forecast period, i.e., 2022 – 2031.
Ans: Increased production cost coupled with high cost of raw materials and complex level of production technology are some of the factors that are expected to hamper the market growth.
Ans: The market in Asia Pacific is projected to hold the largest market share by the end of 2031 and provide more business opportunities in the future.
Ans: The major players in the market are DuPont de Nemours, Inc., Evonik Industries AG, Huntsman International LLC, Kaneka Corporation, Lenzing AG, Milliken & Company Group, PBI Performance Products, Inc., Solvay SA, Toyobo Co., Ltd., Teijin Aramid BV and others.
Ans: The company profiles are selected based on the revenues generated from the product segment, geographical presence of the company which determine the revenue generating capacity as well as the new products being launched into the market by the company.
Ans: The market is segmented by type, application, end-use industry, and by region.
Ans: The oil & gas segment is anticipated to garner the largest market size by the end of 2031 and display significant growth opportunities.