FINE HYDRATE MARKET ANALYSIS

Global fine hydrate market was valued at US$ 391.4 Mn in 2023, exhibiting a CAGR of 9.8% in terms of revenue, over the forecast period (2023 to 2030) to reach US$ 751.3 Mn by 2030. Fine hydrate is a non-halogenated flame retardant additive used across several applications such as injection molding, wire, and cable compounds, and paints & polymer. It belongs to the class of fine alumina trihydrate (ATH) compounds, which is produced by using Bayer’s process. Fine alumina hydrate is an eco-friendly, mineral-based flame retardant, that is used in a variety of polyolefin resins. Some of the other applications of fine hydrate are cable compounds, sheet molding compounds, and bulk molding compounds. Moreover, it is also used to produce lightweight plastics for automobiles, which reduce the overall weight of the automobile, thus making fuel-efficient vehicles. Furthermore, fine hydrate is also used in the production of pigment.

COVID-19 Impact on Global Fine Hydrate Market

The COVID-19 pandemic has had a negative impact on global fine hydrate market. The pandemic has affected with several factors such as disruption in the supply chain, the pandemic had to disruptions in global supply chains, affecting the production and distribution of fine hydrates. Restrictions on transportation, temporary closures of manufacturing facilities, and limited workforce availability impacted the supply of raw materials and finished products, causing delays and shortages. Moreover, global fine hydrate market is also impacted by decrease in construction activities. Fine hydrates are used in construction materials, such as cement and concrete, to enhance fire resistance and improve performance. During the pandemic, many construction projects were put on hold or delayed due to lockdowns and social distancing measures. This led to decline in demand for fine hydrates in the construction industry.

Global Fine Hydrate Market - Drivers

• Increasing demand for plastic from the automotive industry: Increasing demand for plastic from the automotive industry for reducing the overall weight of the vehicle is projected to propel the market growth of fine hydrate. Fine hydrate is widely used to produce polymers, where they are used as flame retardant additives. These polymers have huge demand from the automotive industry for producing automobile components that reduce the overall weight and make fuel-efficient vehicles. Thus, the rising demand for plastic from automotive is the industry that is fueling market growth. For instance, According to India Brand Equity Foundation, India's Automotive Industry is worth more than US$ 217 billion and contributes 8% of the country's total export and accounts for 7.1% of India's GDP and is set to become the 3rd largest in the world by 2030.
• Growing adoption of fine hydrate as a substitute for titanium dioxide in the production of pigments: Growing adoption of fine hydrate as a substitute for titanium dioxide in the production of pigments is projected to propel the market growth of fine hydrate. Paints and coatings are widely used across automotive refinishing, construction, protective coatings, and wooden coatings. Fine hydrate is used in paints to maintain the shine and luster and increase transparency. Hence, growing usage of fine hydrate as a substitute for titanium dioxide is propelling the market growth. 

Global Fine Hydrate Market - Restraints

• Fine hydrate is not suitable for high-temperature applications: Fine alumina trihydrate is widely used as flame retardant across various materials such as elastomers, thermosetting resins, and thermoplastics. However, fine hydrate is not suitable for high-temperature applications that limit its application across high-temperature applications. This is projected to hinder the market growth of fine hydrate. Additionally, growing adoption of magnesium hydroxide as antacids in the pharmaceutical industry is expected to restrict the market growth of fine hydrate. Moreover, a lack of awareness regarding the benefits of alumina trihydrate across the developing region is also another major factor restricting the market growth of fine hydrate.

Figure 1. Global Fine Hydrate Market, By Application, 2022

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On the basis of application, cable compounds dominated the global fine hydrate market in 2022 with around 81.30% of market share in terms of revenue, followed by sheet molding compounds and bulk molding compounds, respectively. The demand for fire-resistant cables has been driven by stringent safety regulations in various industries, including construction, power distribution, automotive and telecommunications. These regulations mandate the use of fire-resistant materials, including cable compounds with fire hydrates, to ensure the safety of infrastructure and minimize the risk of fire incidents.

Global Fine Hydrate Market - Opportunities

Growing application of fine hydrate in the production of cable & wire products is projected to offer numerous growth opportunities to the market growth of fine hydrate over the forecast timeframe. Increasing production of electronic goods, especially across China and India is expected to propel the market growth. Fine precipitated alumina trihydrate provides superior powder processing and outstanding compounds properties, which makes them ideal flame retardant additives.

Increasing application of alumina trihydrate across wastewater treatment is projected to offer enormous growth opportunity to the market of the fine hydrate. Hence, the growing number of wastewater treatment due to increasing water pollution and growing demand for clean and safe water around the globe will favor the market growth of alumina trihydrate over the forecast timeframe.

Global Fine Hydrate Market - Market Trends

The rising trend of nano technology in new products is projected to propel the market growth of fine hydrate. Various polymer producers are adding flame retardants such as fine hydrate with nanoclays, which improve the performance of polymer additives as nanoclays have help in anti-dripping and slowing down fire, and they also produce surface char, all these enhance the quality of non-halogenated flame retardants. This factor is projected to propel the market growth.

Increasing sales of fine hydrate in the Asia Pacific region due to the rising production of consumer electronics in the Asia Pacific region is projected to fuel the market growth. Moreover, expanding the construction industry and the development of infrastructure in Asian countries such as China, India, and South Korea is further projected to propel the market growth of fine hydrate.

Global Fine Hydrate Market - Regional Insights

By Region, Asia Pacific dominated the global fine hydrate market in 2022, reporting 43.40% market share in terms of revenue, followed by Europe and North America, respectively. Asia Pacific could be examined for its growing industrialization, expanding chemical manufacturing sector, and increasing oil and gas exploration activities. Countries such as China, India, and Japan might exhibit significant demand for fine hydrates, driven by the factors such as population growth, urbanization, and infrastructure development.

Figure 2. Global Fine Hydrate Market, By Regional, 2022

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Global Fine Hydrate Market - Recent Developments

• In May 2021, Huber Corporation and RHI Magnesita (RHIM) entered into an agreement for Huber Corporation to purchase a 50% ownership stake in their 50/50 joint venture, MAGNIFIN Magnesiaprodukte GmbH & Co. KG. The Huber Engineered Materials (HEM) Fire Retardant Additives (FRA) unit, which manufactures a variety of halogen-free products for fire retardant and smoke suppression applications as well as aluminum oxides, included MAGNIFIN as a part of Martinswerk as a result of this acquisition.
• 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. Hindalco Industries Ltd (Hindalco), a subsidiary of Aditya Birla Management Corp Pvt Ltd, is manufacturer of aluminum and copper. Aluminum in the forms of billets, ingots, and wire rods, alumina, and value-added goods like rolled products, extrusions, and foils are among its products.
• In 2019, Huber Engineered Materials launched its latest fine hydrate product called MoldX AO1. This product is designed for use as a flame retardant in the polymer industry and is specifically targeted for use in thin-wall applications. Huber Engineered Materials develops and manufactures industrial chemicals. The Company offers engineered specialty ingredients and products such as silica, silicates, health and nutrition, flame retardants, smoke suppressants, calcium carbonate, and barium sulfate. Huber Engineered Materials serves clients in the U.S.

Global Fine Hydrate Market - Key Players

Key players operating in the global fine hydrate market are Nabaltec AG, Huber Engineered Materials, Hindalco Industries Limited, Sumitomo Chemical Co. Ltd., Alumina Castables & Chemicals Private Limited, Aluminum Corporation of China Limited (CHALCO), JINAN CHENXU CHEMICAL CO., LTD., and Henan Kingway Chemicals Co., Ltd.

Definition: Fine hydrate is a non-halogenated flame retardant additive often used as coating on wires, cable compounds and paints & polymers in the automotive industry.