What are Factors Driving Growth of Global Bromine Market?

The increasing usage of clear brine fluids in oil and gas drilling activities is one of the major factors propelling the demand for bromine across the world. Clear brine fluids are extensively used in oil and gas drilling activities due to their ability of decreasing the bottom-hole pressure and temperature in the well bores. In addition to this, brines provide various advantages over other drilling fluids such as lesser fine-hole gauge, formation, and fill damage, faster shale penetration rates, and lower initial cost of setting up the casing for the mud (for drilling).


The other major factors fuelling the rise in the demand for bromine throughout the globe, are the rising incorporation of eco-friendly polymeric flame retardants and the soaring utilization of bromine compounds for reducing mercury emissions in a cost-effective manner. Due to these factors, the global bromine market generated revenue of $1,864.3 million in 2019 and is expected to advance at a CAGR of 5.7% during the forecast period (2020–2030).


On the basis of derivative, bromine is classified into hydrogen bromide, organobromide, and bromide salts. Amongst these, organobromide recorded the highest usage in 2019. This is mainly ascribed to the large-scale utilization of organobromides, such as ethylene dibromide, styrene bromide, allyl bromide, propylene bromide, and vinyl bromide, in the production of flame retardants, intermediates for organic synthesis, solvents, fumigants, gasoline antiknock agents, pesticides, and catalysts, across the world. The demand for bromide salts is expected to increase at the fastest rate during the forecast period, owing to their burgeoning utilization in the production of clear brine fluids.

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Geographically, Asia-Pacific (APAC) is expected to observe the highest growth in the usage of bromine during the forecast period. This is credited to the rising demand for electronics and plastic products and insulation materials in many APAC countries such as India, Japan, China, Thailand, and South Korea, on account of the soaring urban population and surging disposable income of the people in these countries. Bromine-based flame retardants are widely used in electronics and plastic products and insulation materials and therefore, the bromine market is being massively boosted by the rising demand for these materials in the region.

Therefore, the demand for bromine is set to surge in the coming years, owing to the mushrooming usage of clear brine fluids in oil and gas drilling activities and the rising adoption of bromine in flame retardants.

How is Increasing Mercury Emissions Driving Demand for Bromine?

A huge amount of mercury has been released into the atmosphere due to the continuous burning of fossil fuels for producing energy. Moreover, mercury emissions across the globe are also increasing because of its utilization in products and industrial processes. It has been estimated that about 2220 metric tons of mercury is emitted each year from anthropogenic sources. Increased exposure to mercury can threaten human lives immensely, often with irreversible toxic effects. Young children and pregnant women are the most at risk, along with which, mercury also negatively affects ecosystems and wildlife. It is due to the increased mercury emissions that the demand for bromine is increasing.


Bromine has the potential to reduce mercury emissions significantly, about 90%. Bromine additives are utilized for converting elemental mercury into oxidized mercury, so that it can be captured easily with emissions control equipment. After this, the retrieved mercury can be handles with care. According to a report by P&S Intelligence, the global bromine market attained a value of $1,864.3 million and is expected to advance at a 5.7% CAGR during the forecast period (2020–2030). The three major derivatives of bromine are organobromide, hydrogen bromide, and bromide salts.


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Out of these, the demand for organobromides was the highest in the past, which can primarily be attributed to the extensive consumption of these derivatives, including vinyl bromide, styrene bromide, allyl bromide, ethylene dibromide, and propylene bromide, for the production of catalysts, pesticides, solvents, and intermediates for gasoline antiknock agents, organic synthesis, and fumigants. Apart from this, the demand for bromine salts is also expected to grow considerably in the years to come, owing to the fact that these products are largely being utilized for producing clear brine fluids.


Asia-Pacific (APAC) dominated the bromine market during the historical period (2014–2019), primarily owing to the high production and consumption of these derivatives in China. Seeing the abundance of naturally occurring bromine, cost-effective labor, and consumers, many companies from outside are setting up derivative manufacturing plants in the country. Further, with the rising disposable income of the people as well as swift urbanization in the region, the demand for bromine-based flame retardants, for electronic and plastic products and insulation, is escalating.


To increase their revenue by catering to the rising demand for the gas and its derivatives, bromine market players are radically expanding their manufacturing capacity. For instance, in September 2019, the Industrial Products division of Israel Chemicals Limited announced its intentions to increase the annual production capacity of the gas and its derivatives, such as tetrabromobisphenol A, to around 25,000 tons by 2021.


Similarly, LANXESS AG announced capacity expansion plans for phosphorus- and bromine-based flame retardants, in December 2018, to strengthen its bromine asset base.c