Rising Pharma Sector & Drug Development Impact Bromine Market: Report
The bromine market is expected to be valued at US$ 2.53 billion in 2023. The bromine market is expected to reach US$ 4.7 Billion by 2033. The market revenue is likely to continue to expand at a CAGR of 6.3 per cent.
Bromine Market Trends and Highlights
Bromine is a liquid element that occurs naturally. In agriculture and sanitation, bromine products are used as pesticides, fumigants, and fire retardants. Many citrus-flavoured drinks use bromine as an emulsifier as well as fumigants, dyes, flameproofing compounds, sanitizing agents, medicinals, and photographic agents.
Key Bromine Market Trends
Construction and electronics industries found a great deal of demand for bromine to meet fire safety regulations and standards, which is a key component in flame retardants.
Flame retardants made from bromine are becoming more environmentally friendly.
Regulators in some regions adopt stricter environmental regulations, promoting environmentally friendly alternatives.
A number of advancements are being made in bromine extraction technologies in the industry. Due to these advancements, production became more efficient and environmentally friendly.
Several countries, including China and the United States, produce bromine. Trade policies and geopolitical tensions may influence bromine availability and pricing.
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2018 to 2022 Historical Analysis vs. 2023 to 2033 Market Forecast Projections
A study by FMI found that a 2.7 per cent CAGR was experienced between 2018 and 2022 in the Bromine market. Global demand for Bromine is predicted to increase at a CAGR of 6.3 per cent from 2023 to 2033.
Bromine is found in a wide variety of over-the-counter and prescription drugs used to treat various health problems. Due to their ability to reduce central nervous system sensitivity, bromide ions can be used as sedatives, anti-epileptics, and tranquilizers.
With bromine demand growing, major producers are expanding their facilities. Moreover, bromine sales are boosted by rising demand in the automotive and electronic sectors.
With fire accidents becoming more common, materials with fire-retardant properties have become more in demand. Flame retardants make extensive use of bromine compounds due to their fire-resistant properties.
Historical CAGR from 2018 to 2022 Forecast CAGR from 2023 to 2033
More than 300,000 tonnes of bromine are produced worldwide each year, primarily in the United States, Israel, and the United Kingdom. Sedative properties were historically associated with bromine-based compounds. The majority of these drugs are, however, no longer available on American markets.
Bromine Market Drivers
A number of organizations and companies are actively working to develop sustainable lithium-ion battery alternatives.
Flame retardants, drilling fluids, speciality chemicals - all use bromine as a raw material.
As urbanization, industrialization, and environmental regulations increase, the chemical industry will grow, resulting in an increased demand for bromine.
Electronics, textiles, and construction materials all use bromine compounds as flame retardants. Bromine-based flame retardants are in high demand due to stringent fire safety regulations and an increasing awareness of fire safety.
Various bromine compounds are used to conduct drilling operations in the oil and gas industry, such as bromine-based drilling fluids. Bromine demand can be influenced by energy exploration and production.
Among water treatment applications, bromine is particularly useful for controlling microorganism growth and maintaining water quality in cooling towers and swimming pools. As waterborne diseases become more prevalent, demand for bromine could increase as water treatment systems become more sophisticated.
Rising pharmaceutical industries and drug development the market is expected to grow. The pharmaceutical industry uses bromine compounds primarily for the synthesis of medications and drugs. Growth and innovation in the pharmaceutical sector could influence bromine sales in the market.
Various brominated compounds, like brominated flame retardants, have been subject to stringent environmental regulations and concerns about their environmental impact. Because of changes in regulations, the demand for certain bromine products may be impacted.
Bromine Market Restraints
The use and production of bromine can negatively affect the environment. Brominated compounds are potentially harmful to the environment and human health. Increased regulatory scrutiny has led to the development of more environmentally friendly bromine production processes.
Bromine is subject to several regulations and restrictions due to its potential toxicity and environmental impact. Because of heavy regulations imposed by the bromine industry, the production, handling, and disposal of brominated compounds are highly regulated. Businesses find it challenging to stay on top of regulations since they can change at any time.
Alternative flame-retardants like bromine are threatened by phytoplankton and other pesticides. Regulations are making bromine-based products more difficult to manufacture and use.
Prices for bromine can fluctuate because of dynamics in supply and demand, production capacity, and geopolitics. Companies can have a hard time planning and budgeting in this environment.
Some regions have limited access to natural brine deposits, which are the main source of bromine. Supplying bromine consistently and cost-effectively can be challenging for companies.
Energy prices can influence the cost of bromine production, as bromine production is energy-intensive. Bromine producers may see their profit margins squeezed by rising energy costs.
As technology advances, bromine could be replaced with more efficient and sustainable alternatives. Adapting to changing market demands and staying competitive requires continuous innovation in the bromine industry.
Waste and byproducts containing bromine need to be disposed of properly. Costly and complicated, managing waste responsibly can be hard.
During economic downturns or geopolitical conflicts, bromine-based products can be affected by the market. Uncertainty in the global economy poses a challenge for bromine companies.
The corrosive and toxic nature of bromine makes it difficult to handle and work with. Keeping workers healthy and safe can be both challenging and expensive.
The bromine industry works actively to address these challenges by exploring alternative applications, improving production processes, and adopting safer and more environmentally friendly practices. Businesses that operate in the bromine industry also remain informed about regulatory changes and market trends.
Consumption of Bromine Rises Across Industries in the United States
According to estimates, the United States will lead the market with US$ 1.3 billion by the end of 2033 and a CAGR of 1.8 per cent.
With swimming pools becoming more popular and chemical industries expanding, bromine demand increases. The use of bromine as a pool and hot tub disinfectant has become widespread. As a powerful antibacterial and antialgae combatant, it is an essential ingredient in water treatment systems.
A growing pharmaceutical industry and increased demand for various agricultural applications are likely to increase the demand. A number of industrial processes in the United States, particularly coal-fired power plants, use bromine compounds to reduce mercury emissions.
Oil and Gas Industries Will Boost Demand for Bromine in India
Based on estimates, the bromine market in India will reach US$ 1.8 billion by 2033. A CAGR of 2.4 per cent is predicted for the market over the next ten years.
In order to meet domestic demand, manufacturers have relocated to India to reduce labour costs. Government initiatives and Digital India are accelerating the growth of the electronics manufacturing industry. As bromine compounds are increasingly used in drilling wells in the oil and gas industry and for a broad range of industrial fumigant applications, the bromine market is experiencing growth.
In India, according to the Ministry of Statistics and Program Implementation's Infrastructure and Project Monitoring Division, the government had 1,559 projects in the pipeline valued at INR 26.4.7 trillion (USD 314.22 billion) as of May 2022. Also, the Indian construction industry is expected to grow at a rate of 6.2 per cent per year from 2023 to 2026, thanks to a strong pipeline of infrastructure projects in many sectors.
Organobromine Derivatives Fuel Growth in Bromine Market
Based on the derivatives, the organobromine derivative is expected to remain dominant through 2033. The market is expected to expand at 2.3% between 2023 and 2033.
Organobromine compounds are used in a lot of things including biocides, pharmaceuticals, and agrochemicals. Compounds containing organobromine are highly reactive, making them valuable intermediates for a wide range of chemical reactions. Increasing demand for high-quality organobromine compounds also accompanies the growth of the pharmaceutical and agrochemical industries. It is expected that this segment will grow in emerging markets in developing nations as well.
Water treatment processes use organobromine derivatives to disinfect and purify water. Concerns about water quality, regulations, and population growth can affect the demand for bromine in the market.
The derivatives of organobromine are used in agrochemicals, including pesticides and herbicides. Compounds such as these are effective at protecting crops from pests and diseases. Agricultural practices and crop protection needs affect bromine demand in agriculture.
Oil & Gas Drilling with Bromine Based Fluids to Develop
By application, oil and gas drilling is expected to dominate all other applications in the near future. A growth rate of 2.9% is projected from 2023 to 2033.
Bromine is primarily used in drilling fluids, which drives its demand in the oil and gas industry. To control drilling fluid density and viscosity, bromine compounds are added to drilling fluids.
Using this procedure prevents blowouts, balances pressure inside wells, and lubricates the bits. High-temperature and high-pressure drilling environments are ideal for bromine-based drilling fluids.
The demand for bromine in drilling fluids is likely to increase when oil and gas prices are high and drilling activity is robust. Several factors influence bromine demand in the oil and gas sector, including the number of drilling projects and exploration efforts.
An increase in drilling activity results in an increase in drilling fluid demand. Advances in drill technology and techniques, potentially affecting the demand for bromine, may influence the choice of drilling fluids. Certain drilling scenarios, however, make bromine useful because of its unique properties.
Bromine-based drilling fluids, for example, may be restricted for use by environmental regulators. Alternatives that are more environmentally friendly may be developed and adopted if regulations are stricter.
A particular drilling challenge and the cyclical nature of the energy sector drive the demand for bromine in the oil and gas drilling industry. Drilling operations under demanding geological conditions rely heavily on it to ensure safety and efficiency.
Competitive Landscape
A variety of organic and inorganic growth strategies contributed to a competitive advantage in the market, including research and development, acquisitions, mergers, partnerships, and advanced product development.
In September 2023, Zinc-based energy storage as one of the approaches was proposed by Eos Energy, which has gained United States Department of Energy approval on a conditional basis.
An approximately $400 million loan commitment was recently announced by the US Department of Energy for Eos Energy Enterprises. A portion of the loan funds the establishment of four cutting-edge battery factories for the production of Eos Z3 batteries.
