Low profile additives are polymer additives used to modify polymeric resins for applications that require reduced shrinking and excellent surface finish during polymerization. They impart properties like flowability, sag resistance and improved coatability to various polymers. Low profile additives are commonly used in unsaturated polyester and vinyl ester resins for applications such as fiberglass reinforced plastics, sheet molding compounds and bulk molding compounds in end-use industries such as transportation, construction, electronics, pipes and tanks. The advantages of using low profile additives include enhanced handling properties of thermosetting laminate systems, smoother surfaces and reduced reinforcement corrosion. With growing use of reinforced plastics in automotive, marine and aerospace components owing to their inherent properties of stiffness, impact resistance and durability, the demand for low profile additives is increasing substantially.
The global low profile additives market is estimated to be valued at US$ 760.3 million in 2024 and is expected to exhibit a CAGR of 5.2% over the forecast period 2024 to 2031.
Key Takeaways
Key players operating in Low Profile Additives Market Size are Wacker Chemie AG, INEOS AG, Polynt S.p.A., Vin Industries, BASF SE, Altana, Polychem Ltd., Swancor, LyondellBasell Industries Holdings B.V., Aromax Technology Corp., Interplastic Corp., Synthomer PLC, AOC, LLC, Mechemco, Taak Resin Co., NOF Corporation. These players are focusing on new product development and geographical expansion to gain a larger share of the market.
The growing demand from end-use industries like automotive, aerospace and marine is a major factor driving the low profile additives market. Properties like corrosion resistance, lightweight and ability to withstand harsh conditions are increasing the use of reinforced plastics in these industries which is subsequently increasing the consumption of low profile additives.
The low profile additives market is witnessing growing global expansion with emergence of low cost manufacturing locations in Asia Pacific and Middle East & Africa. Establishment of production plants by key players in these regions and technology transfers are helping these areas to strengthen their position in the global reinforced plastics supply chain.
Market drivers
Increasing use of FRP composite materials in construction industry is one of the key drivers for low profile additives market. Properties like corrosion resistance and design flexibility make FRP composites increasingly popular building material. Low profile additives provide properties like sag resistance and reduce shrinking during curing of unsaturated polyester and vinyl ester resins used in FRP composites. This enhances their handling, application and finishes properties and drives their use in construction of infrastructures, roofs, tanks etc. Growing construction activities globally is thus fueling the demand.
Impact of geopolitical situation on the growth of Low Profile Additives Market
The current geopolitical instability across several regions is negatively impacting the growth of the low profile additives market. The ongoing Russia-Ukraine war and sanctions on Russia have disrupted global supply chains and export-import activities. This is adversely affecting the supply of key raw materials for low profile additives such as styrene monomer, unsaturated polyester resins, and MEK peroxide.
The global recession fears due to high inflation are also lowering the demand for end-use industries like transportation, building & construction, wind energy, and others. This is hampering the consumption of low profile additives. However, shifting manufacturing facilities to other regions by major players can help mitigate risks. Focusing on developing bio-based and recycled raw material sources can promote sustainable growth. Collaborating with local partners for raw material procurement and expanding in high growth Asian markets will help sustain revenue in the unstable geopolitical environment.
Regions concentrating value in Low Profile Additives Market
The Asia Pacific region dominates the low profile additives market in terms of value, accounting for over 40% share. This is attributed to the large presence of end-use industries like automotive, construction, wind energy in China, India, Japan, and Southeast Asian countries. China alone contributes to more than one-third of global demand due to its huge automotive production base and increasing infrastructure development activities. North America and Western Europe are other major regions generating sizeable revenues, driven by resurgent construction and well-established wind energy sectors.
Fastest growing region in Low Profile Additives Market
Central and Eastern Europe is expected to emerge as the fastest growing region for the low profile additives market during the forecast period. This growth can be attributed to robust industrial investments and expanding manufacturing sectors in countries like Poland, Czech Republic, Romania, Hungary etc. The region provides advantageous business environment and low-cost skilled labor. Additionally, supportive green initiatives by governments are fuelling the installation of wind farms, driving the consumption of low profile additives for wind blades. Initiatives towards developing infrastructure and public projects will further support the regional market expansion.
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