Low Profile Additives Market size is forecast to reach $814.92 million by 2025, after growing at a CAGR of 13% during 2020-2025. The growth of low profile additives is attributed because of its excellent physical and chemical properties which makes them perfect to use in the automotive industry. Emerging Applications of low profile additives in fiber-reinforced plastics will drive the growth of the market in forecast period.
By Product Type- Segment Analysis
Polyvinyl Acetate based low profile additives segment held the largest share in the low profile additives market in 2019. The Polyvinyl Acetate has extraordinary solubility characteristics during the curing phase of unsaturated polyesters, excellent shrinkage prevention in end products, and easy availability. The Polyvinyl Acetate based low profile additives is extensively used in the production of automotive parts such as headlamp reflectors, lighting systems, under-the-hood components and others. According to International Organization of Motor Vehicle Manufacturers the total production of automobile (commercial as well as Personal) in Asia-Pacific in the year 2018 was 52,449,078 units compare to 53,395,211 units in 2017. While the total production of automobile, globally in the year 2019 is 91,786,861 units compare to 96,869,020 unit in 2018. The increase in the global automobile production is a major factor leading to the growth of low profile additives in terms of volume across the globe. PMMA based low profile additives consist the second largest share in the low profile additives market. PMMA is widely used as a shatterproof replacement for glass. PMMA has high resistance to UV light, weathering, excellent light transmission and a wide range of color options.
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By Application – Segment Analysis
SMC (Sheet Molding Compound) has been the primary application of the low profile additives market. During SMC processes, the low profile additives is an essential ingredient in resin mixture, as it helps to enhance surface smoothness and control the shrinkage resulting from finished part molding. Due to the property of its high strength to density ratio and corrosion resistance the low profile additives is often use in construction sector. The construction companies globally spends more than USD 10 trillion in construction related goods and services each year. Growing construction industry across the globe is likely to drive the demand for low profile additives in near future. Low profile additives in pultrusion offer dimensional stability, electrical insulation, and corrosion resistance to the product. Such benefits are anticipated to propel the product demand.
By End Use – Segment Analysis
Construction sector has been the primary market for low Profile Additives Market in 2019 growing at a CAGR of 14.4%. The growth of low Profile Additives can be taken as directly proportional to the growth of construction industry. By 2020, construction output is estimated to grow by 70% to $12.7 trillion and will account for 14.6% of the world output with some of the larger emerging markets such as China, India, Russia, Brazil and Poland driving growth, along with U.S. Global GDP growth of 3.5% and 3.6% is expected in 2017 and 2018 respectively however the meteoric growth that outpaces global GDP will be concentrated in countries like China, India and U.S. India will overtake Japan as the third-largest construction market with annual growth averaging 7.4% annually in construction. Apart from construction, medical and healthcare sector is also fueling the low Profile Additives Market. In Medical and Health care, low Profile Additives are used to make advances in devices for medical diagnosis and treatments that promote healing and helping in the returning of patients to active lives.
Geography – Segment Analysis
APAC dominates the low profile additives market with a share of 38% followed by North America and Europe. The economy of APAC is mainly influenced by the economic dynamics of countries such as China and India, but with growing foreign direct investment for economic development of South East Asia, the current scenario is changing. Countries in South East Asia are witnessing high growth in the Construction and automotive industries. The steady growth of construction industry owing to growing urbanization and increase in renovation activities are expected to boost the demand for low Profile Additives in the region. Many of the Commercial buildings in the United States and China are incorporating low Profile Additives to provide the strength to the buildings as per requirement. According to world economic forum the Middle East and North Africa region is undergoing transformation. The rapid urbanization trend will boost the low Profile Additives market which is primary thing in construction sector. The coronavirus pandemic has had far-reaching consequences beyond the spread of the disease and efforts to quarantine it. Supply Chain Will Be Affected. Many factories worldwide have been shut down during this pandemic which will cause shortages or delays in building material, such as lumber, drywall, plumbing, electrical fixtures, and mechanical equipment resulting in delays in construction. Project Owners may get nervous and postpone new construction or slow down planned projects. Uncertainty in the economy will result in projects being on hold. This will the market of construction sector for the year 2020. But after situation became normal it will grow with a steady rate in the forecast period.
Drivers – Low Profile Additives Market
Low Profile Additives are the Replacement of Steel Rebar
Steel parts are now replaced by many lightweight composite materials. Among all composite materials, sheet molding compounds are majorly used in the automotive industry as these have exceptional mechanical properties. These aforementioned factors have given an up thrust to the demand for overall low profile additives market.
Increase in Demand for SMC Formulations from Automotive Industry
Currently, the automotive market is pursuing lighter weight materials to reduce the overall weight of the vehicle. This is mainly due to the ever increasing demand to improve gas mileage. A lower density Sheet Molding Compound (SMC) based on fiberglass and polyester technology, can be manufactured with sufficient mechanical properties and weight reduction.
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Challenges – Low Profile Additives Market
High Manufacturing Cost can restrict the Growth of the Market.
The raw materials required to produce low profile additives are majorly the petrochemicals derivatives and prices of these are volatile, making it difficult for the manufacturers to maintain stable profit margins. This factor may act as a restraint for the market growth.
Technology launches, acquisitions and R&D activities are key strategies adopted by players in the low profile additives market. Major players in the low profile additives Market are Arkema Group, Altana, Ashland, Alliances, Menachem and others.
In August 2018, LyondellBasell (Netherlands) acquired A. Schulman, Inc. (US), a global supplier of composites, high-performance plastic compounds, and powders. The acquisition doubled the existing company’s compounding business and broadened its reach in various growing end-use industries such as automotive, construction materials, electronic goods, and packaging.
Asia-Pacific dominates the low profile additives market owing to increasing demand from a large consumer base present in the region.
The continuously growing trend of using recycled plastic materials is likely to act as an opportunity in the future.
Vulnerability and fluctuations in the prices of raw materials used in the production is expected to act as a restraint to the market growth.
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