by The low profile additives market has witnessed significant growth over the past few years owing to the increasing demand from automotive, construction and machinery industries. Low profile additives are commercially important polymers that are used to modify the properties of unsaturated polyester and vinyl ester resins. They are added to give resins and coatings low-shrink characteristics during curing and prevent them from sagging or slumping during application. Low profile additives are known to improve overall mechanical properties and decrease curing shrinkage of composites and therefore find wide usage in manufacturing of automobile parts, pipes, tanks, coil coatings, and others.
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 the 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. The major opportunity in the low profile additives lies in increasing demand from emerging economies of Asia Pacific and Latin America. Technological advancements like development of bio-based low profile additives is expected to boost the market growth over the forecast period.
Market drivers
One of the major driver for low profile additives market is growing automobile production globally. As low profile additives improves the mechanical properties of composites used in manufacturing automobile parts, its demand is rising from automobile OEMs and part manufacturers. Other key drivers include growth in construction industry owing to rising infrastructure development projects and increased penetration of coil coatings in construction applications. Increasing usage of low profile additives in pipe and tank manufacturing is another factor contributing to the market growth.
Current challenges in the Low Profile Additives Market:
The Low Profile Additives Market faces numerous challenges which restrain its growth potential. Stringent environmental regulations around the world regarding VOC emissions from polymers have significantly impacted the market. Additionally, the availability of cost-effective substitutes such as unsaturated polyester resins and epoxy resins pose a major challenge. Fluctuations in crude oil prices affect the raw material costs which negatively impact the profit margins for manufacturers.
SWOT Analysis
Strength: Low profile additives provide high mechanical strength and durability to coatings, adhesives and composites. Their low viscosity allows for easy blending and processing.
Weakness: These additives are more expensive than conventional fillers. Strict quality standards must be followed during manufacturing.
Opportunity: Growing end-use industries such as transportation and construction offer sizable growth opportunities. Development of bio-based and recycled low profile additives can further spike the demand.
Threats: Presence of substitutes raises competitive pressure. Economic slowdowns impact the overall demand for coatings, composites and other applications.
North America accounts for the largest share in the low profile additives market due to robust demand from end-use sectors in the region. Asia Pacific exhibits the fastest growth and is expected to surpass North America during the forecast period. Increasing construction activities along with resurgent automotive industry in China, India make Asia Pacific a lucrative market. Growing population, rising disposable incomes fuel the low profile additives consumption in the region.
The largest geographical region consuming low profile additives by value is Europe led by Germany, France, UK and Italy. Their stringent environmental standards trigger adoption of sustainable solutions in coatings, composites and other applications. The European low profile additives market is driven by automotive, marine and aerospace industries in the region.
Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
