Low profile additives market is projected to expand notably in the ensuing years fueled by the growing demand for these additives across myriad end-user industries including automotive, construction, and electrical.
Low profile additives (LPA) are thermoplastics incorporated into unsaturated polyester resins in an attempt to augment the surface finish of fiber glass or unsaturated polyesters composites by shrinkage compensation. These are expansively used in automotive applications wherein a high-quality surface finish is required.
Additionally, rising disposable income and growing inclination towards technologically advanced vehicles, are pushing the demand for personal cars, which is anticipated to expedite the demand for low profile additives. The product is commonly used in high-performance sheet molding compounds used in automobiles, driving the growth of LPA market to a significant extent over 2022-2028.
The demand for low profile additives is largely felt across the automotive industry, owing to the growing production and sales of different commercial and passenger vehicles worldwide. According to OICA statistics, the global sales of all vehicles surpassed 77 million units in 2020. In addition, growing inclination towards vehicle ownership will further bolster the market space in the near future.
Factors like volatility in raw material prices, availability of alternatives at reasonable cost, and increased preference for these substitutes by domestic players in diverse end-user industries can hamper the global low profile additives market growth in the coming years.
Based on the product type, HDPE segment is expected to accrue considerable gains through 2028. This can be credited to the product’s impeccable properties like its ability to offer good processing and mechanical attributes. Besides, the surging demand for desired quality and shaped products by producers to cater to the consumers’ demands would further bolster the market demand. For instance, Kraton Corporation, in 2021, announced receiving Critical Guidance Recognition from the Association of Plastic Recyclers for its CirKular + Performance Enhancement Series C3000 and C2000 for high-density HDPE bottles.
In terms of the anchorage type, resin transfer molding (RTM) segment is slated to account for considerable gains over the foreseeable time frame. RTM boasts of great potential as an economical and effective process for fabricating large and complicated composite structural components. Moreover, the low capital investment required and the process adaptability in component assembly and integration make the process highly attractive for high volume automotive applications, allowing the segment to grow significantly over the forecast period.
Regionally, the growth in North America low profile additives market would come from the expanding demand for these additives across different sectors in various economies including the U.S., Canada, and other. Besides, the thriving automotive and construction industries in the region will as well enhance the overall regional market outlook through 2028. The transportation industry in North America is constantly looking for innovative materials, enabling the participants in the industry to help reduce the vehicular weight and achieve increased fuel efficiency and meet the carbon emission targets.
Key players operating in the global low profile additives market include Arkema Group, Composites One LLC, Ashland Holdings, Wacker Chemie AG (Dr. Alexander Wacker Familiengesellschaft mbH), Monachem LLP, and others. These players are engaged in various marketing tactics in an attempt to fortify their position in the global marketplace.
The outbreak of SARS-CoV-2 infection has shuttered down various businesses, including the bulk and specialty materials industry. A subtle downfall in the demand for various chemicals and raw materials during 2020 had negatively influenced the growth of low-profile additives market. The market growth was further affected by disruptions in the supply chain and a temporary halt in production.