High Demand for Low Profile Additives in End use Industries to Promote its Growth

The low profile additive market is driven by the demand for growing automotive and construction industry. Low profile additive (LPA) are used to avoid shrinkage for enhancing surface finish during making of glass composites and polyester. It is also used for volumetric shrinkage during polymerization of unsaturated polyester resin, which is expected to fuel the demand for LPA.

Increases Fuel Efficiency and Affordability of Automotive

LPA is widely used in various applications to reduce weight and increase fuel efficiency. In SMC/BMC segment, low profile additive is used as a resin mixture to help improve surface smoothness. SMC and BMC preforms consisting unsaturated polymer resin composites reinforced with fiber are likely to be the fastest growing sector in Asia Pacific region. This is due to increasing demand from countries, such as India, China, and Japan. The growing automotive industry in the region is expected to fuel the growth of the SMC/BMC segment due to their application in truck components, semi-structural parts, and automotive body panels.

Resin Transfer Molding (RTM) is a low temperature and pressure molding technique that has affordable cost and convenient operating mechanism. This technique is likely to witness high demand as it is used to enhance fiber/resin wet-out and eliminate voids.

Leading companies are inclined to expand their portfolio due to surging demand from end-use industries. For instance, in August 2018, LyondellBasell acquired A. Schulman, Inc. (US), in order to double the company’s business and to target end-use industries such as construction materials, automotive, electronic goods, and packaging.

Market Insights

Technological advancements requiring highly lightweight materials such as BMC/SMC, and RTM in the automotive industry are leading to the growth of the market. Another factor fueling the low profile additive industry growth is rising electrical & electronics and construction industries. Increasing demand for composite material in emerging economies provides ample of growth opportunities for the market. Volatility in raw material prices poses a threat to the growth of the market. Growth strategies adopted by the key players to strengthen their position in the low profile additive industry, are new product development, collaborations, partnerships, and expansions.

For instance, in November 2017, in Istanbul, Wacker Chemie, a worldwide operating company in chemical business, opened a technical center for textile, construction, and consumer care applications. The technical facility serves as test laboratory for silicones and polymeric binders needed in textile, construction, household, and cosmetics industries and now provides its customers better local support. Key players in low profile additive market include PolyOne Corporation, LyondellBasell Industries Holdings B.V., Arkema Group, Wacker Chemie AG, and Reichhold.