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.

Low profile additives (LPA) market is estimated to exceed USD 1.02 billion by 2020 owing to its ability to resist thermal degradation

Low profile additives (LPA) are thermoplastic or elastomeric polymers which are added to unsaturated polymer resins and glass composites during production to reduce shrinkage and improve surface stability and finish. The industry is estimated to exceed USD 1.02 billion by 2020 owing to its ability to resist thermal degradation. 

Implementation of Average Fuel Economy (CAFE) in the U.S. to improve fuel efficiency has been an important factor for growth in the market. Demand for LPA is expected to rise due to increased preference of lighter plastic parts over metal components.

     North America demand for low profile additives, by product, 2013 - 2020 (Kilo Tons)

Widespread application of sheet molding compound (SMC) and bulk molding compound (BMC) for manufacturing of vehicle components is expected to spur demand for low profile additives from 2012 to 2020. Demand for SMC and BMC was estimated at 174.3 kilo tons in 2013 on account of increasing demand from construction and automotive industry, primarily in Asia Pacific. It was the leading application segment which constituted for about 62.0% of the overall market by volume. 

The use of low profile additives in resin transfer molding (RTM) techniques and pultrusion which are highly used in the construction industry is expected to have a positive impact on market growth. LPA in pultrusion process offers corrosion resistance, dimensional stability and electrical insulation to the end product. This segment is likely to witness a substantial rise in demand and is expected to grow at a CAGR of 5.5% over the projected period. 

Global low profile additives demand in 2013 was estimated at 280.9 kilo tons and is projected to reach 406.3 kilo tons at a CAGR of 5.4% from 2014 to 2020. Products including polymethyl methacrylate (PMMA), polyvinyl acetate (PVAc), high-density polyethylene (HDPE) and polystyrene (PS) are largely used as LPA. 

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PVAc demand was over 113.8 kilo tons in 2013. It occupied over 40.0% of the total market and is expected to be the most rapidly growing segment. It is projected to increase at a CAGR of 5.8% over the forecast period. Zero shrinkage on the finished surface and high compatibility with unsaturated polyester resins are expected to propel utilization of PVAc over the forecast period. 

Asia Pacific dominated the market and contributed to approximately 59.2% in 2013. China is likely to be a key market owing to the high production of automotive and rapid growth in infrastructural development. 

Key companies include PolyOne Corporation, Ashland Inc, Reichhold Chemicals, CCP Composites, Wacker AG, Arkema, Cray Valley Hydrocarbon, FRP Services & Company, Lucite International, and Momentive Specialty Chemicals. 

Grand View Research has segmented the global LPA market on the basis of application, product and region:

LPA Product Outlook (Volume, Kilo Tons; Revenue, USD Million, 2012 - 2020)

            • Polyvinyl Acetate (PVAc)

            • Polymethyl Methacrylate (PMMA)

            • Polystyrene (PS)

            • High Density Polyethylene (HDPE)

LPA Application Outlook (Volume, Kilo Tons; Revenue, USD Million, 2012 - 2020)

            • Sheet Molding Compounds and Bulk Molding Compounds (SMC/BMC)

            • Pultrusion

            • Resin Transfer Molding (RTM)

LPA Regional Outlook (Volume, Kilo Tons; Revenue, USD Million, 2012 - 2020)

            • North America

            • Europe

            • Asia Pacific

            • RoW

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