LOW PROFILE ADDITIVES MARKET SIZE AND SHARE ANALYSIS - GROWTH TRENDS AND FORECASTS (2024-2031)

Market Challenges And Opportunities

However, regulations around VOCs could act as a restraint. Strict norms regarding VOC emissions during production may lead to compliance issues for some manufacturers. Alternative green additives are a challenge as well. Ongoing R&D into bio-based additives may eat into the market share of conventional low profile additive types over time.

Low Profile Additives Market Drivers:

• Expansion of End-Use Industries: The low profile additives market is witnessing widespread opportunities with the rising expansion of end-use industries where these additives find large-scale application. Low profile additives are primarily used in polyester and vinyl ester based formulations that are further utilized in producing varied surface coatings, adhesives, and plastic & composites molding applications. The automotive industry constitutes one of the major end-users of low profile additives wherein these are added to body fillers and primers employed in vehicle production. With relentless growth of the global automotive sector in recent years, demand for low profile additives from automotive OEMs and refinish markets has surged tremendously. Growing vehicle ownership, rising disposable incomes, and intensive R&D towards developing lightweight and fuel-efficient vehicles act as key growth propellers for the automotive industry. This in turn is favorably impacting the sales of low profile additives. Apart from automotive, the demand is also witnessing a sharp increase from industries such as marine, wind energy, construction, and aerospace & defense. Within the construction industry, low profile additives play a critical role in formulating polymer-based mortars, floor levelers, and screeds. The thriving growth in infrastructure development projects across both developing and developed economies has augmented the consumption of various construction materials incorporating low profile additives. Similarly, increasing investments towards renewable energy especially wind power plants augmented the usage of composites and adhesives based on low profile additives in turbine blade manufacturing. Rising expenditure on military & defense equipment along with expansion of commercial aircraft fleet size is positively influencing the aerospace industry, thereby driving the sales of low profile additives. In essence, widespread growth of major end-use industries is emerging as one of the key drivers for low profile additives market over the coming years.
• Growing Use of Composites: Another important driver for low profile additives market expansion is the rising utilization of composite materials across an array of application sectors. Lightweighting has become a central focus area for industries aiming to improve fuel efficiency without compromising on performance. Polymer composites reinforced with fibers such as glass, carbon and aramid offer high strength to weight ratio and are therefore increasingly replacing metals in end-use sectors such as transportation, construction and aerospace & defense. Low profile additives play a vital role in developing composites with desired mechanical and physical characteristics. They are commonly blended into polyester and vinyl ester based composites to impart properties like low shrinking, good sandability and easy surfacing. With strong emphasis on R&D and manufacturing of lightweight and high-performance composites, the demand for additives like low profile agents has witnessed a prominent rise. Specifically, composite materials have emerged as the primary material of choice in manufacturing various high-tech components for aerospace, automotive as well as renewable energy industries. Aircraft manufacturers are widely incorporating composites in aircraft structures and engines with a goal to decrease aircraft weight. Similarly, automakers are using composites in hoods, body panels and other auto parts to improve fuel efficiency while meeting stringent emission regulations. Wind turbine blades are also predominantly made from polymer composites doped with low profile additives. Rising environmental awareness and developing technologies have augmented the employment of composites in marine vessels, pipes, tanks and construction sections as well. This growing shift towards advanced composite solutions across major markets creates high demand for specialized additives like low profile agents.

Low Profile Additives Market Opportunities:

• Emerging applications in wind energy industry: Emerging applications of wind energy present a promising opportunity for the low profile additives market. With worldwide efforts to increase renewable energy production and reduce dependence on fossil fuels, wind power is growing rapidly. Low profile additives play a key role in enabling new wind turbine designs. These specialized additives are used to modify resins and composites that are then used to manufacture enormously large turbine blades, often well over 100 meters in length. The lightweight and flexible qualities imparted by low profile additives allow for the structural strength needed for blades of such great scale, while minimizing weight and optimizing aerodynamic lift. Their inclusion is critical to the technical and economic feasibility of the largest modern wind turbines. For Instances, According to data from the International Renewable Energy Agency, global wind power capacity increased over 60% from 2018 to 2021.
• Growth potential in developing economies: Growth potential in developing economies could be a significant opportunity in the Low Profile Additives market. Countries like India, China, Brazil, and others in Asia Pacific and Latin America are experiencing strong economic growth. As the income levels and standards of living rise in these emerging markets, there is a growing demand for consumer goods, electronics, automobiles, and construction activities. Low profile additives play an important role in many manufacturing and industrial applications where light weight and thin materials are required. They help in reducing the thickness and density of end products without compromising on their mechanical strength. Given the rising manufacturing activities and infrastructure development projects in developing nations, the usage of low profile additives is expected to steadily grow in these regions. For Instances, according to data from the World Bank, on 2021, the construction sector in India grew by 3.2% in 2021 compared to 2020 despite the ongoing pandemic challenges.

Low Profile Additives Market Restraints:

• Availability of substitutes: The availability of substitutes is significantly restraining the growth of the Low Profile Additives market. There are several substitute products available that can accomplish the same purposes as low profile additives but may be more cost effective or convenient to use. Some common substitutes for low profile additives include epoxy resins and polyurethane resins. These resins can be used to make composite materials that require low viscosity and good slump resistance like many applications that use low profile additives. Epoxy and polyurethane resins are versatile and can achieve strong bonds and mechanical properties similar to materials made with low profile additives. However, they do not require specialized rheology modifiers or precise formulation to achieve the low viscosity characteristics. This makes substitutes like epoxy and polyurethane resins more attractive options for composite manufacturers looking to reduce costs. Another major substitute is filler-enhanced polyester and vinyl ester resins. Adding fillers such as clays or talc to standard unsaturated polyester or vinyl ester resins can improve slump resistance and mechanical properties to be on par with low profile additive formulations. The advantage of filler-enhanced resins is that they maintain the processing simplicity of standard polyester/vinyl ester systems but without needing to source and handle specialized low profile additive chemistries. For Instances, According to the United States Geological Survey (USGS), global production of talc increased from 8.3 million metric tons in 2020 to 8.7 million metric tons in 2021.
• Volatility in raw material prices: The growth of the Low Profile Additives Market has been negatively impacted by the significant volatility seen in the prices of key raw materials used for manufacturing these additives. The raw materials like styrene, methyl methacrylate (MMA), polyvinyl chloride (PVC), and unsaturated polyester resins (UPR) which are derived from petroleum-based feed stocks have witnessed major fluctuations in their prices over the past couple of years. The frequent increases in raw material costs have significantly squeezed the margins of players operating in the low profile additives market. As passing on the entire cost burden to customers is not a viable option, manufacturers end up having to absorb a part of these additional costs, reducing their profits. This poses challenges for their long-term expansion plans and new investments. For Instances, according to data from the International Energy Agency, the prices of crude oil underwent drastic changes ranging from $19 per barrel in 2020 to over $120 per barrel in 2022.