by Profile Additives are used for manufacturing applications that require low density, low shrinkage and high strength properties such as the production of sheet molding compounds and bulk molding compounds which find wide usage in automotive, transportation and electrical industries.
The Global Low Profile Additives Market is estimated to be valued at US$ 1,247.9 Mn in 2024 and is expected to exhibit a CAGR of 6.4% over the forecast period 2024 to 2031.
Key Takeaways
Key players operating in the Low Profile Additives 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. These players are focusing on new product development and capacity expansion activities to cater to the growing market demand.
The demand for low profile additives is increasing from end use industries like automotive, transportation and electrical & electronics on account of their enabling properties that allow for lightweighting and dimensional stability of materials without compromising on strength.
The global low profile additives market is witnessing increasing expansion activities by key players through partnerships, joint ventures and acquisitions especially in the Asia Pacific region to leverage growth opportunities in high growth markets like China and India.
Market Key Trends
One of the key trends driving growth in the Low Profile Additives Market Demand is the increasing demand from the automotive and transportation sector for lightweight materials. Automakers are using sheet molding compounds and bulk molding compounds incorporating low profile additives to manufacture various exterior and interior automotive parts to reduce vehicle weight and meet stringent fuel efficiency norms. The lightweighting trend allows for improved performance, handling and fuel economy of vehicles without compromising on durability and strength of components. This is expected to significantly support market growth of low profile additives over the forecast period.
Porter’s Analysis
Threat of new entrants: Low Profile Additives require high R&D and capital investments thus creating barriers for new players. Bargaining power of buyers: Buyers have high bargaining power due to availability of substitutes and fragmented nature of market. Bargaining power of suppliers: Suppliers have moderate bargaining power due to availability of substitutes and limited differentiation in products. Threat of new substitutes: Threat of new substitutes is moderate due to high switching costs for buyers. Competitive rivalry: Intense competition exists among existing players to gain market share.
The geographical region where the Low Profile Additives market is concentrated in terms of value is Asia Pacific. The region accounted for more than 35% value share in 2024 primarily due to growing end-use industries such as transportation and construction in China, India, Japan and other developing Asian countries.
North America is projected to witness the fastest growth during the forecast period. This is attributed to increasing demand from transportation and wind energy industries in the US and Mexico. Growing construction activities along with norms supporting usage of light weight materials will further aid the market expansion.
*Note:
1.Source: Coherent Market Insights, Public sources, Desk research
2.We have leveraged AI tools to mine information and compile it
