Nov 10, 2020   SOURCE: BusinessWire

$5 Billion Impact Modifiers (ABS, AIM, ASA, MBS, EPDM, CPE) Markets - Global Forecast to 2025 - ResearchAndMarkets.com

The "Impact Modifiers Market - Global Forecast to 2025" report has been added to ResearchAndMarkets.com's offering.

The Global Impact Modifiers Market Size is Estimated at USD 3.9 Billion in 2020 and is Projected to Reach USD 5.0 Billion by 2025, at a CAGR of 5.3%

The rise in the demand for plastics, an increase in replacement of conventional plastics with engineering plastics, and increase in urbanization and construction activities are driving the market for impact modifiers. However, the prohibition of PVC products across various end-use industries is expected to restrain the impact modifiers market.

Impact of COVID-19 outbreak on the impact modifiers market.

The outbreak of COVID-19 has affected the market for impact modifiers, as most of the global companies operating in this market are based in the Asia Pacific, US, and European countries. These companies having their manufacturing units in China and other Asian countries are also severely affected. Therefore, disruptions in the supply chain have resulted in hampering production units due to a lack of raw materials and workforce. The market is estimated to witness negative growth until the third quarter of 2020. The lockdown in major countries due to this pandemic has also led to the shutdown of the production of plastic products.

The construction of residential & non-residential buildings and infrastructure has been a key factor in the development of various industries across countries. The COVID- 19 pandemic has had a detrimental impact on the global construction business. It has affected the supply and cost of material and labor, which are the key cost components of construction projects.

Moreover, the automotive industry is also one of the major end-use industries that have been affected by the COVID-19 pandemic. Some of the most affected regions are major production hubs and home to key links in the sector's global supply chain. The spread of the pandemic to European and North American countries has led to a decrease in the demand for automobiles, and thus, their production.

PVC segment to lead the impact modifiers market between 2020 and 2025.

PVC is the largest application segment of the impact modifiers market of the global impact modifiers market by application. The properties of PVC, such as lightweight, good mechanical strength, abrasion resistance and toughness, enable its use in various end-use industries, such as construction, electrical, automotive, and packaging. PVC is mainly used in pipes, windows, flooring, roofing, inflatable structures, and lighter structures. It contributes to the quality, cost-effectiveness, and safety of construction material.

MBS segment to be the fastest-growing segment in the impact modifiers market.

Methacrylate-Butadiene-Styrene (MBS) segment is the fastest-growing segment of the market from 2020 to 2025. It is used to improve impact strength and comprehensive performance, mainly in PVC for transparent products. It is preferred to improve the performance of both rigid and soft PVC products such as impact strength, toughness, and tensile strength, and can be used in transparent products. The use of MBS improves transparency, weather resistance (UV & heat), and impact resistance in PVC, PC polyesters, epoxies, and other formulations. MBS are environment friendly, required in less quantity, and cost-effective, and also have high impact strength with no odor.

The packaging segment to be the largest segment in the impact modifiers market.

Based on the end-use industry, the impact modifiers market is segmented into packaging, construction, automotive, consumer goods, and others. The others segment of impact modifiers includes agriculture, pharmaceutical, furniture, and sports. In terms of value, the packaging industry contributed the largest share of 33.8% to the impact modifiers market in 2019. The packaging industry includes various applications such as food, pharmaceutical, consumer goods, industrial, and other segments. Changing lifestyles of consumers with rising disposable income has increased the importance of plastics as packaging products.

The Asia Pacific region is expected to lead the global impact modifiers market during the forecast period.

By region, Asia Pacific is estimated to account for the largest share of the global impact modifiers market in 2019. China, being one of the largest manufacturers and consumers of plastics, is expected to dominate the market in the APAC region owing to increasing demand from end-use applications such as packaging, automotive, construction, and consumer goods. Improved economic conditions in emerging countries have also led to the growth of the market in the region.

Market Dynamics

Drivers

  • Increase in Demand for Plastics
  • Conventional Materials Being Replaced by Engineering Plastics in End-Use Applications
  • Increase in Urbanization and Construction Activities
  • No Close Substitute

Restraints

  • Prohibition of Pvc Products Across Various End-Use Industries

Opportunities

  • Increasing Demand for Polymers in Packaging Applications
  • Development of Impact Modifiers for Bio-Based Plastics

Challenges

  • Fluctuations in the Prices of Raw Materials

Companies Mentioned

  • AKD Polymers Pvt. Ltd.
  • Akdeniz Kimya San. Ve Tic. Inc.
  • Arkema S.A.
  • Dow Inc.
  • Elix Polymers Sl
  • En-Door
  • Formosa Plastics Corp.
  • Hangzhou Keli Chemical Co., Ltd.
  • Indofil Industries Limited
  • Kaneka Corporation
  • Lanxess Ag
  • LG Chem Ltd.
  • Mitsubishi Chemical Corporation
  • Mitsui Chemicals, Inc.
  • Novista Group
  • Shandong Donglin New Materials Co., Ltd
  • Shandong Repolyfine Additives Co., Ltd.
  • Shandong Rike Chemical Co. Ltd.
  • Shandong Ruifeng Chemical Co. Ltd.
  • Shandong Xiangsheng Plastic Industry Co., Ltd.
  • SI Group, Inc.
  • Sundow Polymers Co., Ltd.
  • Wacker Chemie Ag
  • Weifang Daqian Chemicals Co., Ltd.
  • Zibo Haihua Chemical Co., Ltd.

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