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                                  Home Press Releases

                                  Impact Modifier Market Size Forecast to Reach $5.3 Billion by 2026

                                  admin by admin
                                  February 16, 2022
                                  in Press Releases
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                                  (EMAILWIRE.COM, February 16, 2022 ) Impact Modifier market size is forecast to reach US$5.3 billion by 2026, after growing at a CAGR of 5.4% during 2021-2026. Impact Modifiers are a set of additives like Acrylonitrile Styrene Acrylate, that is used to enhance the impact strength and flexibility of an object. Impact modifiers are also added to plastic resins for increasing strength and elasticity in nature. The usage of Chlorinated Polyethylene and Non-reactive Modified Polyolefin in industrial and construction sectors is growing and boosting the demand for Impact Modifiers in the forecast period. The growing demand from the plastic industry along with the increase in usage of plastic in end-use industries like automobile, construction & building, consumer goods, and packaging is also driving the market of impact modifiers. The rapid growth of the electronics industry has increased the demand for printed circuit boards (PCB); thereby, fueling the market growth. Furthermore, the flourishing automotive and aerospace industry is also expected to drive the Impact modifier industry substantially during the forecast period.

                                  COVID-19 Impact

                                  The Coronavirus pandemic has impacted the polymer industry to a great extent stuttering the manufacturing industry. Currently, the core industries such as aerospace, automotive, and energy are highly impacted. Due to social distancing policy, most of the manufacturing plants of aircraft and automobiles were shut down, which declined the production of Impact modifiers. Global auto production was severely hit by the COVID-19 pandemic with a 16% drop in world auto production. Also, due to supply chain disruptions such as raw material delays or non-arrival, disrupted financial flows, and rising absenteeism among production line staff has declined the market trend. However, the demand for plastic in the healthcare and medical industry for equipment manufacturing will help to raise market trends during the forecast period.

                                  Impact Modifier Market Segment Analysis – By Product Type

                                  The Methacrylate-Butadiene- Styrene (MBS) segment held the largest share in the Impact Modifier market in 2020 and is growing at a CAGR of 5.5% during 2021-2026. Impact Modifier gives high impact strength and elasticity to the finished goods and is mostly used in the construction, consumer goods, and appliances industry. MBS is environmentally friendly which is contributing to the growth of impact modifiers. It helps to soften the rigid plastic and enhance the finished goods. According to the Institution of Civil Engineers, the global construction market is expected to grow by US$ 8 trillion by 2030 driven. The rapid growth in construction activities in China, and India will help the growth of the Impact Modifier Market during the forecast period.

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                                  Impact Modifier Market Segment Analysis – By Application

                                  The PVC segment accounted for approximately 55% of the market share in 2020 and is estimated to grow at a significant CAGR during the forecast period. Impact Modifiers are added to different polymers like Acrylonitrile Butadiene Styrene, Acrylonitrile Styrene Acrylate to improve the durability and toughness of PVC. It is highly demanded in many end-use industries like Packaging, automobile, healthcare, construction. PVC is widely used in flooring, windows, doors, pipes, roofing, blood bags, tubing, wire, and cable insulation due to its low cost, higher durability and gives safety to construction material. The growing demand for engineering plastics such as polycarbonate increasing the demand for impact modifiers in the automotive industry. Engineering plastics helps to reduce the weight of finished goods and enhance the performance giving heat resistance, high durability, and toughness. For instance, according to Boeing, the global aerospace and defense market will be at US$8.7 trillion over the next decade, up from US$8.1 trillion in 2019. In many regions, such as Asia-Pacific, the Middle East, and Africa, stable GDP growth, relatively strong passenger demand, and lower commodity prices are driving the growth of the aerospace industry. As a result, the growing focus across these regions on the aerospace and defense industries is projected to fuel the growth of the global Impact Modifier market over the forecast market.

                                  Impact Modifier Market Segment Analysis – By End-Use Industry

                                  The Packaging segments accounted for approximately 35% of the market share in 2020 and are estimated to grow at a significant CAGR during the forecast period. The increasing demand for plastics packaging is boosting the demand for impact modifiers during the forecasted period owing to their excellent properties like shock resistance, corrosion resistance, anti-static, and mechanical shock absorption. Packaging is important in transportation to preserve the goods. Increasing demand in food packing films, bottles, drug packaging is growing the demand for impact modifiers. Furthermore, the demand for protective packaging in the electric & electronic and medical & Pharmaceutical sectors across the globe is equally helping in the growth of the Impact Modifiers market. According to data presented by Finaria, the number of eCommerce users has been increased by 9.5% every year and hit over 3.4 billion in 2020. Amazon and AliExpress are the highest sellers and covers 75% of the global e-market across the globe. These are some of the driving factors that are helping in the growth of the packaging market which is further growing the demand for impact Modifiers during the forecast period.

                                  Impact Modifier Market Segment Analysis – By Geography

                                  Asia-Pacific region held the largest share in the Impact Modifier market in 2020 up to 45%, owing to the growth of end-use industries like appliances, packaging, automobile, construction, electric & electronic, and others. The presence of leading appliance manufacturers such as Haier Electronics Group, Gree Electric Appliances, Groupe SEB SA, Panasonic, LG Electronics is driving the market growth in the region. According to Invest India, the auto component sector valued at US$ 49 billion in 2020 and is expected to reach US$ 200 billion by 2026. Thus, with the flourishing automobile industry, there will be an upsurge in the demand for aerospace components, which is anticipated to drive the Impact Modifier market in the Asia-Pacific region.

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                                  Impact Modifier Market Drivers

                                  Increasing Automotive Production

                                  Impact Modifiers are becoming more popular in the automobile sector due to their excellent strength-to-weight ratio. Impact Modifiers are utilized in a variety of applications in the automobile industry, including automobile hoses, diaphragms, dashboards, sealants, wheel arches, and rocket panels. According to the International Trade Administration (ITA), China is the world’s largest motor vehicle market and is expected to reach 35 million by 2025 in automotive manufacturing. According to Invest India, the Passenger vehicle industry is expected to grow by 22%- 25% in 2022. Thus, increasing automation production will require more automotive components, which will act as a driver for the Impact Modifier market during the forecast period.

                                  Flourishing Construction Sector

                                  The Asia-Pacific construction sector is the largest in the world and is growing due to the rising population. Infrastructure development is helping in the growth of Impact modifiers which are widely used in flooring, slidings and windows, doors. The Construction industry of Asia Pacific has been growing constantly due to urbanization and the government has launched many projects supporting this. The Construction Industry of India is expected to reach the US $1.4 Trillion by 2025 with an investment of 24% on renewable energy, 19% on roads & highways, 16% on urban infrastructure, and 13% on railways with the 2nd highest FDI investment in 2000-2020.

                                  Impact Modifier Market Challenges

                                  Growing Environment Concern

                                  Environmental concern has always been a major challenge in the impact modifiers market. The increasing demand for eco-friendly products is restraining the growth impact modifier market. Polyvinyl chloride, highly persistent plastic particles release dangerous chemicals into the soil that can drain into groundwater and causes environmental damage. Every year, the world produces more than 400 million tons of plastics of which only 14–18% of plastic waste is formally recycled, and the percentage is much lower in some countries. Thus, growing environmental damage regarding the usage of PVC products can inhibit the growth of the market since plastics (PVC) are non-biodegradable and responsible for land pollution. The national and international organizations are working globally to reduce their usage to an extent.

                                  Impact Modifier Market Landscape

                                  Technology launches, acquisitions, and R&D activities are key strategies adopted by players in the Impact Modifier market. Impact Modifier market top companies are:

                                  1. Evonik Industries

                                  2. E.I. Du Pont De Nemours & Co.

                                  3. Addivant, Kaneka Corporation

                                  4. Arkema S.A.

                                  5. Mitsubishi Chemical Corporation

                                  6. LG Chem.

                                  7. Mitsui Chemicals Inc.

                                  8. SI Group Inc.

                                  9. Novista Group

                                  10. Indofil Industries Limited and others

                                  Acquisitions/Technology Launches

                                  In January 2021, Dow Chemicals has entered into a partnership with Callaway Golf Company to deliver next-generation golf balls formulated with a PARALOID™ Impact Modifier. The partner ship will strengthen the product portfolio of Dow Chemicals.

                                  Key Takeaways

                                  Asia-Pacific dominates the Impact Modifier market, owing to the increasing electrical & electronics industry in the region. According to Invest India, the domestic electronics market in India to attain US$400 billion and by 2025.

                                  The growing trend of lightweight vehicles is expected to boost the manufacturing sector in China and banning the import of scrap plastics helps the growth of consumer electronics in turn helps the Impact Modifiers Market growth.

                                  The rapid adoption of Acrylonitrile Butadiene Styrene (ABS) products in the construction industry are supporting the market growth.

                                  Related Reports:

                                  A. Rheology Modifiers Market

                                  https://www.industryarc.com/Report/7373/Rheology-Modifiers-Market-Research-Report.html

                                  B. Polypropylene & High-impact Polystyrene Market

                                  https://www.industryarc.com/Research/Polypropylene-High-impact-Polystyrene-Market-Research-501418

                                  For more Chemicals and Materials Market reports, please click here

                                  About IndustryARC: IndustryARC primarily focuses on Cutting Edge Technologies and Newer Applications market research. Our Custom Research Services are designed to provide insights on the constant flux in the global supply-demand gap of markets. Our strong team of analysts enables us to meet the client research needs at a rapid speed, with a variety of options for your business. Any other custom requirements can be discussed with our team, drop an e-mail to sales@industryarc.com to discuss more about our consulting services.



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