The global Impact Modifier market size was estimated at USD 3.28 billion in 2017. It is projected to progress at a CAGR of 5.8% from 2018 to 2025. Rising demand from various end-use industries such as packaging, construction, automotive, and consumer goods is likely to augment the market in the forthcoming years.In addition, unavailability of close substitutes is anticipated to work in favor of the market.
U.S. accounts for the leading share in the North America market for impact modifiers. It is also poised to be a prominent contributor to the global market during the forecast period. The growth of the market in the country can be attributed to increasing applicability of PVC products in various end-use industries. Impact modifiers are widely used in production of PVC products owing to its advantageous properties such as excellent weather resistance, impact performance, and gloss properties.
Growing industrialization, especially in developing countries, is positively influencing the growth of the overall market. The product comes with several beneficial characteristics such as superior weatherability, flammability, processability, and optical & tensile properties. Technological advancements to enhance its properties are expected to spur the growth of the market.
Impact modifier increases impact strength and flexibility to meet physical properties of rigid components. Several unmodified polymers such as styrene acrylonitrile (SAN), polyvinyl chloride (PVC), and polystyrene (PS) are brittle at ambient temperatures.On the other hand, other polymers such as polyolefins and polyamides are ductile at ambient temperatures. All impact modifiers are elastomeric in nature with lower modulus than host polymer.
Product Insights
Impact modifiers are utilized in various polymer products such as acrylonitrile butadiene styrene (ABS), acrylic (AIM), acrylonitrile/styrene/acrylate (ASA), methacrylate butadiene styrene (MBS), ethylene propylene diene monomer (EPDM), and Chlorinated Polyethylene (CPE). They are used as additives in these polymer resins to enhance toughness. It also increases durability and impact resistance of molded and extruded plastics, especially those subject to impact forces or cold weather service.
In terms of revenue, ABS represented the dominant share in the market in 2017. On account its excellent toughness and resistance, the product type has experienced tremendous market growth over the past years. On the other hand, MBS is estimated to register the highest CAGR during the forecast period.
Application Insights
PVC application will lead the impact modifiers market throughout the forecast horizon and is projected to hold over three quarters of the overall revenue by 2025. Easy and low-cost availability is likely to contribute to the growth of the segment. Moreover, increasing applications of PVC products in various industries are anticipated to boost overall market growth during the same period.
The PBT segment is also poised to experience healthy growth in terms of revenue during the same period. Impact modifier enhances impact strength of PBT compounds while improving hydrolysis resistance and maintaining other properties for higher product quality. It provides super tough impact resistance while improving hydrolysis.
End-Use Insights
On the basis of end use, the market has been divided into packaging, construction, consumer goods, automotive, and others. Construction is expected to be the fastest growing end-use segment, expanding at a CAGR of 6.7% over the forecast period. The market is also benefiting from the rapid expansion of the automotive industry worldwide. Impact modifiers are used to manufacture interior and exterior parts of automobiles such as door panels, instrument panels, consoles, pillars, door panel skin, window seals, and body side cladding.
Packaging was the largest end-use segment in the market in terms of revenue in 2017. It is expected to retain its position through 2025. The product is widely used in packaging applications owing to its ability to offer an ideal balance between crease-whitening resistance and clarity for packaging applications. Increasing demand for pharmaceutical and food packaging is bolstering the growth of the packaging industry, which in turn is supporting the growth of the market.
Regional Insights
Asia Pacific is projected to witness rapid growth during the forecast period on account of increasing demand for polymer products in various end-use industries in major economies such as China, India, and Japan. The region is likely to be at the forefront of the market in terms of revenue throughout the forecast horizon.
The market in North America is anticipated to witness lucrative growth over the same period. Robust growth of several end-use industries, especially packaging and construction, is poised to fuel the demand for impact modifies in the region. Surging demand for convenience food and rising beverage consumption are providing a push to the regional market.
