Functional Anti-Static Additives Market Forecast to Reach US$3.5 Billion by 2027

Functional Anti-Static Additives Market Forecast to Reach US$3.5 Billion by 2027
Functional Anti-Static Additives Market | IndustryARC
The recent shift in trends towards e-vehicles in the automotive sector and increase in demand for lighter, stronger and long-lasting material for automobile interiors have had a positive impact on functional anti-static additives market.

Functional Anti-Static Additives Market size is estimated to reach over US$3.5 billion by 2027 after growing at a CAGR of 5.5% from 2022-2027. Functional Anti-Static Additives are compounds that are used to reduce the build-up of static electricity on plastic materials and also help in fighting static issues like electrostatic discharge, dust attraction to the material surface. The anti-static additives are of two types i.e., ionic antistatic which includes quaternary ammonium salt and non-ionic anti-static which include amine derivatives like ethoxylated amines, ester derivatives like fatty acid ester, glycerol monostearate. With the increase in the use of plastic in the packaging industry for making plastic sheets and packaging film, the rise in demand by the automotive and electronic sector for their components packaging are acting as drivers for the functional anti-static additive market. As functional anti-static additives are used in food packaging too like in containers, foils, bottles, so stringent regulation by authorities like U.S Food and Drug Administration, National Health Surveillance Agency from Brazil, European Food Safety Authority etc. regarding food packaging has hampered the growth of functional anti-static additives industry.

COVID-19 Impact

The unfavorable conditions created by COVID-19 harmed the functional anti-static additives market in terms of production, sales and distribution of the goods. As the lockdown imposed by the governments of countries all across the globe, disrupted the logistics chain and there was a reduction in productivity seen in various industrial sectors like automobile, electronics, textile etc. But the automobile sector was majorly hit, as there was shutting down of large part of the auto industry and its many suppliers around the world. And as being one of the major consumers of functional anti-static additives, that are used for interior coating in automobiles parts like on dashboards, so with a decrease in the production of vehicles, the demand for functional anti-static additives in the automobile segment also decreased. As per the International Organization of Motor Vehicle Manufacturing, in 2020 there was a 16% global decline in vehicles production i.e., less than 78 million vehicles, with all major producing regions like the U.S, Germany having a sharp decline of 11% to 44% and Europe saw a drop of 21% on average.

Functional Anti-Static Additives Market Segment – By Product Type

Non-ionic held the largest share in the functional anti-static additives market in 2021, with a share of over 40%. Ethoxylated amines is a popular and widely used non-ionic functional anti-static additive type. This is due to factors like ethoxylated amines providing high processing stability, and improved performance benefits. For such factors, it is more demand and especially in the packaging industry where it is used in the manufacturing of plastic films & sheets. The rapid development in packaging methods has increased the demand for functional anti-static additives to provide more protection to consumer-goods packages, like electrical products or food products. According to U.S Food Agriculture Organization, to increase the shelf life of food products, active packaging has become a growing packaging industry trend. Suh growing trend will increase demand for ethoxylated amines in the food industry, as these functional anti-static additives give high sustainability so their usage in making food packaging products like foils, the container will improve their quality and give more protection to food items from external dust contamination.

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Functional Anti-Static Additives Market Segment – By Application

Automotive held the largest share in the functional anti-static additives market in 2021, with a share of over 35%. The functional anti-static additives in the automotive industry are used for manufacturing exterior and interior body parts of vehicles. Hence these additives remove the static charge from the plastic components that are used in parts like the fuel system, electrical and electronic component, dashboard, seat belts and engines. With the rapid development in the automotive sector and increase in production of vehicles in major regions, the demand for functional anti-static additives like quaternary ammonium salt, glycerol monostearate will also rise as they have high applicability in the automotive sector. For instance, as per European Automobile Manufacturers Association, the production and registration of passenger cars in the EU increased by 53.4% in 2021 with strong volume seen in Spain, France, Germany. With such an increase in automobile production, the demand for functional anti-static additives used for their interior coating will also increase.

Functional Anti-Static Additives Market Segment – By Geography

Asia-Pacific held the largest share in the functional anti-static additives market in 2021, with a share of over 30%. This attributes to factors like rising economies, investments by companies in various industrial sectors like automotive, electronic, packaging etc. The region has some of the major manufacturing hubs of the world like China, Japan, India, Indonesia with some countries like China, having automotive & packaging as important sectors. As per International Council for Clean Transportation report 2021, various motor companies like Xpeng Motors, Nio, Volvo have set up large e-vehicle factories in central and south-eastern China. And as per the 2021 report of the Indian Brand Equity Foundation, the Indian automobile industry increased its domestic automobile production at CAGR 2.36% from FY16-20, and sales for domestic vehicles increased at 1.29% CAGR from FY16-20. Hence as the automobile sector in China & India is growing its production capacity of various new vehicles with new investments in line, so this has led to an increase in demand for functional anti-static additives in such sectors in the Asia Pacific region

Functional Anti-Static Additives Market Drivers

Increase in Demand by Automotive Industry

The automotive industry is a major user of functional anti-static additives as it requires high dirt insensitive material. Plastic like polypropylene and acrylonitrile butadiene styrene which are used as plastic surfaces in vehicles are susceptible to electrostatic materials. Hence to prevent such electrostatic charging, functional anti-static additives are used in film extrusion and injection molding of these two plastics which later on is applied on automotive interiors like lining, covers, instrument panel, headliners, dashboards, sun visors and seat covers. The recent shift in trends towards e-vehicles in the automotive sector and increase in demand for lighter, stronger and long-lasting material for automobile interiors have had a positive impact on functional anti-static additives. For instance, as per the 2020 report of the China Automobile Dealers Association, the sales of EV and hybrid vehicles like Tesla’s Sedan model-3 has doubled in volume since 2017. As hybrid and E-vehicles employ more lightweight materials like plastics for weight reduction and functional anti-static additive are mainly used on plastic materials surfaces. So, with more employment of plastic in the e-vehicles segment demand for these additives in that segment will also increase

Increase in Demand by Textile Industry

Functional anti-static additives are used in the textile industry during the processing of fabrics. A process like weaving and spinning causes friction by rubbing, so such friction develops static charge in fabrics which causes textile filaments, yarns and fabrics to get entangled or cling to an adjacent surface. Hence to remove such static charge from textile fabrics, functional anti-static additives are added. Rapid development in the textile industry and demand for specialized fabrics has led to an increase in demand for functional anti-static additives as it would make the fabrics more dust repelling and minimize their static electrification. For instance, the advancements made in nanotechnology in 2020, has increased the anti-static properties of Nano-based fibers i.e., it helps the fibers to repel statically attractive substances such as lint, dog hair, and dust.

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Functional Anti-Static Additives Market Challenges

Stringent regulation by government organizations

Functional Anti-Static Additives are introduced in plastic packaging materials to improve the physical and chemical properties of the packaging. These additives consist of chronic exposure to various chemicals like chlorides, esters of phosphoric acid etc. Hence before such additives are mixed with food contact materials (FCM) for food packaging, they should be certified as per regulations laid down by government organizations. Hence the establishment of such stringent regulations has negatively impacted the demand for functional anti-static additives. For instance, in 2019 Mercosur a trade block representing multiple Latin-American countries laid down the resolution (GMC 39/19), that contains a list of additives allowed for plastic and polymer coating. Also, The National Health Surveillance Agency from Brazil in 2019 officially published the resolution RDC No. 326, establishing the positive list of additives for the preparation of plastics and polymeric coatings in contact with food and other measures. Hence functional anti-static additives not meeting this regulation will be turned away.

Functional Anti-Static Additives Industry Outlook

The companies to develop a strong regional presence and strengthen their market position, continuously engage in mergers and acquisitions. Some of the major players in this market are as follows:

AzkoNobel

Evonik Industries

Cytec Industries Inc

Croda Polymers

Blend Colours

BASF

LyondellBasell

The Dow Chemical Company

Arkema

Deuteron

Recent Developments

In 2020, Danimer Scientific and Plastic Suppliers have joined forces to create bio-based home compostable film packaging. Hence the additives used on the films produced through biopolymer will leave behind less micro-plastic

In 2020, Israeli masterbatch make Tosaf has created a range of slip, anti-block, anti-static additives specifically tailored for biaxially-oriented PE film. Hence the additives will provide a high degree of flexibility and can be used by manufacturers to meet specific product requirements.

Key Takeaways

Asia-Pacific region dominates the functional anti-static additives market, industrial and automotive sector in countries like China, India, Japan is rapidly advancing. The region has become a global manufacturing and commercial hub where several major companies are planning to invest to expand their global image

Functional anti-static additives consist of highly efficient, hydrophilic & hygroscopic properties like absorbing water and having the ability of ionization in water which increases water conductivity. Hence, these properties allow additives to migrate towards the surface of a material.

The ability of plastic materials to discharge electrical charges is affected by the purity of the material, level of contamination, moisture content and physical form of material which includes its surface roughness

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