North American Demand for Microspheres in Specialty Applications Expected to Growth at Over 10% Annually to 2009.

EXTON, Pa. -- Principia Partners in a market study it recently completed, estimates that the North American demand for microsphere fillers will exceeded $300 million in 2000. In the world of fillers, microspheres are unique because as engineered products, they are available in different materials, particle sizes, strengths, densities, and purities. Dozens of applications exist for these products, however in recent years they have experienced excellent growth as several new high-value, high-growth markets have emerged.

Microspheres are spherical additives fabricated from a variety of raw materials, most commonly engineered glass, plastics, and ceramics. Microspheres can be either solid or hollow with diameters ranging from 1 to 300 microns. Because they are engineered, particle shape is consistent and size distribution is very tight providing excellent filler packing and free flowing products.

Traditional applications for microspheres include reflective media for traffic paint, lightweight fillers for automotive and marine putties, and density modifiers for explosives. Principia's analysis did not investigate these established, commodity markets. Rather it analyzed eleven specialty applications with high-growth, high-value potential. The eleven specialty applications investigated included:

--Adhesives

--Automotive underbody coatings

--Cosmetics

--Specialty coatings

--EMI shielding

--Offshore products

--Paper/paperboard

--Thermoplastics

--Reinforced thermosets 

--Specialty sealants

--Wood-plastic-composites

These eleven markets represent roughly one third of the total North American demand for microspheres, or $100 million in 2004. Sealants and coatings are larger volume applications, consuming all four major types of microspheres. EMI shielding and offshore products are smaller in volume, but are high-value applications because of the specialty microspheres consumed. Paper/paperboard and wood-plastic-composites are small markets currently, but have excellent growth potential.

Overall the eleven markets investigated are expected to grow in volume at over 10% per year through 2009 and have an average selling price of over $2 a pound. Depending on the application, type of material, and whether they are solid or hollow, microspheres provide a variety of functional benefits in these applications, including:

--Weight reduction

--Improved strength

--Buoyancy

--Thermal and acoustic insulation

--Electrical conductivity or resistance

--Dimensional stability

--Abrasion resistance

Most of the applications analyzed were weight sensitive markets. Therefore, it is not surprising that hollow glass microspheres dominate demand. They were consumed in virtually every application, with sealants, offshore products, coatings, and reinforced thermosets particularly large consumers. Ceramic microspheres rank second in volume, primarily because of their large use in coatings. Plastic microspheres were second in value, having the highest average price per pound. Plastic microspheres were used in eight of the eleven applications investigated. Solid glass was the other major type of microsphere investigated, and finds use primarily in thermoplastics, sealants, and EMI shielding for improved heat deflection properties, reduced shrinkage, and decreased water absorption.

There are over ten suppliers of microspheres to these specialty applications. Leading producers include 3M, PQ/Potters, Expancel, and Sovereign. Other suppliers participating in these applications include Emerson & Cuming, Asia Pacific Microspheres, Fillite, Siscor, Swarco Industries, and Engelhard/Prizmalite.

Principia Partners' multi-client market study titled Opportunities for Microspheres in High-Growth Applications 2004 estimates current and forecast market size for each application, lists current or potential customers, discusses unmet performance needs, provides insights on products available and technology developments, and profiles the leading producers of microspheres.

Principia Partners is recognized as a leading consultancy serving the minerals and reinforcements marketplace. The firm is an international business consulting firm serving the plastics, building products, and specialty chemicals industries. For more information, visit the company's website at PrincipiaConsulting.com. For a prospectus on the study, call either Carl Eckert or Steve Van Kouteren at 800-378-8330.