The global plastic compounding market size estimated for USD 65.26 billion in 2022 and it is expected to hit around USD 116.55 billion by 2032, expanding growth at a CAGR of 5.7% from 2023 to 2032.
Plastic compounding is a process of transubstantiating the characteristics of introductory plastics and thermoplastics using an admixture of plastics and complements. Plastic compounds have higher physical properties such as conductivity, wide range of flame retardancy, are light weight and wear resistance. These properties increase their demand in various buildings, automotive, and construction, packaging and electrical & electronics and therefore boosting the growth of the global plastic compounding market.
Rising consumption from downstream sectors including construction, automotive, electronic, electrical and packaging are flourishing the growth of plastic compounding market. The demand for plastic is constantly growing inseveral industrial applications as it offers many advantages such as easy molding and ability to form preferred shape.Further, spurring use in the infrastructure area is one of the prominent influencing factors for the growth of plastic compounding market globally.
Environmental concerns and diminishing crude oil reserves due to practice of petrochemical polymers have triggered the requirement of bio-based products. Government limitations on consumption of polymers extracted from petrochemicals in many end use industries is anticipated to incentivize production of bio-based polymers. Bioplastic resin suppliers are increasing the raw material supply in anticipation of strong demand. Plastic additive producers are escalating capability to cater the rising demands of global plastic compounding markets.
Future of Plastic compounding Market
Increase in disposable income of individualities and rapid industrialization across the arising economies similar as China and India, have fueled the demand for vehicles. Growth in increase in demand for electric vehicles and light weight vehicles production are some of the major drivers of this market. Asia-Pacific is the leading manufacturer of electronic and electrical bias. Over the once many times, there has been a surge in demand for electrical and electronic bias across the region due to advancements in technology and R&D in the electrical & electronic market. Numerous leading electronic element manufacturers have set their shops in India, China, Indonesia, and South Korea. This is anticipated to drive the growth of the plastic compounding market.
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The automotive segment dominated the market with a revenue share of 25.8% in 2022.
Conventionally, construction sector has been a chief consumer of plastics for multiple applications including insulation, pipe fittings, masonry equipment and materials. Plastic compounds can bereformed as per their necessities. For example, flame retardant additives are mixed to polyvinyl chloride compounds in order to form a very vital facet of building materials. Polyurethane compounding is employed in order to achieve insulation function for buildings. The polystyrene and polypropylene compounding are commonly utilized in the construction sector as it has features such as economical nature, inherent strength and stress-free recyclability. The architects, builders, and service consultants are continuously seeking ways to augment energy efficiency in buildings. Overall, plastic compounding is gaining acceptance due to prerequisite for enhanced energy efficient buildings and rushing energy prices.
Polypropylene (PP) segment holds the major share 33% in 2022, as it's extensively used in automotive operations. Plastic composites are light in weight and are replacing metal factors in automotive. To reduce the weight of the vehicles. These results in lower carbon emigrations and increase in energy effectiveness and performance of the vehicles. This factor is anticipated to increase the use of plastic in automotive operations. In addition, properties similar as good fatigue resistance, being light weight, and better temperature & chemical resistance are anticipated to increase the demand for polypropylene and therefore, likely to drive the growth of this market in future.
Polypropylene is an outstanding packaging material as it provides lightweight and economical packaging. Additionally, polypropylene packaging can endure an extensive temperature range from microwave to freezing temperature. Both, polystyrene and polypropylene compounding can be employed for packaging. This fact supports the growth of polypropylene compounding segments growth in the market.
Asia Pacific accounted largest revenue share of 45% in 2022, owing to rise in its demand from arising operation sectors including construction, electrical & electronics, and automotive. In the construction sector, the adding demand for plastic composites is owing to rise in its use in floorings, sequestration accoutrements, storehouse tanks, performance safety windows, doors, pipes, and lines. Growth in domestic and marketable systems in developing economies similar as India and China, is boosting infrastructural development. Expansion of automotive and electronic and electrical element manufacturing shops across Asia-Pacific is anticipated to give economic openings in the market.
Asia Pacific appeared as the prime market for plastic compounding products on account of cost-effective environment and the advent of plastic manufacturers in the region. Asia Pacific is the leading producer of electrical and electronic devices. Since last couple of years, there has been tremendous escalation in demand for electrical and electronic devices in this region on account of technological enhancements and improved R&D in the electronic and electrical sector. Numerous prominent electronic component industrialists have set up facilities in Indonesia,India, South Korea and China. This is indirectly projected to spur the sale of plastic compounding in this region.
Escalating industrialization and augmented in disposable income across the emergent nations like India and China have triggered the need for automobiles. Stimulating production of light weight vehicles and upsurge in demand for electric vehicles are few other influencers of the growth of the market. Europe has also appeared as rapidly growing market for plastic compounding. Germany, France, Russia and UK, are the some of the key revenue generating markets in this region.
Key Companies & Market Share Insights
Backward integration is one of the foremost industry-wide drifts in the compounding business that is also happening in other facets of the plastics sector. By backward integration, a manufacturer can moderate the amount of operations in the production chain. Large processors like the notion of straight in-line compounding in their plants, wherein they purchase neat resin, put it straight into the compounding system, and then right away transfer the compounded resin to its processing or extrusion machinery.
Forthcoming demand and supply variations are also anticipated to retain prices of plastics very unstable. Most raw materials are created via downstream processes of petrochemicals. Instability in price crude oil caused due to demand and supply discrepancies, and seasonal deviations and political instability. Furthermore, the global market is extremely integrated from raw material procurement to distribution channels. Chief corporations have recognized supply agreement to cut overall cost of production. Such influences are anticipated to have great effect on plastic compounding prices.
The foremost key companies functioning in the global plastic compounding market are BASF SE, Kingfa Sci. and Tech. Co., Ltd., Asahi Kasei Corporation, Covestro AG, LyondellBasell Industries Holdings B.V., Celanese Corporation, Polyone Corporation, DowDuPont Inc., SABIC, and Solvay SA. These chief manufacturers are implementing multiple approaches like business development, acquisition and partnership to remain strong in the worldwide market competition. Some of the other market participants contributing the market growth include, Adell Plastics, Inc, Sojitz Corporation, Polyvisions Inc., Mexichem Specialty Compounds Inc., and Coperion GmbH. Some of the significant players in the plastic compounding market include:
Key Developments in the Marketplace:
Report Scope of the Plastic Compounding Market
|Market Size||USD 116.55 Billion by 2032|
|Growth Rate||CAGR of 5.7% from 2023 to 2032|
|Largest Market||Asia Pacific|
|Fastest Growing Market||North America|
|Forecast Period||2023 to 2032|
|Segments Covered||Product, Application, Region|
|Companies Mentioned||BASF SE, Kingfa Sci. and Tech. Co., Ltd., Asahi Kasei Corporation, Covestro AG, LyondellBasell Industries Holdings B.V., Celanese Corporation, Polyone Corporation, DowDuPont Inc., SABIC, and Solvay SA|
Segments Covered in the Report
This research report estimates revenue growth at global, regional, and country levels and offers an analysis of present industry trends in every sub-segment from 2020 to 2032. This research study analyzes market thoroughly by classifying global plastic compounding market report on the basis of multiple factors including application, product and region as follows:
By Regional Outlook
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