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plastic compounding market

Plastic Compounding Market Share, Size, Trends, Industry Analysis Report, By Type (Polyethylene, Polypropylene, Polyvinyl Chloride, Polystyrene, Polyethylene Terephthalate, Acrylonitrile Butadiene Styrene, Others); By End-Use (Electrical & Electronics, Automotive, Consumer Goods, Healthcare, Building & Construction, Industrial, Others); By Region; Segment Forecast, 2021 - 2028

  • Published Date: Oct 2021
  • Pages: 112
  • Format: PDF
  • Report ID: PM1197
  • Base Year: 2020
  • Historical Data: 2016 - 2019

Report Summary

The global Plastic Compounding market size was valued at USD 61.13 billion in 2020 and is expected to grow at a CAGR of 5.4% during the forecast period. Plastic compounding involves blending plastics with additives to modify the plastic's thermal, physical, electrical, and aesthetic properties. Adding fillers, additives, and reinforcers to polymer enables altering characteristics such as conductivity, wear resistance, and flame retardance to cater to the specific product requirement. The different polymer types involved in polymer compounding include polypropylene, acrylonitrile butadiene styrene, polystyrene, and polyethylene, among others.

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The COVID-19 outbreak has restricted the growth of the plastics compounding market. The pandemic has adversely affected industries such as automotive, construction, aerospace, and electronics, resulting in reduced demand from these industries. The market has been impacted by operational challenges, disruption of the supply chain, delayed installations, deferred maintenance, and workforce impairment. Manufacturing activities have been halted due to various government regulations across the globe.

However, plastic compounding is increasingly being used during the pandemic for the production of ventilator components, consumables, medical devices, pharmaceutical packaging, and personal protective equipment, among others. Players present in the market are taking initiatives to overcome hurdles and provide polymers required for medical devices. The market is likely to gain traction post-COVID-19 due to supportive government regulations, support and stimulation packages, and growing applications.

Industry Dynamics

Growth Drivers
Polymer compounding is extensively used in the automotive sector for the production of diverse components. The rise in passenger vehicles sales, growing electrification of vehicles, and growing penetration of luxury vehicles have increased the demand for polymer compounding from this sector. Manufacturers are developing vehicles with reduced weight to enhance fuel efficiency and reduce carbon emissions using polymer compounds. The building and construction sector utilizes polymer compounding to manufacture windows, doors, flooring, and wall panels, among others. Plastic compounding offers greater design flexibility and is used in the development of complex shapes. The growing construction of residential and commercial buildings and the rising trend towards interior design have further aided market growth.

Polymer compounds are used in diverse industries such as automotive, construction, medical, and electronics. Polymer compounds are utilized for the modernization of vehicles and enhanced vehicle performance. Technological advancements associated with polymer compounding and rising investments in R&D have further increased the market demand for polymer compounds.

There has been a rise in investments in the construction industry and the development of public infrastructure, which has increased the requirement of polymer compounding from the building and construction sector. Growth in industrialization and urbanization across the globe, increasing disposable income, and improving living standards have resulted in greater demand for consumer goods and home appliances, driving the growth of the market.

Report Segmentation

The market is primarily segmented on the basis of type, end-use, and region.

By Type

By End-Use

By Region

  • Polyethylene
  • Polypropylene
  • Polyvinyl Chloride
  • Polystyrene
  • Polyethylene Terephthalate
  • Acrylonitrile Butadiene Styrene
  • Others
  • Electrical & Electronics
  • Automotive
  • Consumer Goods
  • Healthcare
  • Building & Construction
  • Industrial
  • Others
  • North America (U.S., Canada)
  • Europe (Germany, UK, France, Italy, Spain, Netherlands, Austria)
  • Asia-Pacific (China, India, Japan, South Korea, Indonesia, Malaysia)
  • Latin America (Brazil, Mexico, Argentina)
  • MEA (Saudi Arabia, South Africa, Israel, UAE)

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Insight by Type

The type segment has been divided into polyethylene, polypropylene, polyvinyl chloride, polystyrene, polyethylene terephthalate, acrylonitrile butadiene styrene, and others. The polypropylene segment accounted for a major share in 2020. It is used in diverse aerospace, healthcare, and electronics due to its high flexural strength, moisture resistance, and fatigue resistance. It can be easily repaired from damage and offers a low coefficient of friction. It has also become popular for injection molding as it is easy to mold and offers low melt viscosity.

Insight by End-Use

On the basis of the end-use industry, the market is segmented into electrical & electronics, automotive, consumer goods, healthcare, building & construction, industrial, and others. The automotive segment dominated the global plastic compounding market in 2020. Plastic compounding is used in the manufacturing of automotive components to reduce weight and improve performance. Increasing demand for passenger vehicles, adoption of electric vehicles, and modernization of vehicles have increased the demand for plastic compounding during the forecast period. 

Geographic Overview

Asia-Pacific dominated the global plastic compounding market in 2020. Increasing urbanization, economic growth, and strengthening the manufacturing sector drive the market growth. The industrial growth in countries such as Japan, China, and India, rising automotive penetration, and increasing construction and development activities support greater demand for plastic compounding. There has been a rising application of plastic compounding in the electronics and consumer goods sectors. Increasing development of residential & commercial projects and infrastructure development in developing countries of this region boasts the polymer compounding market growth.

Competitive Landscape

The leading players in the polymer compounding market include AKRO-Plastic GmbH, Arkema Group, Asahi Kasei Plastics, BASF SE, Celanese Corporation, Covestro AG LLC, Dow, Inc., DSM N.V., DuPont, Dyneon GmbH & Co KG, Kingfa Sci. and Tech. Co., Ltd, Kraton Polymers, Inc., Kuraray Plastics Co., Ltd., LyondellBasell Industries N.V., Resinex, RTP Company, Inc., S&E Specialty Polymers, SABIC, Solvay S.A., and Teijin Limited These players are expanding their presence across various geographies and entering new markets in developing regions to expand their customer base and strengthen presence in the market. The companies are also introducing new innovative products in the market to cater to the growing consumer demands.

Plastic Compounding Market Report Scope

Report Attributes

Details

Market size value in 2020

USD 61.13 billion

Revenue forecast in 2028

USD 82.90 billion

CAGR

5.4% from 2021 - 2028

Base year

2020

Historical data

2016 - 2019

Forecast period

2021 - 2028

Quantitative units

Revenue in USD billion and CAGR from 2021 to 2028

Segments covered

By Type, By End-Use, By Region

Regional scope

North America, Europe, Asia Pacific, Latin America, Middle East & Africa

Key Companies

AKRO-Plastic GmbH, Arkema Group, Asahi Kasei Plastics, BASF SE, Celanese Corporation, Covestro AG LLC, Dow, Inc., DSM N.V., DuPont, Dyneon GmbH & Co KG, Kingfa Sci. and Tech. Co., Ltd, Kraton Polymers, Inc., Kuraray Plastics Co., Ltd., LyondellBasell Industries N.V., Resinex, RTP Company, Inc., S&E Specialty Polymers, SABIC, Solvay S.A., and Teijin Limited

 

Key Take-Away
Polaris Market Research
Plastic Compounding Market | 2021-28 | Industry Share Report