ID: MRFR/CnM/3276-CRR | August, 2018 | Region: Global | 131 pages | Cooked Research Reports
Global Plastic Compounding Market: Information by Product (Polypropylene, Polyethylene, Polyvinyl Chloride, Polyethylene Terephthalate, and Others), Application (Automotive, Electrical & Electronics, Building & Construction), Region—Forecast till 2023
The global manufacturing sector continues to place a tremendous requirement for polymer blends. The plastic compounding market is witnessing a fast expansion as a subsequent upshot of the phenomenon mentioned above. The global market for plastic compounding is projected to surpass a valuation of USD 7,62,400 Mn by the year 2023. Polymer blends are likely to remain a sought-after industrial product in the years to come as they find new application opportunities. Plastic compounding allows application of polymer variants such as PVC (Poly Vinyl Chloride), Polyethylene (PE), and Polypropylene (PP) in the manufacturing of a wide range of products. Moreover, there has been an uptick in consumption of plastic in large-scale sectors such as automotive, packaging, electronic, etc., which is supporting the growth of the market. Owing to effective use of compounding techniques, plastic has emerged as a viable alternative to glass and metal.
This MRFR study examines the market size of plastic compounding on a global scale and analyzes the key market dynamics. It offers an assessment of the current growth trends of market and revenue forecast for the next five years. The primary objective of the study is to review the market forces that are influencing the plastic compounding industry. It also includes a discussion on the application opportunities for plastic compounding over the next couple of years. The scope of the discussion also covers different plastic compounding products such as polypropylene, polyethylene, polyvinyl chloride, polyethylene terephthalate, polystyrene, acrylonitrile butadiene styrene, polyamide, polycarbonate, thermoplastic polyolefins, thermoplastic vulcanizates, polybutylene terephthalate. The major application areas for plastic compounding analyzed include automotive, electrical & electronics, building & construction, packaging, consumer goods, industrial machinery, medical devices, and optical media.
Value, Market Share, Player Analysis, country level break down for each segment
LyondellBasell Industries NV, SABIC, Borealis, INEOS, DuPont, BASF SE, Versalis S.p.A (Eni S.p.A), Asahi Kasei Corporation, Covestro AG, SO.F.TER S.r.l, 3M (Dyneon GmbH), LANXESS AG, and Total SA.
The report includes company profiles of leading market players along with their current market share. Company information with regards to revenue, segmental share, geographical income, SWOT, growth strategies, new product launch, M&A activities, and the latest R&D initiatives is also available in the report.
The fail-safe methodologies employed by Market Research Future (MRFR), which incorporate both qualitative and quantitative approaches ensures that accurate market intelligence is delivered. The aim is to empower our clients with impactful market insights. An in-depth analysis of the key micro and macroeconomic trends combined with historical data assures the reliability of the information available in our reports. The statistical observations are backed by data procured from credible sources through extensive primary and secondary research which include interviews with industry opinion holders across the value chain, SEC filings, whitepaper references, published financial statements of companies, paid database services, and, publications by organizations & governments among others. The top-down and bottom-up approaches validate the credibility of market projections. Also, a multi-layer verification process authenticates the accuracy of the market size and value estimation provided in our reports.
For the scope of the research, MRFR’s report offers a comprehensive segmental analysis of the global market for plastic compounding.
The global plastic compounding market is projected to catapult from USD 5,36,724.4 million in 2017 to USD 7,62,472.7 million by the end of 2023. Factors such as increasing plastic consumption by the automotive industry, rising demand for light and innovative materials in the packaging industry and growth of key end-use industries will help the market achieve a CAGR of 6.03% over the forecast period of 2017-2023.
Plastic compounds provider better durability than steel and aluminum and is widely accepted in the automotive manufacturing owing to its lightweight property. Plastic composites help improve fuel efficiency and safety and are more versatile in terms of aesthetic value which makes them the preferred choice for automakers in the production of automotive body exteriors, automotive interiors, chassis, electrical systems, powertrains, fuel systems, and engine components. Moreover, many plastic resins are recyclable. To comply with EPA and EU legislation pertaining to the reduction of carbon and other harmful emissions, automakers are progressively using plastic compounds to produce lightweight automotive parts which stimulate the market growth.
Plastic compounds are used as a replacement for glass and metals in various industrial applications in the aerospace, automotive, construction, and consumer and healthcare goods industry. Other than being lightweight and durable, they can also be molded to form various complex shapes. They provide creep resistance and can maintain structural performance at high temperatures, with higher resistance to corrosion and better surface finish.
Volatility in the price of raw materials is expected to hinder the growth of the market over the forecast period. Polymers, plastic additives, lubricants, and solvents are used in the plastic compounding process which is subject to regular price fluctuation. Furthermore, these raw materials are produced through downstream processes of petrochemicals. Thus, variations in the price of crude oil and natural gas create inelasticity in demand and supply balance.
The prevailing trend of usage of recycled plastics in various end-use industries provides ample of scope for market expansion. Stringent North American and European regulations pertaining to waste management have prompted multiple manufacturers to utilize scrap plastics. Manufacturers are emphasizing recycling old plastics which also helps them increase overall productivity.
An increasing trend of use of bio-based plastics has in flexible packaging has resulted in the consumption of petrochemical-derived plastics which encourages plastic additive manufacturers to increase production of environment-friendly plastics to meet the demands of the global market.
The global plastic compounding market has been segmented based on product and application. By product, the market has been segmented into polypropylene, polyethylene, polyvinyl chloride, polyethylene terephthalate, polystyrene, acrylonitrile butadiene styrene, polyamide, polycarbonate, thermoplastic Polyolefins, thermoplastic vulcanizates, polybutylene terephthalate, and others. The Polypropylene segment is the leading segment and accounted for 31.07% share in 2017 and is expected to grow at a CAGR of 6.50% over the forecast period. The Polypropylene segment is observing high growth as it is increasingly used in the automotive industry due to its high impact resistance and serviceability. The Polyethylene segment is the second largest product segment and is expected to grow at a CAGR of 5.01% over the forecast period on account of high demand from end-use industries such as packaging, automotive, and pharmaceuticals.
By application, the market has been segmented into Automotive, Electrical & Electronics, Building & Construction, Packaging, Consumer Goods, Industrial Machinery, Medical Devices, Optical Media, and Others. The automotive segment is the leading segment which is estimated to expand at a CAGR of 7.53% over the forecast period. The automotive industry makes use of plastics at a large scale for the production of various automotive components. Moreover, the rise in production of passenger cars and heavy-duty vehicles, especially in Asia and Latin America is expected to provide growth opportunities over the forecast period. The packaging segment is the second largest segment and is expected to register substantial growth over the forecast period on account of escalating demand for packaged, ready to eat food products and beverages.
The Asia Pacific is the leading market for plastic compounding and is expected to emerge as a prominent hub for the global plastic compounding market and is expected to offer quality growth exposure over the forecast period. The Asia Pacific market was valued at USD 2,55,831 million in 2017 and is expected to expand at a CAGR of 6.25% over the forecast period. The growth of the automotive industry, rising per capita income of consumers, and growing electronics and electrical industry can be attributed for this growth. Additionally, the Asia Pacific region offers the advantages of lower costs of production due to the availability of comparatively cheap labor and easy availability of raw materials in emerging economies of China, South Korea, and Thailand further supports the market growth. Greater regulatory emphasis on reduction of carbon footprints is also encouraging production of lightweight electric vehicles which is fueling the growth of the plastic compounding market.
Europe accounts for the second largest share of the global plastic compounding market. Europe is projected to grow at a CAGR of 5.72% over the forecast period. The Europe market is growing on account of the growing packaging industry. Moreover, stringent regulations aiming at curbing carbon emissions prompt automakers to produce lightweight vehicles also is a driver of the Europe market. North America market for plastic compounding is also strong and projected to grow ta at CAGR of 5.17% over the forecast period. Increasing automotive production with increasing demand for lightweight vehicles will aid the growth of North America market.
The top players in the global plastic compounding market comprise of LyondellBasell Industries NV, DowDuPont, INEOS, BASF SE, and SABIC. Other notable players include Borealis, Versalis S.p.A (Eni S.p.A), Covestro AG, 3M (Dyneon GmbH), Total S.A., Asahi Kasei Corporation, SO.F.TER S.r.l, and SO.F.TER S.r.l.
Global Plastic Compounding Market: Competitive Landscape
The prominent players in the global plastic compounding market are LyondellBasell Industries NV, SABIC, Borealis, INEOS, DowDuPont, BASF SE, Versalis S.p.A (Eni S.p.A), Asahi Kasei Corporation, Covestro AG, SO.F.TER S.r.l, 3M (Dyneon GmbH), LANXESS AG, and Total S.A.
LyondellBasell Industries NV, DowDuPont, SABIC, INEOS Olefins & Polyolefins, BASF SE, and Versalis S.p.A (Eni S.p.A) collectively hold the majority share of the European plastic compounding market. The market players are focused on new product launches, product innovation, and strategic initiatives, such as acquisitions and joint ventures, to meet the increasing demand for high-performance plastics in major end-use industries such as automotive, electrical and electronics, and packaging.
DowDuPont, a leading specialty chemicals producer, provides a wide range of polymer products such as LDPE, LLDPE, HDPE, and other polyethylene resins. The company has 534 manufacturing sites and operates through three business segments—material science, specialty products, and agriculture. The company is focused on expanding its production capacity of high-performance plastic on account of the increasing demand from the automotive industry. For instance, in 2018, the company invested around USD 40 million in its compounding facility in China to boost R&D activities and the production of high-performance plastic.
LyondellBasell Industries NV is renowned as one of the largest plastics, chemicals, and refining companies in the world. It operates through five segments—olefins and polyolefins-Americas, olefins and polyolefins-Asia, Europe and international, intermediates and derivatives, and refining and technology. It is the leading manufacturer of polypropylene in Europe and the Americas. The company is focused on new product developments and the expansion of its polyolefins business. In February 2018, the company introduced a new enhanced polypropylene grade under the brand name Moplen HE745T for packaging applications. The new grade offers superior properties such as stiffness and impact performance balance.
INEOS is renowned as a global manufacturer of petrochemicals, specialty chemicals, and oil products. The company has 32 manufacturing sites in six countries globally. The company operates through the olefins and polymers Europe, olefins and polymers North America, and chemical intermediates segments. It produces polyolefins ranging from HDPE, LLDPE, LDPE, and m LLDPE to PP products. The company serves numerous industries such as packaging, construction, automotive, durables, agrochemicals, and pharmaceuticals. In 2017, Ineos Styrolution planned to expand its compounding capacity for acrylonitrile butadiene styrene (ABS) and acrylonitrile styrene acrylate (ASA) by an additional 34,000 tonnes per annum at its Moxi plant in Gujarat, India.
BASF SE is one of the largest chemicals producers in the world. The company operates through five business segments—chemicals, performance products, functional materials and solutions, agricultural solutions, and oil & gas. The company offers a wide range of high-performance plastic and organic pigments to serve the growing demand in major end-use industries such as automotive, electrical and electronics, and packaging. In 2017, the company began operations at its compounding plant in Schwarzheide, Germany, to meet the increasing demand for engineering plastic from end-use industries. With this expansion, the company’s global compounding capacity for polyamide and polybutylene terephthalate has reached to 7,00,000 metric tons per year.
SABIC is a petrochemicals company that manufactures chemicals, fertilizers, plastics, and metals. The company operates through the petrochemicals, specialties, agri-nutrients, and metals segments. It has three technology centers and 12 manufacturing facilities in Europe. In 2018, the company introduced two new LDPE grades under the brand names SABIC LDPE HP0722 NDF and SABIC LDPE HP2022 NDF for cross-linked foaming processes. It also introduced a new portfolio of polypropylene compounds in the market for interior automotive parts. The new grades will provide excellent scratch resistance, good impact performance, and low shrinkage.