Plastic Compounding Market Size By Product (Thermoplastic Polymers [Polyethylene, Polypropylene, Polyester, Polycarbonate, Polyethylene Terephthalate, Polyvinyl Chloride], Thermosetting Polymers [Polyurethane Resin, Epoxy Resin], Thermoplastic Elastomers [Polyamides, Polyurethanes, SBC]), By Industry (Consumer Goods, Electrical & Electronics, Construction, Automotive, Aerospace), Industry Analysis Report, Regional Outlook, Growth Potential, Price Trends, Competitive Market Share & Forecast, 2019 – 2026

Published Date: Oct 2019  |  Report ID: GMI1533  |  Authors: Kiran Pulidindi, Hemant Pandey

Report Format: PDF   |   Pages: 234   |   Base Year: 2018




Summary Table of Contents Industry Coverage Methodology

Industry Trends

Plastic Compounding Market size was USD 35.4 billion in 2018 and will witness a CAGR of 6.2% between 2019 and 2026.
 

Plastic Compounding Market

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Plastic compounding is a manufacturing process that entails melt-blending of plastics with certain additives to change its thermal, physical, aesthetic and electrical characteristics. Compounding of plastics converts the base resin to a desired plastic form that is more usable, effective and uniform. Addition of additives, agents and unique compounded products such as anti-abrasion additive and several others, depending on area of application, prominently contributes towards enhancing the product performance, in accordance with its composition.
 

Increasing product penetration is attributed towards its multiple and varied applications in automotive, electrical & electronics, and construction sector. Integration of compounded plastics in construction sector specifically in performance safety windows, insulation materials, floorings, doors, storage tanks, pipes and cables will provide a positive outlook for the industry size. Growing prominence of bioplastics featuring improved surface finish for automotive interior and exterior applications will further augment the industry share.
 

Growing residential and commercial projects in developing countries in conjunction with rising economic conditions are positively influencing the product adoption over the projected timeframe. Further, rising consumer awareness regarding attractive interiors is increasing the demand of these materials for interior designing. Escalating construction spending is likely to propel plastic compounding market during the forecast period. For instance, the U.S. spending on construction rose significantly from USD 800 Billion in 2012 to USD 1,100 Billion in 2016.
 

The plastic compounding market is regulated by environmental agencies and international organizations that constantly develop and update recycling norms, application scope & utilization quantity along with environmental policies. Non-biodegradability and carcinogenic nature of certain products have been under continuous evaluation from regulatory bodies. This factor is anticipated restrict the industry expansion over the forecast timeframe.
 

Continuous innovations are driving product demand in end-user industries such as automotive, aerospace, packaging, construction, electrical and electronics sector. For instance, in January 2016, Archer Daniels Midland (ADM) and DuPont Industrial Biosciences announced the method development to create furan dicarboxylic methyl ester (FDME), from fructose derived from corn starch. Bio-based FDME has the potential to replace petroleum-based materials in many applications with high performance, renewable materials in industries like packaging and textile industries.
 

Bioplastics constitute an innovative and emerging industrial segment, characterized by new collaborations and synergies among the biotechnological, chemical, consumer and agricultural sectors. These new materials include cellulose, starch, and other products derived from processes involving microbial fermentation. Bioplastics possess potential growth opportunities in end-user market such as food & beverage packaging, agriculture and pharmaceuticals. Long-term sustainability has always been the priority of industry players hence turning to bio-based plastic compounding has surely opened new growth avenues for the parent market.
 

Plastic Compounding Market Report Coverage
Report Coverage Details
Base Year: 2018 Market Size in 2018: USD 35.4 Billion
Historical Data for: 2014 to 2018 Forecast Period: 2019 to 2026
Forecast Period 2019 to 2026 CAGR: 6.2% 2026 Value Projection: USD 56.9 Billion
Pages: 234 Tables, Charts & Figures: 298
Geographies covered (18): U.S., Canada, Germany, UK, France, Italy, Russia, China, India, Japan, Australia, Indonesia, Malaysia, Thailand, Brazil, South Africa, Saudi Arabia, UAE
Segments covered: Product, End user
Companies covered (17): The Dow Chemical Company, BASF SE, LyondellBasell Industries, Solvay SA, Kraton Corporation, Aurora Plastics LLC, A. Schulman, SABIC, Foster Corporation, RTP Company, Asahi Kasei Plastics, Covestro AG, Kuraray Plastics Co.,Ltd., Lanxess AG, MRC Polymers Inc., PolyOne Corporation, Chevron Phillips Chemical Company LLC
Growth Drivers:
  • Growing construction industry
  • Increasing product application in automotive sector
  • Increasing consumer goods sale in Asia Pacific
Pitfalls & Challenges:
  • Environmental regulations regarding plastic recycling and application scope
  • Oscillating crude oil prices

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Replacement of traditional materials with thermoplastic elastomers

Europe plastic compounding market by product, 2018 (USD Million)
Europe plastic compounding market by product, 2018 (USD Million)

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Thermoplastic polymers recorded the largest revenue share and generated over USD 20 billion in 2018, owing to their wide range of applications and economical manufacturing costs compared to the other polymers. These products are polymers that can be melted, molded and remolded without changing their physical properties. Moreover, the matrix can be easily melted, therefore the composite materials are easier to repair and can be recycled and remolded easily. Thermoplastic composites feature lower density than thermosets making them a feasible alternative for weight critical applications.
 

Thermoplastic elastomers will witness significant growth prospects owing to their increasing applications to replace natural or synthetic rubber, metal, wood, glass or conventional engineered plastics. Proliferating consumer spending in automotive, medical and construction sectors coupled with regulatory compliances for sustainable products will escalate the segment size. Moreover, efficient chemical and physical benefits including thermoplastic and elastomeric properties in structural applications will further enhance the thermoplastic elastomers market share.
 

Innovative products for residential and commercial construction

Construction segment accounted for over 25% plastic compounding market share owing to the steady replacement of traditional materials with advanced engineered plastics and polymer composites. Construction applications include pipes & guttering, roofing, window and door profiles, glazing, sealants & adhesives, flooring, cement, and building panels. Increasing product demand in storage tanks, floorings, high performance safety windows, domes/sky lights, insulation materials, roofing, pipes, doors and cables is expected to drive the industry share over the study timeframe.
 

Automotive sector will showcase significant rise owing to multiple benefits of plastics including superior impact strength, improved aesthetics, easy moldability, cabin insulation, scratch resistance, recyclability and being lightweight. Vehicle manufacturers are emphasizing to increase their production facilities for meeting the proliferating demand of new generation vehicles. Shifting preference of consumers for utilizing lightweight vehicles delivering better fuel economy will further augment the segment share.
 

Increasing electric vehicle and consumer good sales in Asia Pacific

Global plastic compounding market volume share by region, 2018
Global plastic compounding market volume share by region, 2018

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Europe will witness substantial growth in the plastic compounding market owing to the growing demand for polyurethanes, polyethylene (PE), polypropylene (PP) from aerospace and construction sector. Pioneering network of chemical industries in Germany, Italy, France, Spain, UK, Russia and Poland will further fuel new product development activities. Growing prominence for curbing vehicle emissions along with stringent environmental regulations are resulting in the adoption of lightweight materials, further supporting the product adoption.
 

Asia Pacific held around 40% share in 2018 owing to the increasing consumer inclination towards utilizing electric vehicles along with increasing consumer good sales in the region. Regional expansion of automotive manufacturing plants due to large raw material and skilled labor availability, will expand the plastic compounding market size. Easy finance availability, rising disposable income and frequent launch of new electric vehicle models are significantly contributing towards increased product penetration. Enhanced mobility requirements coupled with rising passenger and commercial vehicle sales will further support the regional growth.
 

New product penetration to meet growing consumer demand

Key industry participants operating the plastic compounding market include BASF SE, Solvay SA, LyondellBasell, SABIC, RTP Company, Chevron Phillips Chemical Company, Covestro AG, Kraton Corporation, A. Schulman, and Foster Corporation. Industry players are collaborating with automobile companies for developing new products and manufacturing technologies to cater to the growing demand. For instance, in December 2014, Mitsubishi Chemical Corporation and Mazda Motor Corporation jointly developed bioplastic for exterior automotive components. Strategic mergers and acquisitions targeted towards business expansion in emerging economies will prominently escalate the industry growth.
 

The plastic compounding market research report includes an in-depth coverage of the industry with estimates & forecast in terms of revenue in USD million and volume in kilo tons from 2013 to 2026, for the following segments:
 

Market Analysis By Product

  • Thermoplastic polymers
    • Polyethylene
    • Polypropylene
    • Polyester
    • Polycarbonate
    • Polyethylene terephthalate
    • Polyvinyl chloride (PVC)
    • Others
  • Thermosetting polymers
    • Polyurethane resin
    • Epoxy resin
    • Others
  • Thermoplastic elastomers
    • Polyamides
    • Polyurethanes
    • SBC
    • Others
  • Others

Plastic Compounding Market, By End User

  • Consumer goods
  • Electrical & electronics
  • Construction
  • Automotive
  • Aerospace
  • Others

The above information is provided for the following countries:

  • U.S.
  • Canada
  • Germany
  • UK
  • France
  • Italy
  • Russia
  • China
  • India
  • Japan
  • Australia
  • Indonesia
  • Malaysia
  • Thailand
  • Brazil
  • South Africa
  • Saudi Arabia
  • UAE

Frequently Asked Questions (FAQ) :

According to Global Market Insights, plastic compounding market valuation in 2018 was estimated at over USD 35.4 billion.
This report estimates a 6.2% CAGR for worldwide plastic compounding market for the duration of 2019 to 2026.
Thermoplastic polymers segment recorded the largest revenue share of plastic compounding sector by generating over USD 20 billion in 2018 owing to their wide range of applications and economical manufacturing costs.
According to this analysis, Asia Pacific held around 40% share in 2018 owing to the increasing consumer inclination towards utilizing electric vehicles along with increasing consumer good sales in the region.
Construction application accounted for over 25% of total plastic compounding market share in 2018.

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