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, 2020 – 2026

Published Date: Nov 2020  |  Report ID: GMI1533  |  Authors: Kiran Pulidindi, Sayan Mukherjee

Report Format: PDF   |   Pages: 215   |   Base Year: 2019

Summary Table of Contents Industry Coverage Methodology

Industry Trends

Plastic Compounding Market size was valued at USD 133.6 billion in 2019 and is estimated to exhibit a CAGR of over 5.5% from 2020 to 2026. The growing demand for plastic parts in automotive industry to reduce vehicle weight and increase product life is expected to boost the product demand over the forecast period.

Plastic compounding is a process of adding polymers or additives into a molten plastic base to produce a material with desired qualities. The plastic compounding market will experience significant demand from aerospace applications. Military aircraft, commercial & freighter aircraft, rotary aircraft, and general aviation use plastics. Cabin interior involves significant use of plastics. Various aircraft components including wings & rotor blades, airframe & fuselage, empennage, flight, and deck & cockpit also use plastics.

Plastic Compounding Market Outlook
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Plastics possess high strength-to-weight ratio and are extensively preferred owing to their corrosion resistance characteristics to improv product shelf life. Plastics result in weight-savings of up to 60% compared to aluminum. They also help in cost cutting to reduce the usage of nuts and fasteners, thus reducing the overall operational costs.

Plastics have major applications in aircraft, ranging from lighting systems, seats, on-board kitchen & cooling systems, disposal systems and freight loading facilities. The increasing lightweight construction demand to improve aircraft fuel efficiency and performance is likely to drive the aerospace plastics demand. The reduction in aircraft weight proves to be beneficial for operating life.

Plastic Compounding Market Report Coverage
Report Coverage Details
Base Year:2019
Market Size in 2019:133.6 Billion (USD)
Forecast Period:2019 to 2026
Forecast Period 2019 to 2026 CAGR:5.5%
2026 Value Projection:169.7 Billion (USD)
Historical Data for:2016 to 2019
No. of Pages:215
Tables, Charts & Figures:230
Segments covered: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)
Growth Drivers:
  • Rapidly growing construction industry in APAC and MEA
  • Increasing product applications in Automotive sector
  • Growth in electronics industry
  • Growing industrialization in Asia Pacific
Pitfalls & Challenges:
  • Growing environmental regulations

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COVID-19 will contract the industry size in 2020

The impact of COVID-19 has been witnessed in multiple parameters in the plastic compounding market. Short-& long-term effects and their impacts on manufacturers and end consumers were also analyzed. During the initial spread of the COVID-19 virus, the global manufacturing witnessed a halt owing to initial cases being discovered in China. China being the head exporter of many plastic compounding products witnessed immediate disruption in manufacturing owing to the imposition of stringent lockdowns.

Major chemical manufacturing hubs and free trade zones, such as Zhejiang, Shanghai, and, Guangdong, witnessed a drop in their production output. The global spread also resulted in the plummeting demand from major industries, such as automotive and industrial, primarily owing to stringent shutdown of manufacturing operations and production facilities.

The changing consumer priority for need-based essential products also negatively impacted the demand. Major sectors, such as consumer goods, electronics, automotive, and aerospace, experienced a significant decrease in the plastic compounding market demand. The initial recovery in China witnessed blips of short-term surges in production output, primarily owing to the back-log orders from foreign companies. The European manufacturing is also set to rebound as governments are introducing multiple support and stimulation packages to increase consumer confidence.

Thermoplastic polymers will dominate the overall industry size

Plastic Compounding Market by Product

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Thermoplastic polymers are anticipated to hold the largest share and will exhibit gains of 5.4% CAGR between 2020 and 2026, due to their wide range of applications and lower manufacturing costs compared to the other segments. Thermoplastic polymers are polymers that can be molded, melted, and remolded without altering their physical properties. Since the matrix can be melted, composite materials are easier to repair and can be remolded and recycled easily. The density of thermoplastic composites is less compared to thermosetting polymers, making them a feasible alternative for weight-critical applications.

PVC applications will witness demand, particularly from the construction industry for door & window brackets, piping, plumbing, electrical cable insulation, signage, imitation leather, phonograph record, and profile applications. It is also used in bottles, other non-food packaging, and cards (bank or membership cards).

Automotive will drive the industry growth

   Plastic Compounding Market by Industry

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Plastic compounding market for automotive will account for over 35% in 2026. Plastic applications in automotive components range from windshields to drive systems. Regulations in North America and Europe to reduce fuel consumption have been the primary driving force of the rising plastic consumption in the automotive industry. Lightweight vehicles play a key role in fulfilling regulations as fuel consumption and vehicle weight are co-related.

Every 100-kg weight reduction in vehicles can reduce fuel consumption by about 0.4L/100km from cars and about 0.5L/100 km for light trucks. Owing to which many automotive manufacturers are replacing metal parts by plastic ones to reduce the vehicle weight significantly. Apart from weight reduction, plastic parts also increase the vehicle life by reducing corrosion and integrating components along with easy recyclability of product and flexibility in design, stimulating the plastic compounding market revenue by 2026.

Lower remanufacturing costs associated with the usage of plastic car components will also fuel the plastic compounding market demand for automotive applications. Plastics spare parts application allows significant design liberty and widens the aesthetic appeal of automotive. Several complex parts could be combined into a single integrated piece. Plastics are also used to manufacture various automotive parts such as electrical components, power train, under the hood, chassis, and interior & exterior furnishings.

Bumpers, chemical tanks, cable insulation, and carpet fibers are some common applications of polypropylene. Foam insulation panels, flexible foam seating, and suspensions bushings also utilize polyurethane as an ideal material. PVC is used to manufacture automobile instrumental parts such as sheathing of electrical cables, pipes, and doors. Powertrain is one of the most complicated parts of a car. It refers to a system of bearings shafts and gears that transfer the engines’ power to the axle. Plastic helps in reducing the quantity of parts required to assemble these components. Various applications present brighter growth aspects for the global plastic compounding market by 2026.

The growing consumer goods industry in North America will boost product demand

           Plastic Compounding Market by Region

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Increasing thermoplastic elastomer demand in medical equipment, paving and roofing, sports & leisure equipment, and personal hygiene will support the North America plastic compounding market growth. North America has been the world's largest consumer of plastic packaging and has the presence of packaging giants, such as Tetrapak, International Paper, Ball Corporation, Reynolds Group, and Owens-Illinois, in the region. The rising flexible packaging demand from the regional food & beverage industry will mark significant growth for the market.

Significant rise in the automobile industry in North America will also have a positive influence on the regional plastic compounding market. Total automotive sales in North America including the U.S. and Canada were over 19 million units in 2016, which will have a healthy growth by 2026. The strong demand for 3D printing from healthcare, aerospace & defense, consumer product industries, and education is expected to fuel industry growth over the forecast period. Considering the above-mentioned factors, the North America plastic compounding market will exceed revenue generation over USD 30 billion in 2026.

Major companies in the industry have presence across the value chain

Major companies working in the plastic compounding market have presence across the value chain, which makes the survival of new entrants difficult in the industry. For instance, LyondellBasell is a refiner of crude oil, manufacturer of chemicals & polymers, producer of gasoline blending components, and developer & licensor of technologies to produce polymers. Owing to the presence across the value chain, companies such as LyondellBasell can sell their products at a very competitive price.

Other major companies working the plastic compounding industry are Solvay SA, Kraton Corporation, BASF SE, RTP Company, Saudi Basic Industries Corporation (SABIC), Chevron Phillips Chemical Company, Covestro AG, Foster Corporatio, and A. Schulman.

The plastic compounding market report includes in-depth coverage of the industry with estimates & forecast in terms of volume in kilo tons and revenue in USD million from 2016 to 2026 for the following segments:

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

By Industry

  • Consumer Goods
  • Electrical & Electronics
  • Construction
  • Automotive
  • Aerospace
  • Others

The above information is provided on a regional and country basis for the following:

By Region

  • North America
    • U.S.
    • Canada
  • Europe
    • Germany
    • UK
    • France
    • Italy
    • Spain
    • Russia
  • Asia Pacific
    • China
    • India
    • Japan
    • Australia
    • Malaysia
    • Indonesia
    • Thailand
  • Latin America
    • Brazil
    • Mexico
  • Middle East & Africa
    • South Africa
    • Saudi Arabia
    • UAE


Frequently Asked Questions (FAQ) :

The global plastic compounding industry size is valued at USD 133.6 billion in 2019 and is projected to grow at 55% CAGR through 2026 owing to the rising demand for plastic parts in the automotive industry to decrease vehicle weight and surge product life.
Thermoplastic polymers are anticipated to expand at 5.4% CAGR through 2026 due to the broad array of applications and lower manufacturing costs.
The automotive industry held over 35% of the global plastic compounding industry share through 2026 due to the products’ benefits including weight reduction, reduce corrosion, flexibility in design among others.
The North American plastic compounding market revenue is poised to exceed USD 30 billion through 2026 owing to the surging demand for 3D printing from healthcare, consumer product, aerospace & defense industries among others.

Premium Report Details

  • Published Date: Nov 2020
  • Pages: 215
  • Tables: 205
  • Charts / Figures: 25
  • Companies covered: 17
  • Countries covered: 20

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