Plastic Compounding Market Size & Share 2024 to 2032
Market Size by Product (Thermoplastic Polymers, Thermosetting Polymers, Thermoplastic Elastomers), by Application (Consumer Goods, Electrical & Electronics, Construction, Automotive, Aerospace), by Region & Global Forecast.
Report ID: GMI1533
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Published Date: November 2022
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Report Format: PDF
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Authors:
Kiran Pulidindi, Hiralkumar Patel
Plastic Compounding Market Size
Plastic Compounding Market size valuation exceeded USD 46.4 billion in 2023 and is anticipated to grow at over 5.5% CAGR between 2024 and 2032, driven by the growing adoption of plastics in the construction industry worldwide.
There has been an upsurge in building and infrastructure projects worldwide in recent years, with India, China, and North America among the top countries that have the greatest number of ongoing construction projects. Plastic products are durable and reusable, lower building costs, and reduce waste, which makes them a preferred material for use in the construction space. Widespread use of plastic components, including hinges, screws, and bigger construction components for electrical wiring, flooring, wall covering, waterproofing, and decoration in the expanding construction sector is foreseen to augment the industry revenue through the estimated timeline.
Implementation of plastic recycling restrictions may hamper industry progress
Plastic packaging and single-use garbage have been banned or taxed in over 60 nations to minimize plastic consumption. Although there are currently no regulations for the primary production of plastics, companies involved in the production of raw materials for plastics (including oil & gas companies) may be indirectly impacted by policies aimed at increasing plastic recycling and reducing fossil fuel dependence and greenhouse gas emissions. However, the surging adoption of sustainable plastics in the manufacturing of plastic products, parts, and packaging is slated to enable the market to overcome this restraint.
Plastic Compounding Market Analysis
Plastic compounding market is segmented based on type into thermoplastic polymer, thermoset polymer, thermoplastic elastomer, and others. Recently, thermoplastic elastomers have gained traction as a replacement for natural or synthetic rubber, metal, wood, and glass. The thermoplastic elastomer segment is expected to generate more than USD 10 billion in revenue by the end of 2032 owing to increased demand for styrene block copolymer (SBC) compounding in a variety of applications, such as vehicle components, medical devices, waterproofing materials, roofing, and polymer modifications.
Thermoplastic elastomers segment is further segmented into polyamides, SBC, polyurethanes, and others. The polyurethane segment held over 19% market share in 2022 and is anticipated to grow significantly from 2023 to 2032. Polyurethane is a highly versatile polymer that allows the creation of both thermoplastics & thermosetting plastics, ranging from very soft to hard & rigid. The growing adoption of low-density rigid polyurethane for thermal insulation of the walls in building & construction projects is expected to fuel the revenue growth of the segment through the projected timeline.
In terms of application, plastic compounding market is bifurcated into consumer goods, electrical & electronics, construction, automotive, aerospace, and others. The electrical & electronics segment is projected to expand at a 5.5% CAGR between 2023 and 2032. Increasing demands for flame retardancy, heat resistance, and increased serviceability in manufacturing materials are likely to offer growth potential and new opportunities for the plastic compounding industry in electrical & electronics applications through the review timeline.
North America plastic compounding market is expected to be worth more than USD 15.5 billion by 2032. The industry’s progress is poised to be driven by the growing usage of thermoplastic elastomers in paving and roofing, medical equipment, sports and leisure equipment, and personal hygiene goods. The presence of major companies, such as International Paper, Tetrapak, Reynolds Group, Ball Corporation, and Owens-Illinois, is speculated to contribute to the business expansion. Furthermore, the increased demand for flexible packaging from the regional food & beverage sector is expected to considerably boost market revenue growth.
Plastic Compounding Market Share
are major enterprises operating in the global plastic compounding industry. To retain their business position, companies are prioritizing the development of innovative manufacturing processes and the implementation of growth strategies.
Impact of COVID-19 Pandemic
Despite the global economic crisis, plastic manufacturers witnessed a rise in output during the COVID-19 pandemic. By late 2020, the pandemic and lockdown regulations significantly impact on plastics production, usage, and waste. Plastic use dropped in most industries as demand and output fell, notably in large-scale plastics-using industries, such as trade, motor vehicles, and construction. While total plastic packaging output declined, plastic packaging used in online sales (e-commerce) has increased dramatically. However, with decreasing cases, the post-COVID scenario has created massive growth potential as companies in the plastics sector are devising new methods of operating, which is set to facilitate market expansion in the future.
The plastic compounding market research report includes in-depth coverage of the industry with estimates & forecast in terms of revenue in USD billion from 2018 to 2032 for the following segments:
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Research methodology, data sources & validation process
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