Plastic Compounding Market Analysis

Plastic Compounding Market Analysis

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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.