Plastic Compounding Market size worth around $169.7 Billion by 2026
Published Date: November 11, 2020 Authors: Kiran Pulidindi, Hemant Pandey
According to a new research report by Global Market Insights, Inc., the Plastic Compounding Market size will likely reach USD 169.7 billion by 2026. Increasing demand in the electrical & electronics industry to fuel the industry growth during the forecast period.
The increasing requirement for flame retardancy, heat resistance, and improved serviceability in manufacturing materials presents a bright scope for the plastic compounding market growth by 2026. Plastics are used in a wide array of electrical applications such as semiconductors, housings, sockets, enclosures and switches, and wire & cables. PE and Polyvinyl Chloride (PVC) will be the leading polymers used in the sector during the forecast period.
However, due to the COVID-19 pandemic, electronic & electrical goods also witnessed a rapid decline in sales, especially in the consumer electronics segment. The consumer electronics segment is one of the major consumers of plastic compounding market. The segment witnessed declined sales owing to changing priorities of consumers toward buying essential goods.
For instance, in Q2 financials published by LG Electronics, the home appliance segment witnessed a -15.5% decline on a YoY basis. Vehicle component solutions and mobile communication segments also witnessed a -22.2% & -15.8% decline respectively. Another electronics giant, Samsung Electronics, also predicted a decline in sales and overall earnings in the second quarter of 2020.
Browse key industry insights spread across 215 pages with 205 market data tables & 25 figures & charts from the report, “Plastic Compounding Market 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” in detail along with the table of contents:
Thermosetting polymers will experience healthy demand
Polyurethane is a highly versatile polymer that allows the creation of both thermoplastics & thermosetting plastics, ranging from very soft to hard and rigid. Polyurethanes will hold the highest plastic compounding market share for manufacturing insulating foams, mattresses, coatings, adhesives, car parts, print rollers, shoe soles, flooring, and synthetic fibers. The thermosetting polymers segment will exhibit gains of 6.4% between 2020 and 2026.
Epoxy resins will witness demand from paints & coatings applications and industrial tooling & composites for producing molds, master models, castings, laminates, fixtures, & other industrial production. Epoxy resins serve as strong electrical insulators and will hold substantial demand from electrical & electronics applications.
These are also used in the manufacturing of motors, transformers, switchgear, generators, bushings, transistor casting, and electronics encapsulation. Other thermosetting polymers, such as phenolic resin and acrylic resin, will have significant demand from a range of applications including ballistics, mine ventilation, aerospace, rail, and mass transit.
Consumer goods occupied over 26% market share in 2019
The consumer goods segment was the second-highest segment with over 26% share in 2019. The large share was attributed to a varied range of plastic applications from packaging to household appliances. The construction segment constituted around 15% share in the global plastic compounding market in 2019. The construction segment will have substantial demand for plastics by 2026 in a range of applications including flooring, insulation, roofing, sewage pipes, plumbing, gas distributions systems, windows & door panels, storage tanks, and hardware accessories.
The automotive industry will drive product demand in Europe
The Europe market will generate revenue over USD 40 billion in 2026. The presence of major automobile manufacturers in the region will have a positive influence on the plastic compounding market in the future. Total automotive sales in Europe including France, Germany, Italy, Russia, Spain, and the UK surpassed 14 million units in 2016 and will rise substantially by 2026. These trends provide brighter growth aspects for the automotive plastic demand in Europe.
Manufacturers aim to provide high fuel efficiency and low weight automobiles, enhancing regional plastic compounding industry growth. Major companies operating in the industry include Solvay SA, Kraton Corporation, RTP Company, Covestro AG, and A. Schulman.
Explore More on Related Topics: