New York, May 28, 2024 (GLOBE NEWSWIRE) -- Market Overview
Global Automotive Plastic Compounding Market size is estimated at USD 3,581.1 million in 2024 and is further anticipated to reach USD 6,063.1 million by 2033 at a CAGR of 6.0 % according to Dimension Market Research.
Plastic compounding is the process of blending different types of plastics, thermoplastics, and additives to improve their properties. The final products from this process have a wide range of desirable characteristics such as flame retardancy, conductivity, lightweight, and wear resistance.
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These high-quality materials are in high demand across various industries including construction, automotive, packaging, and electronics, driving growth in the global plastic compounding market. In the automotive sector specifically, these compounds are replacing traditional metal parts, leading to safer vehicles by reducing overall weight.
Important Insights
- The Automotive Plastic Compounding Market is expected to grow by USD 6,063.1 million by 2033 from 2025 with a CAGR of 6.0 %.
- Polypropylene (PP) is anticipated to dominate with a maximum share of 71.5% in the global automotive plastic compounding market in 2024, due to the growing desire for lighter automobiles including electric vehicles.
- Interior Components as application is expected to dominate the global automotive plastic compounding market with the largest revenue share of 33.2% in 2024, due to the increasing focus on the reduced weight of automobiles.
- Asia-Pacific is predicted to dominate the automotive plastic compounding market with a revenue share of 45.6% in 2024, due to the lower cost production in countries like India & China.
Trends
- Automotive manufacturers are teaming up with plastic compounders to create advanced materials for modern vehicle design and sustainability goals.
- Collaboration among manufacturers aims to develop specialized plastics with enhanced electrical and thermal properties, which are crucial for integrating advanced features and smart technologies in vehicles.
Competitive Landscape
- The automotive plastic compounding market provides comprehensive insights into key competitors, including company overviews, financials, revenue, market potential, and R&D investments.
- In the protective packaging sector, many manufacturers are expanding plastic compounding in the automotive industry and seeking new product applications.
- Concurrently, automobile manufacturers are focusing on optimizing pre- and post-production processes to keep pace with rapid technological advancements.
Some of the prominent market players:
- Asahi Kasei Corporation
- LyondellBasell Industries Holdings B.V
- SABIC
- BASF SE
- Dow
- Ferro Corporation
- Washington Pen
- Ravago
- KRATON Corporation
- Covestro AG
- DuPont
- Other Key Players
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Automotive Plastic Compounding Market Scope
| Report Highlights | Details |
| Market Size (2023) | USD 3,581.1 Mn |
| Forecast Value (2033) | USD 6,063.1 Mn |
| CAGR (2024-2033) | 6.0% |
| Leading Region in terms of Revenue Share | Asia-Pacific |
| Percentage of Revenue Share by Leading Region | 45.6% |
| Historical Data | 2017 - 2022 |
| Forecast Data | 2025 – 2033 |
| Base Year | 2023 |
| Estimate Year | 2024 |
| Segments Covered | By Product, By Application |
| Regional Coverage | North America, Europe, Asia Pacific, Latin America, Middle East & Africa (MEA) |
Market Analysis
Polypropylene (PP) is expected to dominate the global automotive plastic compounding market in 2024, capturing up to 71.5% of the share. This substantial market share is attributed to the increasing demand for lighter vehicles, including electric vehicles (EVs). It is perfectly able to reduce vehicle weight & complexity making it a favored material among automotive manufacturers. Major players in the polypropylene market are showing significant growth opportunities with the automotive industry growing globally.
Additionally, polyethylene (PE) is projected to see notable growth during the forecast period due to its popularity stems from its excellent resistance to impact, abrasion, and chemicals, coupled with its durability, flexibility, low weight, and strength.
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Automotive Plastic Compounding Market Segmentation
By Product
- Polypropylene (PP)
- Polyethylene (PE)
- Polycarbonate (PC)
- Polybutylene Terephthalate (PBT)
- Thermoplastic Elastomers (TPE)
- Acrylonitrile Butadiene Systems (ABS)
- Others
By Application
- Exterior Components
- Interior Components
- Under the hood Components
- Electrical Components & Lightening
- Others
Drivers
- Global Automotive Plastic Compounding Market growth is fueled by stricter emission norms and regulations concerning vehicle weight, aimed at reducing greenhouse gas emissions.
- Increased demand for plastic compounds stems from their ability to enhance production yields and improve automotive product performance.
- The automotive sector is significantly growing in the plastic compounding market, especially for parts such as bumper facias, instrumental panels, and door trims.
- Plastic compounds are instrumental in improving production efficiency and the performance of automotive components.
Restraints
- Re-engineering plastics face challenges due to the significant capital and infrastructure investments needed. The Automotive Plastic Compounding Market is restraining the growth of the market due to insufficient technology, infrastructure, and a limited market for recycled materials.
- Advanced recycling facilities utilize technologies like magnetic separation, eddy current separators, float-sink tanks, and laser and infrared systems to separate plastics based on color and material type.
- The recycling process involves sorting and processing methods to obtain high-quality recyclates, posing obstacles to market growth.
Opportunities
- The increasing adoption of electric vehicles is driven by technological advancements in the automotive industry.
- Electric vehicles are recognized for their efficiency, energy independence, and superiority over gasoline-powered options.
- They leverage lightweight materials to improve the engine's pulling capacity.
- The rising demand for electric vehicles presents fresh prospects for the automotive plastics compounding market, as these materials play a vital role in reducing vehicle weight.
Regional Analysis
The Asia Pacific region is expected to lead the global automotive plastic compounding market, accounting for 45.6% of the revenue in 2024, driven by a growing demand for automobiles, favored by supportive foreign direct investment policies from regional governments.
Additionally, the low production costs in countries like India & China are likely to boost the use of plastic compounding in the automotive sector. North America is the second-largest region after Asia-Pacific due to enhanced production capabilities, a robust automotive industry, & a favorable demographic dividend.
By Region
North America
- The U.S.
- Canada
Europe
- Germany
- The U.K.
- France
- Italy
- Russia
- Spain
- Benelux
- Nordic
- Rest of Europe
Asia-Pacific
- China
- Japan
- South Korea
- India
- ANZ
- ASEAN
- Rest of Asia-Pacific
Latin America
- Brazil
- Mexico
- Argentina
- Colombia
- Rest of Latin America
Middle East & Africa
- Saudi Arabia
- UAE
- South Africa
- Israel
- Egypt
- Rest of MEA
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Recent Developments
- February 2024: Modern Dispersions finalized and put into operation the initial stage of a multifaceted manufacturing expansion at its new 168-acre location in Fitzgerald, Georgia which is driven by robust demand in injection molding and extrusion applications across various sectors such as automotive, electronics packaging, and construction, with notable uses including pipe manufacturing and wire and cable production.
- December 2023: Sirmax, an Italian plastic processing company, revealed to expand its plastic compounding operations in India, aiming for a production capacity of 20 kilotons per year.
- November 2023: Borealis AG announced an expansion in the production of mechanically recycled plastic compounds, boosting its compounding capacity to more than 50 kilotons per year facilitated by ac4wq7quiring Rialti S.p.A., an Italian company specializing in polypropylene (PP) compounding from recycled materials.
- May 2023: Lear, a leading automotive technology company, announced plans to establish a connection systems facility in Morocco which is dedicated to manufacturing components for automakers, suppliers, as well as Lear's E-systems and seating units.
- November 2022: Covestro AG and HASCO Vision partnered to recycle post-industrial plastics and transform them into high-quality post-industrial recycled polycarbonates and polycarbonate blends, and then provide them to HASCO to manufacture new automotive components.
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