Selbyville, Delaware, Nov. 12, 2020 (GLOBE NEWSWIRE) -- Based on Global Market Insights Inc., report, the global plastic compounding market was estimated at $133.6 billion in 2019 and is slated to surpass $169.7 billion by 2026, registering a CAGR of 5.5% from 2020 to 2026. The report provides a detailed analysis of the market estimations and size, top investment avenues, wavering industry trends, drivers & opportunities, key winning strategies, and competitive scenarios.
Compounding enhances the properties of plastics and polymers. All compounded plastics are heavier in weight compared to their parent plastic. The addition of additives provides features such as anti-abrasion, mechanical strength, etc. Depending on the area of application it enhances plastic performance according to the composition. Additives are complex in structure, complicated, and expensive to produce. Its production also requires high-end equipment and machinery.
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The construction industry is a prime end-user of the plastic compounding industry. It includes pipes, flooring, fittings, window systems, etc. The rapidly growing construction industry in Asia Pacific and Middle East & Africa owing to increasing urbanization and disposable income is expected to boost the plastic compounding market share over the forecast period. In addition, growing re-construction projects in North America and Europe along with increased investments in public infrastructures are fueling the market demand from the past several years.
Sales from the aerospace industry are expected to decline as the demand for air travel is not expected to rebound until 2021. However, due to the COVID-19 pandemic, the construction and aerospace sectors have witnessed a steep decline. The decline is due to a halt in many development projects that are expected to delay as governments across the globe are prioritizing their expenses to improve healthcare infrastructure.
The consumer goods industry segment has high growth potential and is estimated to grow at a CAGR of 6.3% during the forecast period. This can be attributed to the rising per capita income of consumers, which has led to an improved lifestyle and amplified spending power. Consumer goods include appliances, toys, kitchenware, and other durables mostly for daily use. The plastic compounding market sales for consumer goods is increasing due to improving lifestyles coupled with the rising demand for luxury goods.
The increasing consumer spending in the automotive, medical, footwear, and construction industries along with regulatory compliance of sustainable products will drive the thermoplastic elastomers business. Value-added mechanical benefits including elastomeric and thermoplastic properties in structural applications will complement the industry.
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The Asia Pacific is likely to hold the largest share of over 40% by 2026. The growth will be attributed to the rising food & beverage industry in the region, which will have a strong demand for plastics in packaging applications in the coming years. The regional consumer goods segment will also be a significant contributor to the plastics demand. The rising number of automotive manufacturing plants due to the easy availability of raw materials and competitive labor cost will drive the plastic compounding market.
The growing automobile industry will also propel the demand for automotive plastics over the forecast period. Asia Pacific was responsible for over 60% of the global automobile production in 2019. The workforce expansion and subsequent development of industrial infrastructure in Asia Pacific will further drive the regional plastic compounding market in the future.
Notable market players analyzed in the plastic compounding industry report include The Dow Chemical Company, BASF SE, LyondellBasell Industries, Solvay S.A., Kraton Corporation, Aurora Plastics LLC, A. Schulman, Saudi Basic Industries Corporation (SABIC), Foster Corporation, RTP Company, Asahi Kasei Plastics, Covestro AG, Kuraray Plastics Co., Ltd. , Lanxess AG, MRC Polymers, Inc., PolyOne Corporation, Chevron Phillips Chemical Company LLC among many others.
About Global Market Insights, Inc.
Global Market Insights, Inc., headquartered in Delaware, U.S., is a global market research and consulting service provider. Offering syndicated and custom research reports, growth consulting and business intelligence services, Global Market Insights, Inc. aims to help clients with penetrative insights and actionable market data that aid in strategic decision making.
GMIPulse, our business analytics platform offers an online, interactive option of exploring our proprietary industry research data in an easy-to-use and dynamic manner. Clients get to explore market intelligence across 11 top level categories and hundreds of industry segments within them, covering regional, company level and cross-sectional statistics that make our offering a stand-out for decision makers.