Market Overview
The Global Automotive Plastic Compounding Market is expected to reach a value of
USD 3,372 million in 2023, and it is anticipated to exhibit a
CAGR of 5.8% for the forecast period (2023-2032).
Plastic compounding involves the process of blending different types of plastics & thermoplastics along with additives to enhance their characteristics. The final product of such compounding exhibits a wide range of needed & required physical properties, like flame retardancy, conductivity, low weight & wear resistance. These high qualities have led to increased demand for plastic compounds across various sectors, like, building and construction, automotive, packaging, & electrical, thereby fueling the growth of the global plastic compounding market. Furthermore, they are replacing traditional metal components in the automotive sector, contributing to enhanced car safety by reducing overall vehicle weight. Plastic compounding has also played an important role in reducing carbon emissions & enhancing vehicles' fuel performance & efficiency, further bolstering the demand for plastic compounds in the automotive sector. These developments and benefits of plastic compounding are positively impacting the growth trajectory of the plastic compounding market worldwide.
The growth in the Global Automotive Plastic Compounding Market is accredited to the increasing implementation of emission norms & regulations related to vehicular weight in the automotive sector, driven by the need to reduce greenhouse gas emissions. As a result, there is a growing demand for plastic compounds as they help enhance & improve the yield of production & improve the performance of automobile products. The automotive sector is expected to be a significant growth driver for the plastic compounding market, with the increasing desire for several vehicle parts like bumper facias, instrumental panels, & door trims. These plastic compounds play an important role in increasing the efficiency of production & the performance of the components of automobiles.
Market Dynamic
The Market for Plastic Compounds in the Automotive Sector is expected to be influenced significantly by the rising scope of its application in the sector and the increasing disposable income over the forecast period (2023-2032). The demand for low-weight vehicles and the growth of the automotive sector further contribute to the market's growth.
The United States is the largest manufacturer in the automotive sector. The market is anticipated to grow due to the increasing desire for automobiles, particularly among the new generation. The better financial status of the region is expected to support the automobile production sector, leading to enhanced capacities and expansion of automotive plants by automobile firms, which in turn will boost the demand for plastic compounds. The growth of this sector, driven by the reduced weight & EVs, as well as changing customer purchase attitude, preferring cars as a vital requirement rather than luxuries, is expected to drive the growth of the Global Plastic Compounding Market. In Canada, major producers, in the automobile sector include General Motors, Ford Motor Company, Toyota Motor Corp., Tesla, & Stellantis NV, etc.
Moreover, the growing awareness of harmful emissions & their impact on the environment is driving the demand for EVs. This, in turn, is expected to foster the demand for compounding of plastic in the automotive sector, as manufacturers are trying to expand EVs & manufacturing facilities.
Research Scope and Analysis
By Product
PP (Polypropylene) dominates the segment, with a maximum share in the global automotive plastic compounding market in 2023. The significant market share can be accredited to the growing desire for lighter automobiles including EVs. PP plastic offers the advantage of reduced weight & complexity of vehicles, making it a preferred choice for automotive manufacturers. With the automotive sector witnessing growth on a global scale, key manufacturers in the polypropylene market are expected to find lucrative growth opportunities throughout the period of 2023-2032.
Furthermore, Polyethylene is projected to experience significant growth throughout the forecast period. Its popularity is driven by its remarkable resistance against impact, abrasion, and chemicals, along with its durability, flexibility, low weight & strength making it highly favored for automotive production. PE is widely utilized in the automotive sector due to its excellent resistance to break, making it a viable alternative to metals and contributing to the manufacture of vehicles with reduced weight. This makes PE a highly sought-after material for the automotive industry, fueling its growth as a preferred choice for automotive applications.
By Application
Under the application segment, the Interior Components segment dominates the market with the maximum share in 2023. This strong market share can be accredited to the increasing focus on the reduced weight of automobiles, which is driving the demand for plastic compounding in the automotive sector for the interior components segments like door panels, instrumental panels, & pillars. As the conditions economically improve, the desire for such interior automotive components is expected to experience rapid growth.
Moreover, various polymers, like Polypropylene (PP), Polyethylene, and Thermoplastic elastomers, have gained popularity as preferable alternatives to traditional plastics & metals in the automotive sector, particularly for producing several interior parts & components of automobiles. These materials provide exceptional properties like high strength, lightweight, fire resistance, & galvanic corrosion resistance, making PP a perfect polymer for the components of automobiles. Moreover, recent research and development activities aimed at expanding the application segment to include complex engine parts, outdoor components, & repair parts, are anticipated to further boost the market's growth. Rising production along with the ability to customize intricate products and lightweight designs, are expected to drive the plastic compounded products’ demand in the automotive sector by 2032.
The Global Automotive Plastic Compounding Market Report is segmented on the basis of the following:
By Product
• Polyethylene (PE)
• Polypropylene (PP)
• 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
Regional Analysis
Asia Pacific dominates the global market, holding a significant share of over 45.6% of the revenue in 2023. The region's strong position is fueled by the increasing desire for automobiles, supported by supportive foreign direct investment norms implemented by governments in the area. Additionally, the low costs of production in countries such as India & China are anticipated to drive the adoption of plastic compounding in the automotive industry in the region.
Moreover, North America presents favorable conditions for the market, with growing production capabilities, a thriving automotive industry, and a positive demographic dividend. The demand for cars and several other vehicle products, such as heavy & medium trucks & buses, remains robust. The shift in customer purchasing attitude towards EVs is also anticipated to drive the growth of plastic compounding in this sector in the North American region.
Furthermore, In Europe, factors such as an increase in automotive manufacturing, rising disposable income, and a population with old age, contribute significantly to the growth of the global automotive plastic compounding market. The presence of properly developed infrastructure & major automobile manufacturers like BMW, Fiat, & Volkswagen further propels the advancement of the automotive market in Europe. Overall, the global market for plastic compounding in the automotive sector is observing substantial growth in different regions, driven by various factors unique to each area.
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
Competitive Landscape
In the protective packaging market, several manufacturers are actively engaged in expanding plastic compounding within the automotive industry and exploring new applications for their products. Simultaneously, automobile manufacturers are prioritizing the optimization of pre- and post-production processes due to the rapid advancements in technology. A notable example of this expansion can be seen in Covestro AG's plans for March 2022. The company aims to expand its polycarbonate compounding operations in India, with recently established plants in Greater Noida and New Delhi. These facilities are specifically designed to meet the growing demand from the automotive industry for high-quality protective packaging materials.
Some of the prominent players in the Global Automotive Plastic Compounding Market are:
• 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
COVID-19 Pandemic & Recession: Impact on the Global Automotive Plastic Compounding Market:
The COVID-19 pandemic and the resulting global recession have significantly impacted the Global Automotive Plastic Compounding market. The outbreak led to widespread disruptions in manufacturing, supply chains, and overall economic activities, affecting the automotive industry as a whole. Lockdown measures, reduced consumer spending, and temporary shutdown of automotive production facilities during the pandemic led to a sharp decline in vehicle sales and production, thus impacting the demand for automotive plastic compounds. Additionally, the uncertainty and financial constraints faced by consumers and automotive manufacturers resulted in deferred investments and projects, affecting the market's growth prospects. However, as economies gradually recover and vaccination efforts progress, there is cautious optimism for a rebound in the automotive sector. The industry's focus on lightweight materials and the growing demand for electric vehicles is expected to drive the adoption of plastic compounds in the post-pandemic recovery phase, with the market anticipated to regain momentum in the coming years.
Report Characteristics |
Market Size (2023) |
USD 3,372 Mn |
Forecast Value (2032) |
USD 5,609.2 Mn |
CAGR (2023-2032) |
5.8 % |
Historical Data |
2017 - 2022 |
Forecast Data |
2023 - 2032 |
Base Year |
2022 |
Estimate Year |
2023 |
Report Coverage |
Market Revenue Estimation, Market Dynamics, Competitive Landscape, Growth Factors and etc. |
Segments Covered |
By Products (Polyethylene (PE), Polypropylene (PP),
Polycarbonate (PC), Polybutylene Terephthalate
(PBT), Thermoplastic Elastomers (TPE), Acrylonitrile
Butadiene Systems (ABS), and Others), By Application
(Exterior Components, Interior Components, Under
the hood, Electrical Components & Lightening, and
Others). |
Regional Coverage |
North America – The US and Canada; Europe – Germany, The UK, France, Russia, Spain, Italy, Benelux, Nordic, & Rest of Europe; Asia- Pacific– China, Japan, South Korea, India, ANZ, ASEAN, Rest of APAC; Latin America – Brazil, Mexico, Argentina, Colombia, Rest of Latin America; Middle East & Africa – Saudi Arabia, UAE, South Africa, Turkey, Egypt, Israel, & Rest of MEA
|
Prominent Players |
Asahi Kasei Corporation, LyondellBasell Industries
Holdings B.V, SABIC, BASF SE, Dow, Ferro
Corporation, Washington Pen, Ravago, KRATON
Corporation, Covestro AG, DuPont, and Other Key
Players. |
Purchase Options |
We have three licenses to opt for: Single User License (Limited to 1 user), Multi-User License (Up to 5 Users), and Corporate Use License (Unlimited User) along with free report customization equivalent to 0 analyst working days, 3 analysts working days and 5 analysts working days respectively. |
Frequently Asked Questions
The Global Automotive Plastic Compounding Market is expected to reach a value of 3,372 million in
2023.
The Global Automotive Plastic Compounding Market is expected to grow at 5.8% (CAGR) from 2023 to
2032.
Asia Pacific region dominates the global market, holding a significant share of over 45.3% of the global
revenue in 2023.
Some of the prominent players in the Global Automotive Plastic Compounding Market include Asahi
Kasei Corporation, LyondellBasell Industries holdings B.V, SABIC, BASF SE, etc.