Global Plastic Compounding Market Attractiveness Analysis by Region
The global plastic compounding market is estimated to account for over US$ 420 Bn by the end of 2017 and registering a CAGR of 5.2% during the forecast period (2017–2025), is projected to reach a market value of about US$ 645 Bn by 2025 end.
Increasing demand for plastic compounds driving the market
Increasing plastics demand in construction, automotive and electrical & electronics sectors is expected to be a major factor driving global plastic compounding industry growth. Synthetic polymers such as PVC, PE, PC, PP, and PU have been traditionally used in various applications such as packaging, electronic components, automotive components, toys, furniture and construction materials. Regulatory intervention to reduce gross vehicle weight to improve fuel efficiency and ultimately reduce carbon emissions has driven automotive OEMs to adopt plastics as the substitute to metals such as steel and aluminum for fabricating automotive components. With growing thermoplastic and thermosets demand in automotive component fabrication, plastic compounding is expected to gain prominence due to increasing quality and material specification requirements from automotive OEMs.
Increasing demand in infrastructure development
Plastics demand is increasing in the construction sector in floorings, insulation materials, storage tanks, performance safety windows, doors, pipes and cables. Growing residential and commercial projects in developing countries is boosting infrastructural development. Further, consumer awareness regarding attractive interiors is increasing the demand for these materials in interior designing. A booming construction industry is anticipated to complement the plastic compounding market during the forecast period. This industry will register significant growth in the end-user segment of the market.
Large investments in sectors such as water and sanitation management, irrigation, building & construction, power, transport, retail etc. are continuously being made. PVC and CPVC play an important role in the sustainable management of this sector through various products like pipes, wires & cables, water proofing membranes, wood PVC composites, food and medicinal packaging. This will also boost the plastic compounding market in the foreseeable future.
Increase in prices of plastic compounds hampering market growth
There are three basic ingredients or raw materials, namely polymers, additives, and fillers, utilized in plastic compounding. Polymers consist of PP (polypropylene), which may be categorized into homopolymers or block copolymers. PE (polyethylene) is also used in compounding, along with certain elastomers. Plastic compound prices have been rising gradually primarily due to fluctuating petrochemical prices, and high substitution potential from its bio-based counterparts. Oscillating petrochemical prices can hamper the growth of the plastic compounding market during the forecast period. The fluctuating price of crude oil is also likely to have an impact on the price of plastic compounds and hence affect their usage.
Increased used of Polyethylene in the Asia Pacific region a growing trend
Most of the gains will be driven by new ethylene feedstock, including shale gas, coal and bio-based materials. These will give PE – including HDPE, LDPE and LLDPE – an edge; either in terms of price or sustainability. In addition, ongoing development in catalyst technologies will enhance the performance, customization and yield of PE resins. In regional terms, growth will continue to be driven mostly by Asia Pacific. PE demand will see the largest and steepest rise. China will prompt this increase significantly. Other countries boosting demand are India and Vietnam. Nevertheless, the growth momentum in this particular region is losing some of its earlier steam. Hence the companies that are the manufacturers of PE will have a decent market share in this region.
The engineering plastic industry of Asia Pacific has substantial growth potential. The packaging industry in India has witnessed a strong penetration of plastics. In terms of engineering plastics the market scenario is not technologically advanced and a lot of these materials are imported to cater to the unmet domestic demand. The consumption of plastic compounds in Asia Pacific was around 116 billion tons in 2016 and it is estimated to be 159 billion tons by 2024. North America’s share in consuming plastic compounds was 26% in 2014. The engineering plastics market in North America is likely to maintain a CAGR of about 5% during the period 2016-2024 with respect to end-use industries.
Why should you invest in this report?
If you are aiming to enter the global plastic compounding market, this report is a comprehensive guide that provides crystal clear insights into this niche market. All the major application areas for plastic compounds are covered in this report and information is given on the important regions of the world where this market is likely to boom during the forecast period of 2017-2025, so that you can plan your strategies to enter this market accordingly. Besides, through this report, you can have a complete grasp of the level of competition you will be facing in this hugely competitive market and if you are an established player in this market already, this report will help you gauge the strategies that your competitors have adopted to stay as market leaders in this market. For new entrants to this market, the voluminous data provided in this report is invaluable.
By Product Type
Introduction: This section includes:
Global market analysis and forecast: This section of the report highlights:
Regional market analysis and forecast: This section focusses on:
Competitive landscape: The last section of the report presents:
In this report, historical data, primary responses and public domain data has been thoroughly analyzed to infer the market size. Revenue of companies operating in the plastic compounding market has been benchmarked to ascertain the market size for the base year. Macroeconomic indicators such as GDP and industry growth have been considered to determine the market size for the forecast period. The historical growth trend of end-use industries, market participants’ performance, as well as the present macro-economic outlook has been taken into consideration for estimating the overall market trend forecast. This data is then validated using the triangulation method and is extensively scrutinized using advanced tools to garner quantitative and qualitative insights into the global plastic compounding market.