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IN THE NEWSMay 17, 2019: BASF increased the capacity of its plant in Altamira, Mexico by 150,000 tons per year. The expansion is aimed at fulfilling the rising global demand for engineering plastics, resulting in an increased compounding capacity for PA and PBT plastics by more than 750,000 tons per year.
The global plastic compounding market is estimated to garner a large amount of revenue by growing at a CAGR of ~5% over the forecast period, i.e., 2022 – 2030. The growth of the market can be attributed primarily to the growing substitution for materials such as wood, glass, metals, concrete and natural rubber. Furthermore, robust growth of industrialization, rising per capita income in developing nations, and growing production of electric vehicles over the last few years are also projected to drive market growth in the near future. According to the World Bank, the per capita income of the world increased up to USD 9,483.844 in the year 2019. The same values were calculated to be USD 8,394 and USD 1,822 for China and India respectively. In addition, increasing demand for plastic as a result of its benefits such as ability to form the desired shape and ease of molding, is expected to offer ample growth opportunities to the market in the upcoming years.
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The market is segmented by polymer type into thermoplastic polymers, thermosetting polymers, and thermoplastic elastomers, out of which, the segment for thermoplastic polymers is anticipated to hold the largest share in the global plastic compounding market on account of their growing usage in automobile industry owing to exceptional serviceability and high impact resistance. Additionally, on the basis of the end user, the automotive segment is evaluated to occupy the largest market share during the forecast period owing to the increasing usage of plastics in the place of metal and alloys in automotive components. Along with this, growing production of vehicles in emerging economies, namely China, India and Brazil, is also assessed to boost the growth of this market segment in the future. For instance, in 2019, more than 25 million units of automobiles were produced in China, out of which more than 20 million units belonged to passenger cars.
The chemical industry is a major component of the economy. According to the U.S. Bureau of Economic Analysis, in 2020, for the U.S., the value added by chemical products as a percentage of GDP was around 1.9%. Additionally, according to the World Bank, Chemical industry in the U.S. accounted for 16.43% to manufacturing value-added in 2018. With the growing demand from end-users, the market for chemical products is expected to grow in future. According to UNEP (United Nations Environment Program), the sales of chemicals are projected to almost double from 2017 to 2030. In the current scenario, Asia Pacific is the largest chemical producing and consuming region. China has the world’s largest chemical industry, that accounted for annual sales of approximately more than USD 1.5 trillion, or about more than one-third of global sales, in recent years. Additionally, a vast consumer base and favorable government policies have boosted investment in China’s chemical industry. Easy availability of low-cost raw material & labour as well as government subsidies and relaxed environmental norms have served as a production base for key vendors globally. On the other hand, according to the FICCI (Federation of Indian Chambers of Commerce & Industry), the chemical industry in India was valued at 163 billion in 2019 and it contributed 3.4% to the global chemical industry. It ranks 6th in global chemical production. This statistic shows the lucrative opportunity for the investment in businesses in Asia Pacific countries in the upcoming years.
On the basis of geographical analysis, the global plastic compounding market is segmented into five major regions including North America, Europe, Asia Pacific, Latin America and Middle East & Africa region. The market in the Asia Pacific is estimated to gather the largest share and witness noteworthy growth over the forecast period on the back of the rising manufacturing of electric vehicles, and large production volumes of packaging materials, electrical products and consumer goods in the region. In 2020, 7% of the total vehicles sold in China were electric, which is evaluated to reach up to almost 40% by the end of 2030. Apart from these, growing number of commercial and residential projects in China and India is also expected to lead to the expansion of the region’s market in the near future. Moreover, the market in Europe is also predicted to occupy significant share during the forecast period, which can be credited to the increasing emphasis by government agencies on developing sustainable technologies for plastic compounding in the region.
The global plastic compounding market is further classified on the basis of region as follows:
Our in-depth analysis of the global plastic compounding market includes the following segments:
FREQUENTLY ASKED QUESTIONS
The major growth drivers for the market are growing substitution for glass, wood, metal and other materials and rapid growth of industrialization globally.
The market is anticipated to attain a CAGR of ~5% over the forecast period, i.e., 2022 – 2030.
Fluctuating prices of raw materials used in plastic compounding is estimated to hamper the market growth.
Asia Pacific will provide more business opportunities for the market owing to the rising manufacturing of electric vehicles and large production volumes of various materials in the region.
The major players in the market are BASF SE, RTP Company, Inc., LyondellBasell Industries N.V., S&E Specialty Polymers, LLC, Kraton Polymers, Inc., and others.
The company profiles are selected based on the revenues generated from the product segment, geographical presence of the company which determine the revenue generating capacity as well as the new products being launched into the market by the company.
The market is segmented by polymer type, end user, and by regions.
The automotive segment is anticipated to hold largest market size and is estimated to grow at a notable CAGR over the forecast period and display significant growth opportunities.
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