Global Polypropylene Compounds Market Grows Steadily at a CAGR of 7.56%

Introduction

The thermoplastic polypropylene is produced by polymerizing the monomer propylene in a chain-growth fashion. It has a crystalline appearance and is non-polar. Its inherent properties are comparable to polyethylene, but it is significantly more robust and has better resistance to high temperatures. Polypropylene compounds are thermoplastic resins that incorporate multiple polyolefin bases with other ingredients like fillers, impact modifiers, strengtheners, and pigments. Polypropylene is used in the construction industry, including siding, air, and moisture barrier membranes, carpet textiles, building insulation wrap films and sheets, industrial adhesives and tapes, and plastic parts.

Market Dynamics

Rising Demand for Lightweight and High Performing Plastics in the Automotive Industry Drives the Global Market

Polypropylene compounds are becoming increasingly popular for car use due to the pressing need to reduce carbon emissions and gasoline consumption. Seating, engine encapsulation, exterior panels, instrument panels, cables, and wires are just some of the many automotive uses for PP as an alternative to metal. In addition, the lighter weight creates a cushion for other heavy technologies, such as electric vehicles and their heavy battery packs. Also, less weight at unhinged points means less noise and vibration, which makes for a smoother ride. The expansion of the automotive sector, driven by rising disposable income and accelerated industrialization, is also anticipated to boost the global polypropylene market.

Technological Advancements in Automotive Industry Creates Tremendous Opportunities

The rising population and standard of living of the general public have contributed to a rise in the demand for environmentally friendly goods. As a result of rapid innovation and shifting consumer tastes, the automotive industry is experiencing rapid change. The use of polypropylene compounds in automobiles is expected to grow due to technological advancements like self-driving cars and the growing popularity of electric vehicles. In particular, automotive plastic and polypropylene regeneration hold great promise as a new supply source for the automotive industry and a means of satisfying regulatory requirements for End-of-Life Vehicles (ELV) recovery. With more and more electric cars on the road, the polypropylene compounds market will grow substantially in the coming years.

Regional Analysis

Asia-Pacific is the most significant shareholder in the global polypropylene compounds market and is expected to grow at a CAGR of 8.39% during the forecast period. Global powerhouses in the home appliance industry, like LG Electronics, Samsung, and Panasonic Corporation, have factories in Japan, South Korea, China, Taiwan, and other Southeast Asian countries, creating fierce competition. Over the past few years, there has been a significant demand for commonplace home appliances worldwide. Indian and Chinese automakers have seen significant output increases due to their increased use of Western automotive technology. More of China's polypropylene compound production goes toward meeting domestic demand from their many end-use industries. In addition, polypropylene compounds are finding new applications in fields as diverse as cutting-edge electronics and medical devices.

Europe is expected to grow at a CAGR of 6.84%, generating USD 7,482.77 million during the forecast period. Germany is a major producer of automobiles for the European market. Several major automakers have set up manufacturing and research and development facilities in the area, providing excellent prospects for the PP compounds market. In addition, the demand for PP compounds in the region has been boosted by manufacturers' emergence of high-performance, lightweight plastic components to cut weight and increase fuel efficiency in passenger and sports cars. The demand for plastic compounds in the region has been driven by the rising popularity of small appliances, large appliances, and consumer electronics.

North America is a very competitive market with high demand for polypropylene compounds from the automotive, electrical, and electronics industries. Market participants in North America's polypropylene compounds industry closely monitor transportation, manufacturing, and vaccine developments. The automotive industry in Mexico is expanding, and the country now produces more passenger vehicles than any other country. The recent uptick in shale gas production and its increasing exploration activities have allowed North American consumers and producers unprecedented cost-effectiveness, boosting the polypropylene compounds' market.

Key Highlights

• The global polypropylene compounds market was valued at USD 17,917.26 million in 2021. It is projected to reach USD 34,524.61 million by 2030, growing at a CAGR of 7.56% during the forecast period (2022–2030).
• Based on product, the global polypropylene compounds market is bifurcated into mineral-filled PP compounds, compounded TPO, compounded TPV, glass-reinforced, and others. The mineral-filled PP compounds segment is the highest contributor to the market and is expected to grow at a CAGR of 7.35% during the forecast period.
• Based on end-user, the global polypropylene compounds market is bifurcated into automotive, building and construction, electrical and electronics, textiles, and others. The automotive segment owns the highest market share and is expected to grow at a CAGR of 7.83% during the forecast period.
• Asia-Pacific is the most significant shareholder in the global polypropylene compounds market and is expected to grow at a CAGR of 8.39% during the forecast period.

Competitive Players

1. LyondellBasell Industries Holdings B.V
2. Solvay
3. Exxon Mobil Corp
4. SABIC, Sumitomo Chemical Co., Ltd
5. IRPC Public Company Limited Ltd
6. Trinseo S.A.
7. Mitsui Chemicals, Rhetech, Inc
8. Avient Corp

Recent Developments

• September 2022- The Avient Protective Materials division of Avient Corporation, a pioneer in providing sustainable and specialized material solutions, acquired the DSM Protective Materials business, including the Dyneema brand.
• October 2022- CF Industries, a top global manufacturer of hydrogen and nitrogen products, entered into the largest commercial agreement with Exxon Mobil to capture and permanently store up to 2 million metric tonnes of CO2 emissions annually from its Louisiana manufacturing complex.
• October 2022- Mitsui Chemicals, Inc. and Shell Eastern Petroleum (Pte) Ltd, a Singapore-based company, signed a memorandum of understanding to agree on a supply of ethylene from plastic waste.

Segmentation

1. By Product
   1. Mineral Filled PP Compounds
   2. Compounded TPO
   3. Compounded TPV
   4. Glass Reinforced
   5. Others
2. By End-User
   1. Automotive
   2. Building and Construction
   3. Electrical and Electronics
   4. Textiles
   5. Others