The total addressable market (TAM) for modified polypropylene was valued at USD 35.93 billion in 2021. It is estimated to reach USD 57.19 billion by 2030, growing at a CAGR of 5.3% during the forecast period (2022–2030). Modified polypropylene is produced by blending polypropylene with other polymers that offer superior properties compared to other polyolefins. Modified polypropylene improves its impact resistance, flame retardancy, and other properties by adding glass fibers and thermoplastic rubbers, thereby broadening its range of industrial applications, as previously mentioned.
Modified polypropylene is suitable for making bumpers for the front and back of cars, protective side strips, and mudguards because it flows well, is resistant to UV rays, impacts, chemicals, and water, and doesn't soak up much water. The demand for modified polypropylene in the automotive, electrical and electronics, building and construction, and other industries is also due to the growing need for materials that can replace metals to make things lighter.
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Growing Demand from Automotive Industry
Modified polypropylene is used in automotive applications such as bumpers, exterior trim, doors, interiors, and other components. Properties such as excellent impact/stiffness balance, superior flowability, high impact resistance, high UV resistance, and pleasant surface appearance propel the product demand in the abovementioned applications. Automotive components were traditionally made using steel or other alloys, which resulted in a higher weight of these components, reducing the performance of the vehicle along with an increase in carbon emissions. Hence, modified polypropylene is used in automobile manufacturing to make vehicles lightweight and reduce carbon emissions.
Additionally, increasing regulatory interventions by the U.S. Environmental Protection Agency (EPA) and the Department of Transportation’s National Highway Traffic Safety Administration (NHTSA) regarding greenhouse gas emissions and fuel economy standards for vehicles are expected to drive the demand for modified polypropylene in automotive applications in the coming years. In addition, a gradual increase in the number of electric vehicles on the road is anticipated to offer lucrative opportunities over the forecast period. Factors such as fuel cost savings and reduced emissions are anticipated to drive the demand for electric vehicles. In turn, it is anticipated to augment further the consumption of modified polypropylene in automotive applications, which helps to drive the market.
Increasing Demand from Packaging Industry
Modified polypropylene is the most widely used plastic in the packaging industry. The demand for modified polypropylene is fueled by qualities like chemical resistance, food contact acceptability, low density, high gloss, sound clarity, and heat weldability. It is also used in various packaging applications such as food items, cosmetics, stationery folders, displays, and detergents. Instead of paper or sisal bags, modified polypropylene is used for packaging food and drinks because it can handle chemicals better.
Food safety is a big issue worldwide, so countries have put strict rules and regulations to deal with it. According to European Union law, any material or object that comes into direct or indirect contact with food must be sufficiently inert to prevent substances from being transferred to the food in enough amounts to endanger human health or cause an unacceptable change in the composition of the food or a worsening of its organoleptic properties. These regulations have pushed the use of modified polypropylene in packaging due to its chemical resistance. As a result, there has been an increase in the demand for modified polypropylene in the packaging sector, and this trend is anticipated to continue over the forecast period.
Stringent Rules and Regulations
Plastics do not break down in the environment, so they need to be recycled in a coordinated way using accepted methods. Different federal and governmental regulations have been implemented globally to control plastic waste and lessen the environmental harm it causes. Increasing concerns regarding plastic usage and the imposition of a ban on the use of plastics by many countries, along with regulations being imposed on the petrochemical industry, are expected to restrain the polypropylene market globally.
For instance, in October 2019, Malaysia banned the import of plastic scraps and cracking on factories processing the waste. Therefore, the rising implementation of rules and regulations in South Asian countries may restrain the modified polypropylene market, which may slow down its growth over the forecast period.
Increasing Government Support
The North American automotive industry is expected to grow as the government gives more money to companies that make electric cars. This will consequently significantly impact the demand for modified polypropylene in North American automotive parts. For instance, the U.S. federal government has subsidized electric cars with a USD 7,500 consumer tax break for the first 200,000 vehicles an automaker sells. Once the threshold is met, the tax credit is cut in half for all consecutive vehicles sold over the next six months and is then halved again for another six months before running out completely.
Similarly, the government of Canada is offering incentives of USD 2,500 to USD 5,000 for purchasing electric or plug-in hybrid vehicles. The growing support for making and buying electric cars in the region will likely give the modified polypropylene market many good opportunities in the coming years.
The global modified polypropylene market is segmented by application.
By application, the global modified polypropylene market is divided into automotive, building and construction, packaging, medical, electrical and electronics, and others.
The automotive segment is the highest contributor to the market and is anticipated to grow at a CAGR of 5.3% over the forecast period. Increasing polymer utilization by OEMs and a rise in the production of electric vehicles in the region are driving the demand for modified polypropylene. In addition, vehicular weight regulations and the standardization of emission norms are anticipated to boost the demand for modified polypropylene in automotive applications. Also, there is a growing need for modified polypropylene to replace metals to make vehicles lighter and reduce carbon emissions. Modified polypropylene is used in various parts such as automotive parts, bumpers, parts on the outside of cars, trim on the outside of cars, and more.
Modified polypropylene is a highly durable thermoplastic polymer that can withstand extreme weather conditions. Critical applications in the building and construction industry include sidings, moisture barrier membranes, films and sheets used for insulating building wraps, moisture barrier membranes, carpet textiles, plastic parts included in piping, and others. Key benefits offered by modified polypropylene in building and construction include energy efficiency, weather resistance, and green roofing options. Growing urbanization and industrialization, especially in emerging economies, as well as infrastructure development in the Middle East, are expected to drive the growth of the construction industry, which will increase the need for modified polypropylene.
Modified polypropylene is widely used in packaging applications. Modified polypropylene is increasingly in demand due to expansion in the packaging sector, primarily driven by rising consumerism in emerging economies. Various regulatory bodies have formulated guidelines regarding food packaging, and due to resistance against chemicals, the demand for modified polypropylene has increased.
Asia-Pacific Dominates the Global Market
By region, the global modified polypropylene market is divided into North America, South America, West Europe, East Europe, Asia-Pacific, Northeast Asia, Southeast Asia, and the Middle East and Africa.
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Asia-Pacific is the most significant shareholder in the global modified polypropylene market over the forecast period. This is because essential industries in developing nations like China and India are increasing their demand for modified polypropylene. These industries include automotive, electrical and electronics, building and construction, medical, and packaging. Asia Pacific is one of the largest manufacturing hubs for vehicles and electronic components. The demand for durable electronics and high-performance, lightweight vehicles has increased the use of modified polypropylene in the automotive and electronics sectors.
Additionally, China held the largest market share and is anticipated to expand significantly over the forecast period. Due to the domestic production of modified polypropylene to meet the rising demand from numerous end-user industries, including automotive, electrical and electronics, packaging, and building and construction, China holds a significant market share. Products made from modified polypropylene are being used more and more in new industries in the country, like next-generation electronics and electric cars.
North America is expected to grow at a CAGR of 4.2% over the forecast period. North America is a highly competitive market with significant demand for modified polypropylene across various automotive, electrical, and electronics applications. The market is characterized by several established suppliers and high domestic demand, particularly from automotive applications. North America's growing population and high demand for cars have led to the rapid growth and development of the automotive industry in recent years. The automotive industry is concentrated with numerous manufacturers providing a distinct product portfolio of vehicles.
The Middle East and Africa has witnessed growth in the automotive industry in the past few years owing to the developing infrastructure, economic recovery, growing logistics, e-commerce, and tourism sectors, and an increasing number of educational institutes. Growing demand for passenger cars in the region is propelled by increasing per capita income and growing completely knockdown (CKD) plants. The recovering economy in major markets drives the rising demand for commercial vehicles in the coming years. The demand for trucks, buses, and other commercial vehicles is expected to rise due to more building projects, which has propelled the demand for modified polypropylene.
Western Europe is one of the prominent manufacturers of automobiles and is expected to continue its dominance over the forecast period. The automotive industry is expected to grow due to the rising demand for lightweight electric and hybrid vehicles and the presence of major automakers in the area, including AUDI AG, BMW AG, Mercedes-Benz AG, Volkswagen, Volvo Car Corporation, and Porsche AG. This, in turn, is expected to increase the demand for lightweight parts made of modified polypropylene in the automotive industry over the next few years.
In Eastern Europe, rising investment in the healthcare and insurance industry in countries such as Romania is anticipated to propel the demand for modified polypropylene in the region. According to the Switzerland Global Enterprise, the government of Romania announced an investment of USD 330.65 million for the modernization of 14 hospitals and the construction of 8 new regional hospitals, research centers, and other facilities. In addition, the automotive industry in Romania, the Czech Republic, Poland, and others witnessed a rise in demand for commercial and passenger vehicles from the increasing population. Poland sold 656,265 vehicles in 2019, according to the International Organization of Motor Vehicle Manufacturers (OICA).
The global modified polypropylene market’s major key players are