Polypropylene Compounds Market

Market Overview

The global polypropylene compounds market size was valued at USD 17.91 billion in 2021. It is projected to reach USD 34.52 billion by 2030, growing at a CAGR of 7.56% during the forecast period (2022–2030).

Polypropylene is a thermoplastic polymer made from the monomer propylene through a chain-growth polymerization process. The group of substances known as polyolefins includes polypropylene, which is non-polar and has a crystallized appearance in some places. Its inherent properties are comparable to polyethylene, but it is significantly more robust and has improved resistance to high temperatures. It has a wide range of applications in many industrial settings due to its excellent chemical resistance and mechanical toughness.

Polypropylene compounds can also provide transparency for industrial applications; however, the range of applications for these compounds is restricted compared to other plastics, such as acrylic and polystyrene. A significant demand increase is seen in the application of polypropylene compounds in the production of pipes. When it comes to the manufacture of piping systems, this material offers superior rigidity, strength, and purity levels.

Market Dynamics

Global Polypropylene Compounds Market Drivers

Rising Demand for Lightweight and High-Performing Plastics in the Automotive Industry

The demand for propylene on the market is driven by the fact that the automotive industry invests more capital in research and development (R&D) and modernizing its production assets. The need to decrease fuel consumption and carbon emissions has contributed to the rise in the popularity of PP compounds for use in automobiles. As an alternative to metals, PP is widely used in automotive applications such as seating, engine encapsulation, exterior panels, instrument panels, and cables and wires. Over the years, the automotive industry has changed, and weight reduction to improve fuel efficiency is a growing trend. PP and other plastics are essential to the new trend, as they can substantially reduce weight. The global polypropylene market is also likely to benefit from the growth of the automotive industry, which is happening because people are getting better jobs and making more money.

Global Polypropylene Compounds Market Restraint

Stringent Rules and Regulations

Plastics are non-biodegradable and must be recycled using accepted methods to prevent potential environmental damage. Numerous federal and government regulations have been implemented to regulate and control plastic waste and lessen its negative environmental impact. Increasing concerns regarding plastic usage and the imposition of bans on the use of plastics by many countries, as well as rules and regulations imposed on petrochemical industries, are growing restraints for the global polypropylene compound market. For instance, Malaysia immediately prohibited the import of plastic scraps and cracked down on factories that processed the waste. The increasing implementation of rules and regulations in South Asian nations may restrain the polypropylene compound market, slowing its growth over the forecast period.

Global Polypropylene Compounds Market Opportunities

Technological Advancements in Automotive Industry

Government regulations, changing consumer demands, and technological advancements all contribute to the constant evolution of the automotive industry. This constant change creates a landscape of ongoing challenges and opportunities for improvement through advanced materials and innovative design. The sector is also witnessing a transformation due to the global upsurge in electric vehicle production and demand and the advent of semi and fully autonomous (self-driving) vehicle technologies.

PP compounds are cost-effective and have excellent mechanical properties and moldability. It is found in various places, including instrument panels, bumper fascias, and door trims. In comparison to other plastics, polypropylene emits the fewest carbon emissions. Polypropylene's lightweight and low density contributes to improved fuel efficiency, resulting in energy and cost savings. Better design and greater moldability are required to reduce the vehicle's overall weight. These factors are responsible for driving PP compound demand in the automotive industry.

Regional Analysis

The global polypropylene compounds market is bifurcated into four regions, namely North America, Europe, Asia-Pacific, Central and South America, and the Middle East and Africa.

Asia-Pacific Dominates the Global Market

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. Polypropylene compounds are utilized in the electrical and electronic industries due to their weight reduction, thermal insulation, electrical insulation, and miniaturization properties. The utilization of advanced features such as high-density data storage has increased demand over the past few years. The expansion of the consumer goods and appliances industry is driven by the growing global population and rising demand from the middle class. As a result of their superior chemical, heat, and abrasion resistance, flexibility, durability, electrical properties, and other attributes, Manufacturers of these appliances strive continually to develop strong, lightweight, durable, highly aesthetically pleasing, flexible, and energy and resource-efficient solutions.

Europe is expected to grow at a CAGR of 6.84%, generating USD 7,482.77 million during the forecast period. Europe is one of the leading automakers, and its dominance in the industry is anticipated to continue over the coming years. The increasing need for lightweight electric and hybrid vehicles, combined with the presence of major automakers such as AUDI AG, BMW AG, Mercedes-Benz AG, Jaguar Land Rover Limited, Aston Martin, Volkswagen, Volvo Car Corporation, Automobili Lamborghini S.p.A., and Porsche Austria GmbH & Co., makes this region a hub for the automotive industry. The PP compounds are used to manufacture both interior and exterior vehicle components. It is expected to drive the demand for PP compounds in the automotive industry to produce lightweight components over the forecast period.

North America is a highly competitive market with a substantial demand for polypropylene compounds in various end-use industries, including automotive, electrical, and electronics. The market is characterized by several well-established suppliers and high domestic demand, particularly in the automotive sector. The recent surge in shale gas production and its increasing exploration activities have enabled North American consumers and producers to achieve unprecedented cost-effectiveness, thereby boosting the market for polypropylene compounds. The stringent regulations regarding fuel efficiency and emissions have compelled automakers to utilize lightweight, high-performance plastics. These components are manufactured primarily with polypropylene compounds, which will boost their regional market over the forecast period.

The growing population in Central and South America has led to more people wanting cars, which has helped the auto industry and increased the need for polypropylene compounds. Brazil is a significant market in polypropylene. In Brazil, the auto industry is continually growing and getting better. Brazil is one of the most prominent areas in the world that makes cars. There are a lot of business possibilities in the incentives and programs that the government has set up and is using to encourage investment and bring in more investors.

South Africa, Saudi Arabia, the UAE, and the Rest of the Middle East and Africa are all part of the MEA region. The packaging industry in Africa is growing because there are more markets for consumer goods, more people are making more money, and the economies of East and West Africa are getting stronger. Over the next few years, the demand for polypropylene compounds in the automotive industry in the Middle East is likely to grow as more people buy luxury and sports cars there.

Segmental Analysis

The global polypropylene compounds market is segmented by product and end-user.

Based on Product, the global 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. Minerals are added to polypropylene compounds to improve heat distortion and rigidity. Talc, glass beads, mica, silica, and calcium are the most commonly used minerals in polypropylene compounds. Their enhanced thermal stability and mechanical rigidity make them suitable for various applications, including automotive, electrical, and electronic products. Compounded TPVs outperform traditional polymers in properties such as high impact and chemical resistance, low density, and increased toughness and endurance, making them ideal for applications such as automobile components.

Compounded TPO is polypropylene, polyethylene, and EPDM rubber blends. TPOs are processed through injection molding and blow molding and have superior properties such as high impact resistance, excellent chemical resistance, and low density. These characteristics make them ideal for use in applications requiring greater toughness and durability than conventional polymers, such as automotive parts. TPO compounds can be formulated when necessary to increase resistance to UV weathering, scratching, and marring. TPOs usually cost a little more than traditional PP compounds, but they are still a very cost-effective choice for applications that need to be strong and stiff. TPOs are combined with fillers, typically minerals, to provide a good balance of stiffness and impact resistance, enhanced dimensional stability, and increased Heat Deflection Temperature (HDT).

Based on End-User, the global 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. In automotive applications, polypropylene has gained popularity as a substitute for engineering plastics and metals. The automotive industry extensively uses them in various interior, exterior, and under-the-hood applications, including instrument panels, trims, bumper fascias, etc. Due to their low cost, exceptional mechanical properties, and easy moldability, the use of PP compounds has resulted in significant weight reduction and cost savings for manufacturers.

Polypropylene compounds have experienced a considerable increase in demand for automotive applications and account for more than half of all plastics utilized in automobiles. In addition, the development of compounding polypropylene with various materials based on performance requirements has further expanded its scope in automotive applications. The capability to adapt to different environments is another thing that is driving their demand across a wide range of applications.

Polypropylene compounds are utilized in the electrical and electronic industries due to their weight reduction, thermal insulation, electrical insulation, and miniaturization properties. The utilization of advanced features such as high-density data storage has increased demand over the past few years. In addition, the use of halogen-free PP compounds has enabled the development of more efficient, cost-effective, and user-friendly electronic equipment that is recyclable.

The expansion of the consumer goods and appliances industry is driven by the growing global population and increasing demand from the middle class. As a result of their superior chemical, heat, and abrasion resistance, flexibility, durability, electrical properties, and other attributes, Manufacturers of these appliances strive continually to develop strong, lightweight, durable, highly aesthetically pleasing, flexible, and energy and resource-efficient solutions.

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.