According to a new report published by Allied Market Research, titled,"Plastic Compounding Market by Polymer Type and End Use: Global Opportunity Analysis and Industry Forecast, 2019 - 2026,"the global market was valued at $565,416.7 million in 2018, and is projected to reach $932,330.5 million by 2026, growing at a CAGR of 6.4% from 2019 to 2026.
Plastic compounding is a process of preparing plastic formulations by blending polymers and additives in a molten state. These blends are automatically treated with fixed set points usually through feeders. It is usually a blend of copolymers such as styrene acrylonitrile resin (SAN), acrylonitrile butadiene styrene (ABS), and styrene maleic anhydride (SMA) with additives such as UV-stabilizers, antioxidants and other value adding agents and sometimes strengthening component such as glass fiber, is added.
In addition, rapid industrialization as well as urbanization and expansion of automotive, electronics & electrical and construction industries are some of the key factors that supplement the growth of the plastic compounding market. Moreover, plastic is used in the construction sector in floorings, insulation materials, storage tanks, performance safety windows, doors, pipes, and cables. This factor has led to increase in demand for plastic compounds and is expected to drive the growth of the market. In addition, owing to the properties such as light weight, resistance to fatigue and better chemical and temperature resistance have led to increase in use of plastic compound in automobile and electronic and electrical industries. This factor is anticipated to increase the demand for plastic compounds in future.
Based on polymer type, the market is segmented into polypropylene (PP), polyethylene (PE), polyvinyl chloride (PVC), polystyrene (PS) and expanded polystyrene (EPS), polyethylene terephthalate (PET), polyurethane (PU), acrylonitrile butadiene styrene (ABS), and other polymers. The polypropylene is widely used in automotive applications owing to the properties such as light weight, good fatigue resistance, and resistance to chemical and high temperature.
Based on end use, the market is segmented into automotive, building and construction, packaging, electrical & electronics, medical and others. The packaging segment is expected to grow owing to increase in expenditure of consumers and improvement in standard of living that has fueled the demand for packaged food & beverages across developing countries such as China and India. In addition, growing demand for automobiles across Asia-Pacific and European region has also increased the demand for plastic compounds in packaging of automotive interiors. These factors are projected to increase the plastic compounding market growth, which positively impacts this market.
Based on region, the plastic compounding market trends is analyzed across North America, Europe, Asia-Pacific, and LAMEA. Asia-Pacific accounts for a major share in the market due to increase in demand for plastic compounds in the developing economies such as India and China, owing to development of the construction, automotive and electronic & electrical industries. This factor is anticipated to increase the Asia-Pacific plastic compounding market size from 2019 to 2026.
Key Findings of the Plastic Compounding Market:
- Based on region, the Asia-Pacific plastic compounding market share is predicted to account for a share of 42.31% by the end of 2026.
- Based on polymer type, the polypropylene segment is expected to account for a share of 23.29% by the end of 2026.
Market players have adopted expansion, acquisition, and collaboration as their key strategies to gain competitive advantage in the plastic compounding industry. The key players operating in the market include Asahi Kasei Corporation, BASF SE, Celanese Corporation, Covestro AG, DowDuPont Inc., Kingfa Sci. and Tech. Co., Ltd., LyondellBasell Industries Holdings B.V., Polyone Corporation, SABIC and Solvay SA