Americas Plastic Compounding Market Size, Share & Trends Analysis Report By Product (PP, PET, TPV, TPO, PVC, PBT, ABS), By Application (Automotive, Electrical & Electronics, Construction), By Region, And Segment Forecasts, 2023 - 2030

Market Size & Trends

The Americas plastic compounding market size was estimated at USD 16.3 billion in 2022 and is expected to grow at a compound annual growth rate (CAGR) of 4.7% from 2023 to 2030. Growing demand for lightweight materials from the automotive and construction industries coupled with increasing concerns regarding depletion of conventional materials, such as wood and rubber, is expected to drive market growth over the forecast period. Plastic compounding is a process whereby additives and fillers are incorporated into polymers in a molten state to attain uniformity in end products. The three basic constituents or raw materials, namely polymers, fillers, and additives are extensively used in the manufacturing process.

Increasing automotive production as a result of recovery from the recession is anticipated to boost demand in North America. The shift toward lightweight components to attain fuel efficiency and reduce carbon emissions is a key factor driving consumption in the automotive sector. Automotive production in Mexico and the U.S. has gathered pace in the last two years and is anticipated to positively influence industry growth.

Economic growth in Central & South American (CSA) countries such as Argentina, Colombia, Peru, Venezuela, and Chile, combined with government funding and support to foster a recovery in Brazil are significant drivers for growth in end-use industries such as construction, automotive, aerospace, and others.

There has been considerable demand for compounds as a replacement for metals and alloys across various industries such as industrial machinery, medical devices, and consumer goods. Product innovation and continuous R&D have unlocked new avenues for manufacturers regarding application scope and are anticipated to remain a key factor in shaping industry dynamics.

The diversity and ever-rising complexity of compounding processes mainly in industrial applications require careful design, scale-up, and selection to ensure efficient and effective compounding. Improved compounding process efficiency leads to shorter production cycle time and reduced operational costs.

Furthermore, intense rivalry in production lines now necessitates durable equipment capable of flexibility, rapid blend times, reduced power consumption, ease of maintenance, and a plethora of customized features. Additionally, modern mixers and compounding equipment are now designed to combine multiple process steps into single equipment, including heat transfer, drying, granulation, and coating.

In addition, the rapid evolution of the plastics industry is expected to continue over the forecast period. Advances in plastic polymers & additives along with the adoption of the Internet of Things (IoT) and automation in emerging economies are expected to boost plastics supply. Plastic compounding is likely to be at the forefront of advances in the lightweighting of plastic from heavier metals. The auto industry has embraced such trends and is likely to continue influencing Americas plastic compounding market over the forecast period.

Product Insights

The polypropylene segment led the market and accounted for more than 29.2% share of the revenue share in 2022. Polypropylene (PP) compounds are widely utilized across various automotive applications that include exterior components, interior trims, seating components, boot liners, lamp housing, electrical housings, and other injection molded parts. The product demand is expected to witness strong growth owing to a positive automotive industry outlook in the U.S. and Mexico.

Polyethylene terephthalate (PET) is the fastest-growing product owing to its consumption in the food packaging industry. Rising demand for sustainable & recyclable plastics with superior barrier properties & excellent clarity has led to its consumption in the expanding processed food sector of emerging economies such as Brazil, Mexico, and Argentina.

Polyethylene (PE) finds extensive application scope in diverse end-use industries such as automotive & aerospace. The product is an integral solution for packaging applications as well. Outstanding product characteristics such as its high chemical & environmental stress crack resistance are expected to drive its application in several industries.

Application Insights

The automotive segment is anticipated to account for more than 24.74% of the overall market revenue in 2022. They are being increasingly utilized in the automotive industry on account of the regulatory intervention promoting fuel efficiency in various automobiles and vehicles Economic recovery from the recession of 2009-10 in the U.S. has led to a revitalization in the automotive industry, which in turn has fostered passenger car sales as well.

The electrical & electronics industry is expected to grow at a steady CAGR over the forecast period owing to rapid technological advancements coupled with evolving customer requirements. Miniaturization of electrical appliances along with rising demand for polymers is a key factor driving plastic compound consumption in the application sector.

Increasing construction spending in emerging nations along with infrastructure development activities in Mexico, Brazil, Argentina, and Peru are major driving factors for the application growth in the future. PVC is a major plastic constituent in various building materials & construction activities. The plastic is modified accordingly to meet structural requirements and application specifications.

Regional Insights

The U.S. dominated the market and accounted for over 57% of the revenue share in 2022, favored by the economic environment and the emergence of plastic manufacturers. The rebound of the automotive industry coupled with increasing construction spending in the country is anticipated to drive demand over the forecast period. Wide application scope has led to a significant increase in consumption in end-use industries such as medical devices, industrial machinery, and consumer goods.

The growth of the Mexico market is expected to be driven by strong manufacturing sector growth along with the shift of major automotive companies to the country due to the availability of low-cost raw materials and cheap labor. Escalating investments coupled with a favorable business environment is further anticipated to contribute towards expanding the industrial sector coupled with the growth of consumer goods in the region.

Key Companies & Market Share Insights

The plastic compounding industry in the Americas is highly competitive, with several key players operating in the region. The industry is primarily driven by the demand for plastic products from various end-use industries such as automotive, construction, packaging, and consumer goods.

The United States is the largest market for plastic compounding in the Americas, followed by Mexico and Canada. The region is also home to some of the world's largest plastic compounding companies, including DowDuPont, LyondellBasell, and ExxonMobil. Some prominent players in the Americas plastic compounding market include:

• BASF SE

• LyondellBasell Industries Holdings B.V.

• Dow, Inc.

• DuPont

• SABIC

• RTP Company

• S&E Specialty Polymers, LLC (Aurora Plastics)

• Asahi Kasei Corporation

• Covestro AG

• Washington Penn

• Eurostar Engineering Plastics (EEP)

• KURARAY CO., LTD.

• TEIJIN LIMITED

• Evonik Industries AG

• Dyneon GmbH & Co K

Americas Plastic Compounding Market Report Scope

Americas Plastic Compounding Market Report Segmentation

This report forecasts revenue and volume growth at regional and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2018 to 2030. For this study, Grand View Research has segmented the Americas plastic compounding market report based on product, application, and region:

• Product Outlook (Volume, Kilotons; Revenue, USD Billion, 2018 - 2030)

  • Polyethylene

  • Polypropylene

  • Thermoplastic Vulcanizates (TPV)

  • Thermoplastic Polyolefin (TPO)

  • Polyvinyl Chloride (PVC)

  • Polystyrene

  • Polyethylene Terephthalate (PET)

  • Polybutylene Terephthalate (PBT)

    • Polyamide 6

    • Polyamide 6,6

  • Polyamide

  • Polycarbonate

  • Acrylonitrile Butadiene Styrene (ABS)

  • Others

• Application Outlook (Volume, Kilotons; Revenue, USD Billion, 2018 - 2030)

  • Automotive

    • Automotive Interior Parts

    • Automotive Exterior Parts

    • Under the Hood Components

    • Power Train

  • Construction

  • Electrical & Electronics

  • Packaging

  • Consumer Goods

  • Industrial Machinery

  • Medical Devices

  • Optical Media

  • Others

• Regional Outlook (Volume, Kilotons; Revenue, USD Billion, 2018 - 2030)

  • U.S.

  • Canada

  • Mexico

  • Brazil

  • Rest of Americas