Automotive Plastic Compounding Market Size, Share & Trends Analysis Report By Product (Polypropylene, Polyethylene), By Application (Interior, Exterior, Under the Hood, Structural PartsOthers), By Region And Segment Forecasts, 2023 - 2030

Report Overview

The global automotive plastic compounding market size was estimated at USD 3.03 billion in 2022 and isprojected to grow at a compound annual growth rate (CAGR) of 5.3% from 2023-2030. The implementation of emission norms and regulations regarding vehicular weight in the automotive industry owing to the rise in greenhouse gas emissions is expected to create demand for plastic compounds over the forecast period. These plastic compounds are used to maximize production yield and improve product performance. The plastic compounding market is projected to witness significant growth in the automotive industry on account of rising demand for the production of automotive parts such as instrumental panels, bumper facias, and door trims.

Furthermore, the fast expansion of product applications in the automotive sector, as well as the rise in income levels, are expected to be significant variables influencing the market for plastic compounds in the automotive industry over the forecast period. High demand for lightweight automobiles, as well as expanding automotive industries, are further projected to boost the growth of the market.

The U.S. is one of the largest automotive producers across the region, and the market is expected to grow over the forecast period. This is attributed to the rising demand for vehicles, mainly among the new generation in the country. Moreover, favorable economic conditions are anticipated to continue to support the U.S. motor vehicle manufacturing industry. Capacity addition and plant expansion by automotive companies in the country are further expected to augment the demand for plastic compounds.

The expanding automotive sector, on account of lightweight and electric vehicles along with the shift in consumer purchase behavior from considering cars as luxuries to now considering them as necessities, is also anticipated to fuel the growth of the plastic compounding market in the automotive industry. Ford Motor Company, General Motors, TOYOTA MOTOR CORPORATION, Stellantis NV, and Tesla are among the key domestic manufacturers operating in the automotive industry in Canada.

Furthermore, the growing demand for electrical vehicles owing to the rise in awareness against harmful emissions affecting the environment is expected to create demand for plastic compounding in the automotive industry. Owing to the rising demand for plastic compounding-based products for the manufacturing of electric vehicles, automakers are focusing on the expansion of electric vehicles in the country. For instance, General Motors announced an investment of $7 billion in four manufacturing facilities.

Product Insights

Polypropylene (PP) dominated the product segment with more than 68.00% share of the global revenue in 2022 owing to the rising demand for lightweight as well as electric vehicles. Polypropylene plastic helps reduce the complexity and weight of the vehicle. Further, the growing automotive industry globally is expected to create growth opportunities for players operating in the polypropylene market over the forecast period.

Additionally, PE is expected to grow at a significant rate in the coming years. It offers resistance against impact, abrasion, and chemicals along with flexibility, durability, strength, and lightweight, which makes them the most preferred product for automotive production. They are extensively used in automotive manufacturing as they exhibit good break resistance, thus, making the material suitable for lightweight car production, in turn, and a substitute for metals.

Application Insights

Interior application segment dominated the market with more than 45.00% share of the global revenue in 2022. The increased emphasis on lightweight automobiles is projected to drive up the need for automotive plastic compounding for interior applications such as instrumental panels, door panels, and pillars. With improving economic conditions, demand is expected to grow rapidly.

Plastic composites such as PP, PE, and TPE have become popular alternatives to engineering plastics and metals in automotive applications for the production of various interior automotive parts and components. Accounting to their characteristics including high strength, lightweight, galvanic corrosion resistance, and fire resistance polypropylene ideal material for automotive components.

In addition, several ongoing R&D activities to expand the automotive application scope in the production of outdoor components, complex engine parts, and repair parts is expected to boost the automotive plastic compounding market. Efficient production and utilization of raw materials, easy customization of complex products, and low weight are likely to augment the demand for plastic compounded products in the global automotive industry over the forecast period.

Regional Insights

Asia Pacific dominated the global market and accounted for over 44.00% share of the global revenue in 2022. Growing demand for automotive in the region along with favorable FDI norms initiated by governments is further anticipated to boost the market across the region. In addition, low manufacturing cost in China and India as compared to Europe is expected to propel the use of plastic compounding in automobiles.

The favorable conditions in North America, such as increasing manufacturing output, booming automotive market, and favorable demographics, are promising. A strong demand for cars as well as various other vehicle products including medium & heavy trucks and buses. Electric cars remain a promising category as the shift in consumer purchase behavior is expected to create demand for plastic compounding in the automotive industry.

Moreover, growth in automotive production, high standard of living, and growing aging population, are significantly contributing towards a positive growth for plastic compounding in Europe. Well-developed infrastructure along with the presence of renowned automakers including Fiat, BMW, and Volkswagen among others are propelling the development of automotive market in this region which in turn is creating application scope of plastic compounding in this region.

Key Companies & Market Share Insights

Key manufacturers operating in the market are involved in the expansion of plastic compounding in the automotive industry well as their applications. The manufacturers of automobiles are also focusing on streamlining the pre and postproduction process owing to the rapid advancements in technology. In March 2022, Covestro AG is set to expand its polycarbonate compounding operations in India. It recently started its operations in plants set up in Greater Noida and New Delhi and these plants are intended to cater to the demand from the automotive industry. Some prominent players in the global automotive plastic compounding market include:

• LyondellBasell Industries Holdings B.V.

• BASF SE

• SABIC

• Dow

• Ferro Corporation

• Ascend Performance Materials

• Washington Pen

• Ravago

• KRATON CORPORATION

• Chevron Phillips Chemical Company LLC

• SCG Chemicals Public Company Limited

Automotive Plastic Compounding Market Report Scope

Global Automotive Plastic Compounding Market Report Segmentation

This report forecasts revenue and volume growth at global, regional & country levels and provides an analysis of the industry trends in each of the sub-segments from 2023 to 2030. For this study, Grand View Research has segmented the global automotive plastic compounding market report based on product, application, and region:

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

  • Polypropylene (PP)

  • Polyethylene (PE)

  • Thermoplastic elastomers (TPE)

  • Polybutylene Terephthalate (PBT)

  • Polyamide (PA)

  • Polycarbonate (PC)

  • Acrylonitrile Butadiene Systems (ABS)

  • Styrene Acrylonitrile (SAN)

  • Polymethyl methacrylate (PMMA)

  • Polyoxymethylene (POM)

  • Blends (PC/ABS, ABS/PBT, PS/PP)

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

  • Interior

  • Exterior

  • Under the Hood

  • Structural Parts

  • Electrical Components & Lighting

  • Others

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

  • North America

    • U.S.

    • Canada

    • Mexico

  • Europe

    • Germany

    • France

    • UK

    • Italy

    • Netherlands

    • Austria

    • Switzerland

    • Hungary

    • Czech Republic

  • Asia Pacific

    • China

    • India

    • Japan

    • South Korea

    • Indonesia

    • Thailand

  • Central & South America

    • Brazil

    • Argentina

  • Middle East & Africa

    • Saudi Arabia

    • UAE

    • South Africa