The global polypropylene compounds market size was valued at USD 17.59 billion in 2020 and is expected to grow at a compound annual growth rate (CAGR) of 7.6% from 2021 to 2028. The growth of the automotive and electronics industries across emerging nations is expected to be the key growth factor for the global market over the forecast period. Moreover, rising demand from the emerging economies, especially China, due to the rapid expansion of the building & construction industry, is positively influencing the demand for polypropylene (PP) compounds. The global market is highly dependent on commodity prices with the presence of a large number of global and regional manufacturers. Major companies are making huge investments in technological innovation to improve their production capacity.
Foreign investments are decreasing in the industry since most of the companies are investing in domestic production capacities. Volatility in the raw material prices is anticipated to hinder the growth of the market over the forecast period. Propylene is the key raw material used in the manufacturing of polypropylene. These raw materials are derived from carbon compounds and petroleum.
Crude oil is one commodity, which is considered to be highly volatile in its pricing nature and this volatility can further be seen in its downstream derivatives. Moreover, the recent outbreak of Covid-19 across the globe is negatively impacting the demand for PP compounds. Stalled industrial output and restrictions on the product supply and transport due to the pandemic are affecting the overall market growth.
The mineral-filled PP compound product segment led the market in 2020 and accounted for the largest revenue share of more than 43%. Minerals are incorporated in the PP compounds to produce higher heat distortion and rigidity. The most widely used minerals in PP compounds include talc, glass beads, mica, silica, and calcium. The improved thermal stability and mechanical stiffness enable their extensive use in several applications, such as automotive and electrical & electronics.
Compounded TPO refers to a blend of PP, polyethylene, and EPDM rubber. TPOs are processed via injection molding and blow molding. They exhibit superior characteristics, such as high impact & chemical resistance and low density, which make them ideal for use in applications including automotive parts, which require increased toughness and durability, over conventional polymers.
The automotive end-use segment led the global market and accounted for more than 56% of the global revenue share in 2020. The growing popularity of PP as an alternative for engineering plastics and metal in automotive applications is projected to boost the product demand in this segment over the forecast period. The low density of PP compounds helps in improving the fuel economy of vehicles and reduces the overall raw material costs.
Moreover, the high flexibility of the product has led to the creation of innovative designs, which enhance passenger safety and comfort. These factors are expected to drive its demand in the automotive segment over the forecast period. Other key end-use industries of the market include building & construction, textiles, and electrical & electronics.
Asia Pacific dominated the market and accounted for over 46% of the global revenue share in 2020. The regional market is estimated to expand further registering the fastest CAGR from 2021 to 2028. Growing demand for PP compounds from the automotive and electrical & electronics industries, especially in emerging countries, such as India, China, and Japan is expected to drive the market growth in the APAC region.
The unconventional low-cost feedstocks are encouraging new capacity investment in North America and China, which will have a significant impact on global trade and regional competitiveness. The surge of shale gas derived from feedstock has led to an unprecedented level of cost-competitiveness among North American manufacturers.
The global market is fragmented in nature with the presence of various key players. Major players, in particular, compete on the basis of production capacity expansions, product portfolio developments, and methods to implement new technologies in product manufacturing. Integration across the stages of the value chain results in continuous raw material supply as well as low manufacturing costs. R&D initiatives by a few companies to enhance their product specifications and expand the market reach are expected to further augment intensify the market competition in the years to come. Some of the prominent players in the global polypropylene (PP) compounds market include:
LyondellBasell Industries Holdings B.V.
Solvay
ExxonMobil Corp.
Trinseo
Sumitomo Chemical Co., Ltd.
Washington Penn Plastics Co., Ltd.
Rhetech, Inc.
Avient Corp.
Report Attribute |
Details |
Market size value in 2021 |
USD 21.10 billion |
Revenue forecast in 2028 |
USD 35.19 billion |
Growth rate |
CAGR of 7.6% from 2021 to 2028 |
Base year for estimation |
2020 |
Historical data |
2016 - 2020 |
Forecast period |
2021 - 2028 |
Quantitative units |
Volume in kilotons, revenue in USD million/billion, and CAGR from 2021 to 2028 |
Report coverage |
Volume forecast, revenue forecast, competitive landscape, growth factors and trends |
Segments covered |
Product, end-use, region |
Regional scope |
North America; Europe; Asia Pacific; Latin America; Middle East & Africa |
Country Scope |
U.S.; Canada; Germany; U.K.; France; Italy; China; India; Japan; Mexico; Brazil; Saudi Arabia |
Key companies profiled |
LyondellBasell Industries Holdings B.V.; Solvay; ExxonMobil Corp.; Trinseo; Sumitomo Chemical Co., Ltd.; Washington Penn Plastics Co., Ltd.; Rhetech, Inc.; Avient Corp. |
Customization scope |
Free report customization (equivalent up to 8 analysts working days) with purchase. Addition or alteration to country, regional & segment scope. |
Pricing and purchase options |
Avail customized purchase options to meet your exact research needs. Explore purchase options |
This report forecasts revenue and volume growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2016 to 2028. For the purpose of this study, Grand View Research has segmented the global polypropylene compounds market report on the basis of product, end-use, and region:
Product Outlook (Volume, Kilotons; Revenue, USD Million, 2016 - 2028)
Mineral Filled
Compounded TPO
Compounded TPV
Glass Reinforced
Others
End-use Outlook (Volume, Kilotons; Revenue, USD Million, 2016 - 2028)
Automotive
Interior
Exterior
Under the Hood Components
Building & Construction
Electrical & Electronics
Textiles
Others
Regional Outlook (Volume, Kilotons; Revenue, USD Million, 2016 - 2028)
North America
U.S.
Canada
Europe
Germany
U.K.
France
Italy
Asia Pacific
China
India
Japan
Latin America
Mexico
Brazil
Middle East & Africa
Saudi Arabia
b. The PP compounds market size was estimated at USD 17.59 billion in 2020 and is expected to reach USD 21.10 billion in 2021.
b. The PP compounds market is expected to grow at a compound annual growth rate of 7.6% from 2021 to 2028 to reach USD 35.19 billion by 2028.
b. The automotive segment dominated the PP compounds market with a share of 56.72% in 2020. The growing popularity of polypropylene as an alternative for engineering plastics and metal in automotive applications is projected to increase the product demand over the forecast period.
b. Some key players operating in the PP compounds market include Lyondellbasell Industries Holdings B.V., Solvay, ExxonMobil Corporation, Trinseo, Sumitomo Chemical Co., Ltd., Washington Penn Plastics Co., Ltd., Rhetech, Inc., and Avient Corp.
b. Key factors that are driving the PP compounds market growth include increasing utilization of lightweight components in automotive and electrical & electronics end-use industries.
b. The mineral-filled PP compound product segment led the global market in 2020 and accounted for the largest revenue share of more than 43%. Minerals are incorporated in the PP compounds to produce higher heat distortion and rigidity.
b. Asia Pacific dominated the global PP compounds market and accounted for over 46% of the revenue share in 2020. The regional market is estimated to expand further registering the fastest CAGR from 2021 to 2028.
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The global COVID-19 pandemic has led to a sudden pause to manufacturing activities across the globe, affecting the demand for plastics and also production & processing of them. The most critically impacted end-use segments of the plastics industry include automotive & transportation, consumer goods, industrial equipment, construction, and electronics. The report will account for Covid19 as a key market contributor.
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