Polypropylene Compounds Market Size, Share & Trends Analysis Report By Product (Mineral Filled, Compounded TPO, Compounded TPV, Glass Fiber Reinforced, Talc Filled), By Application, By End-use, By Region, And Segment Forecasts, 2023 - 2030

Report Overview

The global polypropylene compounds market size was estimated to be USD 21.57 billion in 2022 and is anticipated to witness a compound annual growth rate (CAGR) of 7.8% from 2023 to 2030. The market is driven by the rising demand for lightweight and high performing plastics in automotive industry. The automotive industry displayed the highest penetration as of 2021 and is expected to witness significant growth in the forecast period. PP compounds are low cost with exceptional mechanical properties and moldability. It is used in a variety of parts which includes instrumental panels, bumper facias and door trims. The U.S. is one of the world’s largest automotive markets with the presence of several large vehicles and auto parts manufacturers. The demand for polypropylene in the region is driven by its utilization in automotive manufacturing to achieve better fuel efficiency. PP compounds are lightweight, durable, low cost and recyclable which makes them the ideal replacement for the heavy metal parts used in trims, spoilers, panels, etc., and in turn improving fuel efficiency and mitigating emissions.

Moreover, the substantial investment in research & development by various automotive manufacturers has resulted in greater weight reduction in vehicles without compromising on safety. Polypropylene compounds are an integral part of such vehicles further propelling their demand in the region. Additionally, the use of PP compounds in electrical appliances owing to their superior insulative properties has created lucrative opportunities for the market in the region.

Product Insights

Mineral filled PP compounds was the dominant product segment accounting for over 29% of the global value in 2022. They are most widely used in home appliances and automotive interiors such as consoles, panels, knee bolsters etc. Compounded TPVs have also witnessed substantial growth in under-the-hood automotive applications owing to their improved oil and temperature resistance. Minerals are incorporated in the polypropylene compounds to produce higher heat distortion and rigidity.

The most widely used minerals in polypropylene compounds include talc, glass beads, mica, silica, and calcium. The improved thermal stability and mechanical stiffness enable their extensive use in several end-use such as automotive, electrical & electronics. They are most commonly used in home appliances and automotive interiors such as consoles, panels, knee bolsters etc.

Glass reinforced PP compounds exhibit superior properties including excellent chemical resistance, good mechanical properties, improved dimensional stability, and resistance to warpage, rigidity & strength. Polypropylene with 30% chemically coupled glass reinforcement has a 180% improvement in tensile strength.

Glass-reinforced polypropylene offers higher tensile strength, enhanced heat resistance and significantly improved stiffness. They are commonly used in structural components that require the aforementioned properties and are predominantly a part of the furniture, appliances, and automotive applications.

Application Insights

Film and sheet segment led the market and accounted for nearly 31% share of the global revenue in 2022. The rising application of polypropylene compounds in packaging materials, binders, boxes, and portfolios owing to its better chemical resistance, high-temperature stability, and exceptional contact clarity is expected to propel the segment growth over the forecast period.

The rapid growth of the packaging sector, particularly in countries such as India and China, on the account of increasing penetration of the e-commerce platform for purchasing the product, is expected to have a positive impact on the segment growth over the forecast period.

Fiber emerged as the second-largest application segment and captured a revenue share of over 23% in 2022. Rising demand from the automotive sector for automotive flooring, pull straps, seat cover construction, and seam reinforcement is expected to boost product demand in the coming years.

End-use Insights

Automotive was the dominant end-use segment and accounted for over 54% of the market value in 2022. The segment is expected to rapidly grow, owing to increasing plastics incorporation in automotive components and simultaneous rise in passenger car and heavy-duty vehicle production, particularly in Asia and the Central & South American regions.

There has been a shift in the trend toward manufacturing lightweight vehicle components owing to the stringent environmental regulations issued by the government to promote fuel economy. Polypropylene, being plastic, is lightweight and therefore positively influences the efficiency of the vehicle.

Polypropylene compounds have become a popular alternative for engineering plastics and metals in automotive applications. They are used in the interior, exterior, and under-the-hood applications in automotive such as instrument panels, trims, bumper facias, etc.

The use of PP compounds has provided significant weight reduction and cost savings for the manufacturers owing to their low cost, exceptional mechanical properties, and easy mouldability.

Construction end-use industry is also on the rise since numerous architects are realizing the benefits of polypropylene in glazing, sheeting, curve forming, and other applications that require high aesthetic appeal with durability and sustainability.

Polypropylene compounds are used in several building applications such as sheets, siding, barrier, piping, wiring, etc. The use of polypropylene-based compounds has increased over the past few years owing to several benefits provided by them such as energy efficiency, weather resistance, green roofing options, and others.

Increasing incorporation of plastics in automotive components and the simultaneous rise in the production of electric passenger cars and heavy-duty vehicles, particularly in Asia and Central & South America, are expected to propel the growth of automotive & transportation application segment over the forecast period.

Regional Insights

North America is a highly competitive market with significant demand for polypropylene compounds across various end-use sectors such as automotive and electrical & electronics. The market is characterized by the presence of several established suppliers and high domestic demand, particularly in the automotive end-use.

Europe is one of the prominent manufacturers of automobiles and is expected to continue its dominance in the sector over the forecast period. The rising demand for lightweight electric and hybrid vehicles, along with the presence of major automotive manufacturers, including AUDI AG, BMW AG, Mercedes-Benz AG, Automobili Lamborghini S.p.A., and Porsche Austria GmbH & Co. in the region, makes it a hub for the automotive industry.

Southeast Asian countries such as Vietnam, Indonesia, Thailand, China, Japan, and India are expected to emerge as the primary growth markets for PP compounds in Asia Pacific over the forecast period. The growing manufacturing sector is expected to propel the demand for PP compounds in the automotive industry.

Countries such as Japan, South Korea, China, Taiwan, and other Southeastern countries are manufacturing hubs for household appliances with intense competition due to the presence of global manufacturers such as LG Electronics, Samsung, and Panasonic Corporation.

Key Companies & Market Share Insights

Strategic partnerships, capacity expansions, and new product developments are popular strategies adopted by a majority of the players operating in the global polyisobutylene market. Recently, Sumitomo Chemical Co., Ltd. expanded the polypropylene compounds business with the acquisition of a Turkish compounder company, Mesa Plastik A.S., an affiliated company of the Emas Group. This acquisition enabled Sumitomo Chemical Co., Ltd. to expand the global development of its PP compounds business. Some of the prominent companies in the global polypropylene compounds market are:

• Mitsui Chemical, Inc.

• IRPC Public Company Limited

• Exxon Mobil Corporation

• Avient Corporation

• Japan Polypropylene Corporation

• SABIC

• Trinseo S.A.

• Sumitomo Chemical Co., Ltd.

• Washington Penn

• Borealis AG

• LyondellBasell Industries Holdings B.V.

• DAEHACOM Co., Ltd.

• GS Caltex Corporation

Polypropylene Compounds Market Report Scope

Global Polypropylene Compounds Market Segmentation

This report forecasts revenue growth at global, 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 polypropylene compounds market report based on product, application, end-use, and region:

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

  • Mineral filled PP compounds

  • Compounded TPO

  • Compounded TPV

  • Glass fiber reinforced

  • Talc filled

  • Others

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

  • Fiber

  • Film & sheet

  • Raffia

  • Others

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

  • Automotive

  • Building & construction

  • Electrical & electronics

  • Textile

  • Others

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

  • North America

    • U.S.

    • Canada

    • Mexico

  • Europe

    • Germany

    • U.K.

    • France

    • Italy

  • Asia Pacific

    • China

    • India

    • Japan

  • Central & South America

    • Brazil

    • Argentina

  • Middle East & Africa

    • GCC Countries

    • South Africa