Polypropylene Compounds Market Size, Share & Trends Analysis Report By Product (Mineral Filled, Compounded TPO, Compounded TPV, Glass Reinforced), By End Use, And Segment Forecasts, 2019 - 2025

Industry Insights

The global polypropylene compounds market size was estimated at USD 15.78 billion in 2017. It is anticipated to register a CAGR of 7.6% over the forecast period. Rapid expansion of automotive and electronics industries across emerging nations is expected to be the key growth driver over the forecast period. In addition, increasing awareness regarding sustainability of natural resources, especially in North America and Europe is driving the demand for sustainable products.

Global polypropylene (PP) compounds market is the second largest polymer business, which accounts for 25% of the global polymer demand. Rising demand from emerging economies, especially China due to expansion in automotive and building and construction industry is positively influencing the demand for PP compounds.

The U.S. PP compounds market was valued at USD 2.13 billion in 2017 and is anticipated to progress at a CAGR of 6.9% over the forecast period. U.S. is one of the world’s largest automotive markets with the presence of several vehicle and auto parts manufacturers. The demand is driven by utilization of polypropylene compound in automotive manufacturing to achieve better fuel efficiency.

Polypropylene compounds 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 on technological innovation to improve their production capacity. Foreign investments are decreasing since most companies are investing in domestic production capacities.

However, volatility in raw material prices is anticipated to hinder growth of the polypropylene compounds market over the forecast period. Propylene is the key raw material used for manufacturing polypropylene. These raw materials are derived from carbon compound and petroleum. Crude oil is one commodity, considered to be highly volatile in terms of pricing. This volatility can further be seen in its downstream derivatives.

Product Insights

The global demand for mineral filled PP compound product is projected to register a CAGR of 5.2% between 2018 and 2025. Minerals are incorporated in 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 applications, such as automotive and electrical and electronics.

Compounded TPO refers to a blend of polypropylene, polyethylene, and EPDM rubber. TPOs are processed via injection molding and blow molding. They exhibit superior characteristics, such as low density and high resistance to impact and chemical. These properties make them ideal for applications, such as automotive parts that require increased toughness and durability over conventional polymers.

End-use Insights

PP compounds are widely used in various end-use industries, such as automotive, building and construction, textiles, and electronics. Low density of PP compounds improves fuel economy of vehicles and reduces overall raw material costs. High flexibility of polypropylene has led to the creation of innovative designs, which enhances passenger safety and comfort. These factors are responsible for driving the demand for PP compounds.

Automotive segment is projected to progress at a CAGR of 7.9% over the forecast period. Growing popularity of polypropylene as an alternative for engineering plastics and metal in automotive applications is projected to boost the product demand over the forecast period.

Regional Insights

Unconventional low cost feedstock 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 feedstock has led to an unprecedented level of cost-competitiveness among the North American manufacturers.

Asia Pacific accounted for 45.9% of global market share, in terms of revenue, in 2017. The region was followed by Europe, which is projected to expand at a CAGR 6.6% between 2018 and 2025. The European market is expected to witness sizable growth over the forecast period. Stringent rules and regulations regarding recycling and environment protection have created favorable conditions for the PP compounds owing to their environment-friendly and halogen-free nature.

Polypropylene Compounds Market Share Insights

The market is highly competitive and relatively integrated with the presence of major key players capturing a major revenue share. Key participants include LyondellBasell; ExxonMobil; A. Schulman; PolyOne Corporation; Advanced Composites; Washington Penn Plastics Co., Ltd; Solvay; RheTech Inc.; Sumitomo Chemicals; and Trinseo.

Report Scope

Segments Covered in the Report

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 2014 to 2025. 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, Kilo Tons; Revenue, USD Million, 2014 - 2025)

  • Mineral Filled PP

  • Compounded TPO

  • Compounded TPV

  • Glass Reinforced

  • Others

• End-use Outlook (Volume, Kilo Tons; Revenue, USD Million, 2014 - 2025)

  • Automotive

    • Interior

    • Exterior

    • Under the Hood Components

  • Building & Construction

  • Electrical & Electronics

  • Textiles

  • Others

• Regional Outlook (Revenue, USD Million, 2014 - 2025)

  • 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