Polypropylene Compounds Market Size, Share & Trends Report

Polypropylene Compounds Market Size, Share & Trends Analysis Report By Product (Mineral Filled, Compounded TPV), By End-use (Automotive, Electrical & Electronics), By Region, And Segment Forecasts, 2021 - 2028

  • Published Date: Mar, 2021
  • Base Year for Estimate: 2020
  • Report ID: GVR-2-68038-734-6
  • Format: Electronic (PDF)
  • Historical Data: 2016 - 2020
  • Number of Pages: 119

Report Overview

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.

U.S. PP compounds market size, by product, 2016 - 2028 (USD Billion)

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.

Product Insights

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.

End-use Insights

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.

Global PP compounds market share, by end-use, 2020 (%)

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.

Regional Insights

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.

Key Companies & Market Share Insights

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.

Polypropylene Compounds Market Report Scope

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.

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Segments Covered in the Report

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

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