Purging Compound Market Size, Share & Trends Analysis Report By Type (Mechanical, Chemical, Liquid), By Process (Extrusion, Injection Molding, Blow Molding), By Region, And Segment Forecasts, 2018 - 2025

Industry Insights

The global purging compound market size was valued at USD 423.7 million in 2016. The growing plastic industry along with increasing demand for plastic processing machinery and reduction in purging cost are likely to elevate the market demand over the forecast period.

Purging compounds are used extensively in the plastics processing industry. Traditional cleaning methods are being replaced by the product due to benefits such as the reduction in purging time and enhanced quality of the final product. These factors are likely to augment the demand for the product in the thermoplastic processing industry over the forecast period.

The product is likely to witness an increased demand in the plastic processing application in order to maximize profit and minimize the overall production cost. The product, when used in plastic molding offers benefits such as the reduction in material wastage & overall production cost, high efficiency, reduced downtime. In addition, it proves extremely useful during shutdowns.

Plastic compounds are increasingly being used as replacements for metals and alloys in various industries such as automotive, industrial machinery, and consumer goods over the past few years. This, in turn, has positively affected the growth of the plastics processing industry, which is further expected to influence the product demand. 

Injection-molded plastics are widely used in various automotive applications such as bumpers, interior panels, dashboards, electrical housing components, and exterior body panels. Increasing regulatory intervention to improve fuel efficiency and cut down carbon emissions from vehicles has been a major factor driving the plastics demand in automotive manufacturing. The growing demand for injection-molded plastic parts in the automotive industry has led to high demand for plastic processing machinery, which is further expected to drive the product demand.

The industry is highly competitive in nature with the presence of a large number of multinationals and small manufacturers. Neutrex, Inc. is integrated across the value chain. It manufactures purging compounds and is involved in the sales & distribution of products across various locations. In addition, Dow Chemicals and Formosa Plastics Corporation are integrated across the value chain from raw material manufacturing to the distribution of finished products across various regions.

Process Insights

Injection molding is the most common processing method for plastic parts on account of a faster rate of production and its ability to produce plastic components with multiple colors. The method is ideal for the production of a single component in high volume. The utilization of purging compounds in injection molding machine results in the reduction of carbon build-up & total changeover time, increase in uptime of the machine, and reduction of scrap parts, which is likely to augment the growth over the coming years.

Extrusion process is widely used to manufacture products with cross-sectional or liner profiles such as films, tubes, sheets, filaments, cords, coat wires, cables, rods, and profile shapes.  Manufacturers prefer the extrusion method owing to factors such as high production volumes, good compounding, efficient melting, and cost-effectiveness.

The use of the product in extrusion does not require the opening of the machine while the cleaning process which leads to time-saving and increased efficiency. The extrusion process accounted for the major market share of 55.0% in 2016 and the trend is expected to continue over the forecast period.

The blow molding process is mainly used to produce hollow parts that have a uniform wall thickness, such as bottles and barrels. This process offers numerous benefits such as high suitability for low as well as high production rates, increased flexibility, and excellent performance under pressure. The demand for purging compounds in blow molding is likely to increase over the coming years owing to their ability to reduce the change over time of the process.

Type Insights

Purging compounds are of different formulations and types with unique characteristics and benefits. The most popular types include mechanical, chemical or foaming, and liquid compounds. The products help in removing external pollutants, un-melted resins, moisture, un-dispersed modifiers & additives, degraded residues, and air bubbles from barrels and screws of the machine.

Selecting the correct type of product increases overall efficiency and lowers cost by reducing downtime between material and color changeover. Mechanical compounds are effective across a wide variety of applications. They use high viscosity plastics or abrasives to mechanically scrub pollutants from the machine. The process does not require soaking of the product, thereby saving time.

The mechanical segment accounted for a major market share in 2016 in terms of revenue. The trend is estimated to continue over the forecast period at an estimated CAGR of 5.7% from 2017 to 2025.

Chemical compounds are used in applications requiring low pressure, where mechanical purging is sometimes less effective. The compounds remove contaminants by breaking the chemical bonds. The product is highly effective in comparison to others and is required in a significantly lower amount per process. Furthermore, it reduces scrap production and changes over time of the process, which in turn is likely to positively affect the market growth. In 2016, the segment accounted for a market share of 40.3% in terms of revenue.

Regional Insights

North America dominated the purging compound market in 2016. The U.S. accounted for the largest share (85.1%) in the North America market in 2016 on account of the presence of numerous processing plants. Moreover, the growing demand for plastic processing machinery to produce various parts is likely to augment demand for purging compounds in the region.

The Europe plastic processing machinery market is driven by the growing manufacturing and packaging industries. Germany is one of the top hubs for the production of automotive due to its R&D initiatives & facilities, mature automotive market, advanced infrastructure & technology, and highly skilled manpower. These factors are expected to positively affect the plastic processing machinery demand in the region, thereby leading to a high demand for purging compounds. Germany is estimated to signify a CAGR of 5.1% from 2017 to 2025 in terms of revenue.

High economic growth in the major economies of Central & South America owing to rapid development, industrialization, and rise in disposable income has driven the demand for plastic in the end-use industries. The consumption of plastic processing machinery, especially injection molding in various end-use industries is anticipated to increase over the forecast period, which in turn is likely to propel the demand for the product.

Asia Pacific is expected to grow at the fastest CAGR over the forecast period. Countries such as China, India, and Japan are projected to witness high growth rates owing to the rising demand for injection molding and extruders from various end-use industries. The Southeast Asian nations are the major drivers of auto sales in Asia Pacific after China and India.

The consumers in emerging economies including Thailand, Indonesia, Philippines, and Malaysia continue to have a considerably high intent of purchasing new cars. These trends are expected to have a positive influence on the plastic processing machinery industry growth, thereby augmenting the demand for purging compounds across the region.

Purging Compound Market Share Insights

The industry is highly competitive in nature with the presence of a large number of multinational producers and distributors functioning businesses across the globe. The companies in the global market are integrated from the procurement of raw material to the sales & distribution to various locations.

Companies such as Formosa Plastics Corporation, Sun Plastech, Inc., Chem-Trend L.P., DOW Chemical, DuPont, and Daicel Corporation operate the business through a wide network across the globe. In January 2013, VELOX GmbH established a joint venture, VELOX China Ltd., with its Chinese partner Shanghai Brightfield Co. Ltd. to strengthen its relationship with local Chinese business partners and enhance distribution in Europe and North America.

Report Scope

Segments Covered in the Report

This report forecasts revenue growth at global, regional & country levels and provides an analysis of the 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 purging compound market on the basis of type, process, and region:

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

  • Mechanical purging

  • Chemical purging

  • Liquid purging

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

  • Extrusion

  • Injection molding

  • Blow molding

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

  • North America

    • The U.S.

  • Europe

    • Germany

    • The U.K.

  • Asia Pacific

    • China

    • Japan

  • Central & South America

    • Brazil

  • Middle East & Africa