Southeast Asia Modified Polypropylene Market Size, Share & Trends Analysis Report By End-use (Automotive, Building & Construction, Packaging, Medical, Electrical & Electronics), By Country, And Segment Forecasts, 2024 - 2030

Market Size & Trends

The Southeast Asia modified polypropylene market size was estimated at USD 1.61 billion in 2023 and is projected to grow at a compound annual growth rate (CAGR) of 7.3% from 2024 to 2030. Demand for modified polypropylene is being driven by the rising e-commerce sector and changing customer expectations for sustainable and lightweight packaging solutions. Furthermore, the Southeast Asian construction industry, which is undergoing fast urbanization and infrastructure development, contributes to the need for modified polypropylene in applications such as pipes, fittings, and insulating materials.

Indonesia modified polypropylene market is characterized by various manufacturing industries, as a result of the increased emphasis on research and development, combined with favorable government initiatives to attract investments, which is likely to result in country market expansion. Plastics in Indonesia are likely to augment huge growth on account of the agriculture segment. It has been a significant source of income for domestic households while also facilitating much-needed export revenue. As per the Food and Agriculture Organization (FAO), the agriculture sector is considered the most important part of the economy, accounting for 12.40% of the GDP in 2022.

Indonesia's construction sector significantly contributes to the demand for modified polypropylene. The material's versatility and durability make it suitable for various construction applications including pipes, fittings, and insulation materials. The country's rapid urbanization and infrastructure development have further fueled the demand for materials that can withstand a range of environmental conditions while ensuring the durability of structures. This is expected to drive the adoption of modified polypropylene in construction industry.

Furthermore, the adoption of modified polypropylene in Indonesia is being driven by the country's focus on sustainable practices and environmental responsibility. The increasing awareness of environmental concerns among industries in Indonesia has led to a search for materials that align with sustainability goals. Modified polypropylene meets the rising demand for eco-friendly solutions in the country and contributes to the overall growth of the modified polypropylene market in the region.

Market Concentration & Characteristics

Market growth stage is high, and pace of the market growth is accelerating. The Southeast Asia Modified polypropylene market is characterized by a high degree of innovation owing to the rapid technological advancements driven by factors such as advancements in the production of modified polypropylene, the availability of raw materials, and increasing plastic resins consumptions across several applications including packaging, building & construction, automotive, among others. Subsequently, innovative modified polypropylene applications are constantly emerging, disrupting existing industries and creating new ones.

The market is also characterized by a high level of merger and acquisition (M&A) activity by the leading players. This is due to several factors, including the desire to gain access to new production technologies and talent, need to consolidate in a rapidly growing market, and increasing strategic initiatives of modified polypropylene.

The market is also subject to increasing regulatory scrutiny. The Southeast Asia market is subject to numerous regulations, guidelines, and restrictions regarding polypropylene production and its applications owing to the toxic nature of raw materials such as crude oil, coupled with certain health hazards of improperly disposed of products and over-exposure to chemicals contained in these resins.

There are a limited number of direct product substitutes for modified polypropylene. However, there are a number of technologies that can be used to achieve sustainable outcomes for modified polypropylene, such as bio-based plastics, and fiberglass. These substitutes can be used in certain applications, but they typically do not offer the same level of performance or flexibility as modified polypropylene.

End-user concentration is a significant factor in the Southeast Asia market. Since there are a number of end-user industries that are driving demand for modified polypropylene. The concentration of demand in a small number of end-user industries creates opportunities for companies that focus on developing polymer foamsolutions for the consumer electronic industry. However, it also creates challenges for companies that are trying to compete in a crowded market.

End-use Insights

Bases on end-use, the automotive segment led the market in 2023 with the largest revenue share of 62%.The material's resistance to various chemicals, moisture, and corrosion significantly enhances its suitability for a diverse range of automotive applications. The durability and resistance properties of modified polypropylene in Southeast Asia's tropical climate and varying environmental conditions contribute significantly to the reliability and longevity of automotive components. This resilience is particularly crucial in ensuring the longevity of vehicles and reducing the frequency of replacements, thereby lowering overall maintenance costs for both manufacturers and consumers.

The medical segment is projected to grow at the fastest CAGR over the forecast period. The increasing demand for single-use devices and disposable medical products is driving the modified polypropylene market in Southeast Asia. Modified polypropylene maintains necessary properties even after sterilization, and it is used in the production of various medical items such as syringes, containers, and surgical instruments. Modified polypropylene is a key material in healthcare sector as it ensures hygiene and prevents cross-contamination, thus supporting the development of safe and disposable medical solutions across Southeast Asia.

The Electrical & Electronics segment is also anticipated to witness a substantial CAGR over the forecast period.The increasing emphasis on environmental sustainability and regulatory compliance contributes to the rise of modified polypropylene in the electrical & electronics segment. The material's eco-friendly characteristics and recyclability align with the region's growing awareness of environmental issues and the push toward greener manufacturing practices. As the electrical & electronics industry continues to expand driven by the proliferation of smart devices and connectivity, modified polypropylene has emerged as a key enabler, balancing cost-effectiveness, performance, and environmental considerations.

Country Insights

Indonesia dominated the market with a revenue share of 40.24% share in 2023. The increasing product demand from end-use industries, such as automotive, packaging, construction, and consumer goods, is expected to drive the market in Indonesia. Modified polypropylene offers advantages such as improved strength, durability, and chemical resistance, making it a preferred material in the aforementioned applications. The adoption of modified polypropylene in Indonesia is driven by the country's emphasis on technological advancements and innovation. Modified polypropylene's versatility in processing, molding, and integration into advanced manufacturing technologies positions it as a material that aligns with Indonesia's technological aspirations.

Thailand is anticipated to witness significant CAGR during the forecast period. Thailand's role as a major trade partner in Southeast Asia contributes to the demand for modified polypropylene. The country's position as a regional economic hub facilitates the movement of goods and materials across borders, enhancing the accessibility and distribution of modified polypropylene, and further boosting its market presence in Southeast Asia. Thailand is a significant production and export base for numerous industries including automobiles, computer components, IT, and others. Thailand's position as a key trading partner has strengthened its ties with other countries, solidifying its reputation as a reliable and trustworthy business partner, thus contributing significantly to the growth and development of the region's economy.

Key Companies & Market Share Insights

Key players operating in the market include SABIC and LG Chem

• SABIC operates through five business segments: culture of continuous improvement, petrochemicals, specialties, agri-nutrients, and metals. The products manufactured under these segments cater to agriculture, building & construction, automotive, consumer goods, electrical & electronics, healthcare, and packaging industries

• LG Chem deals in basic materials, information technology & electronic materials, advanced materials, and energy solutions. It provides an extensive array of products in every category such as ethylene, propylene, polyvinyl chloride (PVC), acrylonitrile butadiene styrene (ABS), polarizers, ITO films, photo resins, rechargeable battery materials, lithium-ion cylindrical batteries, and automotive batteries

PolyPacific and China XD Plastics Co., Ltd. are some of the emerging market participants in the Southeast Asian market.

• PolyPacific is a manufacturer of reinforced and modified polyolefin compounds aimed at the industrial sector in Southeast Asia. The company's offering includes thermoplastic elastomers, thermoplastic polymers, polyolefin, materials for insulation and sheathing applications, and masterbatches, allowing it to provide products to industries while also providing technical and application development support

• China XD Plastics Co., Ltd. manufactures engineering plastic resins. The company focuses on the research and development of polymer composite materials for the automotive industry

Recent Developments

• In May 2023, Maire Tecnimont was awarded a contract to design a USD 1.5 billion polypropylene facility in Vietnam. The factory would begin commercial operations in the fourth quarter of 2026, producing 600,000 tons of polypropylene per year for production of home appliances, autos, electronics, and medical equipment

• In September 2022, W. R. Grace & Co., a supplier of polypropylene and polyolefin catalyst technology, announced their new licensee in Indonesia: PT Kilang Pertamina International (PT KPI). This project will improve PT KPI's polyolefin and refinery capacity

• In January 2022, LyondellBasell announced that PT Polytama Propindo will employ LyondellBasell Spheripol technology to expand its existing operation. The process method will be used for a 300 KTA polypropylene plant to be built in Balongan, West Java, Indonesia, and is projected to be finished in 2024

Southeast Asia Modified Polypropylene Market Report Scope

Southeast Asia Modified Polypropylene Market Report 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 report, Grand View Research has segmented the Southeast Asia Modified Polypropylene Market report based on end-use, and country.

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

  • Automotive

  • Building & Construction

  • Packaging

  • Medical

  • Electrical & Electronics

  • Others

• Country Outlook (Volume, Kilo Tons; Revenue, USD Million, 2018 - 2030)

  • Thailand

  • Indonesia

  • Singapore

  • Vietnam

  • Philippines

  • Malaysia