Turkey Automotive Plastic Compounding Market Size, Share & Trends Analysis Report By Product (ABS, PP, PU, PVC, PE, PC, PA, TPE), By Application, And Segment Forecasts, 2021 - 2028

Report Overview

The Turkey automotive plastic compounding market size was valued at USD 290.9 million in 2020. It is expected to expand at a compound annual growth rate (CAGR) of 5.8% from 2021 to 2028. The market is projected to witness significant growth over the forecast period owing to the rising adoption of lightweight composites in automotive components to foster fuel savings. However, the recent outbreak of COVID-19 has severely affected automotive production in Turkey due to factory shutdowns from January to April 2020. This has negatively influenced the consumption of automotive plastics and their production dynamics.

The Turkish chemicals and plastics industry display significant growth potential both from domestic and international markets. Average per capita plastics consumption in the region is relatively lower than the rest of the EU, which offers significant investment opportunities for automotive plastic compounders. The Turkish automotive industry is also growing at a rapid pace with leading automobile manufacturers such as Ford, Toyota, Volkswagen, and Hyundai operating in the market.

According to PAGEV (Turkish Plastic Industry Association) data, the Turkish economy was contracted by 2.4% in the first quarter and 1.5% in the second quarter of 2019. This led to a contraction in domestic demand, where industrial production slowed down, and a decrease in industrial capacity utilization negatively impacted the private sectors. In terms of domestic plastic consumption, in the first nine months of 2019, the plastics sector witnessed a 10% decrease on a value basis as compared to 2018. Moreover, automotive production was decreased by 6% in 2019.

Product Insights

The polypropylene product segment led the market and accounted for more than 26% share of Turkey’s revenue in 2020. This high share is attributable to rising demand from various end-use industries such as automotive, packaging and labeling, textiles, stationery, medical equipment, and construction.

PE is the most widely utilized synthetic resin made from the polymerization of ethylene. Low density, liner density, ultrahigh molecular weight, and ethylene copolymers are major compounds of PE utilized in several applications such as clear bags, bottles, and automobile fuel tank liners.

Cross-linked PE (XLPE) foams are consumed in various automotive components owing to lower fogging value lightness and weight saving, flexibility, excellent thermal properties, and chemical resistance. XLPE finds application in seatbacks, liners, air condition ducts, dashboard padding, wing mirror seals, door panels, windshields, and truck liners.

TPE are polymers that offer both thermoplastic and rubber properties which makes them stretchable and retain their original shape providing a longer life compared to other materials. TPE is recyclable and requires little or no compounding leading to improved consistency in both raw materials and fabricated articles. TPE is utilized in numerous end-use industries including automotive, household goods, building and construction, footwear, and medical and hygiene. In the automotive sector, TPE finds its application primarily in suspension bushings due to its greater resistance to deformation compared to regular rubber bushings. Bumper fascia, grommets, strut cover bellows, clean air ducts, and airbag covers are other components in vehicles wherein TPE is extensively utilized.

Application Insights

The Interior components application segment led the Turkey automotive plastics compounding market and accounted for more than 35.0% share of the country’s revenue in 2020. Numerous interior components such as headliners, load floors, seat bases, and rear package shelves are being constructed from high-performance plastics such as ABS & GMT composites, instead of conventional metal, rubber, and other parts. Plastics are used to manufacture durable, comfortable, and aesthetically appealing components while contributing to noise reduction with low harshness and vibration levels.

Design flexibility helps manufacturers create integral, innovative, single-piece lightweight parts while cutting down on costs and lead time, along with problems associated with vehicle redesign. PP is one such plastic making inroads in redesigning interior components while reactor TPO plastics are increasingly being utilized to manufacture innovative interior airbag systems.

Automotive engineers are constantly striving to achieve greater optimization rates, precision in extrusion, and blow molding operations while cutting down on overall production costs. These factors have driven recent innovations in the assembly of cars using plastic compounds in place of conventionally heavy and expensive materials.

Designers of the Viper SRT10 were also able to produce more aerodynamic flow that guarantees efficient engine performance using sheet-molded plastic compounds for the hood. The new Viper retains the original plastic body panels of previous sports cars while continuing carbon fiber application in structural parts such as the front fender supports. However, the car’s bonnet is the most evolutionary component owing to a 4-inch rise at its center, with openings on the side to allow air circulation within the car’s engine compartment. Meridian Automotive Systems, responsible for creating this innovative design, is one such company exploring the vast potential of plastics in automotive applications.

During the COVID-19 crisis, the demand decline was observed in the manufacturing sector of Turkey in Mid-March of 2020. The automotive exports of the country decreased by 30%. Similarly, the demand for plastic compounding decreased. Automotive companies in Turkey have suspended their production activities. The demand for automotive declined, as the consumers were concerned about meeting their basic needs in the crisis. As the main markets for the Turkish automotive industry are European countries and about 75% of automotive production is sold in the European market, the production of automotive plastics and OEMs was negatively impacted by the decreasing domestic and foreign demand.

Key Companies & Market Share Insights

The majority of the players are engaged in the expansion and new product development to have a competitive edge over the other and caters to the dynamically changing consumer and automotive requirements. For instance, in June 2020, PolyOne Corporation announced the expansion of a production facility in North America. The expansion is estimated to boost the production of its OnFlex TPE compounds beyond Asia Pacific and Europe and reach out to customers in North America.

Additionally, In September 2019, LANXESS inaugurated its high-performance plastics plant in Changzhou, China. The facility manufactures Durethan and Pocan high-tech plastics for the automotive and electrical & electronics industries. The new plant is estimated to reach out to a wider customer base in the Asia Pacific region. Some prominent players operating in the Turkey automotive plastic compounding market are:

• EPSAN

• LANXESS

• PolyOne Corporation

• LyondellBasell Industries Holdings B.V.

• SABIC

Turkey Automotive Plastic Compounding Market Report Scope

Segments Covered in the Report

This report forecasts revenue and volume growth at country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2016 to 2028. For this study, Grand View Research has segmented the Turkey automotive plastic compounding market report based on product and application:

• Product Outlook (Volume, Kilotons; Revenue, USD Million, 2016 - 2028)

  • Acrylonitrile butadiene styrene (ABS)

  • Polypropylene (PP)

  • Polyurethane (PU)

  • Polyvinyl Chloride (PVC)

  • Polyethylene (PE)

  • Polycarbonate (PC)

  • Polyamide (PA)

  • Thermoplastic Elastomer (TPE)

  • Others

• Application Outlook (Volume, Kilotons; Revenue, USD Million, 2016 - 2028)

  • Instrument Panels

  • Powertrain

  • Door Systems

  • Interior Components

  • Exterior Fascia

  • Under-the-hood

  • Others