Automotive Plastic Compounding Market

The Global Automotive Plastic Compounding Market size was valued at USD 67.52 Billion in 2023. It is expected to reach at USD 133.52 Billion by 2032, exhibiting a CAGR of 7.05 % during the forecast period. This report provides a deep insight into the Automotive Plastic Compounding Market covering all its essential aspects. This ranges from a macro-overview of the market to micro details of the market size, competitive landscape, development trend, niche market, key market drivers and challenges, SWOT analysis, Porter’s five forces analysis, value chain analysis, etc. 

Automotive Plastic Compounding Market

Size, by Product, - (USD Billion)

TPO

PVC

PP

Polyethylene

Other Products

The Market will Grow

At the CAGR of:

7.05 %

The Forecast Market

Size for in USD:

$133.52 Billion

Market Segmentation Analysis

The research report includes specific segments by region (country), manufacturers, Type, and Application. Market segmentation creates subsets of a market based on product type, end-user or application, Geographic, and other factors. By understanding the market segments, the decision-maker can leverage this targeting in the product, sales, and marketing strategies. Market segments can power your product development cycles by informing how you create product offerings for different segments.

Automotive Plastic Compounding Market Segments

By Application: Electronics& Electrical, Automotive, Packaging, Building & Construction, Industrial Machinery, Optical Media, Consumer Goods, Medical Devices 

By Product: TPO, PVC, PP, Polyethylene, TPV, Polystyrene, PBT, Polycarbonate, ABS, PET, Polyamide 

By Source: Fossil-based, Bio-based, Recycled 

Market Key Players

BASF SE, SABIC, Dow, Inc., KRATON CORPORATION, LyondellBasell Industries Holdings B.V., DuPont de Nemours, Inc., RTP Company, S&E Specialty Polymers, LLC (Aurora Plastics), Asahi Kasei Corporation, Covestro AG, Washington Penn, Eurostar Engineering Plastics, KURARAY CO., LTD., Arkema, TEIJIN LIMITED, LANXESS, Solvay, SO.F.TER, Polyvisions, Inc., Ravago 

Regional Analysis

• North America: Large economies like the United States and Canada are covered in this region.
• Europe: The European market includes countries such as Germany, UK, France, Italy, Russia, and others.
• Asia-Pacific: This region includes major economies like China, Japan, India, South Korea, Australia, and others.
• Latin America: Countries like Brazil, Argentina, Mexico and others are part of this region.
• Middle East and Africa: This region comprises economies from North Africa, GCC countries, South Africa and others.
• Eastern Europe: This region includes countries such as Poland, Russia, Ukraine and others.

These geographic markets are analysed in terms of the current scenario, growth outlook, and potential opportunities. The research is conducted by considering various aspects such as economic conditions, government policies, industrial development, competitive landscape, and consumer behavior in these regions.

Automotive Plastic Compounding Market

Share, by end user, (USD Billion)

67.52 Billion%

Electronics & Electrical

Automotive, Packaging

Packaging

Building & Construction

Other End-Users

133.52 Billion

Total Market Size

USD (Billion),

7.05 %

CAGR

-

Market Overview:

• During the forecast period, plastic will increasingly replace natural rubber, wood, metals, glass and concrete. Plastic is increasingly in demand in many industrial applications and for its ease of moulding. 
• If you compare plastic parts with metal or wooden frames, it is believed that the installation of plastic parts is much easier. The fact that these accessories are available in several different colour combinations adds to their aesthetic appeal. In addition, the plastic parts can be sealed very tightly to create a barrier against unwanted external elements such as dust or water. 
• In the coming years, the expansion of the market can be accelerated by the properties of plastic alloys.
• The plastic compounding process is complex and includes steps such as addition ratio calculation, high-speed compounding with a twin-screw extruder, melt mixing and cooling, and final pellet cutting and packaging. 
• Due to increasing demand from the packaging industry, polyethylene terephthalate (PET) is expected to be one of the fastest growing segments in the US plastics market. 
• PET has a significant market share in the plastics industry and is mainly used in the production of bottles. Most US PET processors pay more attention to establishing Good Manufacturing Practices (GMP) to use available resources, conserve resources and increase production efficiency. During the forecast period, these activities are expected to further boost the growth of the PET market.

Analysis of the impact of COVID-19:

• The epidemic of Covid-19 has affected the prices of raw materials for plastic alloys. In addition, the price of crude oil has recently fallen due to the global pandemic.
• Slowdowns or pauses in industrial production and reduced demand, as well as restrictions on supply and travel, lead to lower oil prices.

• Therefore, suppliers who can store crude oil in the current situation are likely to generate significant profit margins.

  Automotive Plastic Compounding Market

  Size, by Product, - (USD Billion)

  The Market will Grow

  At the CAGR of:

  7.05 %

  The Forecast Market

  Size for in USD:

  $133.52 Billion

  

Market Key Development:

• In October 2022, BASF Performance Materials Asia Pacific received several certifications at its Pasir Gudang and Pudong plants as part of ongoing initiatives to help customers achieve their sustainability goals.
• In October 2022, at the K 2022 event, Clariant will present new additives that promote the sustainable development of plastics. Applications now have more flexibility to facilitate long-term use and reuse as we move towards the cycle.
• In July 2022, Asahi Kasei joined the European Bioplastics (EUBP) group of companies involved in the production of bioplastics.
• In February 2022, Celanese Corporation and DuPont signed a legally binding agreement to acquire a majority of the latter's mobile and materials business (MandM). Celanese acquires DuPont MandM's plastics portfolio, which is divided into two main categories: automotive and electrical/electronics.
• In February 2022, BASF SE increased the production capacity of Ultramid polyamide and Ultradur polybutylene terephthalate by 5,000 tons per year at its production facility in Paris Gudang, Malaysia.
• In January 2021, global chemical and specialty materials company Celanese Corporation announced price increases across the engineering plastics category, citing increases in energy, transportation and raw material costs. demand for these goods. As a result, the company's polyamide and PET costs per kilogram are expected to increase.

Market Drivers:

• Strict global regulations require car manufacturers to improve fuel efficiency and reduce emissions. Plastic alloys allow significant weight savings compared to metals, which improves fuel efficiency and reduces emissions.
• Plastics can be easily molded into complex designs, allowing automakers to create stylish and aerodynamically efficient vehicles. Blending enhances these properties by providing options for color, texture and functional additives such as UV resistance or flame retardant.
• Automotive plastic composites often offer lower production costs than traditional materials such as metals. This cost advantage is attractive to automakers looking to optimize production costs without compromising performance or design.
• Continuous advances in compounding techniques enable the development of high-performance plastic compounds that meet the strict requirements of the automotive industry, such as durability, heat resistance and mechanical strength.

• Many automotive plastic components are recyclable, meeting growing environmental demands and consumer preferences for sustainable materials. Blending can further improve the recyclability and environmental friendliness of these materials. 

  Automotive Plastic Compounding Market TO (USD BN)

  

  CAGR OF

  7.05 %

  Automotive Plastic Compounding Market

  

  133.52 Billion %

Restraints Factors:

• Although advances have been made, some traditional materials outperform plastics in certain critical automotive applications, such as high-temperature engine components or structural parts requiring extreme durability.
• Despite their functional advantages, plastic parts can face challenges in terms of quality and long-term durability compared to conventional materials such as metal or glass.
• Dependence on raw material suppliers and fluctuations in resin prices can affect the cost-effectiveness of autoplastic compounds. This fluctuation can affect the profitability and pricing strategies of the industry.
• The development of environmental regulations and standards for automotive materials can create market uncertainty. Compliance with the new regulations may require additional investment in research and development to develop compliant plastic compounds.
• Developing plastic compounds to meet increasingly stringent performance standards (e.g., crash-ability requirements or compatibility with new automotive technologies (e.g., electric vehicles)) creates technical challenges that can slow adoption in some market segments.

FAQs

How big is the automotive plastic compounding market?

Ans: The Automotive Plastic Compounding Market size was valued at USD 67.52 Billion in 2023. 

What is the automotive plastic compounding market growth?

Ans: It is expected to reach at USD 133.52 Billion by 2032, exhibiting a CAGR of 7.05 % during the forecast period.

Which segment accounted for the largest automotive plastic compounding market share?

Ans: Polypropylene dominated the aerospace foam market with a share of 68.43 % in 2023.

Who are the key players in the automotive plastic compounding market?

Ans: Some of the Key Players are as follows BASF SE, SABIC, Dow, Inc., KRATON CORPORATION, LyondellBasell Industries Holdings B.V., DuPont de Nemours, Inc.,

What are the factors driving the automotive plastic compounding market? 

Ans: Rise in greenhouse gas emissions is expected to create demand for plastic compounds over the forecast period.