Conductive Plastic Compounds Market

Conductive Plastic Compounds Market Description

• The global conductive plastic compounds market is expected to expand at a significant pace during the forecast period, driven by the increase in the production of electrical components and electronic devices. Conductive plastic compounds are compounds of organic polymers that conduct electricity. They are also referred to as intrinsically conducting polymer compounds.
• Conductive plastic compounds offer reliability and cost-effectiveness for applications that need electrostatic discharge control, explosive atmosphere, and electromagnetic interference shielding. These compounds are primarily employed in metal replacement solutions, detection sensors, heating elements, air cleaning systems, and dust suppression. They are also used to prevent electrostatic attraction.
• The global conductive plastic compounds market is projected to expand at a CAGR of ~11%, increasing from a value of ~US$ 8.5 Bn in 2018 to ~US$ 20.5 Bn by 2027.

Key Growth Drivers of Conductive Plastic Compounds Market

• The demand for conductive plastic compounds containing nano-fillers, such as carbon nanotubes, is high owing to their exceptional physical properties. Carbon nanotube-based conductive plastic compounds offer reliability for applications that need protection from electrostatic discharge, dissipation of static charges, and effective thermal management. Carbon nanotube-based conductive plastic compounds are primarily used in heat exchangers and fuel cells, owing to their electrical- and thermal-conducting properties. High usage of conductive plastic compounds in the electrical & electronics industry is likely to propel the global conductive plastic compounds market during the forecast period.
• Conductive plastic compounds are deployed in a wide range of antistatic and electromagnetic shielding applications. Thermally- and electrically-conductive plastic compounds are developed through the addition of common fillers such as carbon black, graphite, metallic fibers, flakes, or carbon fibers.

Major Challenges for Conductive Plastic Compounds Market

• Three basic ingredients or raw materials - polymers, additives, and fillers - are used in compounding. Polymers consist of polyamide (PA) compound, polycarbonate (PC) compound, polymethyl methacrylate (PMMA) compound, and many other polymers. The prices of plastic compounds have been rising gradually, primarily due to fluctuation in the prices of petrochemicals and high substitution potential from their bio-based counterparts.
• Oscillation in the prices of petrochemicals is estimated to hamper the conductive plastic compounds market during the forecast period. Fluctuation in the prices of crude oil impacts the prices of conductive plastic compounds. It also affects the usage of conductive plastic compounds.

Lucrative Opportunities for Global Conductive Plastic Compounds Market

• Advancements in filler material technology are estimated to influence the physical and chemical properties of conductive plastic compounds. Research programs and government initiatives on conductive plastic compounds are expected to encourage product development and manufacturing process development. Rise in the awareness about filler material technology and filler material application among electric and electronic component manufacturers is anticipated to boost the demand for conductive plastic compounds in the near future.
• Plastic compounders and plastic converters are carrying out product development through stable, resource-saving, and energy-efficient processes. Increase in product development programs among manufacturers of conductive plastic compounds and rise in research & patent activities regarding filler materials among institutes and universities are estimated to propel the global conductive plastic compounds market during the forecast period.

Asia Pacific to Dominate Conductive Plastic Compounds Market

• Asia Pacific is a significant region of the global conductive plastic compounds market, accounting for substantial market share. China is a major consumer of conductive plastic compounds in Asia Pacific, due to the high rate of adoption of conductive plastic compounds in electrical & electronics applications in the country. Furthermore, China is a leading producer of conductive plastic compounds in the region.
• The presence of large electrical and electronic component manufacturers and existence of various small domestic plastic compound manufacturers in the region is anticipated to drive the conductive plastic compounds market in Asia Pacific.
• Relocation of manufacturing capacities of electrical components and electronic devices from the western hemisphere to East Asia is estimated to boost the demand for conductive plastic compounds in the near future. Plastic compounders in Asia Pacific are expanding their production facilities to meet the rising demand for conductive plastic compounds in several end-use industries in the region.
• Rapid industrialization and expansion of electrical & electronic component manufacturing plants in India, South Korea, Thailand, and Vietnam are projected to propel the demand for conductive plastic compounds in Asia Pacific during the forecast period

North America Also Offers Growth Opportunities

• The market in North America is anticipated to expand at a steady pace during the forecast period, due to increase in the usage of eco-friendly products in the region. Growth in the construction sector in North America led by increase in the demand for houses and increase in renovation projects is likely to boost the conductive plastic compounds market during the forecast period.
• The impact of ongoing research & development activities among universities and plastic converters & compounders in North America and Europe is high. Therefore, the conductive plastic compounds markets in North America and Europe are estimated to expand at a rapid pace during the forecast period.

Engineering Plastics Resin Type to Account for Prominent Share

• Based on resin, the engineering plastics segment held a major share of the global conductive plastic compounds market in 2018.
• The segment is anticipated to continue its dominance during the forecast period, as it offers superior physical properties that augment its performance in various automotive, electronics, industrial, medical, and consumer goods applications. Market attractiveness of the segment is estimated to be high during the forecast period.

Leading Players Actively Engage in Joint Ventures and R&D Activities

• Key players operating in the global conductive plastic compounds market include
  • BASF SE
  • RTP Company
  • LyondellBasell Industries Holdings B.V.
  • Mexichem Specialty Compounds Inc.
  • SABIC
  • DowDuPont Inc.
  • Coperion K Tron
  • Adell Plastics, Inc
  • Sojitz Corporation
  • Ravago
  • Polyvisions Inc.
• These are large plastic converters and compounders possessing dedicated manufacturing technologies, experience, and expertise in the manufacturing of conductive plastic compounds.
• The global conductive plastic compounds market is highly fragmented; the top five manufacturers accounted for nearly 30% share of the market in 2018.
• Most of the conductive plastic compounds are produced in Asia Pacific. Compounders and converters functioning in the market are focusing on research programs and product development activities to cater to the rising demand for conductive plastic compounds in the electrical & electronics industry. This strategy enables prominent players to meet the increase in requirements of the electrical & electronics industry, and gain a dominant share in the conductive plastic compounds market.