Plastic Compounding Market
Plastic Compounding Market (Type: Polyvinyl Chloride [PVC], Polyethylene [PE], Polypropylene [PP], Polystyrene [PS], Polyamide [PA], Polyethylene Terephthalate [PET], Polybutylene Terephthalate [PBT], Acrylonitrile Butadiene Systems [ABS], and Others; Source: Fossil-based, Bio-based, and Recycled; and Application: Automotive, Building & Construction, Electrical & Electronics, Packaging, Medical, Consumer Goods, Industrial Machinery, and Others) - Global Industry Analysis, Size, Share, Growth, Trends, and Forecast, 2021-2031
Press Release :
Plastic Compounds Gain Importance in Critical Medical Devices During COVID-19 Pandemic
Companies in the plastic compounding market are increasing efforts to meet the demand for high-quality polymers and compounds used in critical devices during the ongoing coronavirus pandemic. Compounding Solutions - a global manufacturer company of custom medical polymer compounds and color concentrates, among others, is working at break-neck speeds to increase the availability of TPUs (Thermoplastic Polyurethanes) and TPEs (Thermoplastic Elastomers).
Manufacturers in the plastic compounding market are proactively communicating with customers and suppliers to understand demand and supply chain risks. They are adopting additional safety measures during manufacturing processes to prevent transmission of the COVID-19 infection through plastic compounds used in critical medical devices such as ventilator components, personal protective equipment (PPE), and other consumables. As such, stakeholders need to tide over shipping complications and cancellation of orders. Corporate travel bans and social-distancing requirements have given rise to virtual events and meetings.
To gauge the scope of customization in our reports Ask for a Sample
Oversupply of Raw Materials Compelling Manufacturers to Enhance Testing Capabilities
The plastic compounding market is expected to expand at a favorable CAGR of ~6% during the forecast period. However, there is a need to boost the availability of more lightweight, durable, and low-emission materials since current trends are indicating an oversupply of raw materials. Thus, stakeholders are cutting on their R&D budgets and rather leaning on testing activities, along with distribution partners to expand business streams. Companies are increasing their focus on technical assistance due to increasing demand for innovative designs and materials in the plastic industry.
Manufacturers are seen investing in laboratory infrastructure to upgrade and experiment with the value of polymers or polymer systems through melt blending and mixing of additives to a polymer matrix.
Get an idea about the offerings of our report from Report Brochure
Reduced Vehicle Weight via Sustainable Compounding Helps in Achieving Fuel Efficiency
Vehicle fuel efficiency is being linked with plastic compounding. The ever-evolving automotive industry is creating stable revenue streams for stakeholders in the global plastic compounding market. Houston-based Ascend Performance Materials has declared an acquisition pact with Tehe Engineering Plastic and NCM Co. Ltd. to expand their compounding assets in China. Companies are taking efforts to invest in R&D centers with immense focus on existing applications in the automotive, electronics, and consumer goods sectors.
Stakeholders are gaining proficiency in sustainable compounding to strengthen their position in the automotive industry. The craze of lightweight vehicles among Gen-Z population to achieve fuel efficiency is driving plastic manufacturers in the plastic compounding market to innovate in sustainable compounding. Reduced vehicle weight is the key to combat the risk of carbon emissions from an automobile. Such trends are fueling plastic compounding activities in the automotive industry.
Twin-screw Compounding, Additives Enhance Impact Strength of Thermoplastics
Thermoplastic compounding is gaining prominence in consumer goods, medical, and 3D (3 Dimensional) modeling applications. Companies in the plastic compounding market are increasing their production capabilities in long-fiber reinforced thermoplastics. Oak Tree Engineering - a specialist in thermoplastics compounding is incorporating a wide range of additives, polymers, fillers, and colorants in thermoplastics to meet demanding needs of clients in the automotive, consumer goods, and 3D modeling applications.
Plastic is the material choice for most consumer goods. Manufacturers in the plastic compounding market are using twin-screw compounding and additives to enhance the flexibility, impact strength, and flame retardance of thermoplastics. These thermoplastics compliment consumer goods approved for food contact and pet use. Manufacturers are making use of chemical and mechanical knowledge to ensure that thermoplastics are free from raw materials that may concern consumers.
Pre-work Testing, Post-blending Testing Help Manufacture High Quality Products
Specialty compounding is being used to enhance UV protection and electrical conductivity in plastics. Epsilon Carbon Pvt. Ltd. - a leading manufacturer of coal tar derivatives, is acquiring recognition for specialty compounding and is using a blend of pigments, carrier resins, and masterbatches to strengthen the properties of plastic.
On the other hand, custom polymer compounding is gaining popularity in the plastic compounding market. Companies are increasing their R&D capabilities for feedstock testing, in-process testing, and final quality control testing to gain a competitive edge over other market players. Pre-work testing and post-blending testing help to qualify the base raw materials to ensure high performance characteristics in products. In-process testing helps to ensure client requirements are being met at every step.
Indian Companies Joining Forces with German Partners to Create Niche Products
Asia Pacific is predicted to dictate the plastic compounding market during the assessment period in terms of volume in 2020. This is evident since companies in India are incorporating fully automated plants to make sure of material quality and safe working environment for its employees. APPL Industries Limited - a polymer compounding pioneer in India is being highly publicized for its world-class compounding products made with robust R&D support and quality standards.
Extensive involvement in research and development is helping manufacturers in expansion of multiple locations and along with multiple clients. Companies in the India plastic compounding market are entering into joint ventures with companies based in Shanghai, Germany, and the U.S. to introduce niche products in the market. Such strategies are helping to broaden their revenue streams and carve a new level of trust in existing and prospective partners.
Plastic V/S Metal: Which is Better?
Apart from automotive, electronics and construction, manufacturers in the plastic compounding market are extending their supply arms in defense, irrigation, and furniture applications. Underground cables and appliances are catalyzing the demand for plastic compounding. With the help of advanced materials, plastics are being transformed to exhibit high tensile strength as compared to most metals. Injection molding companies are capitalizing on these trends, since low manufacturing cost of plastic and design flexibility is being preferred in various end-use cases.
Switching to plastic is found to deliver cost savings, as multiple metal parts can be combined into one plastic part. Companies in the plastic compounding market are able to save on manufacturing time and eliminate the need for fasteners & assembly. Moreover, color can be added to plastic components, which also eliminates the need for paints.
Looking for Regional Analysis or Competitive Landscape in Plastic Compounding Market for Performance OEM , ask for a customized report
Virtual knowledge-sharing and networking events are gaining prominence in the plastic compounding market during the coronavirus pandemic. The market is estimated to reach the value of US$ 107.6 Bn by 2031. Plastics made from advanced materials help to deploy better dimensional stability and design flexibility than metals. However, the growing plastic waste is affecting the environment. Hence, companies should engage in sustainable compounding such as in the case of the automotive industry where stakeholders are increasing efforts to develop lightweight vehicles to decrease the risks of emissions from automobiles and deliver fuel efficiency. Companies should increase focus on thermoplastics to advance in medical, 3D modeling, and consumer goods applications.
Plastic Compounding Market: Overview
- In terms of value, the global plastic compounding market is expected to reach US$ 107.6 Bn by 2031, expanding at a CAGR of ~6% during the forecast period
- Plastic compounding is a process wherein various materials (polymers and additives) are mixed and melted together, generally in an extruder, which is later pelletized. The material derived through pelleting is later processed into final products (finished or semi-finished).
- Increase in demand for plastics in construction, automotive, and electrical & electronics sectors is likely to be a major factor driving the global plastic compounding market. Synthetic polymers such as PVC, PE, PC, PP, and PU have been traditionally used in various applications including packaging, electronic components, and automotive components.
- According to Transparency Market Research’s latest research report on the global plastic compounding market for the actual year 2020 and the forecast period of 2021 to 2031, rise in demand for plastic compounding in various end-use sectors and presence of stringent regulations on the usage of plastics, especially in developed economies, are likely to boost the plastic compounding market during the forecast period
Increase in Demand for Plastic Compounding in End-use Industries: Key Driver of Plastic Compounding Market
- The building & construction industry has been expanding at a rapid pace. According to a report published by the United Nations, the current world population of 7.6 billion is projected to reach 8.6 billion in 2030, 9.8 billion in 2050, and 11.2 billion in 2100. The population is likely to require vast infrastructure. This is anticipated to fuel construction activities, thereby propelling the demand for construction materials and plastic compounding products. Regulatory intervention to reduce gross vehicle weight to improve fuel efficiency and ultimately reduce carbon emissions is prompting automotive OEMs to adopt plastics as substitutes to metals such as steel and aluminum in the fabrication of automotive components. Increase in demand for reinforced thermoplastic and thermosets in automotive component fabrication is boosting the global plastic compounding market.
Growth in Consumer Demand for Green Plastics to Drive Bio-based Plastic Compounding Market
- High performance grades of bio-plastics are available in the marketplace. Key players in the market such as NEC Corporation, Clariant International, AMI LLC, and RTP Company have made investments in the bio-plastics sector in order to enhance compatibility and address environmental aspects of polymers.
- Clariant International has introduced bio-based processing and dispersing additives for biopolymers such as Licocare RBW Vita range, Licolub FA 1, and Licowax C
- In 2020, NEC Corporation with its NEC platform commenced the sales of ‘NeCycle,’ a high functional bio-plastic solution that contains nearly 50% of non-edible plant ingredients and biodegradables
- RTP Company is also manufacturing bio-plastic compounds that contain 20% to 80% bio-content by weight in order to cater to the rising consumer demand for alternative ‘green’ materials
- Thus, increase in consumer demand for green plastics is encouraging manufacturers to seek alternative sources with relatively lower carbon footprint. This, in turn, is anticipated to drive the demand for bio-based plastic compounds over the next few years.
Plastic Compounding Market: Prominent Types
- Based on type, the global plastic compounding market has been divided into polyvinyl chloride (PVC), polyethylene (PE), polypropylene (PP), polystyrene (PS), polyamide (PA): (PA 6, PA 66, PA 46), polyethylene terephthalate (PET), polybutylene terephthalate (PBT), Acrylonitrile Butadiene Systems (ABS), and others
- Polyvinyl chloride (PVC) is expected to be the leading type segment of the global plastic compounding market during the forecast period due to the rise in demand for PVC in building & construction and automotive applications. It is anticipated to be a rapidly growing segment of the market in the near future.
- The polyethylene (PE) segment is also estimated to expand substantially during the forecast period
Automotive to be Major Application Area
- Based on application, the global plastic compounding market has been classified into automotive, building & construction, electrical & electronics, packaging, medical, consumer goods, industrial machinery, and others
- The automotive application segment is projected to dominate the global plastic compounding market during the forecast period. Automotive application segment was a high-value application segment of the global plastic compounding market in 2020.
Asia Pacific to be Highly Lucrative Regional Market
- In terms of region, the global plastic compounding market has been be split into Europe, Latin America, Asia Pacific, North America, and Middle East & Africa
- Asia Pacific is estimated to be a prominent region of the global plastic compounding market in terms of value in the near future. Increase in demand for plastic compounding in various applications, rapid industrialization, improvement in economic conditions, supportive government policies, and availability of cheap labor and natural resources are factors fueling the plastic compounding market in the region.
Plastic Compounding Market: Competition Landscape
- Key manufacturers operating in the global plastic compounding market include
- BASF SE
- Covestro AG
- Celanese Corporation
- Sojitz Corporation
- Clariant International
- Citadel Plastics
- DSM N.V.
- Arkema Group
- AMI LLC
- RTP Company
- Kingfa Science & Technology Co., Ltd.
Plastic Compounding Market: Key Developments
- Some of major developments in the global plastic compounding market are highlighted below:
- In January 2021, Celanese Corporation, a global chemical and specialty materials company, announced a price increase in the overall engineering plastics segment, particularly attributing to the strengthening demand for its products and increase in transportation, energy, and raw material prices. As a result, the company’s polyamides and PET prices are likely to rise by about US$ 0.15 to US$ 0.2 per kg.
- In the global plastic compounding market report, we have discussed individual strategies, followed by company profiles of providers of plastic compounds. The ‘Competition Landscape’ section has been included in the report to provide readers with a dashboard view and company market share analysis of key players operating in the global plastic compounding market.
Plastic Compounding Market – Scope of the Report
The new study on the global plastic compounding market published by Transparency Market Research (TMR) presents a wealth of information on key market dynamics including drivers, market trends, and challenges, as well as structure of the global plastic compounding market. TMR’s study offers valuable information on the global plastic compounding market to illustrate how growth would discern during the forecast period of 2021 to 2031.
Key indicators of market growth, which include value chain analysis as well as supply chain analysis and compounded annual growth rate (CAGR), are elucidated in TMR’s study in a comprehensive manner. This data can help readers interpret quantitative growth aspects of the global plastic compounding market during the forecast period.
An extensive analysis of leading market players’ business strategies is also featured in TMR’s study on the global plastic compounding market. This can help readers understand principal factors to foresee the growth of the global plastic compounding market. In this study, readers can also find specific data on avenues for qualitative and quantitative growth of the global plastic compounding market, which would guide market players in making apt decisions in the near future.
Key Questions Answered in TMR’s Study on Plastic Compounding Market
- What would be the Y-o-Y growth rate of the global plastic compounding market between 2021 and 2031?
- What is the influence of changing trends on the global plastic compounding market?
- Would Asia Pacific continue to remain the most profitable region for manufacturers of plastic compounding in the near future?
- Which factors are expected to hamper the global plastic compounding market during the forecast period?
- Which are the leading companies of the global plastic compounding market?
A unique research methodology is utilized by TMR to conduct a comprehensive research on the global plastic compounding market and arrive at conclusions on growth prospects for the market. This research methodology is a combination of primary and secondary research, which helps analysts warrant the accuracy and reliability of the conclusions drawn.
Secondary sources referred to by analysts during the production of the report on the global plastic compounding market include statistics from company annual reports, SEC filings, company websites, World Bank database, investor presentations, regulatory databases, government publications, and market white papers. Analysts also interviewed senior managers, fiber type portfolio managers, CEOs, VPs, and market intelligence managers, who contributed to the production of TMR’s study on the global plastic compounding market as a primary source.
These primary and secondary sources provided exclusive information during interviews, which served as a validation from leading players operating in the global plastic compounding market. Access to an extensive internal repository and external proprietary databases allows this report to address specific details and questions about the global plastic compounding market with accuracy. The study also uses the top-down approach to assess numbers for each segment and the bottom-up approach to counter-validate them. This has helped in making TMR’s estimates on future prospects of the global plastic compounding market more reliable and accurate.
Plastic Compounding Market – Segmentation
TMR’s study on the global plastic compounding market segments the market based on type, source, application, and region. Changing market trends and other crucial market dynamics associated with these segments of the global plastic compounding market are discussed in detail.