Polypropylene Compounds Market Growth & Trends
The global polypropylene compounds market size is anticipated to reach USD 35.19 billion by 2028, according to a new report by Grand View Research, Inc., growing at a CAGR of 7.6% over the forecast period. Increasing requirement for flame retardancy and improved heat resistance and serviceability of plastics in the electrical & electronics industry is the primary factor driving the growth of the global market. In addition, regulations in western markets, including the EU and the U.S., which are aimed at vehicular weight reduction are further fueling the demand for polypropylene (PP) compounds in the automotive industry.
The mineral-filled product segment is expected to hold a dominant market share owing to the superior properties of these products, such as higher heat distortion and rigidity. The most widely used minerals in the PP compound include talc, glass beads, mica, silica, and calcium. Low-cost production in China has led to a surge in new polymer production, which is driving the market to oversupply. Furthermore, rising population, rapid industrialization, and increase in consumer disposable income levels are some of the key socio-economic factors supporting market growth in the region.
The global market is the second-largest polymer business in the world, which contributes more than 25% of the overall polymer demand. Basic raw materials required for producing chemicals include feedstock, such as crude oil, natural gas, and other sources. Numerous companies in the industry have begun manufacturing the raw materials themselves to combat the supply-demand imbalances and meet the uncertainty of crude oil prices.
Polypropylene Compounds Market Report Highlights
- The global market was valued at USD 17.59 billion in 2020 and is estimated to grow at a CAGR of 7.6% from 2021 to 2028
- Mineral filled PP compounds will continue to be the largest product segment of the global market over the forecast period
- In terms of revenue, Asia Pacific accounted for the largest share of more than 46% of the global market in 2020 and is estimated to register the fastest CAGR over the next eight years
- The growth of the APAC regional market is attributed to the rapid expansion of the end-use industries, such as automotive, and electrical & electronics, in emerging economies like China and India
- Europe is estimated to account for the second-largest revenue share of the global market by 2028