Modified Polypropylene Market Growth & Trends
The global modified polypropylene market size is expected to reach USD 56.35 billion by 2030, according to a new report by Grand View Research, Inc. It is expected to expand at a CAGR of 5.5% from 2021 to 2030. The market is anticipated to grow due to the use of modified polypropylene in the automotive, electrical and electronics, packaging, building and construction, and medical industry across the globe. In modified polypropylene, the processing of polypropylene is done by adding glass fibers and thermoplastic rubbers to improve its impact resistance, flame retardancy, and other properties, thus expanding its scope of application in the above-mentioned industries.
Modified polypropylene exhibits superior flowability, high UV resistance, impact resistance chemical resistance, and negligible water absorption, which makes it suitable to be used in the manufacturing of front and rear-end bumpers, protective side strips, and mud guards.
The rising income of the population and improvements in the standard of living are driving the interior designing market and are influencing interior designers and furniture manufacturers to introduce new designs in the market. Moreover, the investments in the construction of smart cities, airports, and commercial buildings by governments across the globe are driving the demand for smart planning and technology integrated interior design services, which is anticipated to drive the market for modified polypropylene in furniture designing.
The construction industry in the developing countries, including Kenya and Nigeria, in the African continent, has witnessed growth in recent years due to the sizable refugee population and infrastructure development. In addition, the easing of geopolitical tensions in the country is a major factor for reconstruction, in turn, boosting the growth of the construction industry in the region. The growth in the construction industry is expected to boost the demand for modified polypropylene over the coming years.
Key players are carrying out strategic initiatives such as mergers and acquisitions to strengthen their position in the market. For instance, in June 2021, LyondellBasell Industries Holdings B.V. completed the acquisition of PolyPacific Polymers Sdn. Bhd. (PPM) in Port Klang, Malaysia. This acquisition is expected to bring a 25kt manufacturing facility producing reinforced and modified polyolefin compounds under the control of LyondellBasell Industries Holdings B.V. and strengthen its position in the market in the Asia Pacific region.
Modified Polypropylene Market Report Highlights
- The medical application segment is expected to register the highest CAGR of 6.6% over the forecast period in terms of revenue. This is attributed to the high bacterial and chemical resistance exhibited by modified polypropylene, making it suitable for medical applications
- The automotive application segment dominated the market and accounted for over 65.0% share of the overall revenue in 2020. This is attributed to the growing demand for modified polypropylene from the automotive industry due to its superior properties, thereby making it an alternative to metal alloys and improving the vehicle performance
- The packaging application segment is expected to grow in the years to come owing to the increased demand for modified polypropylene for the packaging of food products
- China led the market and accounted for over 20.0% share of the overall revenue in 2020. Major electrical OEMs have set up manufacturing facilities in China, which is anticipated to increase the demand for modified polypropylene