The global plastic compounding market is expected to grow considerably through 2032 owing to the growing use of plastic in construction activities, automotive, and aerospace industries.
The industry is likely to face certain setbacks due to the fluctuating crude oil prices, which may hinder market growth through the analysis timeframe. However, leading industry players are actively partaking in partnerships and acquisitions to expand their product portfolio in the overseas market. Moreover, some of the major organizations operating in the industry are taking up initiatives to improve the research & development process to foster product innovation, which will in turn help in propelling the market growth.
The plastic compounding market has been bifurcated in terms of type, application, and region.
Based on application, the construction segment is slated to grow at more than 5% CAGR from 2023 to 2032. Plastics are used in building activities owing to their durability and affordability. The primary applications of plastic in the building sector include insulation, flooring, walls, roofing, doors, and windows. Plastic screws, hinges, and larger plastic pieces used in flooring, decorations, waterproofing, and wall coverings are among the components employed in the sector.
Meanwhile, the automotive segment is anticipated to flourish at a faster pace over the review timeline. Regulations in Western markets, such as the EU and the U.S., are intended to reduce the weight of vehicles, which is the main factor driving the consumption of plastic in cars. Plastics have been used in place of metal parts in manufacturing processes, and vehicle designs have changed in an effort to reduce weight. Future applications of plastic compounding in the automotive sector will benefit from these characteristics.
From the regional perspective, the Asia Pacific plastic compounding industry is speculated to witness sizable growth by the end of the research period. In 2022, Asia Pacific was the largest and fastest-growing region in the plastic compounding industry. This will result in high demand for plastics in a variety of items in the upcoming years, which can be ascribed to increasing construction and the region’s consumer goods industry. The expansion of the APAC plastic compounding market is expected to be further fueled by the growing number of automobile production facilities due to the abundance of trained personnel and raw materials.
The competitive landscape of the plastic compounding market is largely recognized. Some of the key players involved in the industry include the Dow Chemical Company, LyondellBasell Industries, BASF SE, Kraton Corporation, Solvay SA, Owens Corning Corp., Aurora Plastics LLC, Foster Corporation, Saudi Basic Industries Corporation (SABIC), as well as RTP Company.