Having amassed a breathtaking remuneration of around USD 32 billion in 2016, Plastic Compounding Market has emerged as one of the most lucrative verticals of the global polymers and advanced material industry. These enormous proceeds can be majorly attributed to the dynamically transforming trends across diverse business verticals, especially the automotive sector. It is prudent to mention that the burgeoning automotive sector of late, has been making concerted efforts toward reducing vehicular weight by replacing metal components with parts made of plastic. In a bid to lower the fuel consumption and promote electric and hybrid vehicles, various governments across the globe have been laying out stringent regulations regarding the vehicular weight, given that fuel consumption and vehicle weight are co-related. As a consequence, the automotive industry has been extensively deploying thermoplastic polymers, a major plastic compounder, in manufacturing light-weight vehicles, a phenomenon that would eventually go on to vigorously spur the growth prospects of plastic compounding market over the estimated timeframe.
U.S. plastic compounding market size, by end-user, 2013 - 2024 (USD Billion)
As per estimates, thermoplastic polymers commanded a significant chunk of plastic compounding industry share, with the segment commanding a total market share in excess of 50 percent in 2016. Elaborating further upon the growth outlook of plastic compounding market, thermoplastic polymers segment is projected to be the frontrunner among the vast product portfolio of this industry space. To substantiate the aforementioned statements and demonstrate the criticality of thermoplastic polymers in plastic compounding market, a noteworthy acquisition deal that is anticipated to conclude in the immediate future needs to be cited. Celanese Corporation, a renowned Fortune 500 firm partaking in specialty chemicals market, has now focused on establishing itself as the leading plastic compounding industry player. Apparently, the US-based company has recently announced to acquire one of the foremost thermoplastic compounding firms of the nation, Omni Plastics along with its subsidiaries. Reportedly, this buyout is bound to strengthen Celanese Corp’s compounding capacity in the U.S., as the company expects to blend the thermoplastic compounding product range of Omni Plastics, which is majorly utilized in automotive applications, with its existing manufacturing capability. Apparently, bearing in mind the impact of such strategic acquisitions and partnerships, the U.S. plastic compounding industry, which held around 18 percent of total market share in 2016, is slated to expand at a swift pace in the ensuing years.
Speaking of the regional growth outlook of plastic compounding industry, the Asia Pacific region is estimated to lead the overall market size over the estimated time span. With the presence of a large number of developing economies including India, Japan, China, Australia, Malaysia, Indonesia, and Thailand among others, the Asia Pacific region’s automobile industry held the highest share in the global automobile sale accounting in excess of 40 million units of passenger cars, trucks and light commercial vehicles in 2016. Out of which China recorded a sales figure of 28 million vehicles, dominating the automobile sales space. To cite an instance of the growing reliability of plastic compounding industry in China’s automotive sector, LyondellBasell has recently commenced a new 20,000 tonnes per annum polypropylene compounding facility in China. Interestingly, the latest plant is the third such project of the leading plastic compounding market giant that aims to serve China’s automobile industry which is poised to grow at a significant pace in the forthcoming years. The cutting-edge facility would reportedly leverage the firm’s advanced polypropylene technology to manufacture specialized plastic compounders, which would further boost the growth potential of China’s plastic compounding market. Needless to say, such dynamic trends indicate rapid expansion scope for plastic compounding industry in the Asia Pacific region, which boasted of a total market share of 40 percent in 2016 among all the regions.
Concurrently, the growth of various end-user verticals including consumer goods, aerospace, electrical and electronics, and construction augurs well for the global plastic compounding industry. As per a recent research report collated by Global Market Insights, Inc., plastic compounding market is forecast to surpass an impressive USD 50 billion by 2024, in terms of remuneration.