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    Polypropylene Compound Market Growth Analysis

    Polypropylene Compound Market Growth Analysis
    Report code - SR2186 Published On : Aug,2023 No. of Pages: 145
    Polypropylene Compound Market Size, Share, Trend, Forecast, & Industry Analysis &ndash See more...

    Market Insights

    The Polypropylene Compound Market is likely to grow at a promising CAGR of 4.3%, in the long run, to reach US$ 16.1 Billion in 2028.

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    What are Polypropylene compounds?

    Polypropylene compounds are materials produced by combining polypropylene resin with various additives, fillers, reinforcements, or modifiers to enhance their properties. These properties make them suitable for use in automotive parts, consumer goods, construction products, electrical components, packaging materials, and various industrial applications

    Market Dynamics

    The market is driven by the rising demand for lightweight and high-performing plastics in the automotive industry. PP compounds are used in a variety of parts in automobiles, including bumper facias, instrument panels, and door trims. The electrical & electronics industry is increasingly incorporating PP compounds into their products, such as washing machines, refrigerators, dishwashers, and tumble dryers, to achieve improved thermal stability and mechanical stiffness. For the building & construction industry, PP compounds help reduce heat transfer between different areas of a building, enhance energy efficiency, and maintain comfortable indoor temperatures, making them a preferred insulating material.

    Manufacturers are focusing on developing PP compounds that incorporate recycled materials and bio-based additives. Major companies, such as LyondellBasell Industries Holdings B.V., Mitsui Chemicals, Inc., and Mitsubishi Chemical Corporation, are focused on the development of recycled PP compounds.

    Recent Product Developments: The companies are highly focused on developing sustainable, flame-retardant, and cost-effective PP compounds.

    • SABIC has introduced two new short-glass fiber-reinforced polypropylene (PP) compounds, namely G3430X and G3440X grades. They have the potential to replace long glass fiber PP in certain low-temperature applications, such as automotive under-the-hood, exterior, and interior applications, offering a cost-effective alternative.
    • Borealis has unveiled a new range of PP compound grades specifically designed for automotive applications. These compounds are a blend of post-consumer recycled (PCR) material and virgin content.

    Recent Market JVs and Acquisitions: Major companies are looking to advance the development of their PP compound businesses to enhance their product offerings and capabilities. There have been a few strategic developments that have shaped the competitive dynamics in the market in the last few years. For instance:

    • In 2022, MOL Group and SAPPI partnered to create PRIMOLEN NF, an eco-designed PP compound that integrates natural fibers to substitute mineral fillers for automotive interior and semi-structural applications.
    • In 2020, Kingfa collaborated with ExxonMobil to develop and achieve advanced PP8285E1. This high-flow, high-impact copolymer resin is ideal for a variety of tough car parts, including instrument panels, door panels, consoles, and bumper fascias.
    • In 2019, MOL Group acquired Aurora Kunststoffe GmbH to extend the petrochemical portfolio with higher value-added products. With this acquisition, MOL expanded its range of high-quality polyamide, polypropylene, and other recyclate-based compounds, complementing its existing portfolio.

    Covid-19 Impact

    The emergence of the pandemic in 2020 left the automotive industry in shambles. The industry stakeholders incurred heavy losses and were forced to resort to extreme measures and reorient their age-old strategies in order to ensure survival and long-term stability. The industry’s rebound had a mirroring impact on the PP compounds market.

    Segments Analysis

    Segmentations

    List of Sub-Segments

    Dominant and Fastest-Growing Segments

    End-Use Industry Analysis

    Automotive, Building & Construction, Electrical & Electronics, and Others

    Automotive is expected to remain the largest market over the next five years, whereas electrical & electronics are likely to grow at the fastest pace.

    Filler-Type Analysis

    Mineral Filled Compound, Glass Reinforced Compound, Additive Concentrates, Compounded TPO/TPVs, and Others

    Mineral filled compound to maintain an unwavering share in terms of value and volume during the forecast period.

    Polymer-Type Analysis

    Homopolymer, Random Copolymer, and Impact Copolymer

    Impact copolymer maintains an unrivaled lead in the market until 2028, whereas random copolymer is anticipated to be the fastest-growing segment.

    Regional Analysis

    North America, Europe, Asia-Pacific, and The Rest of the World

    Asia-Pacific is expected to remain the largest market over the next five years.

    By End-Use Industry Type

    The PP compounds market is segmented into automotive, building & construction, electrical & electronics, and others. Automotive continues to dominate as the leading end-use industry for plastics, particularly PP, due to its mechanical properties and moldability, with usage expected to increase in automotive components over the next five years. Bumpers, door panels, interior trims, engine components, and fuel tanks are some applications where PP compounds are widely preferred. Mineral-filled and compounded TPO/TPVs is the predominantly used filler types in this industry.

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    By Filler Type

    The market is segmented into mineral-filled compounds, glass reinforced compounds, additive concentrates, compounded TPO/TPVs, and others. Mineral is a dominant filler with usage in a variety of end-use industries due to its ability to offer a balance of performance, cost-effectiveness, weight reduction, heat resistance, dimensional stability, flame retardancy, and improved surface finish. Mineral fillers, such as calcium carbonate, talc, and mica, are added to compounds to deliver a low-cost option. Alumina trihydrate (ATH) and magnesium dihydroxide (MDH) are added to offer flame-retardant properties.

    By Polymer Type

    The market is segmented into homopolymer, random copolymer, and impact copolymer. Impact copolymer is expected to remain the largest segment during the forecast period. Impact copolymers are engineered with additives and modifiers that improve their ability to withstand impacts and resist cracking or breaking. Ethylene Propylene Rubber (EPR) and Ethylene Propylene Diene Monomer (EPDM) have been used in PP compounds for a long time as a result, there is an established supply chain and infrastructure in place for their production, distribution, and processing.

    Regional Analysis

    By region, Asia-Pacific is expected to remain the largest market for PP compounds during the forecast period. China, Japan, and India are major automobile manufacturing hubs that are fueling the demand for PP compounds in the region. On the other hand, the second-leading position captured by Europe in the market is driven by the changing market landscape. This region is also home to key PP compound producers such as LyondellBasell, Borealis, ExxonMobil, SABIC, and TotalEnergies.

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    Key Players

    The market is highly populated, with the presence of more than 100 local, regional, and global players. Most of the major players compete on some of the governing factors, including price, product offerings, regional presence, etc. These players have distinct capabilities for manufacturing PP compounds using a multitude of materials. They have been increasing their R&D investments to cope with the high demand arising from various industries. The major players, such as LyondellBasell, Mitsui Chemicals, and Mitsubishi Chemical Corporation, are increasing production capacities of PP compounds to capitalize on the growing market and enhance their competitiveness in the industry. The following are the key players in the PP compounds market.

    • LyondellBasell Industries Holdings B.V.
    • Mitsui Chemicals, Inc.
    • Kingfa SCI. & TECH. CO., LTD.
    • Mitsubishi Chemical Corporation
    • Washington Penn
    • Borealis AG
    • Sumitomo Corporation
    • Exxon Mobil Corporation

    Research Methodology

    This strategic assessment report, from Stratview Research, provides a comprehensive analysis that reflects today’s PP compounds market realities and future market possibilities for the forecast period. The report segments and analyzes the market in the most detailed manner in order to provide a panoramic view of the market. The vital data/information provided in the report can play a crucial role for market participants as well as investors in the identification of the low-hanging fruits available in the market as well as to formulate the growth strategies to expedite their growth process.

    This report offers high-quality insights and is the outcome of a detailed research methodology comprising extensive secondary research, rigorous primary interviews with industry stakeholders, and validation and triangulation with Stratview Research’s internal database and statistical tools. More than 1,000 authenticated secondary sources, such as company annual reports, fact books, press releases, journals, investor presentations, white papers, patents, and articles, have been leveraged to gather the data. We conducted more than 15 detailed primary interviews with market players across the value chain in all four regions and industry experts to obtain both qualitative and quantitative insights.

    Report Features

    This report provides market intelligence most comprehensively. The report structure has been kept such that it offers maximum business value. It provides critical insights into the market dynamics and will enable strategic decision-making for the existing market players as well as those willing to enter the market.

    What Deliverables Will You Get in this Report?

    Key questions this report answers

    Relevant contents in the report

    How big is the sales opportunity?

    In-depth analysis of the Polypropylene Compound Market

    How lucrative is the future?

    Market forecast and trend data and emerging trends

    Which regions offer the best sales opportunities?

    Global, regional, and country level historical data and forecasts

    Which are the most attractive market segments?

    Market segment analysis and forecast

    Which are the top players and their market positioning?

    Competitive landscape analysis, Market share analysis

    How complex is the business environment?

    Porter’s five forces analysis, PEST analysis, Life cycle analysis

    What are the factors affecting the market?

    Drivers & challenges

    Will I get the information on my specific requirement?

    10% free customization

    Report Customization Options

    With this detailed report, Stratview Research offers one of the following free customization options to our respectable clients:

    Company Profiling

    • Detailed profiling of additional market players (up to three players)
    • SWOT analysis of key players (up to three players)

    Competitive Benchmarking

    • Benchmarking of key players on the following parameters: Product portfolio, geographical reach, regional presence, and strategic alliances

    Custom Research: Stratview Research offers custom research services across the sectors. In case of any custom research requirement related to market assessment, competitive benchmarking, sourcing and procurement, target screening, and Others, please send your inquiry to sales@stratviewresearch.com

    Frequently Asked Questions (FAQs)

    The Polypropylene Compound Market is estimated to grow at a CAGR of 4.3% by 2028, driven by a rapid shift toward electric vehicles, which is creating an attractive business opportunity for polymers, including PP compounds. The demand for PP compounds is also driven by the increasing production of vehicles and the introduction of lighter materials to reduce the average cars weight.

    The Polypropylene Compound Market is likely to reach US$ 16.1 Billion in 2028.

    LyondellBasell Industries Holdings B.V., Mitsui Chemicals, Inc., Kingfa SCI. & TECH. CO., LTD., Mitsubishi Chemical Corporation, Washington Penn, Borealis AG, Sumitomo Corporation, and Exxon Mobil Corporation are the leading players in the PP compound market.

    Asia-Pacific is anticipated to remain dominant during 2023-2028, propelled by China's and India's continuous developments and ardent efforts to develop excellent supply chains for the automotive industry.

    Automotive is likely to remain the major demand generator in the coming years. The demand for fuel-efficient vehicles, electric mobility, and the shift towards lighter materials contribute to the growth of the PP compounds market in the automotive industry.

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