The global polypropylene (PP) compounds market size is expected to reach US$28.24 bln by 2025, at a CAGR of 7.6% , according to a report by Grand View Research, Inc. Increasing requirement for flame retardancy, heat resistance, and improved serviceability of plastics in electrical and electronics industry is expected to be the primary driver for PP compounds market growth. In addition, regulations in western markets, such as European Union (EU) and U.S., aimed at vehicular weight reduction can further fuel demand for PP compounds in automotive industry.
Mineral filled polypropylene compounds is expected to be a dominant product segment over the forecast period owing to superior properties, such as higher heat distortion and rigidity. The most widely used minerals in polypropylene compounds 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 PP compounds market to oversupply. Furthermore, population expanse, rapid industrialization, and increase in consumer disposable income are some of the key socio-economic factors supporting regional market growth. The global polypropylene compounds market is the second largest polymer business in the world, which contributes more than 25% of the global polymer demand. Basic raw materials required for producing chemicals include feedstock, such as crude oil, natural gas, and other sources. Numerous market players have begun manufacturing raw materials on their own, to combat supply-demand imbalances and to meet the uncertainty of crude oil prices.
Key suggestions from the report include:
Compounded TPV is projected to emerge as the fastest growing product segment and is expected to register a CAGR of 6.4% between 2018 and 2025
Mineral filled PP compounds segment is projected to continue to be the largest product segment over the forecast period
Asia Pacific accounted for 45.9% of overall polypropylene (PP) compounds market in 2017 and is projected to experience significant growth over the next eight years owing to rapid expansion, especially in China, India, and South East Asia
Key players operating in the PP compounds market include LyondellBasell, ExxonMobil, PolyOne Corporation, Advanced Composites, Solvay SA, and Sumitomo Chemicals.