Global plastic compounding market to cross US$661 bln By 2022

Global Plastic Compounding Market is estimated to grow to US$661.65 bln by 2022 from US$419.14 bln in 2014, growing at a CAGR of 5.9% from 2015 to 2022, according to Grand View Research. Increasing plastics demand across automotive, construction and electrical & electronics industries is expected to drive global plastic compounding market over the next seven years. Shift in trend towards substituting glass and metal with plastics across various end-use industries is also expected to have a positive influence on the market growth. Rapid industrialization and urbanization in emerging markets of Asia Pacific and Latin America are expected to fuel construction activities. This in turn is expected to provide growth opportunities to market participants. Olefins emerged as the largest product and accounted for over 50% of the total market volume in 2014. Growing demand for polyethylene, particularly LDPE, in packaging and transportation is has been a major factor contributing towards olefin compounding. Increasing TPO and TPV demand in automotive applications such as exterior panels, interior trims and flooring is expected to drive olefins demand over the next seven years. Further key findings from the study suggest: • * Global plastic compounding market demand was 230.22 mln tons in 2014 and is expected to reach 332.08 mln tons by 2022, growing at a CAGR of 4.7% from 2015 to 2022. • * Automotive emerged as the leading application segment and accounted for 33.7% of total market volume in 2014. Plastic composites have 85% less specific gravity compared to metals and can make up to 80% weight savings and 30-50% cost savings in individual components. Plastics are extensively being preferred over metals in automotive applications owing to superior impact strength, easy moldability, improved aesthetics, scratch resistance, cabin insulation, recyclability and being lightweight. Currently, an average car consists of around 10-15% plastics of total curb weight and increasing regulatory intervention is expected to drive plastics composition to approximately 18% by 2020. This trend is expected to drive plastic compounding market growth in automotive industry. • * Construction is expected to register highest plastic compounding demand growth over the forecast period. Increasing plastics demand in high performance safety windows, floorings, storage tanks, insulation materials, roofing, domes/sky lights, pipes, doors and cables is expected to complement plastic compounding market growth in construction industry. • * Global plastic compounding market is fairly concentrated in nature with top four companies accounting for over three quarters of the overall market share. However, large number of small compounders particularly in Asia Pacific poses threats to these multinational corporations in terms of their price and service offered. Major companies operating in the global market include LyondellBasell, Kingfa, DuPont, A. Schulman, Bayer, Kraton Polymers, BASF and Dow Chemical Co.