Recently, Grand View Research (an US consultancy firm) has just announced a new study on compounding market. According to this study, the global plastic compounding market is expected to reach $661.65 billion (~£422.75 billion) by 2022.
Over the next seven years, increasing plastics demand across automotive, electrical and electronics and construction might drive the global plastic compounding market. Besides, 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.
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 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.
Global plastic compounding market demand was 230.22 million tonnes in 2014 and is expected to reach 332.08 million tonnes by 2022, growing at 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 mould-ability, 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.
(According: www.prw.com)