The Global Glass-Reinforced PP Compound market size is projected to reach US$2.7 billion by 2027, after growing at a CAGR of around 7.5% from 2022 to 2027. The glass-reinforced PP compound is a composite material that consists of thermoplastics such as polypropylene reinforced with the glass fibers. This thermoplastic polymer offers superior properties such as lubricity, flame retardance, conductivity and multifunctional performance, thereby having growing application in the market. The high demand for short glass fibers reinforced PP compound as a replacement for engineering plastics and metals in the automotive sector for high heat-extensive applications create a major drive in the global glass-reinforced PP compound market. Furthermore, the increasing demand of PP compounds for plastics usage across major end use industries such as construction, electronics and others will offer major growth in the Global Glass-Reinforced PP Compound market size during the forecast period.
Global Glass-Reinforced PP Compound Market COVID-19 Impact
The global Glass-reinforced PP compound industry faced major destruction and slow down during the pandemic. The glass-reinforced PP compound has major application in the automotive sector. The halt in production, logistics restrictions, supply chain disturbance and other lockdown restrictions created a major fall in the automotive sector. The fall in automotive manufacturing and distribution activities, disturbance in raw material supply and closure of vehicle manufacturing sites led to a slowdown in growth for the automotive industry. According to the International Organization of Motor Vehicle Manufacturers (OICA), the global automotive production fell sharply by 5.25 in the year 2019. Thus, the application of glass-reinforced PP compound saw a major fall due to a decline in demand in major end use industries, thereby faced a major hamper in growth and slowdown during the covid-19 pandemic phase.
Report Coverage
The “Global Glass-Reinforced PP Compound Market Report– Forecast (2022-2027)” by IndustryARC, covers an in-depth analysis of the following segments of the global glass-reinforced PP compound industry.
Key Takeaways
- The Global Glass-Reinforced PP Compound market size will increase owing to its growing demand in automotive applications for batteries, energy and transmission, door panels and others during the forecast period.
- <span times="" new="" roman";mso-fareast-theme-font:="" minor-fareast;mso-bidi-font-family:calibri;mso-bidi-theme-font:minor-latin"="" style="box-sizing: border-box;">The Asia Pacific is the fastest-growing region in the global glass-reinforced PP compound industry owing to flourishing end-use sectors such as construction, automotive, electronics and others, along with high demand for reinforced PP compound for major industries in this region.
- <span times="" new="" roman";mso-fareast-theme-font:="" minor-fareast;mso-bidi-font-family:calibri;mso-bidi-theme-font:minor-latin"="" style="box-sizing: border-box;">The demand of short glass fibers reinforced PP compounds is high due to superior features such as strength, heat resistance, cost-efficiency and others.
<span times="" new="" roman";mso-fareast-theme-font:="" minor-fareast;mso-bidi-font-family:calibri;mso-bidi-theme-font:minor-latin"="" style="box-sizing: border-box;">
Global Glass-Reinforced PP Compound Market Segment Analysis – By Application
By application, the engine and transmission segment is the fastest-growing segment and is expected to grow with a CAGR of around 9.2% during the forecast period. The engine and transmission segment held a significant portion of the Global Glass-Reinforced PP Compound market share in 2021. The glass-reinforced PP compounds such as TPO and TVP PP have growing demand for the energy and transmission application in the automotive vehicles. The short glass fibers reinforced PP is widely used in the engine and transmission application due to high stiffness and heat resistance and lightweight features. Furthermore, the flourishing electric vehicle and light vehicles production across the globe is propelling the demand for PP compound for maximum fuel efficiency. According to the Society of Indian Automobile Manufacturers (SIAM), the total production of passenger vehicles, three wheelers, two wheelers and quadricycle in India was reported at 1,874,461 units in April 2022. Thus, with increase in the application of glass-reinforced PP compound for engine and transmission system in the vehicles, the global glass-reinforced PP compound market will grow rapidly during the forecast period.
Global Glass-Reinforced PP Compound Market Segment Analysis – By End-Use Industry
By end-use industry, the automotive segment held the largest Global Glass-Reinforced PP Compound market share in 2021, with a share of over 30%. The glass reinforced PP compound has growing demand in the automotive sector due to wide range of applications such as batteries, engine transmission, door panels and others. Moreover, the rise in demand for thermylene or reinforced polypropylene thermoplastic compounds as a replacement for engineering plastics and metal in the automotive production is boosting the growth in the market. According to the National Automotive Dealers Association (NADA), the sales of new-light vehicles in U.S. for 2021 accounted for 14.93 million units, showing an increase of 3.1% compared to 2020. The flourishing manufacturing activities for electric vehicle, commercial and passenger vehicles are propelling the demand in the glass-reinforced PP compounds market. Thus, with major demand in the automotive industry, the global glass-reinforced PP compounds industry will grow rapidly during the forecast period.
Global Glass-Reinforced PP Compound Market Segment Analysis – By Geography
By geography, the Asia-Pacific is the fastest-growing region in the Global Glass-Reinforced PP Compound market and is expected to grow with a CAGR of around 9.7% during the forecast period. The Asia-Pacific region held a significant portion of the Global Glass-Reinforced PP Compound market share in 2021. The robust growth of glass-reinforced PP compound in this region is influenced by its rising demand across major end use industries, along with growing production base in APAC region. Moreover, the rise in electronics production in countries such as China, Japan, India and others is propelling the demand in the market, owing to its flourishing usage in consumer electronics and other electrical components. According to the India Brand Equity Foundation (IBEF), the consumer electronics and appliances sector in India stood at US$ 9.84 billion in 2021 and is expected to reach US$ 21.18 billion by 2025. Furthermore, the growing application of glass-reinforced PP compounds thermoplastic polymer in the automotive for vehicle interior and exterior, batteries and others is influencing the robust growth of glass-reinforced PP compound in this region. Thus, with major development projects in major end-use industries and high demand of reinforced PP compounds in Asia Pacific, the global glass-reinforced PP compound industry will grow rapidly during the forecast period.
Global Glass-Reinforced PP Compound Market– Drivers
Replacement of metals and engineering plastics by glass-reinforced PP compounds
The glass-reinforced PP compound thermoplastics is replacing the engineering polymers and metals due to its cost-effectiveness, mechanical strength and moldability properties. The flourishing usage of glass-reinforced polypropylene compounds as a better alternative for metals and engineering polymers in light automotive vehicles is offering major drive in the market. The PC/ABS is replaced by glass-reinforced PP compounds such as TPO for application in bumpers, centre consoles and side pillars. According to the International Trade Administration (ITA), the sales of commercial vehicles in China reached 5.23 million units in 2020, an increase of 20% from 2019. Thus, with rise in preference of reinforced PP thermoplastics as a better alternative for metals and engineering plastics, the global glass-reinforced PP compound industry is experiencing major growth opportunities.
High demand for applications in the construction sector
The glass-reinforced polypropylene compounds have major applications in the building and construction sector. The short glass fiber, as well as long glass fiber reinforced PP, has growing usage in building materials owing to its superior features such as improved creep resistance, tensile strength, long-term heat resistance and light weight features. Moreover, the rise in demand for lightweight thermoplastic polymers such as glass-reinforced PP compound in the construction materials is offering major drive in the market. According to the World Bank data, the global construction sector added value of 26% in the GDP for the year 2020. The growing construction and building projects across the globe is influencing the high demand for the global glass-reinforced and providing growth opportunities.
Global Glass-Reinforced PP Compound Market– Challenges
Volatile raw material prices
The global glass-reinforced PP compound industry faces major challenge and growth restraints due to volatility in raw material prices. The propylene is the primary raw material that is utilized in the process production of polypropylene. Moreover, price increases for glass fibers and crude oil, which is used as raw material in polypropylene thermoplastic compound, thereby creating a disturbance in the market. According to the U.S. Energy Information Administration (EIA), the WTI crude prices in quarter 4 of 2020 were USD 37.12 per barrel, which rose to USD 63.91 per barrel in quarter 4 of 2021. Thus, due to increase in raw material prices for reinforced PP compound and volatility, the global glass-reinforced PP compound industry faces hamper and slowdown.
Global Glass-Reinforced PP Compound Industry Outlook
The global glass-reinforced PP compound top 10 companies include:
- Mitsui Chemicals, Inc.
- Japan Polypropylene Corporation
- Saudi Basic Industries Corporation
- POLYONE Corporation
- LyondellBasell Industries Holdings B.V.
- Kingfa Sci. & Tech. Co., Limited
- Washington Penn Plastic Co., Inc.
- Borealis AG
- Sparsh Polychem Private Limited
- Ravago S.A.
Recent Developments
- In October 2021, the SABIC opened new polypropylene compounding line with the aim to fulfill the growing automotive demand and boosts the supply in the market.
- In April 2021, the Mitsubishi Chemical planned to acquire a major stake in polypropylene (PP) compound producing subsidiary of joint venture Japan Polypropylene in order to reinforce the PP compound business.
- In February 2021, the Sumitomo Chemical decided to establish Sumika Polymer Compound Sp.z.o.o in order to enhance the PP compound business.
Relevant Reports
Report Code: CMR 42130
Report Code: CMR 18842
Report Code: CMR 66833
For more Chemicals and Materials Market reports, please click here
