The global plastic compounding industry size is set to gain traction from their increasing usage in the automotive and packaging industry. Besides, construction activities in emerging economies are increasing at a fast pace. In addition to that, ongoing technological advancements in the electrical and automotive industries would affect the market positively in the coming years. The demand for these products is also growing from the food and beverage industry as they help in reducing quality degradation and contamination.
As per the report, the plastic compounding market size stood at USD 52.74 billion in 2018. It is set to reach USD 87.11 billion by 2026, thereby exhibiting a CAGR of 6.5% during the forecast period.
Drivers & Restraints-
Increasing Number of Commercial & Residential Projects to Augment Growth
Nowadays, plastics are being used extensively in the insulation of infrastructures and buildings. Several products required for construction are made mainly by utilizing plastics. These include pipes, cables, doors, safety windows, and flooring. Compounded plastics possess numerous features that are similar to steel. They are resistant to harsh environmental conditions and rust, have robust strength, and are smooth in texture.
In today’s world, the population is growing at a rapid rate across the globe. It is, in turn, upsurging the number of residential and commercial projects. Coupled with this, the rising awareness programs about state-of-the-art interiors are growing amongst the consumers. These factors are set to augment the plastic compounding market growth during the forthcoming years. However, the prices of raw materials required to produce compounded plastics keep on fluctuating. It may obstruct the market growth.
Regional Analysis-
Asia Pacific to Dominate Owing to High Demand for Low Emission Vehicles
Geographically, the market is divided into Europe, Asia Pacific, the Middle East and Africa, North America, and Latin America. Amongst them, Asia Pacific is anticipated to generate the highest plastic compounding market revenue in the coming years. The majority of this growth would be contributed by China and India, mainly because of the rising demand for low emission vehicles. It is helping the automotive sector to expand.
Asia Pacific is considered to be the largest producer of construction, automobiles, industrial machinery, electrical & electronics, and packaging materials. Coupled with this, the ongoing economic development and growing industrialization are set to impact the market positively in this region. The U.S. in North America previously held the largest share stoked by high demand for plastic compounding from healthcare & pharmaceutical, as well as electrical & electronics industries. The region procured USD 10.02 billion market share in 2018. In Europe, Germany is likely to be the main contributor of growth on account of the rising production of electric vehicles.
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