Plastic Compounding Market Size, By Product (Thermoplastic Polymers [Polyethylene, Polypropylene, Polyester, Polycarbonate, Polyethylene Terephthalate, Polyvinyl Chloride], Thermosetting Polymers [Polyurethane Resin, Epoxy Resin], Thermoplastic Elastomers [Polyamides, Polyurethanes, SBC]), By Industry (Consumer Goods, Electrical & Electronics, Construction, Automotive, Aerospace), Industry Analysis Report, Regional Outlook, Growth Potential, Price Trends, Competitive Market Share & Forecast, 2020 - 2026
It is estimated that global plastic compounding market size will experience substantial growth by 2026, largely influenced by factors including growth in the construction industry, increased product application in the automotive sector, and rising consumer goods sales worldwide.
Based on the product, plastic compounding industry is segmented into thermosetting polymers, thermoplastic polymers, thermoplastic elastomers, and others. The others segment consists of biobased plastics and polymers such as PHA, PHB, polylactic acid (PLA), corn and starch. These products are slated to witness a notable demand in the forthcoming years as they are made from plant derivatives and serve as an ecofriendly option.
Automotive, construction, aerospace, consumer goods, and electrical & electronics, among others are the major end-users of plastic compounding products. The others segment includes food processing, agricultural films, and the healthcare sector, where the product is used in manufacturing numerous medical devices and equipment. Plastic compounding market size from others segment is expected to grow substantially by 2026.
Healthcare sector is likely to emerge as a major consumer of plastic compounding products. In addition to medical devices and equipment, plastic and polymer materials are also used in packaging of these products and pharmaceuticals.
In terms of the geographical outlook, Latin America plastic compounding industry is poised to record commendable gains by 2026. The regional demand can be attributed to rapid expansion of the construction sector in Brazil, Cuba, Colombia, and Peru. An improved petrochemical trading scenario with countries in the Middle East will certainly bolster the regional outlook.
In addition, the regional automotive sector, which has witnessed tremendous growth in recent years, will provide favorable opportunities for regional manufacturers. In 2016, the total automotive sales in Latin America led by Brazil and Mexico surpassed 3.7 million units will increased substantially by 2026. These trends will certainly boost the demand for plastic and polymer materials in automotive applications.
Further elaborating on the regional landscape, the plastic compounding market in Middle East and Africa will experience robust growth in the future. Due to its dependence on the oil sector, the region has been significantly exposed to economic instability. Consequently, MEA countries have been exploring ways to diversify their source of income by investing in the downstream petrochemicals sector.
Additionally, increased infrastructure expenditure for construction of residential, commercial and industrial spaces combined with increased consumer income levels is likely to propel the demand for a variety of plastic compounding products ranging from pipes to plastics packaging.
The development of industrial centers such as the Rabigh Conversion Industrial Park in Saudi Arabia and the Abu Dhabi Polymer Park in the UAE are a few government initiatives launched in order to attract the attention of global investors. Increasing government investments in development of the downstream petrochemical sector will undeniably complement MEA plastic compounding industry trends.
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