Automotive Plastic Compounding Market Size, Share & Trends Analysis Report By Product (Polypropylene, Polyethylene), By Application (Interior, Exterior, Under the Hood, Structural PartsOthers), By Region And Segment Forecasts, 2023 - 2030

Automotive Plastic Compounding Market Growth & Trends

The global automotive plastic compounding market size is expected to reach USD 4.54 billion by 2030, registering a CAGR of 5.3% from 2023 to 2030, according to a new study by Grand View Research, Inc. The market is projected to register substantial growth due to the rising demand for lightweight electric and hybrid vehicles, along with the presence of major automotive manufacturers.

Key automotive manufacturers are establishing their production and R&D facilities which have created lucrative opportunities for the plastic compounding market. Furthermore, the growing usage of high-performance plastic compounded components by manufacturers to achieve weight reduction and fuel efficiency in passenger as well as sports cars have augmented the demand for plastic compounds globally.

Automotive is one of the developed industries in India. Several factors including population growth, rapid urbanization, rising disposable incomes, and diminishing unemployment rate in India have played an important role in developing automobile manufacturing in the country.The demand for automotive components fuels the demand for polypropylene compounds in the automotive industry over the forecast period.

Polyamide (PA) compounds are widely used across automotive applications due to their rigidity, sliding friction, dimensional stability, and chemical resistance. Polyamide is used to replace metal in automotive parts, where design flexibility and temperature & chemical resistance are critical. It has an excellent surface appearance and exceptional chemical, heat, & fatigue resistance. The aforementioned properties contribute to its widespread automotive application scope, in turn, boosting the product demand globally.

Automotive Plastic Compounding Market Report Highlights

• Asia Pacific dominated the overall market, while North America is expected to grow at the fastest CAGR of 4.8% in terms of revenue over the forecast period. The rise in automobile production in the North America region particularly in Canada and the U.S. are likely to drive market growth
• Polypropylene (PP) accounted to be the largest product segment in the global market in 2022 and is also anticipated to dominate the market over the forecast period
• Interior dominated the application segment in the market accounting for over 45.0% in terms of revenue. The developing technologies in the manufacturing of lightweight interior parts of automotive is expected to boost the market over the forecast period
• In March 2022, Repsol announced the partnership with Ravago to construct the largest polypropylene (PP) compounding factory in Morocco for the automobile sector. The factory, which is set to open in mid-2023, will have an annual capacity of 18,500 tons of PP compounds. Interior applications such as door and instrument panels, consoles and pillars, external applications such as bumpers or lighting systems, and under-bonnet sections like heating systems and engine panels will be developed.

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