Top 5 Companies in the Plastic Compounding Market: Key Drivers for Future Growth
RELEASE DATE: Sep 2024 Author: Spherical Insights Request Free Sample
What is Plastic Compounding?
The process of compounding involves combining ingredients and polymers in a molten state to create plastics formulations with the appropriate properties. Polymer compounding is a method of combining various reinforcements, filler substances, or agents with base polymers to produce plastic compounds that have been tailored specifically and have improved qualities. The plastics manufacturing sector has come to rely heavily on this technology since it can enhance the usefulness, efficiency, and longevity of plastic products.
Growth Factors and Future Prospects in the Plastic Compounding Industry
1. Upgrading Infrastructure Development with Plastic Compounding
The regularity of building projects for homes and businesses in developing nations encourages infrastructure development, while customer awareness of aesthetic interiors drives demand for these materials in interior designs. It is anticipated that the growing construction industry will help the plastic compounding market. PVC and CPVC play a major role in the environmentally friendly operation of this business through a variety of products, such as piping, cables, wires, waterproofing membranes, and timber PVC composites.
2. Growing consumer demand for plastic products
Growing consumer demand for plastic products contributes to the market's expansion. Because plastic items can form tight seals, their strong weather ability has many advantages. Excellent hygienic and safety qualities for food packaging. It is easier to transport because it is lightweight and has a higher strength-to-weight ratio than the other materials. Plastic compounding is used in toys, electronics, cars, building, textiles, packaging, and medical equipment, among other industries. These elements contribute to the market expansion for plastic compounding.
3. Developments in compounding technique
The application of sophisticated technology in plastic compounding, together with the advancement of bio-based and biodegradable additives. Plastic compounding advances by offering new approaches for a more ecologically friendly and sustainable future. Advanced plastic compounding technology may help overcome issues such as quality control, equipment costs, and environmental considerations. Advanced technologies are required to meet the unique plastic compounding needs of many industries such as healthcare, construction, packaging, electronics, and automotive. These reasons contribute to the growth of the plastic compounding industry.
4. Rising Demand for Lightweight Materials for Automobile Components
The automotive sector's growing demand for lightweight, low-emission automobiles is predicted to fuel the sector's explosive development. In order to reduce emission levels and improve fuel efficiency, compounded plastics are the ideal lightweight substitute for steel or other heavy metals. By extending the lifespan of automobile components and improving the fuel economy of vehicles, the usage of these plastics in automotive parts is predicted to significantly expand the global market.
Key Market Insights:
The global plastic compounding market size was valued at USD 66.25 billion in 2023 and is projected to USD 125.75 billion by 2033, exhibiting a CAGR of 6.62% during the forecast period 2023-2033. Several prominent companies within the global Plastic Compounding industry are SABIC, Avient Corporation., BASF SE, DuPont, Kingfa Science & Technology (India) Limited, Covestro AG., Celanese Corporation, Solvay, Asahi Kasei Corporation, LyondellBasell Industries Holdings B.V.
Regional Expansion
Asia Pacific generated the most revenue share because of the growth in demand from emerging industries like automobiles electrical and technology, and infrastructure. Plastic composites are becoming more and more in demand in the building industry because of their growing use in flooring, storeroom tanks, pipes, lines, and performance safety windows and doors. Infrastructure development is being aided by the expansion of domestic and marketable systems in developing nations like China and India. Economic opportunities in the market are expected to arise from the expansion of automotive, electronic, and electrical element manufacturing facilities throughout Asia-Pacific.
List of Key Companies in the Plastic Compounding Industry
- SABIC
- Avient Corporation
- BASF SE
- DuPont
- Kingfa Science & Technology (India) Limited
- Covestro AG
- Celanese Corporation
- Solvay
- Asahi Kasei Corporation
- LyondellBasell Industries Holdings B.V.
Top 5 Players in the Plastic Compounding Industry
1. BASF SE
Headquarters: Ludwigshafen, Germany
BASF SE is a multinational chemical corporation. It manufactures, markets, and sells chemicals, plastics, agricultural protection products, and performance items. BASF has subsidiaries and joint ventures in more than 80 countries, with six integrated manufacturing sites and 390 additional production locations throughout Europe, Asia, Australia, the Americas, and Africa. BASF serves customers in more than 190 countries and provides products to a diverse range of sectors. The material category contains isocyanates, polyamides, inorganic fundamental components, and specialty for the polymers and plastics manufacturing sectors. The corporation was formed on April 6, 1865, and its headquarters are in Ludwigshafen am Rhein, Germany.
2. SABIC
Headquarters: Riyadh, Saudi Arabia
Saudi Basic Industries Corp is a Saudi Arabian company that produces chemicals. Hadeed, Agri-nutrients, and Petrochemicals and Specialties are the company's three main business segments. Products in the Petrochemicals and Specialties section are made from hydrocarbon feedstock, such as propane, ethane, and methane. A variety of fertilizers, such as urea, ammonia, and phosphate, as well as compound fertilizers, are also produced. The Hadeed is involved in the manufacturing of flat, long, and steel items. The Petrochemicals and Specialties business generates the highest revenue for the corporation. Geographically, Europe is where it makes the most money.
3. DuPont
Headquarters: Delaware, United States
DuPont is one of the globe's biggest chemical enterprises. Worldwide specialty chemicals conglomerate with a diverse portfolio, DuPont was established in 2019 following the separation and merging of DowDuPont. Specialty chemicals and downstream goods for the electronics, water, construction, safety and protection, automotive, and healthcare sectors are part of its offering. DuPont intends to split the business into three moving forward: an electronics-focused firm, a water-focused company, and a company with a broader exposure to end markets. They anticipate the divisions to happen by the middle of 2026. It also supplies premium-quality parts, fluids, and particular silicone elastic materials to the aerospace, automobile, gadgets, commercial, and medical care sectors; photopolymer plates and plate making structures utilized for flexographic the printing process, as well as digital inks for textile, advertisement, and home-office printing applications. These components are utilized in creating solid and flexible displays for natural light-releasing diode and other show applications.
4. Covestro
Headquarters: Leverkusen, Germany
Covestro is a prominent worldwide provider of advanced polymer materials and the application solutions made possible by them. The main office of the Covestro Group, Covestro AG, is located in Leverkusen, Germany. It is part of the German stock exchange's DAX, the country's top index, and is listed there as well. All administrative tasks are handled centrally. The Covestro Grop employed 16,501 individuals as of December 31, 2020, and was made up of 47 integrated firms spread over 22 countries. The company found polycarbonates and polyurethanes in the middle of the 20th century, and it leads the market in both of these goods. It also has a substantial specialty chemicals division that specializes in adhesives and coatings. Furniture, construction, and other cyclical end sectors are the main drivers of demand for Covestro's goods.
5. Celanese
Headquarters: Texas, United States
The American technology and specialized materials firm Celanese Corporation, originally known as Hoechst Celanese, is based in Irving, Texas. That company is on the Fortune 500. With an annual production of 1.95 million tonnes, or almost 25% of the world's total, the corporation is the world's largest manufacturer of acetic acid. Additionally, Celanese is the world's biggest manufacturer of monomer made of vinyl acetate. Celanese one of the biggest producers of acetic acid worldwide also produces downstream derivative chemicals from acetic acid that are used in adhesives and coatings among other end uses. The business is also among the biggest manufacturers of specialty polymers, which are utilized in the consumer, building, electronics, automotive, and medical end sectors. The business also produces derivatives of cellulose for use in cigarette filters.
Recent Development
1. In August 2024, SABIC, a pioneer in diverse chemicals globally, and the Fujian government signed an upcoming financing contract under the direction of the Saudi Ministry of Energy to construct an engineering thermoplastic materials compounding factory in the Fujian Province of China.
2. In June 2024, Covestro declared that it has started formal talks with Abu Dhabi National Oil Co. (Adnoc), including the sharing of corporate data.
3. In June 2023, leading petrochemical producer SABIC has partnered with Polivouga, a producer of flexible film products, to introduce the novel TRUCIRCLETM initiative.
4. In May 2023, DuPont revealed that it has finalized a deal to buy AEA Investors Spectrum Plastics Group.
5. In August 2022, Avient Corporation, a prominent worldwide supplier of customized and environmentally friendly material solutions, revealed that contingent upon approval from regulatory agencies, it has finalized an agreement to sell its Distribution division to a subsidiary of H.I.G. Capital for a cash price of $950 million.
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