The global PP compound market for automotive industry is expected to
reach $17,324.8 million by 2031, with a CAGR of 5.6% during the forecast period
2021-2031. The growth in the market is expected to be driven mainly by the need
to reduce the weight of vehicles and demand for cheaper products that can be
used in automotive parts.
Growth of PP Compound Market for the Automotive Industry
Polypropylene compounds are a kind of resin made from a mixture of
one or more base polyolefins. This compound is the base resin that is then
mixed with different pigments and additives, which alter the characteristics of
the products accordingly depending on the intended use. These polypropylene
compounds offer varied applications such as electrical appliances, automotive,
building and construction, and furniture components.
Benefits of PP Compound
Polypropylene can provide some great benefits to manufacturers who use auxiliary parts of cars . For instance, if the car's bumper is made out of polypropylene, it will be more efficient and reduce fuel consumption on long drives. Alternatively, PP bumpers are more resilient than regular ones and won't break as easily!
They also help vehicles achieve greater fuel efficiency without
compromising their cockpit design. Polypropylene is also used to make
inexpensive components so manufacturers can keep costs low while generating
high levels of profit over time. Some examples of PP compound containing
components are bumpers, seat covers, interior panels, lighting instruments, and
doors handles.
Impact of COVID-19
Due to the pandemic brought on by COVID-19, the PP compound industry saw a substantial decrease in production due to many countries imposing indefinite quarantine orders. Automobile production in 2020 saw a decline of nearly 16% due to the impact of COVID-19. As automobile production declined, the demand for PP compounds also saw a sharp dip since these compounds are an essential component of most automobiles.
PP Compound Market for Automotive Industry
According to the market intelligence published by BIS Research, the global PP compound market for the automotive industry is expected to reach $17,324.8 million by 2031, with a CAGR of 5.6% during the forecast period 2021-2031.
Products covered under the PP compound for the automotive industry include thermoplastic polyolefins (TPO) and thermoplastic vulcanizate (TPV), mineral-filled, glass-reinforced, and additive concentrate. The market for thermoplastic polyolefin (TPO) and thermoplastic vulcanizates (TPV) is flourishing. Both TPO’s and TPV’s, among many other products in the compounding business, have a wide variety of applications in the automotive industry. They can be used to manufacture several different parts used in cars, such as body panels, bumpers, wheels, and covers, among many other components.
The compound market for PP is expected to grow primarily because of the need to reduce vehicles’ weight and demand for cheaper products that can be used in automotive parts.
Asia-Pacific (APAC) is the largest consumer of PP compounds, majorly
because of China, India, Japan, and South Korea being some of the largest
vehicle manufacturers globally. They produce more than 50% of all vehicles
produced around the globe every year.
Factors Influencing Growth of PP Compound Industry
The major influencing factors for the growth of the PP compound
market include
regulatory push to increase the adoption of lightweight materials, increasing
demand for long fiber polypropylene compound, increasing demand for pp
compounds in automotive interiors, and demand for materials that require
negligible paint processing.
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