PUBLISHER: Grand View Research | PRODUCT CODE: 1433653
PUBLISHER: Grand View Research | PRODUCT CODE: 1433653
The global polypropylene compounds market size is estimated to reach USD 39.21 billion by 2030, growing at a CAGR of 7.8% from 2024 to 2030, according to a new report by Grand View Research, Inc. The major factor contributing to the growth of the polypropylene (PP) compounds market is the rising demand for lightweight and high-performing plastics in the automotive industry.
There has been a shift in the trend toward manufacturing lightweight vehicle components owing to the stringent environmental regulations issued by the government to promote fuel economy. Polypropylene, being plastic, is lightweight and therefore positively influences the efficiency of the vehicle. Increasing incorporation of plastics in automotive components and the simultaneous rise in the production of electric passenger cars and heavy-duty vehicles, particularly in Asia and Central & South America, are expected to propel the growth of PP compounds over the forecast period.
The glass fiber reinforced segment is expected to lead the market from 2024 to 2030. Glass-reinforced polypropylene offers higher tensile strength, enhanced heat resistance and significantly improved stiffness. This product is commonly used in structural components that require the aforementioned properties and are predominantly a part of furniture, appliances, and automotive applications.
The electrical & electronics application segment is expected to grow at a CAGR of 7.8% from 2024-2030. Polypropylene compounds are used in electrical and electronics industry owing to their benefits such as weight reduction, thermal & electrical insulation, and miniaturization. Their demand has propelled over the past years due to increased use of advanced features such as high-density data storage. Moreover, the use of PP compounds has enabled the development of higher performing, affordable and convenient electronic equipment that are recyclable owing to its halogen-free nature.
Europe emerged as the third-largest market for PP compounds and accounted for a market share of around 21.0% in 2023. Europe is one of the prominent manufacturers of automobiles and is expected to continue its dominance in this sector over the forecast period. The rising demand for lightweight electric and hybrid vehicles, along with the presence of major automotive manufacturers, including AUDI AG, BMW AG, Mercedes-Benz AG, Automobili Lamborghini S.p.A., and Porsche Austria GmbH & Co. in this region, makes it a hub for the automotive industry.