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The global plastic compounding market size is projected to reach USD 87.11 billion by 2026. Compounded plastic possesses numerous features, namely, enhanced energy-saving, improved weathering, refined barrier resistance, lightweight, aesthetic appeal, low density, high flexibility, and better durability. By using additives during compounding, one can achieve these properties. Thus, the rising creation of additives by various manufacturers is likely to affect the market positively in the coming years.
The information mentioned above is given by Fortune Business Insights™ in a recently published report, titled, “Plastic Compounding Market Size, Share & Industry Analysis, By Type (Polyethylene, Polypropylene, Poly Vinyl Chloride, Polystyrene, Polyethylene, Polybutylene Terephthalate, Polyamide, Polycarbonate, Acrylonitrile Butadiene Styrene, and Others), By Application (Automotive & Transportation, Infrastructure & Construction, Electrical & Electronics, Packaging, Consumer Goods/Lifestyle, Industrial Machinery, Healthcare & Pharmaceuticals, and Others), and Regional Forecast, 2019-2026.” The report further states that the market stood at USD 52.74 billion in 2018. However, it is set to showcase a CAGR of 6.5% during the forecast period from 2019 to 2026.
BASF Expands its Compounding Plant in Mexico to Fulfill High Demand for Plastics
In May 2019, BASF SE, the second-largest chemical producer in the world headquartered in Germany, announced the expansion of its compounding plant located in Altamira, Mexico. It would now be able to upsurge the production capacity up to approximately 15,000 tons per year. At present, the company is offering local production of Ultramid® (PA: polyamide) and Ultradur® (PBT: polybutylene terephthalate) product lines. This expansion would allow BASF to meet the ever-increasing need for engineering plastics in Mexico.
Its global compounding capacity for PBT and PA is expected to reach more than 750,000 tons per year. Both PA and PBT would be utilized to make high-performance components for electrical and electronics, automotive, as well as furniture, appliance, and construction industries. The components consist of fastening elements, chairs, connectors, sensors, headlamp housings, engine mounts, and air intake manifolds.
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Extensive Usage of Plastic in Automotive Industry to Boost Growth
In the automotive industry, there is a high demand for lightweight and low-emission vehicles. It is anticipated to propel the plastic compounding market growth during the forecast period. Being lightweight, compound plastics are mainly used as the best-suited alternatives to heavyweight steel or metals. Usage of such plastics in automotive parts would increase not only the life of vehicle components but also spur vehicle efficiency. However, fluctuations in the prices of crude oil may hamper the growth of the market.
Key Players Focus on Acquisitions & Expansion Strategies to Strengthen their Positions
The market is highly fragmented. Companies are mainly focusing on broadening the variety of applications, enhancing the grades of compounded plastics, and refining their capabilities to gain a competitive edge. Industry giants, such as Celanese and BASF, are adopting the strategy of plant expansion and acquisition, respectively. They are also striving persistently to keep up with the latest plastic compounding market trends.
Noteworthy Industry Development:
Fortune Business Insights™ profiles a few of the most renowned organizations present in the plastic compounding market. They are as follows:
Further Report Findings-
The plastic compounding market can be segmented on the bases of:
Value (USD million)