Modified Polypropylene Market Size, Share & Trends Analysis Report By Application (Automotive, Medical, Electrical & Electronics, Building & Construction, Packaging), By Region, And Segment Forecasts, 2021 - 2030

Report Overview

The global modified polypropylene market size was valued at USD 34.12 billion in 2020 and is expected to expand at a compound annual growth rate (CAGR) of 5.5% from 2021 to 2030. The growth of the market is attributed to the use of modified polypropylene in the automotive, electrical and electronics, packaging, medical, building and construction, and other industries. The automotive industry has witnessed growth due to technological advancements, rising disposable income, and population shift towards electric vehicles. In addition, the growing demand for materials as a replacement for metals to reduce weight is propelling the demand for modified polypropylene in the automotive, electrical and electronics, building and construction, and other industries.

Modified polypropylene exhibits a perfect balance between toughness and stiffness, excellent surface finish, and easy processability, making it suitable for various applications. The COVID-19 drove a shift to remote working and increased voice traffic, residential broadband, and mobile data. The telecom industry responded favorably to this challenge with several operational improvements to ensure the user experience stayed positive. The growth of the telecommunication industry is expected to drive the demand for modified polypropylene as an insulation material in electrical and electronics applications.

China accounted for a significant revenue share in the market in 2020. The automotive industry is one of the top pillars of the Chinese economy. Automotive components were traditionally made using steel or other alloys, which resulted in a higher weight of these components, reducing the vehicle's performance and an increase in carbon emissions. Moreover, the increasing prices of metal alloys due to the rising mining and mineral processing costs resulted in increased overall vehicle costs. Modified polypropylene is produced from blending polypropylene with other polymers and offers superior properties compared to other polyolefins.

Food safety is a significant concern globally for which countries have been imposing stringent rules and regulations. These regulations have promoted the utilization of modified polypropylene in packaging solutions. Modified polypropylene does not contain bisphenol A and eliminates the risk of leaching of chemicals in packaged foods. In addition, increasing trade among countries and the need for safer transportation of products have led to an increase in the demand for industrial packaging. This has resulted in increased demand for modified polypropylene in the global packaging industry.

Application Insights

The automotive application segment dominated the market and accounted for a revenue share of more than 65.0% in 2020. The automotive industry encourages designers and engineers to deliver energy-efficient vehicles due to the declining oil and gas reserves. Moreover, the vehicular weight regulations and standardization of emission norms are anticipated to boost the demand for modified polypropylene in automotive applications. The properties including high impact resistance, abrasive resistance, and good UV resistance augment the demand for modified polypropylene in automotive components.

Modified polypropylene exhibits softness, high clarity, chemical resistance, and good processability, which is expected to grow the demand for modified polypropylene in packaging applications. Increased health awareness, changing lifestyle, and convenience of consumption have driven the market for packaged food. The emergence of COVID-19 has resulted in the increased importance of packaged foods and medical devices. Modified polypropylene has high bacterial and chemical resistance, making it suitable for medical products.

Modified polypropylene is used in building and construction applications due to its ability to endure weather conditions. It is used in manufacturing pipes for plumbing in building structures and water barrier membranes for roofing solutions. Growing urbanization in the developing economies, coupled with infrastructure development activities, is expected to fuel the growth of the construction industry, thereby creating a demand for modified polypropylene.

Regional Insights

China dominated the market for modified polypropylene and accounted for a revenue share of over 20.0% in 2020. China has established automotive and electrical and electronics sectors. Major electrical OEMs have set up manufacturing facilities in China, which is anticipated to increase the demand for modified polypropylene. The automotive industry has developed in China and other Asia Pacific countries like Japan, India, and South Korea. On account of its impact resistance, modified polypropylene is extensively used in rear and front bumpers and manufacturing other interior components in automobiles.

The growing demand from the e-commerce and logistics industry for commercial vehicles is one of the major factors driving the automotive industry in North America. Lightweight materials such as modified polypropylene reduce the overall weight of the cars and improve fuel efficiency. Additionally, technology-based electronic devices have witnessed rising demand in North and South America due to the advancements in innovation and technology. This is anticipated to further grow the market in North and South America.

Rising investments in the development of the healthcare industry in East Europe are expected to drive the demand for modified polypropylene due to its broad range of applications in manufacturing IV bags, tubing, syringes, and other medical equipment. The commercial construction sector in the Middle East has grown significantly due to the thriving tourism business. This is anticipated to boost the demand for trucks and other commercial vehicles required for supporting the construction activities, thereby driving the market for modified polypropylene.

Key Companies & Market Share Insights

The market has been characterized by the presence of key players, along with a few medium and small regional players. Established players such as Borealis AG are developing modified polypropylene suitable in various applications, giving them an edge over their competitors.

For instance, in August 2021, Borealis AG introduced Daploy HMS PP products, which can be blended with the full range of standard PP extrusion grades and other polyolefin products. This offers the opportunity to widely tailor the foam properties to meet the particular demands of the end-use applications. Some prominent players in the global modified polypropylene market include:

• LG Chem

• SABIC

• LyondellBasell Industries Holdings B.V.

• Kingfa Sci. & Tech Co., Ltd.

• PetroChina Company Limited

• PolyPacific

• Arkema

• JIANGYIN EXCEN

• China XD Plastics Co., Ltd.

• Covestro AG

Modified Polypropylene Market Report Scope

Segments Covered in the Report

This report forecasts revenue and volume growth at the global and regional levels and provides an analysis of the latest industry trends and opportunities in each of the sub-segments from 2017 to 2030. For this study, Grand View Research has segmented the global modified polypropylene market report based on application and region:

• Application Outlook (Volume, Tons; Revenue, USD Million, 2017 - 2030)

  • Automotive

  • Building & Construction

  • Packaging

  • Medical

  • Electrical & Electronics

  • Others

• Regional Outlook (Volume, Kilotons; Revenue, USD Million, 2017 - 2030)

  • North America

  • South America

  • West Europe

  • East Europe

  • China

  • Asia Pacific

  • Northeast Asia

  • Southeast Asia

  • Middle East

  • Africa