Automotive Plastic Compounding Market To Reach $4.54 Billion By 2030

Automotive Plastic Compounding Market Growth & Trends

The global automotive plastic compounding market size is estimated to reach USD 4.54 billion by 2030, expanding at a CAGR of 6.44% from 2025 to 2030, according to a new report by Grand View Research, Inc. The market is projected to register substantial growth due to the rising demand for lightweight electric and hybrid vehicles, along with the presence of major automotive manufacturers.

Key automotive manufacturers are establishing their production and R&D facilities which have created lucrative opportunities for the plastic compounding market. Furthermore, the growing usage of high-performance plastic compounded components by manufacturers to achieve weight reduction and fuel efficiency in passenger as well as sports cars have augmented the demand for plastic compounds globally.

Automotive is one of the developed industries in India. Several factors including population growth, rapid urbanization, rising disposable incomes, and diminishing unemployment rate in India have played an important role in developing automobile manufacturing in the country.The demand for automotive components fuels the demand for polypropylene compounds in the automotive industry over the forecast period.

Polyamide (PA) compounds are widely used across automotive applications due to their rigidity, sliding friction, dimensional stability, and chemical resistance. Polyamide is used to replace metal in automotive parts, where design flexibility and temperature & chemical resistance are critical. It has an excellent surface appearance and exceptional chemical, heat, & fatigue resistance. The aforementioned properties contribute to its widespread automotive application scope, in turn, boosting the product demand globally.

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Automotive Plastic Compounding Market Report Highlights

• Asia Pacific dominated the overall market, while North America is expected to grow at the fastest CAGR in terms of revenue over the forecast period. The rise in automobile production in the North America region particularly in Canada and the U.S. are likely to drive market growth

• Polypropylene (PP) accounted to be the largest product segment in the global market in 2024 and is also anticipated to dominate the market over the forecast period

• Interior dominated the application segment in the market accounting for over 44.65% in terms of revenue. The developing technologies in the manufacturing of lightweight interior parts of automotive is expected to boost the market over the forecast period

• In June 2024, Borealis launched a new product called Borcycle GD3600SY, a glass-fiber reinforced PP compound that incorporates 65% post-consumer recycled (PCR) materials. This innovative compound is to be first utilized in the Peugeot 3008 for center console carriers, marking a significant advancement in automotive sustainability.

Automotive Plastic Compounding Market Segmentation

Grand View Research has segmented the global automotive plastic compounding market based on product, application, and region:

Automotive Plastic Compounding Product Outlook (Volume, Kilotons; Revenue, USD Million, 2018 - 2030)

• Polypropylene (PP)

• Polyethylene (PE)

• Thermoplastic elastomers (TPE)

• Polybutylene Terephthalate (PBT)

• Polyamide (PA)

• Polycarbonate (PC)

• Acrylonitrile Butadiene Systems (ABS)

• Styrene Acrylonitrile (SAN)

• Polymethyl methacrylate (PMMA)

• Polyoxymethylene (POM)

• Blends (PC/ABS, ABS/PBT, PS/PP)

Automotive Plastic Compounding Application Outlook (Volume, Kilotons; Revenue, USD Million, 2018 - 2030)

• Interior

• Exterior

• Under the Hood

• Structural Parts

• Electrical Components & Lighting

• Others

Automotive Plastic Compounding Regional Outlook (Volume, Kilotons; Revenue, USD Million, 2018 - 2030)

• North America

  • U.S.

  • Canada

  • Mexico

• Europe

  • Germany

  • France

  • UK

  • Italy

  • Netherlands

  • Austria

  • Switzerland

  • Hungary

  • Czech Republic

• Asia Pacific

  • China

  • India

  • Japan

  • South Korea

  • Indonesia

  • Thailand

• Latin America

  • Brazil

  • Argentina

• Middle East & Africa

  • South Africa

  • Saudi Arabia

List of Key Players in Automotive Plastic Compounding Market

• LyondellBasell Industries Holdings B.V.

• BASF SE

• SABIC

• Dow

• Ferro Corporation

• Ascend Performance Materials

• Washington Pen

• Ravago

• KRATON CORPORATION

• Chevron Phillips Chemical Company LLC

• SCG Chemicals Public Company Limited