Automotive Plastic Compounding Market To Hit USD 6,063.1 Mn By 2033 at 6.0% CAGR: Dimension Market Research

Advancements and Projections in the Automotive Plastic Compounding Market: Insights, Trends, Opportunities, and Recent Developments

New York, May 28, 2024 (GLOBE NEWSWIRE) — Market Overview

Global Automotive Plastic Compounding Market size is estimated at USD 3,581.1 million in 2024 and is further anticipated to reach USD 6,063.1 million by 2033 at a CAGR of 6.0 % according to Dimension Market Research.

Plastic compounding is the process of blending different types of plastics, thermoplastics, and additives to improve their properties. The final products from this process have a wide range of desirable characteristics such as flame retardancy, conductivity, lightweight, and wear resistance.

Click to Request Sample Report and Drive Impactful Decisions:

These high-quality materials are in high demand across various industries including construction, automotive, packaging, and electronics, driving growth in the global plastic compounding market. In the automotive sector specifically, these compounds are replacing traditional metal parts, leading to safer vehicles by reducing overall weight.

Important Insights

  • The Automotive Plastic Compounding Market is expected to grow by USD 6,063.1 million by 2033 from 2025 with a CAGR of 6.0 %.
  • Polypropylene (PP) is anticipated to dominate with a maximum share of 71.5% in the global automotive plastic compounding market in 2024, due to the growing desire for lighter automobiles including electric vehicles.
  • Interior Components as application is expected to dominate the global automotive plastic compounding market with the largest revenue share of 33.2% in 2024, due to the increasing focus on the reduced weight of automobiles.
  • Asia-Pacific is predicted to dominate the automotive plastic compounding market with a revenue share of 45.6% in 2024, due to the lower cost production in countries like India & China.


  • Automotive manufacturers are teaming up with plastic compounders to create advanced materials for modern vehicle design and sustainability goals.
  • Collaboration among manufacturers aims to develop specialized plastics with enhanced electrical and thermal properties, which are crucial for integrating advanced features and smart technologies in vehicles.

Competitive Landscape

  • The automotive plastic compounding market provides comprehensive insights into key competitors, including company overviews, financials, revenue, market potential, and R&D investments.
  • In the protective packaging sector, many manufacturers are expanding plastic compounding in the automotive industry and seeking new product applications.
  • Concurrently, automobile manufacturers are focusing on optimizing pre- and post-production processes to keep pace with rapid technological advancements.

Some of the prominent market players:

  • Asahi Kasei Corporation
  • LyondellBasell Industries Holdings B.V
  • Dow
  • Ferro Corporation
  • Washington Pen
  • Ravago
  • KRATON Corporation
  • Covestro AG
  • DuPont
  • Other Key Players

Transform your business approach with strategic insights from our report. Get in touch to request our brochure today! :

Automotive Plastic Compounding Market Scope

Report Highlights Details
Market Size (2023) USD 3,581.1 Mn
Forecast Value (2033) USD 6,063.1 Mn
CAGR (2024-2033) 6.0%
Leading Region in terms of Revenue  Share Asia-Pacific
Percentage of Revenue Share by Leading Region 45.6%
Historical Data 2017 – 2022
Forecast Data 2025 – 2033
Base Year 2023
Estimate Year 2024
Segments Covered By Product, By Application
Regional Coverage North America, Europe, Asia Pacific, Latin America, Middle East & Africa (MEA)

Market Analysis

Polypropylene (PP) is expected to dominate the global automotive plastic compounding market in 2024, capturing up to 71.5% of the share. This substantial market share is attributed to the increasing demand for lighter vehicles, including electric vehicles (EVs). It is perfectly able to reduce vehicle weight & complexity making it a favored material among automotive manufacturers. Major players in the polypropylene market are showing significant growth opportunities with the automotive industry growing globally.

Additionally, polyethylene (PE) is projected to see notable growth during the forecast period due to its popularity stems from its excellent resistance to impact, abrasion, and chemicals, coupled with its durability, flexibility, low weight, and strength.

Purchase the Competition Analysis Dashboard Today:

Automotive Plastic Compounding Market Segmentation

By Product

  • Polypropylene (PP)
  • Polyethylene (PE)
  • Polycarbonate (PC)
  • Polybutylene Terephthalate (PBT)
  • Thermoplastic Elastomers (TPE)
  • Acrylonitrile Butadiene Systems (ABS)
  • Others

 By Application

  • Exterior Components
  • Interior Components
  • Under the hood Components
  • Electrical Components & Lightening
  • Others


  • Global Automotive Plastic Compounding Market growth is fueled by stricter emission norms and regulations concerning vehicle weight, aimed at reducing greenhouse gas emissions.
  • Increased demand for plastic compounds stems from their ability to enhance production yields and improve automotive product performance.
  • The automotive sector is significantly growing in the plastic compounding market, especially for parts such as bumper facias, instrumental panels, and door trims.
  • Plastic compounds are instrumental in improving production efficiency and the performance of automotive components.


  • Re-engineering plastics face challenges due to the significant capital and infrastructure investments needed. The Automotive Plastic Compounding Market is restraining the growth of the market due to insufficient technology, infrastructure, and a limited market for recycled materials.
  • Advanced recycling facilities utilize technologies like magnetic separation, eddy current separators, float-sink tanks, and laser and infrared systems to separate plastics based on color and material type.
  • The recycling process involves sorting and processing methods to obtain high-quality recyclates, posing obstacles to market growth.


  • The increasing adoption of electric vehicles is driven by technological advancements in the automotive industry.
  • Electric vehicles are recognized for their efficiency, energy independence, and superiority over gasoline-powered options.
  • They leverage lightweight materials to improve the engine’s pulling capacity.
  • The rising demand for electric vehicles presents fresh prospects for the automotive plastics compounding market, as these materials play a vital role in reducing vehicle weight.

Regional Analysis

The Asia Pacific region is expected to lead the global automotive plastic compounding market, accounting for 45.6% of the revenue in 2024, driven by a growing demand for automobiles, favored by supportive foreign direct investment policies from regional governments.

Additionally, the low production costs in countries like India & China are likely to boost the use of plastic compounding in the automotive sector. North America is the second-largest region after Asia-Pacific due to enhanced production capabilities, a robust automotive industry, & a favorable demographic dividend.

By Region

North America

  • The U.S.
  • Canada


  • Germany
  • The U.K.
  • France
  • Italy
  • Russia
  • Spain
  • Benelux
  • Nordic
  • Rest of Europe


  • China
  • Japan
  • South Korea
  • India
  • ANZ
  • Rest of Asia-Pacific

Latin America

  • Brazil
  • Mexico
  • Argentina
  • Colombia
  • Rest of Latin America

Middle East & Africa

  • Saudi Arabia
  • UAE
  • South Africa
  • Israel
  • Egypt
  • Rest of MEA

Click to Request Sample Report and Drive Impactful Decisions:

Recent Developments

  • February 2024: Modern Dispersions finalized and put into operation the initial stage of a multifaceted manufacturing expansion at its new 168-acre location in Fitzgerald, Georgia which is driven by robust demand in injection molding and extrusion applications across various sectors such as automotive, electronics packaging, and construction, with notable uses including pipe manufacturing and wire and cable production.
  • December 2023: Sirmax, an Italian plastic processing company, revealed to expand its plastic compounding operations in India, aiming for a production capacity of 20 kilotons per year.
  • November 2023: Borealis AG announced an expansion in the production of mechanically recycled plastic compounds, boosting its compounding capacity to more than 50 kilotons per year facilitated by ac4wq7quiring Rialti S.p.A., an Italian company specializing in polypropylene (PP) compounding from recycled materials.
  • May 2023: Lear, a leading automotive technology company, announced plans to establish a connection systems facility in Morocco which is dedicated to manufacturing components for automakers, suppliers, as well as Lear’s E-systems and seating units.
  • November 2022: Covestro AG and HASCO Vision partnered to recycle post-industrial plastics and transform them into high-quality post-industrial recycled polycarbonates and polycarbonate blends, and then provide them to HASCO to manufacture new automotive components.

Browse More Related Reports

  • Automotive Parts Packaging Market was valued at USD 9.9 billion in 2023, and it is further anticipated to reach a market value of USD 14.9 billion by 2033 at a CAGR of 4.7%.
  • Digital Railways Market is expected to reach a value of USD 69.8 billion in 2023, and it is further anticipated to reach a market value of USD 165.4 billion by 2032 at a CAGR of 10.1%.
  • Electrified Roads Market is expected to reach a value of USD 98.8 billion in 2023, and it is further anticipated to reach a market value of USD 236.2 billion by 2032 at a CAGR of 10.2%.
  • CNG Powertrain Market is expected to reach a value of USD 102.2 billion in 2023, and it is further anticipated to reach a market value of USD 455.0 billion by 2032 at a CAGR of 18.0%.
  • Automotive Wrap Films Market is expected to show a valuation of USD 7.4 billion in 2023, and it is anticipated to experience significant growth at a CAGR of 23.2% for the forecast period (2023-2032).
  • Fire Truck Market is expected to reach a value of USD 5.1 billion in 2023, and it is further anticipated to reach a market value of USD 8.5 billion by 2032 at a CAGR of 5.8%.
  • Wood Adhesives Market is expected to reach a value of USD 5,887.1 million in 2023 and is anticipated to exhibit a compound annual growth rate (CAGR) of 5.8% for the forecast period (2023-2032)

About Dimension Market Research (DMR):

Dimension Market Research (DMR) is a market research and consulting firm based in India & US, with its headquarters located in the USA (New York). The company believes in providing the best and most valuable data to its customers using the best resources analysts into work, to create unmatchable insights into the industries, and markets while offering in-depth results of over 30 industries, and all major regions across the world.

We also believe that our clients don’t always want what they see, so we provide customized reports as well, as per their specific requirements to create the best possible outcomes for them and enhance their business through our data and insights in every possible way.

CONTACT: Contact us: Global Business Development Team United States 957 Route 33, Suite 12 #308 Hamilton Square, NJ-08690 Phone No.: +1 732 369 9777, +91 88267 74855

Disclaimer: The above press release comes to you under an arrangement with GlobeNewswire. IndiaShorts takes no editorial responsibility for the same.

This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Accept Privacy & Cookies Policy