The global plastic compounding sector is poised for solid growth over the next 10 years with its market estimated to reach $107.6 billion by 2031 growing at a compound annual growth rate (CAGR) of approximately 6 per cent, according to a new report by Transparency Market Research.

 

Plastic compounding is a process in which several materials are mixed, generally in an extruder, and then converted into pellets. The resulting product obtained from pelleting is processed into final products, afterward.

 

The major growth drivers have been the rise in demand for plastics in sectors such as construction, electrical and electronics, and automotive. The building and construction industry has been growing at a rapid pace.

 

With population numbers on a constant rise, the need for more residential buildings is fueling construction activities, thus propelling the demand for plastic compounding products and construction materials.

 

A type of plastic compounding which is gaining importance in several industries, such as 3D modelling, consumer goods, and medicine, is thermoplastic compounding, stated the report. 

 

Players in the plastic compounding market are raising their production capacities in long-fibre-reinforced thermoplastics. A rise in demand for reinforced thermoplastics and thermostats in the fabrication of automotive parts is helping the plastic compounding market expand, globally, it added.

 

Plastic compounding manufacturers are constantly communicating with suppliers to get a better understanding of demand and supply chain risks. Manufacturers are taking additional safety measures to try and prevent the transmission of Covid-19. 

 

Thus, plastic compounds that are used in medical devices such as personal protective equipment and ventilator components. Players in plastic compounding market are putting in a greater effort to meet the demand for high-quality polymers and compounds used in these medical devices.

 

Regionwise, the global plastic compounding market has been divided into Europe, North America, Asia Pacific, the Middle East & Africa, and Latin America. 

 

The global plastic compounding market is expected to witness profitable growth in Asia Pacific in the near future, said the industry expert.

 

Some of the important manufacturers in the global plastic compounding market include Covestro AG, Clariant International, DuPont, and Citadel Plastics, it added.-TradeArabia News Service