PP Compound for Automotive Market Strategic Analysis and Growth Opportunities

PP Compound Automotive Market Size, Analysis and Future Pathways

The PP compound for automotive market is anticipated to grow from USD 20.12 trillion in 2025 to USD 31.57 trillion by 2034, with a compound annual growth rate (CAGR) of 5.13% during the forecast period from 2025 to 2034.

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Introduction

The pp compound for automotive market is a prominent sector of the automotive industry. This industry deals in the manufacturing and distribution of polypropylene materials to the automotive sector. There are various products developed in this sector consisting of TPO, TPV, mineral filled PP, glass reinforced PP and some others. These compounds find numerous applications in various types of vehicles consisting of electric vehicles and ICE vehicles. The growing application of PP compounds in electric vehicles across the world has driven the market growth. This market is predicted to rise significantly with the growth of the advanced materials sector in different parts of the world.

• According to the International Energy Agency, the EV sales in U.S. was 1 million in 2022 that increased to 1.7 million in 2024.

Highlights of the PP Compound for Automotive Market

• Asia Pacific held the largest share of the pp compound for automotive market due to the rising demand for EVs in this region.
• Europe is expected to grow with the highest CAGR due to the presence of several automotive brands in this region.
• The TPO and TPV segment led the industry due to its application in manufacturing several automotive parts such as center consoles and interior trims.
• The internal combustion engine (ICE) segment held the largest portion of the industry due to the growing sales of gasoline-powered vehicles in different parts of the world.

Key Metrics and Overview

PP Compound for Automotive: Trends in the Industry

• Several market players are collaborating with each other for developing advanced PP materials for the automotive sector. For instance, in September 2024, Lyondellbasell collaborated with Dacia. This collaboration is done for developing recycled polypropylene materials for the automotive sector.
• The PP manufacturing companies are opening new production facility to cater the demands of the automotive industry. For instance, in June 2024, LyondellBasell (LYB) announced to open a new polypropylene manufacturing plant in China. This new production facility is inaugurated to manufacture around 20,000 tons of polypropylene every year for the automotive sector.
• Numerous brands are developing eco-friendly polypropylene materials designed for automobile applications. For instance, in January 2024, Sirmax launched an eco-friendly PP compound. This compound is developed for manufacturing door panels in automotives.

Industry Leader Announcement

In June 2024, Shanila Baseley, the Vice President of Borealis made an announcement stating that, “Accelerating the transition to a circular economy requires strong partnerships and innovative approaches. We are proud that our collaboration with Plastivaloire and Stellantis in the spirit of EverMinds™ has resulted in this significant step towards sustainability in the automotive sector and is further evidence of our commitment to reinventing essentials for sustainable living.”

Geographical Insights

Asia Pacific held the highest share of the PP compound for automotive market. The rising investment in the polypropylene manufacturing sector has boosted the market expansion. Also, several government initiatives aimed at developing the EV infrastructure in countries such as India, China, Japan and some others is crucial for the industrial growth. Moreover, the presence of various market players such as Mitsui, Japan Polypropylene Corporation, Sumitomo Chemical Co., Ltd., Hyundai Engineering Plastics and some others has driven the market growth in this region.

Competitive Landscape

The PP compound for automotive market is a rapidly developing industry with the presence of several dominating players. Some of the prominent companies in this industry consists of LyondellBasell Industries Holdings B.V., Mitsui Chemicals Inc., Borealis AG, Washington Penn Plastic Co. Inc., Japan Polypropylene Corporation, Sumitomo Chemical Co., Ltd., Saudi Basic Industries Corporation (SABIC), Hexpol and some others. These companies are constantly engaged in developing advanced PP compounds for the automotive sector and adopting numerous strategies to maintain their dominance in this industry.

• According to the annual report of Hexpol, the revenue of the engineered product segment was 1465 million SEK in 2023 that increased to 1516 million SEK in 2024.

PP Compound for Automotive Market Segmentations

By Product

• Mineral Filled
• TPO and TPV
• Glass Reinforced
• Others

By Applications

• Internal Combustion Engine (ICE) Vehicles
• Electric Vehicles (EVs)

By Region

• North America
• Europe
• Asia Pacific
• Latin America
• Middle East and Africa