The Global PVC Compound Market is expected to grow at a high CAGR during the forecasting period (2022-2029).
PVC (Polyvinyl Chloride) compound has strong, lightweight, durable, and versatile characteristics hence preferred for a wide range of applications. PVC compounds have excellent electrical insulation properties like flame retardant used for cabling of the telecommunications sectors.
The PVC compound applications include bottles, blister packaging films, crown caps, connectors, components, boxes, office equipment, cable insulation, sheathing, tapes, flame retardant sheathing, flame retardant, and synthetic plastic polymer. As per Our World In Data, the world PVC compound consumption was around 40 million tons in 2016 which is used for such a wide range of applications.
PVC compound has two basic forms that are rigid and flexible. The rigid form of PVC has several usages including in building & construction for pipe and profile applications such as doors and windows. PVC compound flexible form is used in the manufacturing of films, sheet, wire cable, pipe fitting, flooring, profile and tubes, and another polyvinyl chloride.
The market is driven by the rising demand for pipe in residential and commercial buildings with growing urbanizations around the globe. Further growing demand for the renovation of residential and commercial buildings in the heating, ventilation, and air conditioning, lighting appliances, home decor, and many others have propelled the demand for the PVC compound market.
According to the report by International Energy Agency (IEA) and the Global Alliance for Buildings and Construction (GlobalABC), the total expenditure on buildings, construction, and renovation was valued at around US$ 4.5 trillion in 2018. It created a massive demand for the PVC compounded products used in residential and commercial buildings and constructions around the globe.
There is a rise in the manufacturing facilities related to the supply of polymers to technology PVC compound launched by the leading players owing to surge in industrialization have created a huge opportunity for this market during the study period. For instance, on 13th Feb 2018, Teijin Company had been established Research & Development facility and resin compound plant in Thailand for further global development. The Company has been established the plant with a capacity of 10,000- tons with an investment of around US$ 13 million.
The global PVC compound market is segmented based on product, manufacturing process, raw material, end-user, and region.
In terms of product, the global PVC Compound market is bifurcated into rigid products and flexible products. Among these flexible products, the segment has the highest share owing to raising the usage of this flexible PVC compound in the infrastructure development and telecommunications sectors.
The flexible wires and cables and increasing demand for consumer electronics such as personal computers, laptops, smartphones, tablets, and other IT devices made from the PVC compound have been increased the demand especially in developing regions like China and India.
According to the India Brand Equity Foundation Organization, the electronics market in India is expected to reach US$ 400 billion in 2020 from US$ 100 billion in 2017 which is growing with a CAGR of 41% during 2017-20. Further, the rigid segment is also growing at the fastest pace owing to increasing the demand in the building & constructions sectors in the residential and commercial regions due to urbanizations around the globe.
Depending upon the manufacturing process, the global PVC Compound market is divided into injection molding, extrusion and others. Among these extrusions has the highest market share in 2019, this is due to rising the manufacturing of the plastic components used in the electronics, automotive, aerospace, and military sector.
According to the International Council on Ocean Transportation in 2018, the new car sale had been reached over 15.1 million units. This has been propelled the demand for plastic components made from the PVC compound in the European region. Similarly, the extrusion segment is also growing at a faster pace owing to an increase in the demand for PVC compound-made extruded products in the agricultural, residential and commercial buildings for making pipes, light fitting channels, etc.
Depending on the raw material, the global PVC Compound market is divided into PVC resin, plasticizers, stabilizers, lubricants, fillers, functional additives, alloying polymers, and others. Among these PVC resins has the highest market share in 2019, this is rising the consumption of the resins for the production of plastics and rubbers. For the wide which is used in a wide range of packaging of various products including in the food and beverages, consumers electronics and many others.
Further, this segmental growth is attributed to the launch of new advanced technology-based resins by the key players for various end-user industries, For instance on 25th October 2019, Mitsubishi Chemical in collaboration with Atum3D has developed a new UV resin for the DLP Station printer.
Further plasticizers, stabilizers, lubricants, fillers, functional additives, alloying polymers segments are also growing at the fastest rate owing to raising the demand in various industries including automobile, building & constructions, and many others.
Depending on the end-user, the global PVC Compound market is divided into medical, building and construction, packaging, automotive, consumer goods, electrical & electronics, and others. Among this building and construction segment has the highest share in 2019, this is owing to a surge in the global building and infrastructure developments projects and growing residential & commercial sector with rising urbanizations.
According to Our World In Data, the urban population reached around 4.2 billion in 2018 around the globe and is projected to reach 7 billion people by 2050 worldwide. This will boost the building and construction sector for living in the urban areas which directly increases the demand for PVC compound products used in these sectors.
Similarly, the Medical, Packaging, Automotive, Consumer Goods, and Electrical & Electronics segments are also growing at the fastest pace owing to rising consumer spending and increasing the global population.
By region, the global PVC Compound market is segmented into North America, South America, Europe, Asia-Pacific, Middle-East, and Africa. Among all of the regions, Asia-Pacific is dominating the global PVC compound market and is expected to grow at the highest CAGR during the forecasted period due to growing the manufacturing facilities and raising investment for building and construction sites with rising population followed by the North America region.
Growing infrastructure development projects and a rise in foreign investment in the Asia-Pacific have created a huge demand for the PVC compound market in this region, According to the UNSCAP Report, the Asia-Pacific region received the highest Foreign Direct Investment inflows, which has attracted 45% of global FDI inflows in 2018.
The region has received around US$ 585 billion investment with the largest share among countries such as China, India, and Japan during the fiscal year 2019 respectively. This creates a huge demand for the PVC compound market for infrastructure development projects and the industrial sector.
North America is also growing at a faster pace for the PVC compound market, owing to the presence of the growing energy demand with industrialization. It will propel the demand for the PVC compound market in various industries such as aerospace, healthcare equipment, automotive, and many more.
The global PVC compound market is highly competitive with the presence of several international and local markets. Product diversification, revenue generation, and opportunities intensify the market competition. Roscom, Thai Plastics, Mazda Plastic, Aurora Plastics, ChemChina, Konnark Polymer, Thevinyl, ACTEGA, Mexichem, PolyOneCary Compound, and Sylvin Technologies Group are the leading market players with significant market share.
Companies are entering into collaborations, acquisitions, mergers, and licensing for increasing their market penetration. For instance, on 22nd Jan 2018, the Company Mexichem has been acquired Sylvin Technologies Inc. for US$39 million which has expanded its compounds business in the U.S. Market with a strong team and a complementary product and application portfolio.
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