Scratch Resistant Polypropylene Market size is forecast to reach US$5.3 billion by 2026, after growing at a CAGR of 5.2% during 2021-2026 owning to growing consumption of scratch-resistant polypropylene engineering plastics in the automotive industry. It offers excellent properties such as heat resistance, surface strength, impact resistance, recyclability, and other properties thus; it is commonly used in interior automotive applications. Scratch-resistant polypropylene is used for interior trim, dashboard, door trim, battery cases, supplemental restraint system (airbag), and bumpers. Also, scratch-resistant polypropylene offers excellent chemical resistance, tensile strength, and absorption of water. Polypropylene is safe because it does not have any remarkable effect from an occupational health and safety point of view, in terms of chemical toxicity, thus it is widely used in used automotive as well as packaging, consumer good, packaging, and others which is estimated to grow the demand for scratch-resistant polypropylene industry during the projected era.
Impact of COVID-19
During the COVID-19 pandemic, major sectors saw a steady decline in growth owing to the decrease in transportation during the lockdown. The automotive production activities were shut down from the first quarter of 2020 and now it continues in the second quarter of 2021. In March 2021, according to the International Organization of Motor Vehicle Manufacturers (OICA), vehicle production in Europe, North America, and South America fell by 21%, 20%, and 30% respectively. In lockdown production of the vehicle was postponed which hampered the scratch-resistant polypropylene market.
Scratch Resistant Polypropylene Market Segment Analysis – By Type
Propene segment held the largest share in the global scratch-resistant polypropylene market in 2020. Propene is a most versatile thermoplastic polymer that is available for commercial applications. Propene is a fully recyclable and cheapest plastic material that is easily available and thus is used as raw material for organic synthesis of polypropylene. Additionally, propene is used as a fiber in various industries such as automotive manufacturing, aerospace, and other sectors. Hence, due to their heat resistance, they are widely used to produce polypropylene.
Scratch Resistant Polypropylene Market Segment Analysis – By Application
Automotive application held the largest share in the global scratch-resistant polypropylene market in 2020 and is growing at a CAGR of 5.4% in 2021-2026. Scratch-resistant polypropylene is used as engineering plastics in automotive which offers excellent tensile strength, impact resistance, is weather-resistant, and provides surface strength compared to polyethylene. Polypropylene is 100% recyclable and used in Automobile signal lights, battery cables, brooms, brushes, and ice scrapers. Thus, also increasing demand for supplemental restraint system (airbag) from the automotive industry is expected to propel the market scenario. According to the India Brand Equity Foundation (IBEF), automobile export reached 4.77 million vehicles in FY20, growing at a CAGR of 6.94% during FY16-FY20. Additionally, according to the International Organization of Motor Vehicle Manufacturers (OICA), in Japan, the commercial and passenger vehicle sales increased 9.7 million in 2018 as compared to 9.6 million in 2017. Thus, the growing demand for vehicles is estimated to grow the demand for scratch-resistant polypropylene industry.
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Scratch Resistant Polypropylene Market Segment Analysis – By Geography
Asia Pacific dominated the global scratch-resistant polypropylene market in 2020 with more than the share of 28%, due to increasing demand from the automotive industry in Asian countries such as India, China, Malaysia, and others. Scratch-resistant polypropylene engineering plastics materials are widely used in the interior of the car as they offer excellent chemical resistance and weldability. Thus, increasing the automotive industry in developing and emerging countries are expected to grow the market size in the region. According to the International Organization of Motor Vehicle Manufacturers (OICA), in Malaysia, the commercial and passenger car vehicle production increased by 1.2% to 571632 units in 2019 as compared to 564800 units in 2018. According to India Brand Equity Foundation (IBEF), the Indian automotive industry (including component manufacturing) is expected to reach US$ 251 to US$ 282 billion by 2026. Also, the Indian Government expects the automobile sector to attract US$ 8 to US$10 billion in local and foreign investments by 2023. Furthermore, according to Automotive Aftermarket Suppliers Association (AASA) and the Auto Care Association, in China, light-duty aftermarket sales will grow from US$281 billion in 2020 to US$314 billion in 2021. Hence, the rapid economic development is expected to grow the automotive sector in the upcoming year which, in turn, is estimated to grow the consumption of the scratch-resistant polypropylene market.
Scratch Resistant Polypropylene Market Drivers
Growth in Automotive Sector is estimated to grow the demand for Scratch Resistant Polypropylene at Global Level
Polypropylene is widely used in automotive parts because of its low cost, weldability, and mechanical properties that can be used for trays, bumpers, fender liners, interior trim, instrumental panels, supplemental restraint system (airbag), and door trims. Thus, the growing automotive industry is estimated to grow the demand for engineering plastics scratch-resistant polypropylene. The Chinese government expects the production of automobiles to reach 35 million units by 2025, according to the International Trade Administration (ITA). Additionally, according to the International Organization of Vehicle Motor Manufacturers (OICA), in China commercial vehicle production increased by 31.4% to 5731161 units in 2020 as compared to 4360472 units in 2019. In 2017, the Australian market sold 1.2 million new passenger cars, SUVs, and commercial vehicles, an increase of 0.9 % from 2016. Light commercial vehicle production has increased from 2,249,348 in 2018 to 2,254,153 in 2019, according to OICA, an increase of 0.2 % in Europe. Additionally, according to the Federation of Automobile Dealers Associations (FADA), in India sales of passenger vehicles increased to 2,91,001 units in November 2020, compared with 2,79,365 units in November 2019. Furthermore, according to the India Brand Equity Foundation (IBEF), the Indian Government expects the automotive sector to attract US$ 8 billion to US$10 billion in local and foreign investments by 2023. Hence, such factors are estimated to grow the consumption of scratch-resistant polypropylene.
Growing Demand for Plastic from Packaging Industry
Polypropylene is among the cheapest plastics available at present as it offers excellent tensile strength highly water absorbability and high melting temperature at 327°F (163.8°C) which makes it ideal for all applications and packaging too. Hence, increasing the packaging industry is estimated to boost the market size during the projected era. According to Cosmetic Europe, a personal care association, China’s cosmetics market increased by 15.33 % to euro 54.9 billion (US$ 61.45 billion) in 2019 compared to euro 47.6 billion (US$ 56.21) in 2018. In India increased by euro 12 billion (US$ 13.43 billion) in 2019 as compared to euro 10.7 billion (US$ 12.63 billion) in 2018. Apart from this, additionally, according to the India Brand Equity Foundation (IBEF), India’s domestic pharmaceutical market is estimated to reach US$ 65 billion by 2024 and ~US$ 120-130 billion by 2030. Furthermore, according to Healthcare Information Company IQVIA, China was the world’s second-largest national pharmaceutical market which is estimated to grow by US$175 billion by 2022 from US$122.6 billion in 2017. Hence, the growing cosmetic and pharmaceutical industry is growing demand for packaging which, in turn, is estimated to boost the market demand during the forecast period.
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Scratch Resistant Polypropylene Market Challenges
Volatility in Raw Material Prices
Crude oil is used as a raw material for polypropylene plastic material. Thus, the prices fluctuate of crude oil may hamper the production of plastic materials as well as polypropylene. According to BP static, oil prices declined to US$64.21/bbl in 2019 as compared with US$71.31/bbl in 2018. Additionally, according to the U.S. Energy Information Administration (EIA), crude oil prices decreased by US$ 41.69 per barrel in 2020. Hence, volatility in crude oil prices may hamper the scratch-resistant polypropylene market growth.
Scratch Resistant Polypropylene Market Landscape
Technology launches, acquisitions, and R&D activities are key strategies adopted by players in the scratch-resistant polypropylene market. Major players in the Scratch Resistant Polypropylene Market include:
SABICBASF SEE
vonik Industries
Phantom Plastics
Croda International Plc.,
LyondellBasellSinopec
Tipco Industries
Sumitomo Chemicals
RTP and more.
Key Takeaways
Asia-Pacific dominated the scratch-resistant polypropylene market due to the increasing automotive industry in developing and emerging Asian countries such as India, China. Japan, Malaysia, and others.
Increasing adoption of plastic from the packaging industry is estimated to grow the consumption of scratch-resistant polypropylene industry in near future.
Growing adoption of engineering plastics from the automotive industry due to its widespread use in a dashboard, supplemental restraint system (airbag), interior trim, door trim, body panels, and other applications is estimated to grow the consumption of scratch-resistant polypropylene.
Additionally, propane is used in the polymerization process of polypropylene. Propane is produced in large quantities from oil, gas, naphtha, and others. Thus, the fluctuation of crude oil may hamper market growth.
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