Industry: Chemicals and Materials
Published Date: July-2024
Format: PPT*, PDF, EXCEL
Delivery Timelines: Contact Sales
Number of Pages: 180
Report ID: PMRREP32788
Global sales of rotomolding compounds would likely surpass US$3.67 Bn by the end of 2024, to rise high up to US$5.94 Bn in 2031. The market size is predicted to increase by about 7.1% between 2024 and 2031.
Key Highlights of the Market
|
Attributes |
Key Insights |
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Market Value (2024E) |
US$3.67 Bn |
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Market Estimation (2031E) |
US$5.94 Bn |
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Forecast Growth Rate (CAGR 2024-2031) |
7.1% |
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Historical Growth Rate (CAGR 2018-2023) |
3.6% |
The rotomolding compounds market is shaping the world of hollow plastic parts. Through a process called rotational molding, these compounds are transformed into everything from large water tanks to intricate automotive components.
Predominantly driven by factors like cost-effectiveness, and replacement of traditional materials, the market growth is anticipated to witness a robust CAGR through the end of forecast year.
However, the focus is rapidly shifting. Sustainability is now a top priority, with bio-based and recycled content compounds gaining significant traction. This eco-conscious trend is accompanied by advancements in flame retardant technologies, opening doors for applications in safety-critical sectors.
Additionally, the market is witnessing a growing demand for lightweight rotomolding compounds, allowing for the creation of parts that are both strong and fuel efficient.
Regional players are emerging, challenging the dominance of traditional market leaders. This signifies a dynamic and evolving market, poised for significant growth in the coming years.
Globally the rotomolding industry is going through an advanced transformation. New application areas are emerging which are coming from the side of end use industries as well as from the side of the manufacturers & suppliers.
The market for rotomolding compounds is anticipated to grow more robustly year over year, particularly in East Asia, and South Asia Pacific, because of rising demand from end-use industries including the automotive, plastics, packaging, and other sectors.
The market has witnessed a growth rate of about 3.6% between 2018 and 2023. In the year 2020, the market witnessed a downfall due to the strict lockdowns imposed across the globe.
During the forecast, the period market is expected to witness healthier growth & expand at a strong double-digit CAGR. By the end of 2024, the market is anticipated to return to its pre-pandemic condition.
The historical period likely saw a focus on establishing the market, with growth driven by factors like cost-effectiveness and basic functionality. Now, the focus is on sustainability, and advanced features.
Bio-based and recycled materials are taking center stage, while flame retardant tech and lightweighting solutions are pushing the boundaries of rotomolding applications.
This signifies a transition from simply replacing traditional materials to creating a more specialized and environmentally conscious rotomolding compounds market landscape.
Rising Sports Activities, Travel & Tourism, and Surging Demand for Bespoke Plastics Items
The global travel and tourism industry is likely to grow owing to growing disposable incomes and interest in adventurous activities. Water sports and activities often utilize plastic articles such as kayaks, boats, and water rides, which are manufactured by using rotomolding compounds.
Growing sports and outdoor activities have also positively impacted the growth of the rotomolding compounds market. Durability and water and heat resistance are majorly required in these applications, which results in increased demand.
Customers' preferences for customized lightweight plastic goods and ornamental things are driving up demand for these products. These items are used to improve the aesthetics of homes, workplaces, food parks, and other places.
Rotomolded products can be tailored to meet individual needs and add a fresh perspective to interior design and home decor.
The rotomolding process offers better efficiency than conventional methods. Lucrative growth opportunities come from the furniture segment where instead of traditional raw materials, lightweight plastic materials are used. They are cost-effective and offer excellent physical qualities.
Potential Concerns Regarding Recycling
Recycling polyethylene and polypropylene are two challenging materials. Due to the complexity of their recycling process, they must incur significant operating expenses.
These materials are often disposed of in enormous landfill regions, where they take decades to disintegrate and thereby pollute the soil. The disposal sites are about to become fully utilized.
The breakdown of these chemicals frequently results in the production of hazardous gases. These gases' emissions contribute to a changing environment, especially global warming.
Additionally, the manufacturing process for rotomolding compounds releases hazardous fumes and poisonous chemicals, including some that are neurotoxic or carcinogenic. These substances have the potential to harm developing children and fetuses as well as disrupt hormones. They can also leak substances that are estrogenic.
Due to the rise in these negative impacts, manufacturers may be required by laws to decrease the use of these types of resin in the years to come, which could impede the rotomolding compounds market growth.
Surge in Demand for Sustainable Compounds
Environmental concerns are driving the demand for bio-based and recycled content rotomolding compounds.
Manufacturers are focusing on developing compounds made from renewable resources, such as sugarcane ethanol or post-consumer recycled plastics. It is expected to gain further traction in the coming years, as consumers and regulatory bodies become increasingly environmentally conscious.
Advancements in Flame Retardant Technologies
Fire safety is a critical concern for many rotomolding applications. Manufacturers are developing new flame retardant technologies that offer improved performance without compromising on the mechanical properties of the compound.
These advancements are unlocking new opportunities for rotomolding in applications such as building and construction, transportation, and electrical components.
Growing Adoption in Automotive Industry
Rotomolding is increasingly being used in the automotive industry due to its ability to produce complex, hollow parts with high strength-to-weight ratios.
Manufacturers are developing new rotomolding compounds that meet the stringent requirements of the automotive industry, such as high impact resistance, UV stability, and chemical resistance.
This is expected to present a lucrative market opportunity as the automotive industry strives to lightweight vehicles to improve fuel efficiency.
Greater Emphasis on Lightweighting, and Design Flexibility
Rotomolding compounds are being formulated to offer improved strength-to-weight ratios, enabling manufacturers to produce lighter parts without compromising on performance.
This is a major trend in the rotomolding industry, as it allows manufacturers to meet the growing demand for lightweight products.
Additionally, rotomolding offers a high degree of design flexibility, allowing manufacturers to produce complex shapes with a high degree of accuracy. This makes rotomolding an ideal choice for a wide range of applications.
Storage Tanks to be the Largest Application Category
The storage tank segment held around 64% of the total market value share in the year 2023. The demand for storage tanks and containers is increasing due to the world's population growth and increased per-person water use, particularly in developing nations.
As the population expands, so does the need for tanks and containers to store water for both potable and non-potable uses. Due to their large capacity, superior durability, and lightweight, storage tanks have most of the market share.
Tanks and containers are frequently employed in a variety of businesses, including the storage of chemicals and the installation of substantial water storage tanks in residential structures.
Portable tanks, water tanks, septic tanks, and large- and small-sized tanks are all types of storage tanks. They are utilized in many segments according to their chemical and physical characteristics.
The market for tanks and containers is being driven by the increase in industrial use for material storage and transportation.
Additionally, it is projected that the issue of freshwater scarcity in various areas would increase demand for these tanks, which will ultimately lead to an increase in demand for rotomolding compounds.
Polyethylene Base Resin Tops the Charts
Polyethylene is a well-known thermoplastic resin with a crystalline structure that can be used for a variety of applications in molding technologies, particularly rotomolding compounds, due to its superior properties such as durability, lightweight, ease of availability, and low cost in comparison to other resins.
Additionally, polyethylene has several qualities that make it a popular choice for rotomolding technology. These qualities include its ability to mould even at high temperatures, its excellent low-temperature physical properties, such as impact strength, and its ability to be easily ground to the required mesh size.
The US Market Stands Tallest with over 40% Market Share
The US market holds almost 40% of the total value share in the global market for the year 2022. Over the projection period, the country is also expected to have significant market expansion.
The increased demand for plastic products in the US due to increased use in several applications is driving the growth of the market in North America. Technology developments in leisure, material handling, and construction equipment in North America are the main factors driving product demand.
China All Set for an Exceptional CAGR Through 2031
The Chinese rotomolding compounds market is expected to grow by 11.5% during the forecast period. China is expected to remain the world's largest market for rotomolding compounds usage. This is due to the resin makers' significant presence, and their offerings at reasonable prices.
The fact that there are numerous producers in the country also contributes to the product's substantial supply. The country is also anticipated to continue to play a significant role as a key exporter of rotomolding compounds worldwide.
China has a strong automotive industry, which contributes to China’s economy. Rotomolding compounds are consumed in the production of the hollow parts of commercial and passenger vehicles.
Thermal and impact-resistant advantages are key responsible factors for the usage of rotomolding compounds in a vehicle instead of traditional carbon-emitting materials.
Lightweight vehicles are being advised to reduce their carbon footprint. As the demand for lightweight vehicles is increasing across the globe, automotive companies are adopting new techniques to manufacture such vehicles by using polymers & plastics rather than using alloys & metals that were used in conventional designs.
As the automotive industry grows, it will have an impact on the rotomolding compounds market.
The global market for rotomolding compounds is fragmented. To meet the demand of end users throughout the world and take advantage of export opportunities, Tier I and Tier II market participants are concentrating on operating their production facilities at 100% efficiency.
Additionally, these important players invest roughly 3-5% of their income in research & development for the invention of new products as well as sustainable development to lower their carbon footprint.
Additionally, Tier III players are concentrating on signing long-term contracts with end users to maintain production at their facilities.
For Instance,
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Attribute |
Details |
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Forecast Period |
2024-2031 |
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Historical Data Available for |
2018-2023 |
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Market Analysis |
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Key Regions Covered |
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Key Countries Covered |
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Key Market Segments Covered |
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Key Companies Profiled |
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Pricing |
Available upon Request |
By Material Type
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By Region
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The market is approximately US$3.6 billion as of 2024.
The market size is predicted to increase by about 7.1% between 2024 and 2031.
The storage tank segment held around 64% of the total market value share in the year 2023.
The US market currently holds 40% of the total value share. On the other hand, China is expected to witness a CAGR of 11.5% during the forecast period.
Exxon Mobil Corporation, Dow Inc., Chevron Phillips Chemical Company, and LyondellBasell Industries N.V. are some of the leading companies in this industry.
