How Global EV Sector Growth is Driving the Demand for PP Compounds

Global climate management initiatives are aggressively taking shape in last couple of years. Electrical vehicle push is one of the many initiatives towards net zero and sustainable mobility industry. Increasing developments in the electric vehicle space is pushing the developments in the plastic compounding industry.

The automotive industry is playing its part in sustainable developments which includes electric vehicles, hydrogen car, other hybrid vehicles, recycling of plastics, weight reduction to reduce carbon emissions and so on.  The electric vehicles market is at its nascent stage and there are many more developments underway which will shape growth of this market during coming years. With the increase in demand for EVs globally, the demand for plastic compounds is also rising. PP compound is widely used plastic in automotive industry. On an average more than 50 kgs of PP compound is consumed in car globally which increases in EVs as lightweight is the focus to increase overall efficiency of the vehicle.  

Global EV sector is witnessing a whooping growth in last 3 years. Electrical vehicles sale is grown at a CAGR of around 60% during 2020 till 2023. This shows that the EV sector is on its growth path and is expected to grow further at a high growth rate. With the growing EV production, the demand for plastic required in the EV manufacturing is projected rise. PP compound is accounts for large share of plastic used in EV manufacturing and is projected to increase further with new developments in this sector.

PP compound manufacturers are developing new grades to cope up with the changing requirements of the EV manufacturers. PP compound is emerging as a key material in managing major challenges in heat management weight reduction and many others in battery packs. Powertrain is one of the key areas where much of the innovation is taking place in terms of advanced material development by PP compound manufacturers.

Global PP Compounds market by region ( ~ 9000 Kilo ton)

Global PP compounds market accounted for more than 9000 Kilo tons in 2023 with Asia Pacific leading in terms of demand with around 55% share. China is the largest consumer of PP compounds with a large automotive manufacturing base. The evolving EV industry in China, India, and major developed economies is expected to bolster the demand for PP compounds in the coming years. New product developments are at the center of the strategies followed by major player in the PP compounds market. Collaboration with OEMs for new material development for EVs and sustainable is one of the key trends in the PP compounds market.