PP compound is made of polypropylene, which is the lowest density material among different plastic materials. Traditionally in vehicles, aluminum and steel are used in automotive parts; this material is heavier than the PP compound and is also costlier. It has other important properties such as high resistance, toughness, and flexibility, which are suitable for automotive parts. The PP compound offers quality addition to automotive parts. PP compound is a lightweight material. It provides significant weight reduction to vehicles. PP compound falls into the category of scratch-resistant lightweight material. The growing automobile industry in the electric vehicle segment has witnessed a large demand for materials such as PP compounds. Automotive interiors occupy the highest share in the PP compound consumption in the automotive industry. Lightweight vehicles require low energy that requires low fuel as well. The ongoing trend to improve the interiors of commercial vehicles is further expected to boost the PP compound market for automotive industry during the forecast period.
The business dynamics section of the report examines the diverse factors that govern the process of manufacturing, distribution, and usage of PP compounds globally. This analysis provides an in-depth understanding of the present and the future directions in which the market is headed and the impact of various factors on the same. This chapter covers the major market dynamics, namely, drivers, challenges, business strategies, corporate strategies, and opportunities, thereby analyzing several factors that positively and negatively affect the PP compound market for automotive industry.
The automobile industry has been witnessing a shift from using conventional materials to using lightweight materials owing to the stringent regulations across different nations. The need for lightweight materials is emphasized upon considering the importance of fuel economy as well as environmental aspects. Lightweight materials not only provide significant weight reduction but also lead to enhanced payload carrying capacity. The regulatory authorities are promoting the adoption of lightweight materials as they help in reducing CO2 emissions. Reduction in CO2 emission by using lightweight materials is mainly due to low energy demand by these materials as well as lesser fuel requirements. Along with this, lightweight materials also facilitate the improvement in vehicle performance.
PP compounds falls into the category of lightweight materials and are not only lightweight but also scratch resistant. PP compounds possess a myriad of properties that make them ideal for weight reduction in automobiles. Vehicular emissions are directly affected by the weight of the vehicles and their fuel consumption. The usage of lightweight materials such as PP compounds in the vehicles would help in reducing the weight considerably, thereby reducing the harmful emissions as lighter materials, which would significantly improve the fuel efficiency of the vehicles.
The competitive landscape provides an organization with the edge to understand its key business strategy in the industry, its current competitors, and potential future competitors that might have made their way into the market. This chapter details the latest strategies and developments adopted by the key market players in the global PP compound market for automotive industry. In order to lead the market as well as engage in the process of market growth, a company needs to bring new products to the market, invest in innovations, and collaborate with other top tier-1 component providers to further strengthen its market position.
North America is one of the most competitive markets in terms of consumption of PP compounds. The region has some of the leading vehicle manufacturers such as Ford, Tesla, Jeep, Cadillac, Chevrolet, Chrysler, and Dodge. The trend of offering light weight vehicles by the companies is driving the consumption of polypropylene (PP) compound in the automotive industry in the region.