Press release
Automotive Polyolefin Compounds Market is set for strong growth to US$ 13.12 billion by 2032- Market - Size, Share, and Forecast | Key Players:- LyondellBasell Industries, Borealis AG, SABIC, ExxonMobil Corporation.
automotive polyolefin compounds
The market is growing due to rising vehicle production, increased use of lightweight materials for fuel efficiency and EVs, growing demand for cost-effective and recyclable plastics, stricter emission regulations, and expanding applications of polyolefin compounds in automotive interiors and exteriors.
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United States: Key Industry Developments:-
✅ November 2025: LyondellBasell expanded its North American production of recycled-content polypropylene compounds for automotive interiors, partnering with Ford to integrate TPO materials in electric vehicle door panels for enhanced lightweighting and sustainability.
✅ October 2025: Dow introduced a new line of bio-based polyolefin elastomers tailored for US automotive under-the-hood components, focusing on heat resistance and reduced emissions to support GM's hybrid models.
✅ September 2025: SABIC launched high-impact TPE compounds certified for US OEMs like Stellantis, enabling lighter exterior trims while meeting stringent safety standards amid rising EV production.
Japan: Key Industry Developments:-
✅ November 2025: Sumitomo Chemical advanced its automotive polyolefin recycling initiative, supplying 50% recycled PP compounds to Toyota for interior applications, aligning with national carbon neutrality goals.
✅ October 2025: Mitsui Chemicals unveiled flame-retardant TPO compounds for Japanese EV battery enclosures, improving safety and weight reduction in collaboration with Nissan.
✅ September 2025: Prime Polymer (a Marubeni Group company) released glass-fiber reinforced polyolefin blends for underbody parts, adopted by Honda to boost fuel efficiency in hybrid vehicles.
2025 M&A Acitvity :-
May 30, 2025: **Borouge Group International agreed to acquire Nova Chemicals for approximately USD 9.4 billion, a major consolidation in the global polyolefins market that expands capacity for polyethylene and polypropylene resins widely used in automotive polyolefin compounds and automotive components. The deal will be executed through Borouge, integrating Nova's production into the larger polyolefin supply chain.
March 4, 2025: Abu Dhabi National Oil Company (ADNOC) and OMV announced a merger of their polyolefin businesses to create a combined global polyolefins giant, Borouge Group International, with expanded scale and production capacity. This strategic merger enhances global supply of base polymers (PP, PE) critical for automotive polyolefin compound manufacturers
The automotive polyolefin compounds market is anticipated to rise at a considerable rate during the forecast period, between 2025 and 2032. In 2024, the market is growing at a steady rate, and with the rising adoption of strategies by key players, the market is expected to rise over the projected horizon.
Research Process:-
Both primary and secondary data sources have been used in the automotive polyolefin compounds market research report. During the research process, a wide range of industry-affecting factors are examined, including governmental regulations, market conditions, competitive levels, historical data, market situation, technological advancements, upcoming developments, in related businesses, as well as market volatility, prospects, potential barriers, and challenges.
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Consumer Preferences:-
Consumers favor polyolefin compounds for their recyclability and role in electric vehicles (EVs), where lightweighting extends range without sacrificing safety or aesthetics. Demand surges for flame-retardant and glass-fiber-reinforced variants in interiors, driven by eco-conscious buyers seeking lower emissions.
Companies and Competitive Landscape:-
The major global players in the market include LyondellBasell Industries, Borealis AG, SABIC, ExxonMobil Corporation, Mitsui Chemicals Inc, Sumitomo Chemical Co., Ltd., Dow Inc, INEOS Group, Washington Penn Plastic Co., Inc, and RTP Company.
Regional Analysis:
⇥ North America (U.S., Canada, Mexico)
⇥ Europe (U.K., Italy, Germany, Russia, France, Spain, The Netherlands and Rest of Europe)
⇥ Asia-Pacific (India, Japan, China, South Korea, Australia, Indonesia Rest of Asia Pacific)
⇥ South America (Colombia, Brazil, Argentina, Rest of South America)
⇥ Middle East & Africa (Saudi Arabia, U.A.E., South Africa, Rest of Middle East & Africa)
Market segmentation-
Product Type Segmentation
Polypropylene (PP) compounds lead the automotive polyolefin compounds market, holding the dominant share due to their versatility in interior and exterior components for weight reduction and cost efficiency. In 2024, the overall market reached US$ 9.30 billion, with PP compounds driving significant growth amid rising electric vehicle adoption. Polyethylene (PE) compounds follow, capturing a substantial portion focused on under-the-hood applications, while thermoplastic polyolefin (TPO) and thermoplastic elastomer (TPE) segments together account for the remainder, emphasizing durability and impact resistance.
Vehicle Type Segmentation
Passenger vehicles dominate the vehicle type segmentation in the automotive polyolefin compounds market, commanding the largest share owing to high-volume production and demand for lightweight materials in interiors. The market's 2024 valuation of US$ 9.30 billion reflects this segment's leadership, projected to grow at 4.4% CAGR to 2032. Commercial vehicles and electric vehicles follow, with EVs gaining rapidly due to needs for flame-retardant compounds, collectively supporting the push for fuel efficiency.
Application Segmentation
Interior applications hold the primary market share in automotive polyolefin compounds, utilized extensively in dashboards and door panels for their lightweight properties. With the total market at US$ 9.30 billion in 2024, interiors benefit from polyolefin's cost-effectiveness amid automotive lightweighting trends. Exterior and under-the-hood components follow closely, each securing notable shares for bumpers and engine parts, while electrical and other uses round out the segmentation
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FAQs -
1. What is the current size and growth outlook of the global automotive polyolefin compounds market?
The market was valued at US$9.30 billion in 2024 and is expected to reach US$13.12 billion by 2032, growing at a CAGR of 4.4% (2025-2032).
2. What factors are driving the growth of this market?
Key drivers include the rising demand for lightweight vehicles, fuel efficiency norms, and the shift toward sustainable and cost-effective materials like polypropylene (PP) and thermoplastic polyolefins (TPO).
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