April 22, 2024

Plastisols Market is projected to Propelled by Growing Automotive Industry Trends

The plastisols market comprises coatings and sealants that are primarily used for screen and dip coating applications. Plastisols offer advantages like durability, flexibility, adhesion, and resistance to cracking. They find widespread use in automotive and transportation parts, apparel, housewares, appliances, recreational vehicle trim, signs & graphics, and protective coatings.

The Global Plastisols Market is estimated to be valued at US$ 18.74 Billion in 2024 and is expected to exhibit a CAGR of 7.2% over the forecast period 2023 to 2030.

Key Takeaways

Key players operating in the plastisols market are 3M, Dow, KONISHI CHEMICAL INC CO., LTD., H.B. Fuller Company., Henkel Adhesives Technologies India Private Limited, CHEMENCE, Illinois Tool Works Inc., ITW Polymers Sealants North America, HERNON MANUFACTURING INC., FUJIFILM Corporation, Avient Corporation, US Plastic Coatings, hubergroup India Pvt. Ltd., International Coatings, Chemionics Corporation, Polyblend, HUTCHINSON, Hodgson Sealants., Lancer Group International, and Carlisle Plastics Company, among others. The growing demand from the automotive industry is one of the major factors driving the growth of the plastisols market. Rapid urbanization and rising disposable incomes in developing countries are also boosting the sales of vehicles, which in turn is propelling the demand for plastisols.

The global plastisols market is expanding due to increasing manufacturing activities across the world. The escalating demand from industries such as automotive, construction, and protective coatings is encouraging new production plants and capacity expansion projects. Moreover, the growing focus on lightweight and durable materials in the automotive industry is augmenting the consumption of plastisols.

Market key trends

One of the key trends gaining traction in the plastisols market is the rising popularity of bio-based and eco-friendly products. Government regulations pertaining to VOC emissions and other environmental issues have prompted manufacturers to develop more sustainable alternatives to conventional plastisol coatings. Companies are investing in R&D activities to produce plastisols from renewable resources like vegetable oils, reducing dependency on petrochemical feedstocks. This is expected to support the green credentials of the market in the coming years.

Porter’s Analysis

  • Threat of new entrants: Low economies of scale and high capital requirements makes entry difficult.
  • Bargaining power of buyers: Large buyers can negotiate prices downwards but plastisols provide unique properties so buyer options are limited.
  • Bargaining power of suppliers: Few international suppliers exist so individual supplier power is significant.
  • Threat of new substitutes: No close substitutes exist as plastisols provide special properties like flexibility, longevity etc.
  • Competitive rivalry: Intense competition among existing players to differentiate products and services.

Geographical regions with high market concentration:

North America holds the major share of the plastisols market due to wide applications in automotive, construction and other industries. Growth is fastest in Asia Pacific region due to increasing industrial and construction activities in India, China and other developing nations.

Geographical regions with fastest market growth:

Asia Pacific region is witnessing the fastest growth in plastisols market valued due to rapid economic development, rising standards of living, growing population and urbanization in developing countries like India and China. Increase in industrial, automotive, construction and other end-use sectors drives the demand for plastisols in the region.