Conductive Compounds Market

Conductive Compounds Market Size, Share, Growth (2023-2028)

Conductive compounds market size is expected to have a value of USD 2.7 billion by 2028 and grow with a CAGR of 9% during the forecast period 2023-2028.

Conductive Compounds Market Overview

To provide an electrical or thermal conductive path between the components, Conductive compounds are used. Conductive polymers are organic polymers that as the ability to conduct electricity. These are organic materials as insulating polymers and not thermoplastics. These compounds may have conductivity or can be a semiconductor. Processability is the major advantage of these compounds. High electrical conductivity can be offered by the conductive compounds but may not have similar mechanical properties as other commercially available polymers. Methods like Organic synthesis and advanced dispersion techniques are used for fine-tuning the electrical properties. 

Conductive Compounds Market Drivers

 Expansions in the automotive sector drive the market demand.

During the forecast period, the Conductive compounds market growth is driven by the increasing demand for conductive plastic compounds in the construction and automotive sectors. Synthetic polymers like PVC, PE, PC, and others have a wide application in packaging, toys, furniture, and construction materials. Reducing the gross weight of the vehicle as a part of the regulatory interventions to increase the fuel-efficiency will raise the demand for conductive plastics as these can act as metal substitutes. In the automotive component fabrication division, the rise in the requirement for reinforced thermoplastic and thermosets contribute to the market growth in the near future.

In the Electrical & Electronic industry, the increase in the deployment of conductive plastic compounds drives market growth.

For manufacturing various components such as integrated circuits, semiconductors, and resistors in the electrical & electronic industry, conductive plastic compounds are being used. This increased adoption will boost the demand for the conductive compounds market growth. For lithium batteries, fuel cells, super-capacitors, smart electronics, and other applications, conductive plastic is widely employed in the electrical &electronic industry. The recent increase in the Internet of Things (IoT) has resulted in a rise in the adoption of smart materials. As compared to other metals or aluminum, conductive compounds have improved design flexibility and enhanced thermal conductivity that fuel the market demand.

Conductive Compounds Market Restraints

Some restraints hinder the growth of the market, such as plastic compounds are not strictly metals, they have less conductivity, and as compared to plastic, it has compromised mechanical qualities. The comparatively high price and weight of the precious metals, oxidation & corrosion problems with copper and aluminum, the complexity of the material processing, and others are limiting the conductive compounds market. Fillers are one of the compounds of the conductive compounds market, and the compromised mechanical properties of the materials at the high filler concentration hinder the market growth. Additionally, the high price of crude oil and trade-related barriers can lead to fluctuations in raw material prices which is one of the restraints to the market.

Conductive Compounds Market Opportunities

Enormous opportunities for the conductive compounds market have got a way led to increased demand for the electrical & electronics industry. In the manufacturing products for the electrical & electronics industry, the wide adoption of engineering plastics will propel the market growth with a steady growth of revenues. In the medical industry, to meet the demand for next-generation medical-grade polymers, a transition towards high-performance bio-plastics is noticed. Multiple end-user industries are also rising the adoption of engineering plastics will provide a greater opportunity to market growth. Those end-users include the medical, consumer goods, and automotive industries.

COVID-19 Impact on the Conductive Compounds Market

The COVID-19 pandemic had a negative impact on the conductive compounds market. The government restrictions on travel and lockdown imposition led to a downfall in customers’ shopping. That led to reduced sales and demand in the market. It further has shown an effect on the supply chain by disrupting its activities. The low demand for the food & beverages industries caused the temporary shutdown of the operations and, moreover, reduced the demand for the packaging industry resulting in a decreased demand for conductive plastic and conductive compounds.

Key developments in the market

• In 2022, a contract worth USD 79.9 million was given by the U.S. Department of Defense on behalf of the Department of Health and Human Services to Premix Inc., the U.S.-based subsidiary of Premix Oy. As per the contract, a plastic compound manufacturing plant must be built by Premix Inc. in North Carolina for pipette tips. 

• In 2021, A stake was acquired by the Sojitz Corporation in the 2D Materials Pte. Ltd., a Singapore-based company that manufactures and sells graphene. This acquisition has provided an opportunity for the Sojitz Corporation to enter the next-generation technology and new materials field.

Conductive Compounds Market Segmentation

By Resin Type

• Polyvinyl Chloride

• Polystyrene

• Polypropylene

• Polyethylene

• Engineering Plastics

• Bio-plastics

• Elastomers

• Thermoplastic

• Others

Engineering plastics dominate the conductive compounds market owing to the features such as being lightweight, durable, resistant to chemicals, withstanding physical impact, and rigidity. The modifications to offer electrical and thermal conductivity is gaining traction for engineering plastics. Wide application in medical devices and is driving the demand for the segment in the market in the coming years. There is high demand in the construction & building industry due to the sustainability in the extreme temperatures.

By Filler Type

• Carbon Black

• Carbon Fibers

• Carbon Nanotubes

• Metals

• Others (including Graphite)

By End User 

• Automotive & Transportation

• Building & Construction

• Consumer Goods & Appliances

• Electrical & Electronics

• Industrial Applications

• Medical

• Others (Packaging and Petrochemical Mining)

Electrical & Electronic is anticipated to have a high market share in the conductive compounds market. The rise in the usage of electronic devices, shorter life spans, and advancements in technology in a variety of industries raise the demand for electronics. Conductive polymers are used for covering the sensitive components in an electronic device, driving sales for the market.

Conductive Compounds Market Regional Analysis:

• North America

• Europe

• Asia Pacific

• Latin America

• Middle East & Africa

Asia-Pacific region is expected to dominate in the market shares in the conductive compound market. The region is home to the market-leading manufacturers of domestic and international level of electronic components. China is anticipated to grow at a high pace in the electronic sectors owing to the larger producers of conductive plastic compounds. Europe is expected to grow at a significant pace in the conductive compounds market. This region is a hub for the top vehicle manufacturing companies like Audi, BMW, Volkswagen, and others. In vehicles, the rise in the adoption of power electronic systems, electric power steering, seat control, and infotainment systems boosts the market demand in the region.

Conductive Compounds Market Key Players

• BASF SE

• RTP Company

• SABIC

• Coperion GmbH

• Adell Plastics Inc.

• Sojitz Corporation

• Ravago

• Polyvisions Inc.

• DuPont Electronic Solutions

• Mexican Specialty Compounds Inc.