The global molding compounds market, valued at USD 10.24 billion in 2024, is set to nearly double — reaching USD 20.91 billion by 2034 with a 7.40% CAGR from 2025 to 2034.
Molding compounds — high-performance thermosetting plastics — offer exceptional electrical insulation, mechanical strength, and heat resistance. Available in granular or pellet form, they are molded into diverse products across industries. The three dominant types shaping the market are:
Semiconductor Molding Compounds
Buk Molding Compounds (BMC)
Sheet Molding Compounds (SMC)
Applications span construction, automotive, electrical & electronics, and aerospace, with rising demand driven by electric vehicle (EV) adoption, semiconductor investments, and consumer electronics growth.
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Electric vehicles are transforming the automotive industry — and molding compounds are quietly powering this shift. They’re used in:
Electrical & electronic components
Under-the-hood equipment
Interior parts
Government incentives and tax subsidies — such as India’s support for EV infrastructure and R&D — are accelerating adoption. New formulations optimized for EV requirements will be critical to sustaining growth.
The building & construction sector is embracing materials that meet climate resilience, safety, and structural integrity standards.
For example, Avient Corporation’s Hammerhead™ FR Flame Retardant Composite Panels (launched Feb 2025) eliminate the need for extra fire-resistant coatings — demonstrating how advanced molding compounds simplify processes while boosting safety.
Two key restraints are:
Environmental impact — Energy-intensive production processes face stricter regulations.
Raw material price volatility — Epoxy and resin prices fluctuate due to geopolitical instability and supply chain disruptions.
The semiconductor industry’s global expansion offers a major growth avenue. Countries are investing in domestic chip manufacturing to reduce dependency on Southeast Asia.
Recent moves include:
Röhm expanding its specialty molding compounds capacity in the US (June 2024)
MPACT Plastic Containers investing R354 million in a new injection molding factory (Sept 2024)
These expansions signal a robust pipeline for molding compound applications.
Key players shaping the competitive landscape include:
Toray Advanced Composites, Bakelite Synthetics, Polynt-Reichhold Group, Owens Corning, Showa Denko K.K., Daicel Corporation, Ashland Global Holdings Inc., IDI Composites International, Sumitomo Bakelite Co. Ltd., Eastman Chemical Company, Core Molding Technologies, Premix Group, Menzolit GmbH, Hexion Inc., AOC LLC.
With 41% of global revenue in 2024, Asia-Pacific leads thanks to:
A thriving chemicals and manufacturing base
Doinance in semiconductor production
Rapid EV industry growth in China and India
Europe also holds a strong position, focusing on sustainable, eco-friendly molding compounds and hosting several high-profile material innovators.
If industry players can mitigate environmental impact, stabilize raw material supply, and innovate for EVs and semiconductors, molding compounds could become indispensable in manufacturing by 2034 — driving the next era of industrial resilience and performance.