The Engineering Plastics Market is estimated to be valued at US$ 130.68 Bn in 2023 and is expected to exhibit a CAGR of 5.0% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
Engineering plastics are a group of plastic materials that exhibit superior mechanical and physical properties than commodity plastics. They possess high heat resistance, toughness, and dimensional stability. Some commonly used engineering plastics include polyamides (nylons), polycarbonates, acrylonitrile butadiene styrene (ABS), polyacetal (POM), polyethylene terephthalate (PET), and polybutylene terephthalate (PBT). Due to their superior properties, engineering plastics find widespread usage in automotive components, electrical & electronics items, consumer goods, industrial machinery, and construction materials. They help reduce weight and improve performance of the end products.
Market Dynamics:
Rising adoption of lightweight and high-strength materials in the automotive industry is a major driver boosting the demand for engineering plastics. Vehicle manufacturers are increasingly using engineering plastics to manufacture interior and exterior parts such as instrument panels, door panels, bumpers, and structural components to enhance fuel efficiency and durability. Secondly, growth in the electrical & electronics industry is also propelling market growth. Miniaturization trend in electronics has increased the use of engineering plastics to manufacture components that are durable and resistant to heat and chemicals. Growing demand for smart consumer appliances, smartphones, and electric vehicles will further support market expansion over the forecast period. However, volatility in raw material prices remains a key challenge. Continued R&D towards development of bio-based engineering plastics using renewable feedstock can provide new opportunities in the coming years.
Segment Analysis
Engineering Plastics Market Size can be segmented based on the type into polycarbonate (PC), polyamide (PA), acrylonitrile butadiene styrene (ABS), polyethylene terephthalate (PET), polybutylene terephthalate (PBT), and others. Among these, the polycarbonate segment accounts for the largest market share of around 30% owing to its widespread application in automotive, electrical & electronics and optical media segments due to properties like high impact strength, flexibility and heat resistance.
PEST Analysis
Political: The government regulations regarding fuel efficiency and emission standards in the automotive industry have increased the adoption of engineering plastics in various auto components offering lightweighting benefits.
Economic: The growth of the end-use industries such as automotive, electronics, and healthcare have been the key factor driving the growth of the engineering plastics market.
Social: Increasing per capita income and changing lifestyles have increased the demand for consumer electronics and automobiles, propelling market growth.
Technological: Advancements in nano- and bio-based technologies have enabled development of novel grades of engineering plastics with superior properties expanding their application scope.
Key Takeaways
The global Engineering Plastics market is expected to witness high growth, exhibiting CAGR of 5.0% over the forecast period, due to increasing demand from the automotive industry for reducing vehicle weight and meeting stringent emission norms.
The Asia Pacific region dominates the global market with over 40% share due to large manufacturing base of automotive and electronics industries in China, India, Japan and South Korea. China and India are projected to be the fastest growing markets during the forecast period.
Key players operating in the Engineering Plastics market are Arkema Group, Asahi Kasei Corporation, BASF SE, Celanese Corporation, Covestro, DSM N.V., Dupont, Lanxess, LG Chem., Mitsubishi Engineering-Plastics Corporation, Saudi Basic Industries Corporation (Sabic), Solvay SA, Teijin, Toray, and Victrex Plc. These players are involved in new product launches, mergers & acquisitions and expansion strategies to strengthen their global presence.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
