The global Transparent Plastics Market is estimated to be valued at US$ 161.2 billion in 2022 and is expected to exhibit a CAGR of 3.66% over the forecast period 2023-2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
Transparent plastics are lightweight plastics having properties such as clarity and the ability to allow light transmission. Some of the major types of transparent plastics include polycarbonate, polystyrene, polymethyl methacrylate, and polyvinyl chloride. Transparent plastics finds usage in various end-use industries such as automotive & construction, where they are used as lightweight alternative to glass, providing strength, safety, and durability. Their transparency properties allow structures to have more windows and skylight areas. These plastics are suitable choice for appliances, medical devices, consumer goods, and optical applications where visibility is required. Their clarity properties combined with toughness, durability and ease of fabrication make them preferred choice in comparison to glass.
Market key trends:
Promising growth of construction industry is expected to propel the demand for transparent plastics in construction application such as windows, doors, roof lights and skylights. According to UNEP, the built environment accounts for 36% of global final energy use and nearly 40% of energy-related carbon dioxide (CO2) emissions when operations and upstream power generation are accounted for. Replacing traditional glass and materials with lightweight, durable and energy efficient transparent plastics can help reduce carbon footprint of buildings. Growing demand for high-performance plastics from automotive industry is also expected to boost the market growth over the forecast period. Rising consumption of consumer goods such as appliances, electronics and medical devices where transparency is key requirement is anticipated to fuel the market growth of transparent plastics.
Porter's Analysis
Threat of new entrants: The threat of new entrants is moderate as the capital requirement and economies of scale needed are moderately high for setting up new manufacturing facilities. However, established players have significant brand awareness and customer loyalty.
Bargaining power of buyers: The bargaining power of buyers is high given the fragmented nature of buyers and availability of substitutes. Buyers can negotiate on price and demand quality certifications and transparency in operations.
Bargaining power of suppliers: The bargaining power of suppliers is moderate as raw materials used are commoditized and available from multiple sources globally. However, supply disruptions can impact established supply chains.
Threat of new substitutes: The threat of new substitutes is moderate to high as advanced materials like carbon fiber and hybrid plastics continue to replace traditional plastics in certain applications. Environmental concerns are also driving innovation in sustainable substitutes.
Competitive rivalry: The competitive rivalry is high given the presence of large multinational corporations and regional players competing on product portfolios, pricing and customer service.
Key Takeaways
The Global Transparent Plastics Market Demand is expected to witness high growth, exhibiting CAGR of 3.66% over the forecast period, due to increasing demand from the packaging and automotive industries. Rapid urbanization and growth in e-commerce are driving the need for innovative and sustainable packaging solutions.
Regional analysis: Asia Pacific dominated the transparent plastics market in 2022 with a share of over 35%, led by China, India and other developing nations. The region is expected to continue its dominance due to the growth of end-use industries and shifting of manufacturing bases to Asia. North America and Europe are also significant markets driven by auto and construction industries.
Key players: Key players operating in the Transparent Plastics market are Dow Inc., Covestro AG, Eastman Chemical Company, SABIC, Arkema S.A., Mitsubishi Chemical Corporation, Evonik Industries AG, Sumitomo Chemical Co., Ltd., Teijin Limited, LG Chem Ltd. The industry is concentrated requiring significant R&D investments to develop novel solutions and reduce dependence on fossil fuels. Partnerships across the value chain have increased to strengthen supply networks and address sustainability.
