The engineering plastics market comprises thermoplastics made from synthetic organic polymers that possess better mechanical and thermal properties than commodity plastics like polystyrene or polyvinyl chloride. Engineering plastics find application in areas requiring a high degree of durability, strength, rigidity and heat resistance. They are commonly used in automotive components, electrical and electronics, consumer appliances, medical devices and construction among others. The increasing use of plastics across the automotive industry due to their ability to reduce the overall vehicle weight and improve fuel efficiency has boosted the demand.
The Global Engineering Plastics Market Demand is estimated to be valued at US$ 150.55 Mn in 2024 and is expected to exhibit a CAGR of 7.2% over the forecast period 2024 to 2031.
Key Takeaways
Key players operating in the engineering plastics market are Eli Lilly and Company, Sanofi S.A., Cadila Healthcare Limited, Cipla Limited, Castle Biosciences, Regeneron Pharmaceuticals, Inc., Merck & Co., Inc., Vidac Pharma, LEO Pharma A/S, Regeneron Pharmaceuticals, Inc., Merck Sharp & Dohme, and Amgen Inc. These players are focusing on expanding their production facilities and product portfolios to cater to the growing demand.
North America dominated the global market in 2020 owing to robust presence of automotive as well as electronics industries in the US and Canada. However, Asia Pacific is expected to witness the fastest growth on account of rising automotive production in China and India. Moreover, the improving economic conditions and growing disposable incomes in developing Asian countries are likely to drive the sales of consumer appliances and electronics, thereby augmenting regional demand.
Key opportunities in the market include development of bio-based and recyclable engineering plastics to cater to the rising demand for sustainable products. Major players are investing heavily in R&D to introduce novel grades with enhanced properties. Meanwhile, partnerships and acquisitions remain key strategies to expand global footprint.
Market Drivers
Rising automobile production: One of the major drivers of engineering plastics market is growing automobile industry globally. Engineering plastics help in reducing weight and improving fuel efficiency of vehicles. According to IEA, annual global passenger vehicle production is estimated to increase from around 93 million units in 2020 to over 120 million units by 2030.
Growth of electronics industry: Increased use of plastics in consumer electronics like smartphones, laptops, televisions etc. due to their lightweight and durability properties is propelling market growth. Rise in disposable incomes in developing nations is positively impacting sales of electronics.
Market Restrain
Volatility in raw material prices: Fluctuating prices of crude oil which is the primary feedstock for producing engineering plastics can adversely impact the overall production cost. Any rise in raw material costs leads to increased price of engineering plastics.
Environmental concerns: Certain grades of engineering plastics are non-biodegradable and generate microplastics during degradation. Their improper disposal can cause pollution. Governments across regions are imposing stricter regulations regarding plastic waste management.
Segment Analysis
The engineering plastics market can be segmented based on types which include acrylonitrile butadiene styrene (ABS), polycarbonate(PC), polyamide(PA), polymethyl methacrylate(PMMA), polyethylene terephthalate(PET), and others. Among these, the ABS sub segment dominates the market and is expected to continue its dominance over the forecast period. ABS is widely used in automotive components, appliances, consumer electronics owing to its high impact resistance, great dimensional stability and strength across a wide temperature range.
Global Analysis
Regionally, Asia Pacific dominates the global engineering plastics market and is expected to be the fastest growing region during the forecast period. This is owing to growing automotive and electronics industries in emerging economies of China and India. Rapid industrialization along with rising demand for lightweight and high performance plastics from end use industries is driving the market in the region. North America is another major region for engineering plastics market due to high demand from aerospace, electronics and medical sectors. Presence of major players in the region is also contributing to market growth.
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