May 24, 2024
Engineering Plastics Market

Engineering Plastics Market Set to Witness Exponential Growth Driven by Increasing Demand from the Automotive Industry

Engineering plastics are high-performance plastics that exhibit superior mechanical and thermal properties when compared to commodity plastics. They are used in a variety of applications such as automotive components, electrical & electronics, and industrial & machinery sectors. Engineering plastics offer durable and light-weight alternatives to metals. They are easy to manufacture and have excellent chemical and corrosion resistance. The global increase in demand for fuel-efficient and lighter vehicles is boosting the use of engineering plastics in automotive applications. Plastics are increasingly replacing conventional materials like metal to reduce weight and improve fuel efficiency.

The global Engineering Plastics Market 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, as highlighted in a new report published by Coherent Market Insights.

Market key trends:

Research and development activities are focusing on increasing the heat resistance and fire retardant properties of engineering plastics. The processing temperatures of plastics are being increased through compounding with high heat stabilizers and flame retardants without compromising on mechanical properties. Emerging technologies like 3D printing have enabled the use of engineering plastics in medical implants, aerospace components, and electric vehicle parts by fabricating complex geometries that were not possible earlier. Lightweighting remains a top priority across industries to improve performance and comply with stringent emission norms. This is expected to substantially increase the replacement of metals with plastics over the forecast period.

Porter’s Analysis

Threat of new entrants: The engineering plastics industry requires high R&D investments and manufacturing facilities. These high barriers limit the threat of new entrants.

Bargaining power of buyers: The Global engineering plastics market size has numerous buyers from various end-use industries such as automotive, aerospace, and construction. As a result, buyers have moderate bargaining power.

Bargaining power of suppliers: The raw materials used in engineering plastics such as petrochemicals are supplied by few global players, giving them strong bargaining power over prices.

Threat of new substitutes: New materials such as bio plastics pose a threat; however, engineering plastics still hold advantages in properties over substitutes.

Competitive rivalry: The market is moderately competitive with major players focusing on new product development and acquisitions to gain market share.

Key Takeaways

The global Engineering Plastics Market is expected to witness high growth over the forecast period. The global Engineering Plastics Market 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.

North America currently dominates the market due to the strong presence of automotive and aerospace industries in the region. The Asia Pacific region is expected to grow at the fastest pace during the forecast period with rising automotive production in China and India. North America is the largest engineering plastics market, led by the United States. Growth in the region is driven by the well-established automotive and aerospace industries. Europe is expected to witness steady growth due to high demand from the automotive industry in Germany.

Key players: 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.

*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it