July 14, 2024
Industrial Plastic Market

Industrial Plastics Market Trends by Rising Construction Sector

The growing construction industry across the globe is fueling demand for industrial plastics. Industrial plastics such as polyvinyl chloride (PVC), polyethylene (PE), polypropylene (PP), and polystyrene (PS) find wide application in pipes, fittings, windows, doors, insulation, cables, and other construction materials due to their versatility, durability and cost-effectiveness. Industrial plastics provide an ideal solution as a substitute for wood, metal and glass in construction.

The global industrial plastics market is estimated to be valued at US$ 141.05 Bn in 2024 and is expected to exhibit a CAGR of 6.1% over the forecast period 2024 to 2031.

Key Takeaways

Key players operating in the industrial plastics market are Exxon Mobil Corporation, Sumitomo Chemical Co., Ltd., BASF SE, SABIC, Dow, Inc., Evonik Industries AG, Arkema, Celanese Corporation, Eastman Chemical Company, Chevron Phillips Chemical Co., LLC, Formosa Plastics Corporation, Covestro AG, Toray Industries, Inc., Mitsui & Co. Plastics Ltd., TEIJIN LIMITED, LG Chem, Huntsman International LLC, Chevron Phillips Chemical Co., LLC, and LyondellBasell Industries Holdings B.V. The growing construction industry globally is fueling the demand for industrial plastics in applications such as pipes, fittings, profiles, insulations and others. Major players are focusing on capacity expansion plans and strategic partnerships to tap the increasing demand for industrial plastics especially in the emerging economies of Asia Pacific and Middle East regions.

Key players operating in the Industrial Plastics Market Demand are Exxon Mobil Corporation, Sumitomo Chemical Co., Ltd., BASF SE, SABIC, Dow, Inc., Evonik Industries AG, Arkema, Celanese Corporation, Eastman Chemical Company, Chevron Phillips Chemical Co., LLC, Formosa Plastics Corporation, Covestro AG, Toray Industries, Inc., Mitsui & Co. Plastics Ltd., TEIJIN LIMITED, LG Chem, Huntsman International LLC, Chevron Phillips Chemical Co., LLC, and LyondellBasell Industries Holdings B.V. The growing population globally is further propelling the demand for infrastructure, automotive and packaging industries, thereby driving the industrial plastics market growth. Major industrial plastics companies are focusing on strategic expansions and capacity additions to cater to increasing demand from emerging economies.

Market key trends

The global industrial plastics market is witnessing increasing demand for bio-based and recyclable plastics due to stringent environmental regulations and sustainability goals of end-use industries. Major players are investing in R&D activities to develop innovative and eco-friendly plastics made from renewable resources with improved properties. For instance, BASF has developed ecoflex bioplastics made from renewable resources for flexible food packaging and agricultural films application. Such developments are expected to shape the future of industrial plastics market.

Porter’s Analysis

Threat of new entrants: Low economies of scale and cost disadvantages relative to existing firms make entry difficult.

Bargaining power of buyers: Buyers in industrial plastic markets have low bargaining power given the many substitutes available.

Bargaining power of suppliers: Suppliers of raw materials like petroleum have significant bargaining power given limited substitutes for their supplies.

Threat of new substitutes: New substitute materials pose a moderate threat by challenging existing product use and demand.

Competitive rivalry: Fierce competition exists among existing firms to win customers and market share.

Geographical regions

North America currently holds the largest share of the global industrial plastic market in terms of value due to high demand from various end-use industries like packaging, automotive, electronics, and construction.

The Asia Pacific region is expected to be the fastest growing market for industrial plastics during the forecast period owing to rapid industrialization and growing construction activities in major economies like China and India. Countries in the region offer low-cost manufacturing facilities and steadily growing demand for lightweight and durable materials from expanding industries

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