April 13, 2024

Specialty Polymers Market is driven by increasing demand from end-use industries

Specialty polymers refer to polymers that exhibit unique and enhanced properties over commodity plastics. They are commonly used in applications requiring high performance characteristics such as durability, strength, heat resistance and flame retardancy. Specialty polymers find widespread usage in automotive, electronics, industrial machinery, aircraft interiors and healthcare sectors. The increasing demand from end-use industries for lightweight, durable and high strength materials is driving the growth of the specialty polymers market.

The global specialty polymers market is estimated to be valued at US$ 82.99 Bn in 2023 and is expected to exhibit a CAGR of 6.4% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market key trends:
One of the key trends in the specialty polymers market is the increasing R&D towards bio-based and biodegradable specialty polymers. Rising environmental concerns regarding pollution caused by non-biodegradable plastics have prompted manufacturers to develop specialty polymers from renewable resources. For instance, manufacturers are developing polylactic acid (PLA) based specialty polymers for applications in textiles, packaging and 3D printing filaments. These bio-based specialty polymers exhibit properties comparable to petroleum-based polymers while being renewable and biodegradable. Their growing adoption in various industries is expected to drive the specialty polymers market growth over the forecast period.

Porter’s Analysis

Threat of new entrants: The threat of new entrants in the specialty polymers market is moderate to high due to the requirement of technical expertise and high R&D costs involved. However, established players have proprietary knowledge and brand loyalty that provides some protection against threats from new entrants.

Bargaining power of buyers: The bargaining power of buyers in the specialty polymers market is moderate as there are numerous buyers and specialty polymer products can be substituted based on the application. However, switching costs incurred by buyers to replace existing specialty polymer materials can reduce their bargaining power.

Bargaining power of suppliers: The bargaining power of suppliers is moderate since there are numerous global suppliers. However, suppliers have some bargaining power due to proprietary production processes and formulations required for specialty polymer manufacturing.

Threat of new substitutes: The threat of substitutes is moderate as specialty polymers have properties customized for specific applications. Potential substitutes need significant R&D investments to match performance.

Competitive rivalry: Competition in the specialty polymers market is high due to the presence of numerous global and regional players. Players compete based on product innovation, pricing, and quality.

Key Takeaways

The global specialty polymers market is expected to witness high growth over the forecast period owing to the increasing applications in various industries such as automotive, electronics, construction and others.

Regionally, North America is expected to dominate the market during the forecast period supported by strong presence of specialty polymer manufacturers and increasing demand from various end-use industries in the US and Canada. Asia Pacific is anticipated to be the fastest growing market for specialty polymers with China, India, Japan and South Korea being the major countries driving the regional growth.

Key players operating in the specialty polymers market are Croda International Plc, Evonik Industries, BASF, Solvay Group, Specialty Polymers Inc., PolyOne Corporation, AmeriLux International LLC, The Dow Chemical Company, Clariant, Arkema Group, 3M, A.Schulman, Inc., Ashland Inc., and Koninklijke DSM N.V. These players are focusing on new product launches, expansion of production capacities and partnerships & collaborations to gain higher market share.