by Engineering plastics are generally used to manufacture materials used in various industrial applications that demand higher strength, durability and heat resistance. Some common examples include polyamides (PA), acrylonitrile butadiene styrene (ABS), polycarbonates (PC), polyacetals (POM), fluoropolymers and thermoplastic polyesters (PET and PBT). These plastics are mainly used in the automotive industry for manufacturing components such as fuel systems, air intake manifolds, air conditioning lines and fittings among others.
The global automotive industry has been witnessing significant growth over the past few years, especially in emerging economies of Asia Pacific and Latin America owing to rising disposable incomes, availability of financing options and improved road infrastructure. As per industry estimates, global vehicle production is expected to reach over 120 million units by 2023. The increasing automotive production is projected to drive the demand for engineering plastics from this industry.
The global Engineering Plastics Market is estimated to be valued at US$ 130.68 Bn in 2023 and is expected to exhibit a CAGR of 7.2% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Dynamics
Growing Automobile Industry: As mentioned in the heading, the global automotive industry has been growing at a healthy rate over the past few years which is one of the key drivers propelling the engineering plastics market. Rise in vehicle production directly translates to increased plastics consumption from this industry.
Material Technology Advancements: Continuous research and development in the field of material science has led to development of new high-performance plastics with improved physical and chemical properties. Innovation in material technologies allow engineers to design and develop advanced components for new age vehicles. This is anticipated to support market growth over the forecast period.
Segment Analysis
The engineering plastics market is segmented based on type into acrylonitrile butadiene styrene (ABS), polyamide (PA), polyethylene terephthalate (PET), polycarbonate (PC), polyvinyl chloride (PVC), polypropylene (PP), polyphenylene oxide (PPO), thermoplastic polyurethanes (TPU), and others. The polycarbonate (PC) segment is dominating the market and is expected to continue its dominance during the forecast period. This is due to its wide application in automotive and electronics industries owing to properties such as durability, heat resistance and lightweight.
PEST Analysis
Political: Growth of the engineering plastics market is favorably impacted by supportive government policies and regulations towards promoting usage of lightweight plastics in various industries like automotive and electronics.
Economic: Strong economic growth especially in developing countries of Asia Pacific is driving demand for consumer goods and automobiles, fueling growth of the engineering plastics market.
Social: Rising disposable incomes and purchasing power is increasing consumption of consumer electronics and automobiles, driving their demand from engineering plastics.
Technological: Advancements in material science is helping develop new generations of engineering plastics with enhanced properties like recyclability, efficiency and thermal resistance. Continuous technological innovation remains key to the industry.
Key Takeaways
The global engineering plastics market is expected to witness high growth over the forecast period.
Regional Analysis: Asia Pacific currently dominates the market owing to strong presence of manufacturing bases in major economies like China, India, Japan and South Korea. The region remains the fastest growing as well as the largest engineering plastics market globally driven by rising domestic demand.
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
