Global Engineering Plastics Market is Estimated to Witness High Growth Owing to Increasing Demand from Automotive and Electrical sectors
The global engineering plastics market is estimated to be valued at US$115.0 billion in 2021 and is expected to exhibit a CAGR of 6.6% over the forecast period 2022-2030, as highlighted in a new report published by Coherent Market Insights.
A) Market Overview:
Engineering plastics are a group of high-performance polymers that exhibit superior mechanical, thermal, and chemical properties. They are widely used in various end-use industries due to their exceptional properties such as high strength, heat resistance, chemical resistance, and dimensional stability. These plastics find extensive applications in the automotive, electrical and electronics, aerospace, packaging, and construction industries. Some of the commonly used engineering plastics include polyethylene terephthalate (PET), polycarbonate (PC), polyamide (PA), and acrylonitrile butadiene styrene (ABS).
B) Market Dynamics:
The Engineering Plastics Market is driven by various factors. Two prominent drivers are:
1. Increasing demand from the automotive sector: Engineering plastics are extensively used in the automotive industry for lightweighting applications. These plastics help in reducing the overall weight of vehicles, thereby improving fuel efficiency and reducing carbon emissions. Moreover, engineering plastics offer superior mechanical properties, such as high strength and impact resistance, making them suitable for various automotive applications, including body parts, interiors, and under-the-hood components.
2. Growing demand from the electrical and electronics sector: The electrical and electronics sector is witnessing significant growth due to technological advancements and the increasing adoption of electronic devices globally. Engineering plastics are widely used in this sector for insulation, wiring, connectors, and housings of electrical and electronic components. These plastics offer excellent electrical insulation properties, heat resistance, and reliability, making them ideal for electronic applications.
C) SWOT Analysis:
- Strengths:
1. Superior mechanical properties: Engineering plastics offer excellent mechanical properties, such as high strength, toughness, and impact resistance, which make them suitable for demanding applications.
2. Chemical resistance and dimensional stability: These plastics exhibit excellent resistance to chemicals, moisture, and UV radiation. They also have low thermal expansion and good dimensional stability.
- Weaknesses:
1. Higher cost compared to traditional plastics: Engineering plastics are relatively more expensive than traditional plastics, which may limit their adoption in cost-sensitive applications.
2. Limited heat resistance: Some engineering plastics may have limitations in terms of heat resistance compared to other materials, such as metals.
- Opportunities:
1. Growing demand for sustainable materials: With increasing environmental concerns, there is a growing demand for sustainable materials. Engineering plastics can be recycled and offer an eco-friendly alternative to traditional plastics.
2. Emerging applications in 3D printing: The advancements in 3D printing technology have opened new opportunities for engineering plastics. These plastics can be used for rapid prototyping and manufacturing customized components with complex geometries.
- Threats:
1. Intense competition from substitutes: Engineering plastics face competition from alternative materials, such as metals, composites, and bio-based polymers, which may pose a threat to market growth.
2. Volatile raw material prices: The price volatility of raw materials used in the production of engineering plastics, such as crude oil and natural gas, can impact their cost-effectiveness and profitability.
D) Key Takeaways:
- The global engineering plastics market is expected to witness high growth, exhibiting a CAGR of 6.6% over the forecast period, due to increasing demand from the automotive and electrical sectors.
- Regionally, Asia Pacific is the fastest-growing and dominating region in the engineering plastics market, attributed to the rapid industrialization, urbanization, and growth in end-use industries in countries like China, Japan, and India.
- Key players operating in the global engineering plastics market include Arkema Group, Asahi Kasei Corporation, BASF SE, Celanese Corporation, Covestro, DSM N.V., DuPont, Lanxess, LG Chem., Mitsubishi Engineering-Plastics Corporation, Saudi Basic Industries Corporation (Sabic), Solvay SA, Teijin, Toray, and Victrex Plc. These players focus on strategic initiatives such as mergers and acquisitions, product launches, and collaborations to strengthen their market presence and expand their product portfolios.
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