The engineering plastics market is estimated to be valued at US$ 130.68 Bn in 2023 and is expected to exhibit a CAGR of 5.0% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market Overview:
Engineering plastics are a group of plastic materials that have better mechanical and thermal properties than typical commodity plastics like polyethylene (PE) and polyvinyl chloride (PVC). Major types of engineering plastics include polycarbonate (PC), nylon, acrylonitrile butadiene styrene (ABS), polyamide (PA), polyethylene terephthalate (PET), and polybutylene terephthalate (PBT). These plastics find wide applications in automotive, electronics, industrial machinery and equipment owing to their excellent chemical and heat resistance properties.

Market Dynamics:
The engineering plastics market is expected to grow at a steady pace owing to increasing demand from the automotive industry. The automotive industry is the biggest end-use sector for engineering plastics, accounting for over 30% of overall demand. Increasing vehicle production driven by rising disposable incomes in developing economies along with stringent emission norms necessitating reduction in vehicle weight through incorporation of engineering plastics is expected to drive their demand over the forecast period. Additionally, increasing penetration of electric vehicles, which utilize more than double the amount of plastics per vehicle as compared to conventional vehicles, is another factor expected to propel market growth. Furthermore, demand from the electrical and electronics industry for miniaturized and light weight components is also expected boost market growth during the forecast period.

SWOT Analysis

Strength: Engineering plastics possess excellent mechanical and thermal properties as compared to traditional plastics. They offer high heat resistance, strength and rigidity. They have good chemical resistance against solvents, acids and alkalis. These plastics have low moisture absorption which prevents swelling when exposed to moisture.

Weakness: Engineering plastics have high raw material and processing costs as compared to traditional plastics. They have complex and lengthy manufacturing processes which increases production costs. Some engineering plastics like PEEK have limited colorability which restricts their applications.

Opportunity: Increasing demand from automotive industry for high strength, lightweight and durable components is driving the engineering plastics market. Growing electronics industry requiring miniaturized and robust components also promotes market growth.

Threats: Stringent environmental regulations on plastic waste disposal pose challenges. Fluctuating crude oil prices impact raw material costs. Development of new bio-based alternatives can replace petroleum-based engineering plastics.

Key Takeaways

The global Engineering Plastics Market is expected to witness high growth, exhibiting CAGR of 5.0% over the forecast period, due to increasing demand from automotive industry for lightweight yet durable components.

Regional analysis: Asia Pacific dominates the engineering plastics market and is expected to grow at the fastest rate due to large automotive and electronics manufacturing base in China, India, Japan and South Korea. North America and Europe are also significant markets driven by developed automotive and industrial sectors.

Key players analysis: Key players operating in the engineering plastics market are 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.

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