The Engineering Plastics Market Growth is driven by rapid industrialization
The engineering plastics market comprises plastics that exhibit properties like high strength, rigidity, heat resistance and chemical resistance. Some common engineering plastics include polyamides (nylons), acrylonitrile butadiene styrene (ABS), polycarbonates, polyacetals (POM), fluoropolymers and thermoplastic polyesters. These plastics find wide applications in the automotive, electronics, industrial and consumer goods sectors owing to advantages such as durability, design flexibility and ability to be formed into complex shapes.
The Global Engineering Plastics Market Demand is estimated to be valued at US$ 150.55 Mn in 2024 and is expected to exhibit a CAGR of 7.2% over the forecast period 2024 to 2031.
Key Takeaways
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. These players are focusing on developing advanced grades of engineering plastics and establishing long-term supply agreements with OEMs to strengthen their position in the market.
The growing demand from the automotive industry is driving the engineering plastics market. Manufacturers are using engineering plastics to reduce weight and achieve better fuel efficiency in vehicles. Properties like heat resistance and high strength make engineering plastics suitable for engine components that require withstanding high temperatures.
The market is also expanding globally due to the shifting of production bases to countries with low-cost manufacturing. Countries like China, India, Brazil and Mexico are attracting major automotive and electronics manufacturers with incentives like tax benefits. This is positively impacting the growth of the engineering plastics industry in these regions.
Market drivers
Rapid industrialization in developing countries is one of the key drivers for the engineering plastics market. There is significant investment in the infrastructure, construction and automotive sectors in countries like China, India and Indonesia. This is generating high demand for durable plastics with good mechanical properties like engineering plastics for various applications.
The engineering plastics market is facing some geopolitical challenges that can potentially impact its growth in the coming years. Ongoing geopolitical tensions and conflict situations across various regions have disrupted global supply chains for raw materials and components. This has adversely affected the availability as well as increased the prices of key feedstocks used in engineering plastics such as ethylene and propylene. Moreover, economic sanctions imposed by some countries have restricted trade with major manufacturing hubs for engineering plastics, lowering overall productivity and output. Such supply-side constraints can hamper the market expansion especially during the forecast period when demand is projected to rise sharply across industries.
To mitigate these risks, companies operating in the engineering plastics market need to diversify their sourcing networks and establish partnerships in new regions. While volatility in commodity prices cannot be controlled, wider supplier base can provide resilience against any short-term supply disruptions. Manufacturers also require to keep close track of changing trade policies and regional conflicts to devise alternative business strategies. Further investments in recycling infrastructure can help create new opportunities from waste materials and address sustainability priorities of end-use sectors. collaborative research with technology organizations and academic institutions on development of bio-based engineering plastics using green chemistry routes can be a big step towards geopolitical independence.
In terms of value, the engineering plastics market is concentrated in North America and Europe currently. Majority of the demand originates from the United States, Germany, France, Italy and other developed economies where automotive, electronics, consumer appliance and construction industries are well established. However, over the forecast timeline Asia Pacific region is projected to outpace others in terms of market growth fueled by expanding manufacturing industries, rising disposable incomes and surge in infrastructure development projects across China, Japan, India and ASEAN countries.
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