ENGINEERING PLASTICS MARKET ANALYSIS

Engineering plastics are widely used across various manufacturing industries that require high performance with respect to chemical stability, impact resistance, durability, and thermal and dimensional stability. Engineering plastics are being rapidly replacing metals and wood across construction and automotive industries due to high mechanical strength. These materials reduce the overall weight of the vehicle and enhance fuel efficiency. They are used in the production of the automotive exterior, interior parts and also used in the powertrain. Engineering plastic is also used across the electronic industry due to its high resistance to various environmental factors such as chemicals, high temperature, and abrasion. This makes it an ideal material for manufacturing of consumer electronic goods. 

Global engineering plastics market was valued at US$ 115.0 Billion in 2021 in terms of revenue, exhibiting a CAGR of 6.6% during the forecast period (2022 to 2030).

Drivers

The growing automotive industry due to rapid urbanization is predominantly fueling the market growth of engineering plastics. According to the European Automobile Manufacturers Association, 79.1 million motor vehicles were produced around the world in 2021, an increase of 1.3% from 2020. Increasing production of the automobile is raising the demand for engineering plastics which are widely used across automotive and transportation parts such as exteriors, engine, mechanical components, interiors, fuel systems & electric and electronic components.

Growth in the electronic & electrical industry due to rising demand for electronic goods such as storage batteries, computers, communication equipment, switchgear, and switchboard are propelling the market growth of engineering plastic. Moreover, rising number of educational institutes with computer laboratories is another major factor augmenting the market growth of engineering plastic over the forecast period.

Among region, Asia-Pacific dominated the global engineering plastics market, accounting for 28.8% share in terms of value in 2021. Growth is attributed to increasing sales of automotive and rising demand for electronic products such as storage batteries, computers, communication equipment and others. According to the China’s Ministry of Industry and Information Technology, in 2021, operating revenue of the electronics industry in China was amounted to about US$ 2.2 trillion.

Figure 1. Global Engineering plastics Market Value Share (%), By Region, 2021

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Market Restraints

High costs of engineering plastics due to fluctuation in raw material costs is expected to hinder the market growth of engineering plastics. Engineering plastics have enhanced properties and complex processing which impacts the final cost of the engineering plastics. Hence, the high cost of engineering plastics is expected to hamper the market growth.

Moreover, growing investment in the research activities in order to develop plastics-alternative material is expected to hamper the market growth. Various companies are investing in research programs to develop alternatives for engineering plastics such as carbon fibers in order to reduce the overall cost of manufacturing is also projected to hamper the market growth of engineering plastic.

Market Trends

The rising demand for engineering plastic for the production of medical devices is expected to propel the market growth. Engineering plastic is widely used for the manufacturing of medical devices due to their superior physical and chemical properties such as lightweight, flexibility, ease of processing, non-ferrous properties, and excellent biocompatibility. They are used in the production of a wide range of medical devices, surgical instruments, diagnostic & drug delivery systems, orthopaedic implants, and orthopaedics.

Researchers around the globe are focusing on developing advanced technologies to ease the mechanism of engineering plastic, which will favour the market growth over the forecast period. For instance, in May 2022, BASF announced the high-performance solutions related to three key stages of the mechanical recycling process for plastics. It will benefit in identifying the grade of plastic, improving the cleaning processes for recycling, and boosting the quality of recycled polymeric materials.

Figure 2. Global Engineering plastics Market Value Share (%), By Application, 2021

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On the basis of Application in 2021, electrical and electronics segment accounted the largest market share of 35.5% in terms of value, followed by automotive and transportation and construction respectively.

Recent Developments

• In March 2021, Victrex Plc., a UK-based manufacturer and supplier of high performance polymers, invested US$ 1 million in an expansion and the up-gradation of Asia Innovation & Technology Centre (AITC) in Shanghai. This will accelerate innovation, enhance speeding time to market and design-to-mass production workflow for advanced engineering design in Asia.
• In March 2022, Celanese Corporation, a global chemical and specialty materials company, completed the restructuring of Korea Engineering plastics Co. This will support growth of Celanese polyoxymethylene (POM) products worldwide through access to world-scale POM polymerization capabilities.
• In November 2020, Covestro, the German-based manufacturer of engineering plastics, constructed a new production plant for Vulkollan elastomers raw materials in Thailand. The company aims to meet the growing demand for high-performance elastomers, which are engineering materials used in various applications.

Competitive Section

Major 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.