Engineering Plastics Market 2017–2027
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.
The global engineering plastics market is projected to reach around US$ 149.3 billion by the end of 2027, in terms of revenue, growing at CAGR of 8% during the forecast period (2019-2027).
The growing automotive industry due to rapid urbanization is predominantly fueling the market growth of engineering plastics. According to the European Automobile Manufacturers Association, 98.1 million motor vehicles were produced around the world in 2018. 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.
On the basis of the region, Asia Pacific dominated the global engineering plastics market in 2018, accounting for 28.8% share in terms of value, followed by Europe and North America.
Figure 1. Global Engineering Plastics Market, Revenue Share (%), By Region, 2018
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 of
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 projected to hamper the market growth of engineering plastic.
Strong growth of end-use industries such as automotive and transportation, electrical and electronics and medical industries is expected to fuel the market growth of the engineering plastic market. The European Union estimates that 16 percent of the weight of an average automobile is plastic components, most notably for interior parts and components. Hence, growth in end-user industries is expected to provide enormous growth opportunity to the market of engineering plastic.
The growing market in the APAC region due to the increasing population, rising income levels, and urbanization, etc. is projected to offer enormous growth opportunity to the market over the forecast period. The market in the Asia Pacific is projected to experience comparatively high growth owing to the high presence of automobiles, electronic products, electronic products, consumer appliances, and machinery and equipment manufacturers. This is expected to foster market growth over the forecast period.
Figure 2. Global Engineering Plastics Market– Opportunity Analysis
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, orthopedic implants, and orthopedics.
Researchers around the globe are focusing on developing advanced technologies to ease the production of engineering plastic this will favor the market growth of engineering plastic over the forecast period. For instance, in November 2019, new innovation developed by a team of researchers based in Japan. They designed a new method to improve the wear and corrosion resistance of the machines that produce super engineering plastics.
Figure 3. Global Engineering Plastics Market, Revenue Share (%), By Application, in 2018
On the basis of application in 2018, the electrical and electronics segment has accounted the largest market share of 35.5% in terms of value, followed by automotive and transportation and construction respectively.
Figure 4. Global Engineering Plastics Market– Value Chain Analysis
Key players operating in global; 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.
Few Recent Developments:
- In October 2019, French chemicals and advanced materials producer Arkema is teaming up with engineering plastics compounder Agiplast to produce and regenerate engineering plastic compounds from high-performance polyamides and PVDF fluoropolymers.
- In April 2016, Arkema Coating Resins, a business unit of Arkema, announced today the addition of two new distributors for the company’s line of performance-enhancing additives used in PVC compounds and engineering plastics.