Global Molded Plastic Market-Insight
Molded plastics are the type of polymers, which can be molded into any size and shape for the use in commercial applications. The use of pigments and other additives enhances the quality of the molded plastics. Molded plastics are used in various end-use industries, owing to the characteristics, such as durability, lightweight, and high chemical resistance. The automobile industry uses molded plastic for manufacturing of air flow ducts, engine cover, wheel wells, car fascia, grilles, bumpers, and other components.
Extensive expansion and development in the construction, automotive, and packaging industry will boot growth in molded plastics market globally. For instance, according to Organization Internationale des Constructeurs Automobiles (OICA) the automotive industry increased with a growth rate of 4.5% during the period 2015-2016. Molded plastics are used in manufacturing automobiles that are environmentally sustainable and low-carbon emission vehicles, which are increasingly in demand. The rapid modernization in emerging economies such as India, China, and Brazil has led to increasing expansion of packaging industry owing to high outflow and inflow of fast moving consumer goods, which will in turn boost growth of molded plastic market. Furthermore, electrical and electronic industry has high demand for molded plastics as it is used in the manufacturing of electronic devices such as laptops, televisions, computers, and mobile phones.
In terms of revenue, Asia Pacific is anticipated to be the largest and fastest growing region for molded plastic market witnessing the highest CAGR of 6.7% during the forecast period. The growth of various end-use industries such as packaging, construction, and automobile has surged the demand for molded plastic. Furthermore, growing population and increasing disposable income of the consumers in the emerging economies such as China and India, are major factors responsible for the growth of the molded plastic market in Asia Pacific. In addition, the growth in the electrical and electronic industry in the region is also surging the market positively.
The Indian electronic market is expected to reach US$ 400 billion during the forecast years, mainly due to the setting up of Electronic Hardware Technology parks (EHTP) in the Special Economic Zones that has brought about more Foreign Direct Investments. Government has also initiated the MSIPS (modified special incentive package) under which US$ 1.7 billion will be offered to the electronic sector in 2017.
Europe is the second largest market for molded plastic, followed by North America. The developed electrical and automotive industry is the major factor boosting the growth of molded plastic market. The increase in remodeling and renovating activities in the North American region is further expected to fuel the growth of molded plastic market. The New Building Canada Fund has committed US$ 10 billion over a 10 year period i.e. 2014-24 to build public infrastructure in Canada. 9 US$ in the National and regional projects and 1 US$ in small population fund.
The Middle East and Africa is expected to have a steady growth in the molded plastic market, owing to the increase in the building and construction in the regions. The Middle East has seen a growth in construction with Qatar and Saudi Arabia, which is major driver for the growth of molded plastic market. This is primarily due to upcoming FIFA World Cup 2022 in Qatar, which is likely to bring millions of people to the country. Construction of stadia, hotels, malls, and public infrastructure is driving the growth of molded plastic market. Moreover, the recent Africa Construction Summit 2017 will also act as a positive impact in the global molded plastic market.
Figure1. Global Molded Plastic Market Share, By End-Use Industry, 2016
Source: Coherent Market Insights 2017
Based on the End-use, packaging is the largest segment in 2016 and is expected to be the same during the forecast years. Packaging holds a revenue of US$ 63830.84 million and is expected to grow at a CAGR of 5.9% from 2017-2025. Packaging industry accounted for the largest market share due to the increased use of light weight packaging in various industries, such as pharmaceuticals, electrical, and electronics.
Major Players in the Global Molded Plastic Market:
Key players operating molded plastic market include Eastman Chemical Company, SABIC, Huntsman Corporation, LyondellBasell Industries N.V, INEOS Group AG, Chevron Phillips Chemical Company LLC, Reliance Industries Limited, Obeikan Investment Group (OIG), Takween Advanced Industries, and BASF SE.