Engineering plastics have high-performance plastic that has better mechanical and physical properties than normal plastic. Acrylonitrile butadiene styrene (ABS) is one of the commonly used engineering plastic that is widely used across car bumpers, dashboard trim and Lego bricks. Moreover, polycarbonates are also used as a major engineering plastic that is widely used across motorcycle helmets. Engineering plastics are now gradually replacing traditional engineering materials such as metal and wood across various applications. Furthermore, they are gaining huge demand across various industries due to their excellent thermal properties and are also easy to produce. Automotive and transportation, electrical and electronics, construction, medical, and packaging are some of the major end-user of engineering plastic.
The global engineering plastics market is estimated to account for around US$ 75.8 billion in terms of value in the year 2018 and it predicted to grow at a CAGR of 8% during the forecast period (2019-2027)
Expanding construction industry around the globe due to increasing investment by government in the sector is expected to accelerate the market growth of engineering plastics. According to the Coherent Market Insights analysis, according to Global Construction Review, globally capital projects and infrastructure spending are expected to more than US$ 9 trillion by 2025. Moreover, according to World Bank Data, the number of cities with a population exceeding 1 million has increased from 270 in 2001 to around 500 in 2015. It is expected that this number will increase to 670 such cities in 2030. This means that the demand for commercial and residential establishments will grow significantly over the forecast period.
The growing production of plastic is projected to accelerate the market growth of engineering plastic over the forecast period. According to Plastic Europe, Plastics production ramped up from 1.5 Mio. t in 1950 to ~322 Mio. t in 2015. In 2015 global plastic production grew by 3.4% compared to 2014. Hence, the growing production of plastic is expected to augment the market growth of engineering plastic over the forecast period.
Lack of awareness regarding the benefits of engineering plastics over other engineering materials such as metals is expected to restrict market growth. Complete knowledge regarding the advantages and benefits of engineering plastics over other engineering materials are limited only a few classes of engineers due to lack of awareness. This is projected to hamper the market growth of engineering plastics over the forecast period.
On the basis of the application, the electric and electronic segment dominated the global engineering plastics market in 2018 with a 36% of market share in terms of value, followed by automotive and transportation and construction.
The growing focus of the manufacturer to enhance the production capacity of engineering plastic to cater to rising demand for engineering plastic is expected to accelerate the market growth. For instance, in February 2017, Asahi Kasei Corp. announced the launch of the Engineering Plastics Technical Center in Europe on February 6, 2017, as part of a strategic focus to expand its European automotive-related business. The new Technical Center will enable Asahi Kasei Europe GmbH to swiftly develop engineering plastic compounds and provide technical solutions that meet the needs of European customers in the automotive industry.
Various manufacturers in the market are adopting growth strategies for expanding the distribution of engineering plastic is expected to foster the market growth of engineering plastic. For instance, in November 2019, Royal DSM, a global science-based company active in nutrition, health, and sustainable living, announced that its engineering plastics business is partnering with Nexeo Plastics to enhance its distribution footprint for automotive, electronics and industrial manufacturers throughout North America.
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.
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