The global engineering plastics market
was valued at US$ 79.3 billion in 2017, according to Global Engineering Plastics Market Report by Product Type (Ultra High Molecular Weight Polyethylene (UHMWPE), Acrylonitrile Butadiene Styrene (ABS), Fluoropolymers, Polybutylene Terephthalate (PBT), Polymethyl Methacrylate (PMMA), Polyethylene Terephthalate (PET), Polyamide (PA), Polycarbonate (PC), Polyoxymethylene (POM), Liquid Crystal Polymers (LCP), Polyimides (PI), Polyether Ether Ketone (PEEK), Polyphenylene Oxide, and Others), by Application (Automotive & Transportation, Construction
, Consumer Goods, Electrical and Electronics, Industrial and Machinery, Packaging, and Medical) published by . The engineering plastics market is expected to exhibit a CAGR of 6.3% over the forecast period (2018 – 2025) to reach US$ 127.9 billion by 2025.
Major factor propelling growth of the global engineering plastics market is increasing replacement of conventional materials with engineering plastics. Moreover, increasing demand for engineering plastics from emerging economies such as China, India, Indonesia and others, is one of the major factors driving growth of the global engineering plastics market. For instance, plastic products export from India increased by 17.1% from US$ 7.56 billion in 2016-17 to US$ 8.85 billion in 2017-2018, therefore further augmenting the plastic production and thereby, engineering plastics.
However, higher price of engineering plastics as compared to conventional polymers is one of the major restraints for growth of the global engineering plastics market.
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Key Trends and Analysis of the Engineering Plastics Market:
Key Takeaways of the Market:
- Among the product type, Acrylonitrile Butadiene Styrene (ABS) segment accounted for significant market share in the global engineering plastics. ABS offers heat stability, chemical resistance, impact resistance, and toughness. ABS is light in weight and has injection extruded and molded ability, which makes it useful for manufacturing products such as musical instruments, drain waste vent pipe systems, golf club heads, and medical devices for blood access, kitchen appliances, and others.
- Among application, automotive & transportation segment held dominant position in the global engineering plastics market in 2017 and is expected to maintain its dominance over the forecast period. The U.S. is one of the largest automotive markets at a global level. According to the United States Department of Commerce, in 2016, the U.S. exported around 2.1 million light vehicles, which were valued at US$ 57 billion to most of the countries across the globe, along with additional exports of automotive parts that were valued at US$ 80 billion. This industry also accounts for 3 to 3.5% of U.S. gross domestic product, which further drives growth of the polyolefin elastomers market in this region.
- Asia Pacific held dominant position in the global engineering plastics market in 2017, with a revenue of US$ 16,397.8 billion and is expected to maintain its dominance throughout the forecast period. Engineering plastics are used for packaging purposes especially in case of requirements in thermal and mechanical strength. The packaging industry witnessed significant growth in Asia Pacific, owing to increasing number of population, which is propelling demand for processed food. For instance, according to India Brand Equity Foundation (IBEF) 2017, the food and grocery market in India was the sixth largest market worldwide, with the retail sector contributing 70% of the sales. Moreover, the food processing industry in India accounts for 32% of the country’s total food market and was ranked fifth in terms of export, consumption, and production. Such growth in food and packaging industries is expected to propel demand for engineering plastics in Asia Pacific.
- Europe is projected to account for a significant share in the global engineering plastics market, owing to initiatives by major players to gain larger market share in the region. For instance, in 2016, Radicigroup Performance Plastics signed an agreement to purchase the Engineering Polymer Solutions business of INVISTA, a U.S.-based company. With this acquisition, RadiciGroup—a leading producer of POM, nylon, TPE, and PBT engineering plastics—is expected to further strengthen and expand its presence in both the European and North American markets.
- Major players operating in the global engineering plastics market include, E. I. du Pont de Nemours and Company, BASF SE, Solvay S.A., Saudi Basic Industries Corporation, Mitsubishi Engineering-Plastics Corporation, Covestro AG, Lanxess AG, Evonik Industries AG, and Celanese Corporation, among others.