CAGR: 6.7%Current Market Size: USD 122.7 BillionFastest Growing Region: North America
Largest Market: APACProjection Time: 2023-2030Base Year: 2022
The global engineering plastics market is expected to grow from USD 122.7 billion in 2022 to USD 206.14 billion by 2030, at a CAGR of 6.7% during the Projection period 2023-2030. growth of this market is mainly driven owing to the growth in the automotive industry and electronic & electrical industries.
Engineering plastics are extensively utilised in various manufacturing sectors where excellent chemical stability, impact resistance, durability, and thermal and dimensional stability are required. Due to their high mechanical strength, engineering plastics quickly replace metals and wood in the construction and automotive industries. These components lighten the car as a whole and improve fuel economy. They are employed in manufacturing vehicle exterior and interior components and elements for the drivetrain. Due to its excellent resilience to various environmental conditions like chemicals, high temperatures, and abrasion, engineering plastic is also utilised throughout the electronic sector. It is hence the perfect material for producing consumer electronics. Engineering plastics are essentially high-quality polymers frequently used to improve the plastic's thermal and mechanical properties to fulfil more stringent criteria. They have several advantageous qualities, including enhanced impact strength, high abrasion, and wear and fatigue resistance. These plastics have replaced traditional engineering materials like metals and wood. These materials are classified specifically because they can be used in various applications that call for more performance than standard materials and necessitate engineering to create unique products. Due to their longevity, design flexibility, high strength-to-weight ratios, and low densities, engineering plastics are progressively replacing metal in the construction and automotive industries.
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Market Dynamics:
Drivers:
The expanding automobile industry primarily drives engineering plastics market growth due to increased urbanisation. The European Automobile Manufacturers Association estimates that 79.1 million automobiles will be produced globally in 2021, an increase of 1.3% over the previous year. Engineering plastics, frequently used in automotive and transportation parts such as exteriors, engines, mechanical components, interiors, fuel systems, and electric and electronic components, are in greater demand as vehicle production rises. Engineering plastic's market is expanding as a result of expansion in the electronic and electrical industries brought on by a rise in demand for electronic products, including storage batteries, computers, communication devices, switchgear, and switchboard. Additionally, an increase in the number of educational institutions with computer labs is a significant factor boosting the market expansion of engineering plastic in the anticipated future.
Restraints:
The market growth of engineering plastics is anticipated to be hindered by their high costs resulting from fluctuating raw material costs. Engineering plastics have improved qualities and intricate processing, which affects how much they ultimately cost. Therefore, it is anticipated that the high price of engineering plastics will restrain market expansion.
Opportunities:
The rising demand for engineering plastic for the production of medical devices is expected to provide growth opportunities for the market over the Projection period. Engineering plastic is widely used for the manufacturing of medical devices due to its superior physical and chemical properties such as lightweight, flexibility, ease of processing, non-ferrous properties, and excellent biocompatibility. They are used in producing a wide range of medical devices, surgical instruments, diagnostic & drug delivery systems, orthopaedic implants, and orthopaedics.
Challenges:
Growing investment in research projects to create plastics-alternative materials is anticipated to restrain market expansion. Engineering Plastic market growth is anticipated to be hampered by various firms' investments in research initiatives to produce substitutes for engineering plastics, such as carbon fibres, to lower the overall cost of manufacturing. Furthermore, plastics are environmentally harmful, and their use is criticised by environmental NGOs, which challenges the market’s growth.
Segmentation Analysis:
The global Engineering Plastics market has been segmented based on product type, application, and region.
By Product Type
The product type segment includes Polyamide, Acrylonitrile-Butadiene-Styrene, Thermoplastics Polyesters, Polycarbonate, Polyacetals, Fluoropolymers, and Others. The Acrylonitrile-Butadiene-Styrene segment led the largest share of the Engineering Plastics market with a market share of around 29% in 2022. Among the Engineering Plastics segment segments, the Acrylonitrile-Butadiene-Styrene segment accounted for the largest revenue share as there is rapid growth in the automotive sector. ABS is primarily used in the automotive industry, for electrics and electronics, and in smaller amounts in the building and home goods industries. ABS is commonly used to make car door panels, electrical appliance housings, films, pipes, coverings, shower heads and a variety of toys, sporting goods, and leisure items.
By Application
The application segment includes Packaging, Building & Construction, Electrical & Electronics, Automotive, Consumer Products, and Others. The automotive segment led the largest share of the Engineering Plastics market with a market share of around 55% in 2022. The large share can be attributed to the increasing demand for engineering plastic in the automotive industry. Automotive engineering plastics are used in powertrains, chassis, electrical components, interior and exterior décor, and under-the-hood components. It is used in upholstery, dashboard, liquid reservoirs, bumpers, seats, body panels, fuel systems, interior trim, and under-bonnet parts. Automakers are using modern plastic materials to lighten and increase the fuel efficiency of their automobiles. A recent study found that every 10% decrease in vehicle weight results in a 6-8% reduction in fuel consumption.
Global Engineering Plastics Market- Sales Analysis.
The sale of Engineering Plastics expanded at a CAGR of 6.1% from 2015 to 2021
The primary driver of the market growth rate is the rising demand for engineering plastics in new and better goods. The development of lightweight automobiles, the trend toward reducing vehicle weight, the increase of fuel efficiency, and the replacement of metal in the construction and electrical & electronics industries are the factors anticipated to temper industry expansion over the Projection period. Their unique qualities, including as enhanced impact strength, high abrasion, along with wear and fatigue resistance, are also anticipated to temper the expansion of the entire market. The regulatory obstacles relating to CO2 emissions and the fluctuating price of crude oil are anticipated to hamper the expansion of the engineering plastics industry.
Engineering plastic is frequently modified by several industries to make it more ecologically friendly. PlasticRoad, a lightweight roadway concept created by the construction firm VolkerWesser, is nearly maintenance-free and requires less time to build than conventional roads. Traditional engineering polymers like polyester and polyacetal continue to advance in response to consumer demands. Numerous considerations, including increased impact resistance, excellent UV stability, and flame retardancy, are driving the future development of these materials.
Thus, owing to the aforementioned factors, the global Engineering Plastics market is expected to grow at a CAGR of 6.7% during the Projection period from 2023 to 2030.
By Regional Analysis:
The regions analyzed for the Engineering Plastics market include North America, Europe, South America, Asia Pacific, the Middle East, and Africa. The Asia Pacific region dominated the Engineering Plastics market and held a 38.6% share of the market revenue in 2022.
Germany's engineering plastics market size was valued at USD 9.18 billion in 2022 and is expected to reach USD 15.5 billion by 2030, at a CAGR of 6.8% from 2023 to 2030.
The market in Germany is driven by the rise in demand for engineering plastics in interior trim, exterior trim, and electronic components. German manufacturers of electric vehicles are expanding quickly due to rising government mandates to encourage the use of electric vehicles, decreased weight standards for cars, and growing environmental awareness. Additionally, this helps the industry in the nation flourish.
China’s engineering plastics market size was valued at USD 9.5 billion in 2022 and is expected to reach USD 16.2 billion by 2030, at a CAGR of 7% from 2023 to 2030.
China is both the major producer and user of engineering plastics. For the past several years, the country's engineering plastics market has been growing in output because of the abundant supply of raw materials and low product prices. Due to the surge in consumer disposable income and the expansion of automobile production facilities by companies like Tesla and FAW-Volkswagen, among other causes, the automotive industry in China is one of the fastest-growing industries. The market for engineering plastics in China is predicted to grow thanks to the developing electric car sectors.
India's engineering plastics market size was valued at USD 7.3 billion in 2022 and is expected to reach USD 12.4 billion by 2030, at a CAGR of 6.9% from 2023 to 2030.
India is the world's second most populous nation after China, and like China, it also boasts the largest electric bus fleet. India is also making a strong effort to electrify buses. The Indian government unveiled a comprehensive economic package worth INR 20 lakh crores to foster Indian industry. The first intelligent EV manufacturer in India, Ather Energy, relocated its $86.5 million facility from Bengaluru (Karnataka) to Hosur in February 2021. (Tamil Nadu). There are reportedly 0.11 million two-wheelers that can be produced annually at the Ather Energy facility. Thus, it is predicted that the growth of the electric vehicle (EV) market will increase demand for engineering plastics in India.
Key Industry Players Analysis:
To increase their market position in the global Engineering Plastics market business, top companies focus on tactics such as adopting new technology, mergers & acquisitions, product developments, collaborations, partnerships, joint ventures, etc.
Latest Development:
Report Metrics
Report Attribute |
Details |
Study Period |
2022-2030 |
Base year |
2022 |
CAGR (%) |
6.7% |
Market Size |
122.7 billion in 2022 |
Projection period |
2023-2030 |
Projection unit |
Value (USD) |
Segments covered |
By Product Type, By Application, and By Region. |
Report Scope |
Revenue Projection, competitive landscape, company ranking, growth factors, and trends |
Companies covered |
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, Victrex Plc. |
By Product Type |
|
By Application |
|
Regional scope |
|
Scope of the Report
Global Engineering Plastics Market by Volume:
Global Engineering Plastics Market by Volume Format:
Global Engineering Plastics Market by Region:
Global Engineering Plastics market is expected to reach USD 206.14 billion by 2030, at a CAGR of 6.7% from 2023 to 2030.
North American region will witness more growth in the animal feed market.
Rising awareness about animal health and rising awareness about the food safety of animals.
Leading players in the Engineering Plastics market are Thermo Fisher Scientific Inc., Mettler Toledo, Brand Gmbh CO KG, Eppendorf AG, Oxford Lab Product, Sartorius AG, HirschmannLaborgerate GmbH & Co. KG, Corning Incorporated, Hamilton Medical, Nichiryo Medical among others.
Political Factors- For the purpose of fostering a cooperative company climate, a transparent governance structure is essential. A number of problems are currently affecting the engineering plastics market as a result of corruption and a lack of openness. The fundamental cause of this lack of openness is the current political unpredictability and volatility. Fraudulent activities are increasing, corporate processes like licencing and contracting have gotten more complicated, and law enforcement has been weaker as a result of corruption, which is hurting stakeholders' trust in commercial enterprises and governmental institutions. In general, increased bureaucratic corruption is slowing economic expansion, which limits prospects for markets like the engineering plastics market to thrive.
Economic Factors- For the engineering plastics market, achieving growth goals in mature businesses that are close to saturation can be more difficult. Therefore, when selecting the nations for international expansion, the industry lifecycle stage must be taken into account. When deciding whether to expand internationally, the engineering plastics market should consider the economic growth rates of the various nations. More options to pursue long-term growth goals exist in nations with high economic growth rates. Consumer spending becomes more cautious when the economy is growing slowly, which has a direct impact on the engineering plastics market's revenue growth.
Social Factors- Respect for hierarchy and social class stratification are two significant social characteristics that might affect the engineering plastics market's commercial, marketing, and human resource management initiatives. When entering nations with high power distance, the engineering plastics market is most comfortable in hierarchical structures with formal work cultures. The requirement for efficient market segmentation techniques is also indicated by increased social stratification because the engineering plastics market cannot target many categories from various social classes using the same marketing mix.
Technological Factors- engineering plastics market should favor nations with advanced technology infrastructure since these nations make it simpler for businesses to pursue goals like cost reduction, innovation, and value creation. A well-developed technological infrastructure also shows that it will be more difficult for the engineering plastics market to use technology to gain a sustained competitive advantage because it might be easily duplicated by rivals. The velocity and progress of technological innovation can have an impact on the market and industry as a whole. engineering plastics market will be able to comprehend the rate of new product creation, the length of the product life cycle, and the unique features that consumers choose by researching the upcoming technological innovation trends.
Environmental Factors- The adoption of the closed-loop, circular economy approach is becoming the standard in various regions and industries in some nations. Enterprises with enabling institutional frameworks can facilitate material recycling and reuse. Similarly to this, customers actively participate in recycling in several nations. engineering plastics market may take advantage of these trends in sustainability and utilize them as a tool to not only achieve economic goals through lower manufacturing costs but also minimize environmental costs.
Legal Factors- For companies like engineering plastics market, strict adherence to intellectual property rules makes the business climate safer since their patents are safeguarded from copying, resulting in durable competitive advantage. Numerous federal and state laws are in place in several nations to safeguard consumers against potential commercial exploitation. The regulations have tightened up much more in the age of information technology to protect consumer privacy. engineering plastics market must scrupulously abide by the data protection requirements when conducting online transactions in order to prevent lawsuits.
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