February 23, 2024

Growing Demand from Automotive Industry to Drive Growth of the Engineering Plastics Market

The global Engineering Plastics Market is estimated to be valued at US$ 130.68 Bn in 2023 and is expected to exhibit a CAGR of 5.0% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market Overview:
Engineering plastics are a group of plastic materials that exhibit superior mechanical and thermal properties compared to commodity plastics like polyvinyl chloride (PVC) and polystyrene (PS). Some common types of engineering plastics include polycarbonate (PC), acrylonitrile butadiene styrene (ABS), polyamide (PA), polyacetal (POM), and fluoropolymers. Engineering plastics replace traditional materials like metal owing to their properties such as durability, lightweight, corrosion resistance, and ability to be molded. They find widespread application in the automotive, electronics & electrical, and industrial machinery industries.

Market key trends:
One of the major trends in the engineering plastics market is the growing demand from the automotive industry. Car manufacturers are increasingly using engineering plastics to reduce vehicle weight and improve fuel efficiency as per emission norms. Plastics offer over 25% weight savings compared to traditional materials like steel. Lightweighting helps automakers meet stringent Corporate Average Fuel Economy (CAFE) standards. Engineering plastics such as polycarbonate, ABS, and polyamides are used in vehicle components like interior, exterior, under-the-hood applications, electrical parts, and powertrain. Another key trend is the increasing consumption of bio-based or biodegradable engineering plastics owing to rising environmental awareness. Bio-PET, PLA, and other renewable feedstock-derived plastics are gaining ground in applications where disposal is a major issue.
Porter’s Analysis

Threat of new entrants: Low cost of production equipment and technology along with the availability of raw materials at lower costs than alternatives makes the threat of new entrants moderate.

Bargaining power of buyers: The engineering plastics market has numerous small and mid-sized buyers with specialized demand. This limits their individual bargaining power against suppliers.

Bargaining power of suppliers: Major players dominate the supply side. However, availability of raw materials from alternative suppliers puts a check on exorbitant price rise.

Threat of new substitutes: New materials are competing with many traditional engineering plastics. However, the cost and performance advantages of established engineering plastics make the threat moderate.

Competitive rivalry: Major players differentiating their product offerings through continuous investments in R&D. Intense competition on pricing and quality results in marginal profits.

Key Takeaways

The global engineering plastics market growth is expected to witness high, exhibiting CAGR of 5.0% over the forecast period, due to increasing demand from automotive and electronics industries. In the automotive industry, engineering plastics are being increasingly used to reduce vehicle weight and improve fuel efficiency.

Regional analysis: Asia Pacific dominates the global engineering plastics market and is estimated to continue its dominance, growing at a CAGR of over 6% during the forecast period. Abundant availability of raw materials and growth of end-use industries such as automotive and electronics are driving the demand in the region. China accounts for over 35% of the global engineering plastics demand.

Key players operating in the 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. Major players are focused on expanding their production capacities and differentiated product portfolio to gain higher market shares.

*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it