July 25, 2024
Engineering Plastics Market

Global Engineering Plastics Market Is Estimated To Witness High Growth Owing To Expanding Automotive Sector and Growing Demand from the Electronics Industry

The global Engineering Plastics Market is estimated to be valued at US$ 115.0 billion in 2021 and is expected to exhibit a CAGR of 6.6% over the forecast period 2022-2030.

A) Market Overview:

Engineering Plastics Market are a group of durable and high-performance polymers that are widely used in various industries such as automotive, electrical and electronics, consumer goods, and construction. These plastics offer excellent mechanical, thermal, and electrical properties, making them suitable for applications that require high strength, stiffness, and dimensional stability.

Engineering plastics find extensive use in automotive components such as gears, bearings, fuel system and engine components, and interior and exterior parts. With the growing demand for lightweight and fuel-efficient vehicles, the use of engineering plastics in the automotive sector is expected to increase significantly.

In the electronics industry, engineering plastics are used in the manufacturing of circuit boards, connectors, switches, and insulators due to their excellent electrical insulating properties and resistance to high temperatures. The increasing demand for electronic devices such as smartphones, laptops, and wearables is anticipated to drive market growth.

B) Market Dynamics:

Driver – Expanding Automotive Sector:

The global automotive industry is witnessing significant growth, driven by the increasing demand for vehicles in emerging economies and the rising adoption of electric and hybrid vehicles. Engineering plastics offer lightweight alternatives to metal components, reducing the overall weight of vehicles and improving fuel efficiency. Additionally, these plastics provide better design flexibility and can withstand extreme temperatures and harsh weather conditions. The growing automotive sector is expected to propel the demand for engineering plastics.

Opportunity – Growing Demand from the Electronics Industry:

The electronics industry is experiencing rapid growth due to technological advancements, increasing disposable income, and changing consumer preferences. Engineering plastics play a vital role in this industry by providing high-performance materials for electronic components and devices. With the rising demand for electronic devices and the need for miniaturization, the demand for engineering plastics is expected to increase significantly.

C) Segment Analysis:

The engineering plastics market can be segmented based on product type, application, and region. In terms of product type, the market can be divided into polyamides, polycarbonates, polyacetals, polybutylene terephthalate (PBT), and others. Among these, polyamides are the dominating segment due to their high strength, excellent chemical resistance, and good dimensional stability.

D) PEST Analysis:

Political: The government regulations regarding the use of plastics and environmental concerns are expected to impact the engineering plastics market. Stringent regulations promoting sustainability and the recycling of plastics can pose challenges for the market.

Economic: The economic growth of developing countries and the increasing disposable income of consumers are expected to drive the demand for engineering plastics.

Social: Changing consumer preferences and the increasing awareness regarding lightweight and sustainable materials are influencing the demand for engineering plastics in various industries.

Technological: Technological advancements in polymer science and material engineering are driving the development of innovative engineering plastics with enhanced properties, expanding the application scope.

Key Takeaways:

– The global engineering plastics market is expected to witness high growth, exhibiting a CAGR of 6.6% over the forecast period, due to increasing demand from the automotive and electronics industries.

– The Asia-Pacific region is the fastest-growing and dominating region in the engineering plastics market, driven by the expanding automotive and electronics sectors in countries like China, Japan, and South Korea.

– Key players operating in the global engineering plastics market include 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. These players focus on product development, collaborations, and acquisitions to strengthen their market position.

In conclusion, the expanding automotive sector and growing demand from the electronics industry are driving the growth of the global engineering plastics market.