by 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 synthetic materials that have superior mechanical and physical properties compared to commodity plastics. They exhibit high strength, stiffness, toughness and heat resistance. Commonly used engineering plastics include polyamide, acrylonitrile butadiene styrene, polycarbonate, polyacetal, fluoropolymers, polybutylene terephthalate and polyphenylene oxide. They find applications in automotive components, electrical & electronics, machinery, medical devices and others due to their lightweight and durable characteristics. The growing demand for fuel-efficient and emission-reducing vehicles is driving the adoption of engineering plastics in automotive interiors and exteriors.
Market key trends:
One of the key trends in the Engineering Plastics Market Size is the growing demand from the automotive industry. Engineering plastics help reduce the weight of vehicles, thereby improving fuel efficiency. They are increasingly being used to manufacture automotive parts such as bumpers, interior panels, engine covers, instrument panels and others. Further, strict environment regulations regarding reduction of vehicular emissions are compelling automakers to adopt lightweight materials like engineering plastics. This is expected to continue fuelling demand in the coming years.
Porter’s Analysis
Threat of new entrants: The engineering plastics market requires huge capital investments for R&D, manufacturing facilities, and brand building. Large scale economies and customer loyalty towards established brands further discourage new entrants.
Bargaining power of buyers: Buyers have moderate bargaining power due to availability of numerous product alternatives and possibility of backward integration by large buyers. However, specialty products limit substitutes.
Bargaining power of suppliers: Suppliers have moderate power due to availability of substitute raw materials and globally distributed supplier network.
Threat of new substitutes: Limited threat as engineering plastics have superior properties over traditional materials and require significant R&D investments for development of new substitutes.
Competitive rivalry: Intense competition among key players to gain market share through innovations, brand building, and expanding geographic reach.
Key Takeaways
The global engineering plastics market is expected to witness high growth, exhibiting CAGR of 5.0% over the forecast period, due to increasing demand from automotive industry. The global automotive production is projected to grow at a CAGR of 2-3% during the forecast period, driving the demand of engineering plastics.
Regional analysis: Asia Pacific dominates the global engineering plastics market and is expected to witness fastest growth during the forecast period attributed to rapidly developing end-use industries such as automotive and electronics in the region. China represents major market for engineering plastics accounting for over 30% of the global demand.
Key players: 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. These players are focusing on capacity expansion and new product development through extensive R&D activities to gain competitive edge.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
