In 2021, the size of the engineering plastics market was estimated to be US $85.85 billion, and it is anticipated that the total revenue will expand at a CAGR of 6.66% from 2024 to 2032, reaching almost US $160.21 billion by 2031. Plastics used in engineering are those that have physical qualities that allow them to function effectively for extended periods of time in structural applications, across a broad temperature range while being subjected to mechanical stress, and in challenging chemical and physical conditions. In the manufacturing of mechanical parts, container construction, and the packaging of various substances, engineering plastics are typically utilized. Due to the fact that they are far lighter than both metal and ceramic, they have found widespread application as a favored alternative to the former. In addition to this, they offer great load capacity, mechanical strength, thermal stability, and longevity, as well as flexible design options. Polysulphone, polyamides (PA), polycarbonates (PC), acrylonitrile butadiene styrene (ABS), and acrylonitrile butadiene styrene (PA) are some examples of the several types of technical plastics that are frequently utilized (PSU). They find widespread application in the production of a variety of products, including vehicle bumpers, dashboard trims, ski boots, helmets, and optical discs, amongst other things. Both the electrical and electronics industry as well as the market for consumer goods are today considered to be the two most important sales areas for engineering plastics.
The expansion of the automobile sector as a result of accelerated urbanization is the primary driver driving the growth of the engineering plastics market. As a result, the need for engineering plastics has increased. According to projections made by the European Automobile Manufacturers Association, 79,1 million automobiles were produced worldwide in 2021. This represents a 1.3% increase in the number of automobiles produced in 2020. The increased production of autos is causing an increase in the need for engineering plastics. These plastics are utilized in a wide range of automobile and transportation components, including exteriors, engines, mechanical components, interiors, fuel systems, and electrical and electronic components.
A variety of engineered plastics are replacing metals in automobiles as a result of increasingly stringent regulations aimed at reducing emissions and enhancing fuel economy. OEMs (Original Equipment Manufacturers) are responding to these requirements by taking this action. Modern technological advances have led to the development of bio-based engineered polymers. Currently, these bio-based grades are available. It is projected that these factors will propel the growth of the engineering plastics market. In the packaging, food service ware, bag, and agricultural industries, applications for bio-based engineered polymers such as PLA, PHA, and PET have shown to be extraordinarily diverse. The increasing demand for products generated from bio-based materials has resulted in an increase in the number of suppliers offering bio-based engineering plastics on the market.
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It is anticipated that the high prices of engineering plastics, which are driven by fluctuations in the prices of raw materials, will impede the growth of the engineering plastics industry. This is because engineering plastics are manufactured from raw ingredients. Both the more advanced characteristics and the more complicated manufacture of engineering plastics contribute to the higher total cost of these polymers. Engineering plastics can be divided into three classes: As a direct result, it is anticipated that the high cost of engineering plastics will retard the industry's expansion.
During the period covered by this forecast (2023-2031), the polyacetals (POM) segment is anticipated to experience the largest compound annual growth rate of 12.21%. Formaldehyde polymerization results in the production of an engineering plastic known as polyacetal, which is also frequently referred to as polyoxymethylene (POM). It has great mechanical, thermal, chemical, and electrical capabilities and is resistant to high temperatures, solvents, and abrasion. Additionally, it has a wide range of electrical properties. Because it is resistant to a wide variety of solvents in addition to having great electrical qualities, it is an ideal material for use in applications involving electricity. Polyoxymethylene's properties make it ideally suited for application in industrial machinery, electrical and electronic equipment, automotive and transportation, as well as consumer items, which contributes to the expansion of the engineering plastics industry.
It is anticipated that the automotive and transportation segment would hold the greatest market share of 33% by the year 2031. In the automotive industry, engineering plastics are used for a variety of applications, including interior and exterior furnishings, motor trains, chassis, electrical components, and objects found under the hood. It is utilized in the construction of components like dashboards, bumpers, seats, body panels, fuel systems, interior trim, under-bonnet components, lights, external trim, liquid reservoirs, and upholstery. It is anticipated that current environmental and economic concerns will lead to an increase in demand for lightweight engineering plastic, which, in turn, would boost the market growth in the industry that has been analyzed.
During the period covered by this estimate (from 2024 to 2032), the Asia Pacific region is anticipated to hold the largest share of the engineering plastics market. It is anticipated that the Asia Pacific region will hold the greatest market share of 38% by the year 2031. The markets in the region are expanding at a rapid rate as a direct result of the rising levels of demand coming from countries such as China, Japan, and India. It is anticipated that China will constitute the most lucrative market for engineering plastics in the Asia Pacific and India will be the market with the quickest growth rate in both the region and the world. As a result of the expansion of the automotive, electrical, and electronics sectors, as well as the fabrication of semiconductors and the export of televisions and other consumer appliances, there has been a significant increase in the demand for engineering plastics. It is anticipated that the rapidly expanding economies in the Asia Pacific area, such as India and Taiwan, will be the primary driver of the need for engineering plastics in that region. In February of 2021, the manufacturing facility of Ather Energy, India's first maker of intelligent electric vehicles, was moved from Bengaluru to Hosur at a cost of $86.5 million. Ather Energy asserts that its facilities have the ability to produce 0.11 million two-wheelers annually at their current manufacturing capacity. Demand for engineering plastics is anticipated to be bolstered in India as a result of the expansion of the electric vehicle (EV) industry.
The market for engineering plastics is moderate to highly competitive and dominated by large companies. The companies BASF SE, DuPont, SABIC, Solvay, and DSM are among the most significant competitors in this market. Researchers from all over the world are focusing their efforts on the development of cutting-edge technologies that will make the process of creating plastics more straightforward. Because of this, the growth of the market during the period of time that is expected to follow will benefit. For instance, in May of 2023, BASF issued a public announcement about their high-performance solutions for three significant steps in the mechanical recycling process for plastics. It will be helpful in establishing the grade of plastic, improving the cleaning operations for recycling, and raising the quality of recycled polymeric materials, all of which will be facilitated by this. Strong players in the market include BASF, LANXESS, Solvay S.A., and SABIC. Most of the top companies have strong product portfolios, however, market presence in terms of activeness is limited among second-tier companies.
