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.
Growing demand for lightweight and fuel-efficient vehicles, globally
The key factor that is driving the growth of the engineering plastics market is the expansion of the vehicle industry as a result of faster urbanization. This has led to an increase in the need for engineering plastics. According to estimates provided by the European Automobile Manufacturers Association, there were 79.1 million motor cars manufactured all over the world in 2021. This is a 1.3% increase in comparison to the number of vehicles manufactured in 2020. The production of an increasing number of automobiles is leading to an increase in the demand for engineering plastics. These plastics find uses in a diverse array of automotive and transportation components, such as exteriors, engines, mechanical components, interiors, fuel systems, as well as electric and electronic components.
Favorable government mandates for bio-based grades of engineering plastic
Metals are being replaced in automobiles by a variety of engineering plastics as a result of increasingly rigorous laws aimed at lowering emission levels and increasing fuel economy. OEMs (Original Equipment Manufacturers) are doing this in response to these regulations. Recent breakthroughs have led to the creation of bio-based grades of various engineering plastics. These bio-based grades are now available. It is anticipated that the expansion of the engineering plastics market would be driven by these factors. Applications for bio-based engineered plastics such as PLA, PHA, and PET have found a tremendous breadth of use in the packaging, food service ware, bag, and agricultural industries. There is a growing demand for products derived from bio-based materials, which has led to an increase in the number of sellers who offer bio-based engineering plastics on the market.
Fluctuation in raw material prices
It is projected that the high costs of engineering plastics, which are caused by variations in the costs of raw materials, will be an impediment to the expansion of the market for engineering plastics. This is due to the fact that engineering plastics are made from raw materials. Both the more advanced properties of engineering plastics and the more complicated production of those polymers contribute to the higher total cost of engineering plastics. Engineering plastics can be broken down into three categories: As a direct consequence of this, it is projected that the high price of engineering plastics will slow down the growth of the industry.
Polyacetals (POM) Segment to Lead the Growth in the Market by Plastic Type
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.
Automotive and Transportation to Dominate the Market, By End-use During the Forecast Period
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.
APAC to Remain as the Global Leader
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.
Competition to Intensify Among the Key Players During the Forecast Period
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.
Historical & Forecast Period
This study report represents analysis of each segment from 2022 to 2032 considering 2023 as the base year. Compounded Annual Growth Rate (CAGR) for each of the respective segments estimated for the forecast period of 2024 to 2032.
The current report comprises of quantitative market estimations for each micro market for every geographical region and qualitative market analysis such as micro and macro environment analysis, market trends, competitive intelligence, segment analysis, porters five force model, top winning strategies, top investment markets, emerging trends and technological analysis, case studies, strategic conclusions and recommendations and other key market insights.
Research Methodology
The complete research study was conducted in three phases, namely: secondary research, primary research, and expert panel review. key data point that enables the estimation of Engineering Plastics market are as follows:
Market forecast was performed through proprietary software that analyzes various qualitative and quantitative factors. Growth rate and CAGR were estimated through intensive secondary and primary research. Data triangulation across various data points provides accuracy across various analyzed market segments in the report. Application of both top down and bottom-up approach for validation of market estimation assures logical, methodical and mathematical consistency of the quantitative data.
| ATTRIBUTE | DETAILS |
|---|---|
| Research Period | 2022-2032 |
| Base Year | 2023 |
| Forecast Period | 2024-2032 |
| Historical Year | 2022 |
| Unit | USD Million |
| Segmentation | |
Plastic Type
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End-use
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Region Segment (2022-2032; US$ Million)
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Key questions answered in this report
