Written by Neha Patil » Updated on: July 12th, 2024
Engineering plastics, known for their exceptional performance and mechanical properties, now account for more than 10% of the total plastics demand worldwide. These materials outperform popular commodity plastics such as polyvinyl chloride (PVC), polystyrene, polyethylene, and polypropylene. The superior heat resistance, chemical resistance, fire retardancy, and impact resistance of engineering plastics position them as ideal materials for a variety of engineering applications. Annually, over 25 million tonnes (MT) of engineering plastics are produced globally. These plastics are widely used across industries including building and construction, automotive, electrical and electronics, consumer goods, packaging, medical, and industrial goods. In 2018, the automotive industry emerged as the largest consumer of engineering plastics.
Know More:https://www.fairfieldmarketresearch.com/report/global-engineering-plastics-market
Automotive Industry Remains at the Forefront of Demand Generation, Electronics Industry Follows
The automotive industry is a primary driver of demand growth for engineering plastics, driven by the rising trend of lightweight and fuel-efficient cars. Fuel efficiency has become a critical aspect of car design due to stringent environmental regulations, rising fuel costs, and the rapid advancement of e-mobility worldwide. Engineering plastics are ideal materials for lightweight cars, replacing metals and glass in various interior and exterior applications. The electrical and electronics industries are also significant consumers of engineering plastics. These materials offer freedom in product design and the ability to match design and functional complexities in electronic devices, adding durability, thermal and electrical insulation, and impact resistance to end products.
In terms of demand and production, the Asia Pacific region led the market in 2018, with China holding the largest share. The automotive and electronics industries in China are expanding rapidly due to a shift towards lighter and more durable materials, providing ample opportunities for strong market growth. Europe and North America are also expected to exhibit steadfast growth, driven by stringent government regulations regarding greenhouse gas emissions and the push for developing lightweight materials for the automotive industry.
Engineering Plastics Market Benefits from a Shift Toward Lightweight and Durable Materials
The introduction of effective metal alternatives continues to progress across various end-use industries, driving the growth of the engineering plastics market. New technological advancements and material innovations will further allow engineering plastics to explore new application areas. The strong rebound of the construction industry across developed economies is likely to bode well for the engineering plastics market. The growing adoption of engineering plastics for applications in skylights, window glazing, and roofing systems of non-residential buildings is expected to drive further demand. ABS, polycarbonate, and polyamides remain the most sought-after product categories in the engineering plastics market, collectively accounting for more than 65% of the global demand recorded in 2018.
A notable trend is the shift from traditional materials such as glass and metal towards engineering plastics in medical devices. Engineering plastics can compete with their metal counterparts in terms of strength, with the added advantages of being lightweight, cost-effective, and flexible. Manufacturers are also exploring alternative materials like engineering polymers to reduce expenses amid payment reforms, medical device taxes, and globalisation pressures.
Low Recycling Rates Could Play a Spoilsport
Despite the flourishing market, recycling remains a major challenge for engineering plastics. Recycling rates are remarkably low across all regions, resulting in larger waste volumes that are either incinerated or landfilled. Governing authorities in developed economies are developing new business models and processes to recycle this waste. Europe is leading the way with policies favouring the adoption of a circular economy and advancements in recycling processes. However, the increasing global focus on clean technologies and e-mobility, including electric vehicles, may impact the demand for certain engineering polymers, particularly those used in under-the-hood applications. Advanced composites could compete with engineering plastics, potentially affecting their growth in specific application areas.
Strategic Focus Continues to be on Capacity Expansion and New Product Developments
To gain a competitive edge, key players in the engineering plastics market are focusing on capacity expansion and product innovation. Prominent companies such as BASF, Celanese, Covestro, SABIC, Domo, and DSM have expanded their production capacities recently to meet the growing demand from key end-use industries, including automotive, electronics, and building and construction. Additionally, these companies are also focusing on production and logistics digitalisation to mitigate inefficiencies and environmental impact. Strategic mergers and acquisitions (M&A) and joint ventures are common strategies employed by manufacturers to strengthen their regional foothold.
Recent Notable Developments
In 2019, DSM acquired SRF’s engineering plastic business to gain a competitive advantage in the Indian market. This acquisition enabled DSM to save on capacity expenditure and acquire a customer base in India’s automotive and electronics markets.
In 2020, BASF SE acquired Solvay’s polyamide business, enhancing its position and integration across the value chain.
Regional Classification of the Global Engineering Plastics Market
The global engineering plastics market can be classified regionally as follows:
North America
United States
Canada
Europe
Germany
France
Spain
United Kingdom
Italy
Russia
Rest of Europe
Asia Pacific
China
Japan
India
Southeast Asia
Rest of Asia Pacific
Latin America
Brazil
Mexico
Rest of Latin America
Middle East and Africa
GCC
South Africa
Rest of the Middle East & Africa
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