Engineering plastics are used in a variety of applications where high performance plastics are required. Some key advantages of engineering plastics include high strength, heat resistance, dimensional stability and versatility. They are widely used in automotive components, electrical & electronics goods, construction materials and consumer appliances due to their superior properties compared to commodities plastics.
Market key trends:
One of the major trends driving growth in the Engineering Plastics Market Size is increasing demand from the automotive industry. The usage of engineering plastics in automotive industry has significantly increased over the years as a substitute for metals. Engineering plastics provide advantages such as reduction in vehicle weight, better performance, innovative designs and lower cost. This has resulted in higher consumption of engineering plastics in exterior and interior automotive components. According to studies, the average use of engineering plastics per vehicle is expected to increase from 22 kgs currently to around 30 kgs by 2030 globally.
Porter's Analysis
hreat of new entrants: New entrants face high investment barriers due to the capital-intensive nature of the engineering plastics market. Additionally, established players enjoy advantages of economies of scale.
Bargaining power of buyers: Buyers have moderate bargaining power due to the availability of substitute materials. However, engineering plastics have superior properties that provide value to end-use applications.
Bargaining power of suppliers: A large number of raw material suppliers exist, reducing dependence on any single supplier.
Threat of new substitutes: New substitute materials pose threats, but engineering plastics have strong brand recognition and customer loyalty due to their performance advantages.
Competitive rivalry: Intense competition exists among major players to capture market share.
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