Engineering plastics are synthetic polymers with improved mechanical and/or thermal properties compared to commodity plastics like polystyrene, PVC, and polyethylene. They are used in a variety of industrial applications requiring durability, strength, heat resistance and engineering properties like stiffness. Some common applications are automotive components, electrical & electronic devices, 3D printing filaments, industrial equipment, cable insulation, tubing and containers. The global automotive industry is a major driving force for the engineering plastics market, as they enable weight reduction and performance benefits in vehicle components like bumpers, seating, steering wheels, ignition parts and dashboards.
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 7.2% over the forecast period 2023 To 2030, as highlighted in a new report published by Coherent Market Insights.
Market Dynamics:
One of the major drivers for the engineering plastics market is the rising demand from the automotive industry. Engineering plastics help reduce vehicle weight and improve fuel efficiency, which is a key demand driver in the automotive sector due to stringent emission norms. Lighter components made using engineering plastics also improve vehicle performance, handling and safety. The growth in electric vehicles further boosts market opportunities, as engineering plastics enable lightweight designs essential for extending vehicle range on a single charge. Another driver is replacement of conventional materials like metals with advanced plastics in various industrial applications due to benefits like corrosion resistance, durability and design flexibility.
SWOT Analysis
Strength: Engineering plastics market boasts various strengths. Their superior physical and mechanical properties compared to traditional plastics makes them suitable for a wide range of demanding applications. They offer attributes such as high heat resistance, strength, toughness and durability which traditional plastics lack. Their ability to withstand high temperatures without experiencing detrimental effects makes them ideal for use in automobile engines.
Weakness: Engineering plastics tend to be more expensive than traditional plastics. They require specialized production processes which drive up costs. Some types of engineering plastics such as PEEK are extremely expensive limiting their use only to high-end industries. Dependence on crude oil price fluctuations also makes their prices volatile.
Opportunity: Increasing number of regulations mandating fuel efficiency and lowering of vehicle weight presents a major opportunity. Their high strength-to-weight ratio allows production of lighter components helping automakers meet stringent norms. Rising demand for electronics and appliances also opens up opportunities as engineering plastics help manufacture durable components withstanding high temperatures.
Threats: Volatility in crude oil prices poses a threat as it impacts raw material costs. Fluctuations in costs can discourage investments. Stringent environmental norms around plastic disposal and recycling also act as a challenge for the market.
Key Takeaways
The Global Engineering Plastics Market Demand is expected to witness high growth over the forecast period. It is projected to reach a market size of US$ 130.68 Billion by 2023, growing at a CAGR of 7.2%.
Regional analysis:
Asia Pacific dominates the market currently accounting for over 35% share. China leads demand owing to its large automotive and electronics manufacturing base. Countries like India are also emerging rapidly driven by automotive and infrastructure growth. North America and Europe are other major regions driven by automotive sector.
Key players:
Key players operating in the engineering plastics market are Eli Lilly and Company, Sanofi S.A., Cadila Healthcare Limited, Cipla Limited, Castle Biosciences, Regeneron Pharmaceuticals, Inc., Merck & Co., Inc., Vidac Pharma, LEO Pharma A/S, Regeneron Pharmaceuticals, Inc., Merck Sharp & Dohme, and Amgen Inc.
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