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| Engineering Plastics Market |
The global Engineering Plastics Market is estimated
to be valued at US$ 115.0 billion in 2021 and is expected to exhibit a CAGR of
6.6% over the forecast period 2022-2030.
A) Market Overview:
Engineering plastics are a class of lightweight,
high-performance materials that possess superior mechanical, thermal, and
chemical properties. They play a crucial role in a wide range of industries
such as automotive, electrical & electronics, packaging, and construction,
among others. These plastics offer various benefits such as high strength-to-weight
ratio, excellent heat resistance, good electrical insulation properties, and
superior chemical resistance. Some commonly used engineering plastics include
polyamide (PA), polycarbonate (PC), polyethylene terephthalate (PET),
polybutylene terephthalate (PBT), and acrylonitrile butadiene styrene (ABS),
among others. These plastics are extensively used for applications such as
automotive components, electrical connectors, consumer appliances, and
industrial machinery, among others.
B) Market Dynamics:
1) Driver: Growing demand from the automotive
industry
The automotive industry is one of the major drivers
of the Engineering
Plastics Market. The increasing focus on lightweighting, fuel
efficiency, and emission reduction has led to the substitution of traditional
metal components with engineering plastics in automotive applications.
Engineering plastics offer weight reduction, increased design flexibility,
improved fuel efficiency, and enhanced safety. For instance, polycarbonate is
widely used in automotive glazing systems, as it offers excellent impact
resistance and weight reduction compared to glass. Similarly, polyamide and PBT
are used in various under-the-hood applications due to their excellent heat
resistance and chemical resistance properties.
2) Driver: Rising demand from the electrical &
electronics industry
The electrical & electronics industry is another
key driver of the engineering plastics market. With the increasing adoption of
electronic devices and the growing trend of miniaturization, there is a high
demand for lightweight, high-performance materials that can meet the stringent
requirements of the industry. Engineering plastics offer excellent electrical
insulation properties, good dimensional stability, and high temperature resistance,
making them suitable for applications such as connectors, switches, housings,
and insulators. For instance, ABS and polycarbonate are widely used in the
production of laptop and smartphone housings due to their lightweight and
impact resistance properties.
C) SWOT Analysis:
- Strength: Growing demand from end-use industries
- Strength: Superior mechanical, thermal, and
chemical properties
- Weakness: High production costs compared to
traditional plastics
- Weakness: Limited availability of raw materials
- Opportunity: Increasing demand from emerging
economies
- Opportunity: Technological advancements leading to
the development of new engineering plastics
- Threat: Intense competition from traditional
plastics
- Threat: Stringent regulations regarding the use of
plastics
D) Key Takeaways:
- The global engineering plastics market is expected
to witness high growth, exhibiting a CAGR of 6.6% over the forecast period, due
to increasing demand from the automotive and electrical & electronics
industries.
- In terms of regional analysis, Asia Pacific is
expected to be the fastest-growing and dominating region in the engineering
plastics market. The region is witnessing significant growth in automotive and
electrical & electronics industries, which is driving the demand for
engineering plastics.
- Key players operating in the global engineering
plastics market include Arkema Group, Asahi Kasei Corporation, BASF SE,
Celanese Corporation, Covestro, DSM N.V., Dupont, Lanxess, LG Chem., Mitsubishi
Engineering-Plastics Corporation, Saudi Basic Industries Corporation (Sabic),
Solvay SA, Teijin, Toray, and Victrex Plc. These players are focusing on
strategic initiatives such as mergers & acquisitions, product launches, and
partnerships to expand their market presence and cater to the growing demand
for engineering plastics.
In conclusion, the global engineering plastics
market is poised to witness significant growth in the coming years, driven by
the increasing demand from the automotive and electrical & electronics industries.