The engineering plastics market is estimated to be valued at US$ 130.68 Bn in 2023 and is expected to exhibit a CAGR of 5.0% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market Overview:

Engineering plastics are thermoplastic or thermosetting plastic materials that are used in applications requiring greater strength, stiffness, durability and corrosion resistance than commodity plastics like polystyrene and polyethylene. They are increasingly used in products such as gears, bearings, electrical insulation, electronic components, automotive parts, industrial machinery and consumer appliances due to their superior properties over metals.

Market Dynamics:

The global Engineering Plastics Market Size is primarily driven by growing demand from automotive industry. Engineering plastics find widespread application in lightweight auto components like interior trims, door panels, bumpers, engine covers, brake hoses, wiring systems and more. Ongoing shift towards electrification of vehicles is expected to further boost adoption of engineering plastics due to their heat and chemical resistance qualities which make them suitable for battery packs and other electrical components. Additionally, increasing infrastructure development activities across both developed and developing nations are fueling demand for machinery and equipment which utilizes engineering plastics for numerous moving parts. However, price volatility of crude oil, from which monomers used in plastics production are derived from, poses a major challenge. Focus on R&D for bio-based plastics with better performance is expected to create new opportunities over the forecast period.

SWOT Analysis

Strength: Engineering plastics exhibit high strength, durability and heat resistance making them suitable for applications in various end use industries. They can replace conventional materials like metals in applications requiring light weight and corrosion resistance. The manufacturing process of engineering plastics is cost effective compared to metals.

Weakness: Volatility in raw material prices affects the overall production cost of engineering plastics. dependency on crude oil prices exposes manufacturers to raw material supply risks.

Opportunity: Growth of the automotive industry especially in Asia Pacific is expected to drive the demand for engineering plastics. Their application in electrical and electronics is expanding due to increasing use of miniature and lightweight components.

Threats: Stringent environmental regulations regarding disposal and recycling of plastics poses challenges. Substitution threat from bioplastics which are sustainable alternatives to conventional plastics.

Key Takeaways:

The global engineering plastics market is expected to witness high growth, exhibiting CAGR of 5.0% over the forecast period, due to increasing demand from automotive and electrical industries. Engineering plastics are replacing conventional materials in applications that require high performance properties, durability and lightweight.

The Asia Pacific engineering plastics market accounted for largest revenue share in 2023 and is projected to maintain its dominance during the forecast period. Rapid industrialization and growth of end use industries especially in China, India is driving the consumption of engineering plastics in the region. Additionally, growing population and rising disposable incomes are positively impacting the market growth.

Key players operating in the engineering plastics market are Arkema Group, Asahi Kasei Corporation, BASF SE, Celanese Corporation, Coventry, DSM N.V., Dupont, Lanxess, LG Chem., Mitsubishi Engineering-Plastics Corporation, Saudi Basic Industries Corporation (Sabic), Solvay SA, Teijin, Toray, and Victrex Plc. The market is consolidated in nature with top players accounting for major share. Key strategies adopted by players are capacity expansions, new product launches and mergers and acquisitions to strengthen their market position.

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