Engineering Plastics Market Is Estimated To Witness High Growth Owing To Wide Industrial Applications
Engineering plastics are extensively utilized in industries such as automotive, electronics, construction, and others due to their exceptional mechanical and physical properties including resistance to corrosion and chemicals, high heat tolerance, excellent strength and durability. Some common types of engineering plastics include acrylonitrile butadiene styrene (ABS), polycarbonate (PC), polyamides (PA), and polyacetals (POM). Owing to their superior functional characteristics compared to traditional plastics, engineering plastics find widespread application in automotive components, consumer goods, electrical and electronic appliances.
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 Opportunity:
The opportunity for engineering plastics stems from their increasing adoption in the automotive sector. Original equipment manufacturers (OEMs) are utilizing engineering plastics to manufacture lightweight auto-components like interior and exterior parts in order to improve the fuel efficiency of vehicles. Automakers are replacing metal components with engineering plastics to reduce vehicle weight and meet stringent emission norms. The average use of engineering plastics per vehicle is expected to rise from 22 kg currently to over 100 kg by 2030. This wide scope for substitution of metals with engineering plastics will drive market growth over the forecast period. Engineering plastics help automakers reduce vehicle weight while maintaining strength, durability and performance of components.
Porter's Analysis
Threat of new entrants: Engineering plastics industry requires high R&D investment and manufacturing facilities for product development. These costs serve as entry barriers for new players.
Bargaining power of buyers: Buyers have moderate bargaining power due to availability of substitutes. However, engineering plastics offer better properties making buyers loyal to brands.
Bargaining power of suppliers: Major players engage in backward integration to secure raw material supply. This reduces suppliers' bargaining power.
Threat of new substitutes: New materials constantly challenge engineering plastics. However, plastics have established applications and substitution requires product validation and reformulation.
Competitive rivalry: Intense competition exists among major players to gain market share through innovation, capacity expansion and new product development.
SWOT Analysis
Strength: Engineering plastics exhibit properties like heat resistance, durability and lightweight. This widens their application scope in automotive, electronics and healthcare industries.
Weakness: Plastics face public criticism over environmental issues like non-biodegradability and fossil fuel reliance in production. High R&D costs is also a concern.
Opportunity: Growth in end-use industries and rising infrastructure spending in developing nations can drive plastics volume. Regulations on conventional materials present an opportunity for engineering plastics.
Threats: Economic slowdowns impact downstream consumption and jeopardize demand-supply dynamics for plastics. Stringent environmental norms also threaten plastics acceptance.
Key Takeaways
The Global Engineering Plastics Market Demand is expected to witness high growth driven by thriving automotive and electronics sectors.
Regional analysis indicates Asia Pacific as the fastest growing region supported by China, India and other Southeast Asian markets.
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. Key players are focusing on expanding manufacturing capacities and new product developments catering to specialty applications.
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