INDUSTRIAL PLASTIC MARKET SIZE AND SHARE ANALYSIS - GROWTH TRENDS AND FORECASTS (2024-2031)

Industrial Plastic Market Size and Trends

The industrial plastic market is estimated to be valued at USD 93.19 Bn in 2024 and is expected to reach USD 141.05 Bn by 2031, exhibiting a compound annual growth rate (CAGR) of 6.1% from 2024 to 2031.

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The industrial plastic market is experiencing positive growth trends. The demand for plastics is increasing in industries such as packaging, construction, automotive, and electronics due to their properties such as durability, light weight, and resistance to corrosion. Increased automation and advanced manufacturing techniques have fueled the demand for plastics in industrial machinery and components. Moreover, growing investments in infrastructure development around the world utilize plastics extensively, driving the growth. However, stringent environmental regulations around plastic usage and bans may hinder the market expansion.

Growing Demand from Construction Industry

The construction industry has seen tremendous growth over the past few years across major regions of the world. Megaprojects related to infrastructure development such as construction of roads, bridges, airports, rail networks, etc. are being undertaken at a massive scale. With rapid urbanization and growth of cities, there is increasing demand for residential and commercial buildings as well as public infrastructure. Plastics have emerged as one of the preferred building materials due to their versatility, light weight, and durability properties. Various types of plastics, such as PVC, polyethylene, polypropylene, etc., find extensive applications in construction of piping systems, doors & windows, roofing sheets, insulation, cables, and wires. The lightweight nature of plastics makes them suitable for applications where dead load needs to be reduced. They also provide good corrosion resistance which is crucial for infrastructure exposed to external environmental conditions. With the projected rise in construction spending over the next decade to support infrastructure development goals, the demand for plastic materials from this industry vertical is expected to surge. Therefore, the growing construction industry is expected to drive the market growth. For instance, according to data by Invest India in 2023, the construction industry in India is expected to reach US$ 1.4 Tn by 2025.

Market Concentration and Competitive Landscape

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Growth in Automotive Production

The automotive industry is undergoing a phase of rapid transformation on the back of trends like electrification, autonomous driving, and shared mobility. Despite disruption, the overall automotive production is forecast to increase substantially driven by rising demand for personal vehicles in developing markets. At the same time, there is a constant effort to make vehicles more fuel efficient and reduce their environmental impact. This is accelerating the shift towards lighter weight construction with more use of plastics. Almost every core component and exterior/interior part in modern vehicles has some form of plastic integrated. They help reduce vehicle weight and enhance performance while being cost-effective. Majority of engine parts are now made of high-performance plastics that can withstand high temperatures. Even for electric vehicles, plastics play a vital role as electrically insulating material. With automakers aggressively ramping up capacities across regions, the production volumes are projected to drive significant increase in plastic consumption per vehicle in coming years. This will contribute significantly towards the growth of the global industrial plastics market.

Key Takeaways from Analyst:

The industrial plastic market is poised for steady growth driven by increasing demand from major end-use industries such as automotive, packaging, and construction. Lower production costs and greater design flexibility compared to traditional materials continue to support plastic adoption across manufacturing applications. However, stringent environmental regulations pose a challenge as requirements to use recycled content rise. Supply chain disruptions from the pandemic have also impacted plastic resin supply.

North America remains the dominant region for industrial plastics due to their strong demand from the high-output automotive sector. Growth in the region is also supported by efforts to replace traditional materials with lightweight plastics to boost the fuel efficiency. Meanwhile, the Asia Pacific market is showcasing the fastest growth due to rapid industrialization in emerging economies such as China and India. Both regions provide lucrative opportunities for plastic product manufacturers going forward.

Within industrial plastics, engineering thermoplastics are gaining share and outperforming traditional commodity resins. Properties like heat resistance, strength and durability make engineering plastics well-suited for replacing metals in machinery components and electrical equipment. Suppliers investing in R&D for higher performance bio-based variants can access the growing sustainable materials space.

Market Challenges: Stringent environmental regulations

Stringent environmental regulations are posing major challenges for the growth of global industrial plastic market. Many countries across the world have introduced strict laws to curb plastic pollution and promote sustainability. For example, the European Union has banned various single-use plastic items since 2021 under the Single-Use Plastic Directive. Items like plastic plates, cutlery, straws, cotton buds and stirrers can no longer be sold in the EU market. This has disrupted the supply chain of numerous plastic manufacturers.

Market Opportunities: Advances in plastic technology

Advancements in plastic technology offer promising opportunities to drive growth in the global industrial plastic market. Plastics have emerged as versatile materials across industries due to continuous innovations that enhance strength, durability and functionality of plastic products. 3D printing technology is enabling mass customization and on-demand manufacturing using advanced plastics. This brings cost efficiencies for low-volume customized parts and simplifies supply chains globally. Countries are increasingly adopting 3D printing for critical applications in healthcare, aerospace and infrastructure development.

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Insights by Product Type: Polyamide's Versatility Drives its Dominance in the Industrial Plastics Market

Polyamide is by far the leading product type segment in the industrial plastics market owing to its exceptional versatility across different applications and industries. The segment is expected to account for 35.9 share in 2024. Polyamide, commonly known as nylon, possesses properties that allow it to withstand high pressures and temperatures while remaining lightweight and structurally resilient. Its combination of strength, toughness, and resistance to wear and tear have made it the material of choice for applications that demand high performance plastics.

Polyamide's versatility stems from the many variants that have been developed to suit specific application needs. For example, glass-fiber reinforced and carbon-fiber reinforced nylons provide enhanced mechanical properties for parts that require rigidity and impact resistance like those used in automotive and electronics manufacturing. Flame retardant and UV stabilized nylons withstand exposure to heat and sunlight for outdoor equipment. Specialty nylons with low moisture absorption are perfect for precision parts in oil and gas pipelines. All these variant properties allow polyamide to seamlessly replace traditional materials like metals in applications across diverse industries. Its processing advantages further contribute to polyamide's widespread use. Products can be easily manufactured through various methods like injection molding, extrusion, and 3D printing. This allows for complex shapes and designs that optimize performance. Additionally, polyamide requires low pressure and relatively low temperatures during processing, making it cost-effective to mass produce. As a result, polyamide has become the go-to plastic for manufacturers seeking a high-performance yet affordable material.

Insights by Application: Versatility and advantages these materials offer compared to traditional building products

Industrial plastics is expected to secure a substantial 34.5% of the market share in the overall building and construction sector as of 2024. This dominant position is a testament to the versatility and advantages these materials offer compared to traditional building products. Plastics are widely used across a variety of construction applications, including pipes and conduits for plumbing, electrical, and HVAC systems, as well as insulation, weatherproofing, window frames, roofing, siding, flooring, and adhesives. The inherent lightweight, corrosion-resistance, durability, and customizability of plastic resins like PVC, polyethylene, polypropylene, and ABS make them ideal choices that are both cost-effective and high-performing. This has driven the rapid adoption of industrial plastics in the building industry over the past decade, solidifying their critical role in modern construction projects and ensuring their continued growth in the years ahead.

Regional Insights

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North America has established itself as the dominant region in the global industrial plastic market. The region is expected to account for 39.4% of the market share in 2024. The large industrial base and presence of major plastic manufacturers have propelled the region to the top position. The region is home to leading plastic production firms who have been in business for decades and introduced numerous innovations. Moreover, the U.S. is one of the top traders of plastic products globally with a sizable portion of imports and exports. The established supply chains and distribution networks enable reliable and cost-effective procurement of plastic materials for various end-use industries. Meanwhile, Asia Pacific has emerged as the fastest growing regional market for industrial plastics. Rapid industrialization and infrastructure development across developing nations are driving significant gains. Countries like China and India represent enormous business opportunities due to their huge population base and growing manufacturing sectors requiring plastics. These developing economies also offer competitive operational costs for plastic producers to expand locally and gain market share. Furthermore, Asia Pacific is a net exporter of plastic goods to other parts of the world backed by its massive production scale and competitive pricing of products.

Market Report Scope

Key Developments

• In January 2024, Reliance Industries launched India’s first ISCC-Plus certified chemically recycled polymers
• In April 2024, SABIC and Partners launched the first bread packaging made with recycled post-consumer plastic
• In February 2024, the highly anticipated PlastFocus 2024 event will take place, showcasing the latest advancements and innovations in the plastics industry. This premier exhibition will feature over 300 cutting-edge machines, making it the epicenter for business synergies and technological breakthroughs.
• In 2023, Hindustan Unilever, one of the leading consumer goods companies in India, and the United Nations Development Programme (UNDP) India, collaborated to launch a groundbreaking project focused on creating a plastic circular economy.

*Definition: The industrial plastic market caters to the plastic needs of various industries. It offers a wide variety of plastics like polyethylene, polycarbonate, polypropylene, acrylic, polyvinyl chloride, and others in various forms like pellets, granules, and sheets. These plastics are used to make industrial products, machine components, equipment, tools, and others. They provide benefits like durability, resilience to heat and chemicals, lightweight, insulating properties, etc. making plastics an essential material for various manufacturing sectors.

Market Segmentation

• Product Type Insights (Revenue, USD Bn, 2019 - 2031)
  • Polyphenylene Ether
  • Acrylonitrile Butadiene Styrene (ABS)
  • Polybutylene Terephthalate (PBT)
  • PEEK
  • Polyamide
  • Polysulfone (PSU)
  • Others
•  Application  Insights (Revenue, USD Bn, 2019 - 2031)
  • Packaging
  • Building & Construction
  • Electrical & Electronics
  • Automotive & Transportation
  • Healthcare
  • Aerospace
  • Others
• Regional Insights (Revenue, USD Bn, 2019 - 2031)
  • North America
    • U.S.
    • Canada
  • Latin America
    • Brazil
    • Argentina
    • Mexico
    • Rest of Latin America
  • Europe
    • Germany
    • U.K.
    • Spain
    • France
    • Italy
    • Russia
    • Rest of Europe
  • Asia Pacific
    • China
    • India
    • Japan
    • Australia
    • South Korea
    • ASEAN
    • Rest of Asia Pacific
  • Middle East & Africa
    • GCC Countries
    • Israel
    • Rest of Middle East & Africa
• Key Players Insights
  • Exxon Mobil Corporation
  • Sumitomo Chemical Co., Ltd.
  • BASF SE
  • SABIC
  • Dow, Inc.
  • Evonik Industries AG
  • Arkema
  • Celanese Corporation
  • Eastman Chemical Company
  • Chevron Phillips Chemical Co., LLC
  • Formosa Plastics Corporation
  • Covestro AG
  • Toray Industries, Inc.
  • Mitsui & Co. Plastics Ltd.
  • TEIJIN LIMITED
  • LG Chem
  • Huntsman International LLC
  • Chevron Phillips Chemical Co., LLC
  • LyondellBasell Industries Holdings B.V.