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.

Industrial Plastic Market Key Factors

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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.

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.