ENGINEERING PLASTICS MARKET ANALYSIS

The high manufacturing cost of engineering plastics is posing a significant restraint on the growth of the global engineering plastics market. Engineering plastics require sophisticated production processes and environmentally controlled facilities to manufacture. The raw materials used in engineering plastics such as polyamide, polycarbonate, acrylonitrile butadiene styrene, polyacetal, and polyphenylene oxide are polymerized or blended at high temperatures under precise conditions. This makes the manufacturing equipment and tooling highly specialized and capital intensive. Maintaining stringent quality standards further drives up the production costs. The costs of setting up and operating such manufacturing units are prohibitive for small and mid-sized plastic product manufacturers. It involves huge capital investments for advanced plants and machinery. There are also significant operating expenses towards utilities like electricity and fuel to maintain the temperature and pressure levels during polymerization and blending of raw materials. Highly skilled workforce is needed to monitor and operate the complex manufacturing systems which increases the labor costs. Additional expenditures are incurred for pollution control and waste treatment as many engineering plastic production processes generate hazardous byproducts. Regulatory compliance with environment and safety standards in different regions also impacts the expense of manufacturing.

Opportunity: Developments of bio-based engineering plastics

The growth of the global engineering plastics market faces a major restraint owing to the developments taking place in the field of bio-based engineering plastics. As environmental concerns rise globally and plastics disposal becomes a challenge, the industry is exploring more sustainable alternatives. This is where bio-based engineering plastics have found major traction in recent years. Bio-based plastics are derived from renewable biomass sources such as sugarcane, corn starch, vegetable fats and oils, rather than petroleum. They help reduce dependence on fossil fuels and make the production process more eco-friendly. Several variants of bio-polyesters, bio-polyamides and PHA (polyhydroxyalkanoate) based plastics have been developed which exhibit properties comparable to traditional engineering thermoplastics. Major automotive and consumer goods manufacturers have started adopting these sustainable biomaterials for various components. For example, Ford Motor Company launched an initiative in 2020 to incorporate recycled and bio-based materials in vehicles to reduce environmental impact.