Engineering plastics market is estimated to be valued at USD 119.32 Bn in 2024, exhibiting a CAGR of 5.5% over the forecast period 2024-2031. Global engineering plastics market is witnessing growth due to increasing automobile production and growing consumption of engineering plastics in the electrical & electronics industry. Furthermore, the replacement of conventional materials such as metal with engineering plastics in industries like automotive and consumer goods is expected to drive the market growth during the forecast period.
Increasing automotive production
Engineering plastics are used in the automotive industry for manufacturing of various interior and exterior automotive components such as door panels, bumpers, instrument panels and others due to benefits such as high strength, durability, and impact & shatter resistance. Rising automobile production across the globe is expected to boost demand for engineering plastics during the forecast period.
Growing electrical & electronics industry
Electrical & electronics industry widely uses engineering plastics for manufacturing components of appliances, computers, consumer electronics and other electronic goods, owing to benefits such as high dielectric strength, resistance to heat, and electrical & thermal insulation properties. Rapid growth of the electrical & electronics sector globally is expected to drive the market growth over the forecast period.
Increasing demand from automotive industry drives the growth of engineering plastics market
Engineering plastics offer higher strength, durability and corrosion resistance as compared to traditional plastics. These properties make them ideal for applications such as interior, exterior and under-the-hood components in vehicles. With growing vehicle production worldwide, the demand for engineering plastics from automotive OEMs and component manufacturers also increases. Some key automotive applications of engineering plastics include instrument panels, door panels, window and windshield sealing profiles, air intake manifolds, oil pans and valve covers. The lightweight yet durable nature of engineering plastics allows automakers to reduce vehicle weight and improve fuel efficiency. Many companies are also using engineering plastics to manufacture electric vehicle parts due to their insulation and heat resistance abilities. Growing electric vehicles market is expected to boost demand for engineering plastics from the automotive industry in the near future.
Rising electronics production can boost the market growth
The electronic goods industry is expanding rapidly, especially consumer electronic segments such as smartphones, laptops, tablets and wearables. Manufacturers in these segments prefer lightweight, durable and high-performance engineering plastics over traditional plastics for producing housings, connectors, circuit boards and other components. Engineering plastics help electronics products to achieve miniaturization, portability and enhanced functionalities. Some commonly used engineering plastics in electronics include polycarbonate (PC), polyamide (PA), acrylonitrile butadiene styrene (ABS) and liquid crystal polymers (LCP). The ever-growing demand for advanced consumer electronics will boost demand for high-quality engineering plastics. Medical device OEMs have also started using engineering plastic components due to their reliability in life-critical applications. The growth of consumer electronics and medical devices markets is expected to drive the engineering plastics market growth in the near future.
Volatile raw material prices pose significant challenge
Petrochemical-based raw materials are the primary inputs used for manufacturing of most engineering plastics. Fluctuating oil and gas prices directly impact the production cost and supply of engineering plastic resins and fibers. Unstable feedstock prices coupled with geopolitical tensions in major oil producing regions can lead to supply concerns. This volatility in raw material prices poses a major challenge for plastics processors and OEMs adopting engineering plastics. Frequent price fluctuations may deter price-sensitive industries such as consumer electronics from preferring engineering plastics over traditional plastics.
Stringent environmental regulations hamper adoption of engineering plastics
Many governments across the globe have implemented stringent regulations regarding plastic product disposal and recycling, owing to rising environmental pollution levels. Non-biodegradable plastic waste dumped in landfills and oceans has emerged as a serious ecological threat. Regulations such as bans and levies on single-use plastics negatively impact the overall plastics market. Engineering plastics pose the same issues as traditional plastics in terms of non-renewability, albeit offering superior mechanical properties. Manufacturers face difficulties in disposing off engineering plastic waste after product lifecycles in an environmentally sustainable manner. Complying with evolving environmental norms requires significant investments, which can discourage some end-use industries from adopting engineering plastics wholeheartedly.
Development of bio-based engineering plastics offers huge opportunity
With increasing public awareness about sustainability, bio-based and biodegradable materials have gained popularity. Stakeholders are intensifying R&D efforts to develop engineering plastics derived partially or completely from renewable biomass sources such as vegetable fats and oils, wood pulp and agricultural waste. Some bio-polyamides and bio-polyesters under development exhibit properties similar to traditional engineering plastics. Successful introduction of bio-based engineering plastic variants can address ecological concerns while keeping production costs competitive. This can offer huge growth prospects for market participants in the future.
Growing interest in 3D printing
Advancements in 3D printing technologies has boosted the use of engineering plastics in additive manufacturing applications. Materials such as polyamide, polycarbonate and Acrylonitrile Butadiene Styrene (ABS) engineered for 3D printing deliver high-quality parts with superior surface finish, durability and heat resistance. These materials are well-suited for 3D printing complex components used in industries like aerospace, defense, automotive and medical devices. Design freedom afforded by 3D printing further aids innovation through part consolidation. The technology is expected to boost demand for engineering plastics.
Link: https://www.coherentmarketinsights.com/market-insight/engineering-plastics-market-2162
Key Developments
- In May 2024, Polyplastics introduced a cutting-edge polyphenylene sulfide (PPS) grade characterized by enhanced thermal shock resistance and recyclability in post-consumer recycling (PCR) processes without the need for sorting. This innovative material can contribute to sustainable practices and circular economy initiatives within the plastics industry.
- In March 2022, Celanese Corporation successfully finalized the restructuring of Korea Engineering Plastics Co., a strategic move that positions Celanese to bolster the global expansion of its polyoxymethylene (POM) products. This restructuring provides Celanese with access to world-scale POM polymerization capabilities, enabling the company to enhance its production capacity and meet the growing demand for high-quality POM materials across various industries worldwide. This development underscores Celanese's commitment to innovation, operational excellence, and meeting the evolving needs of its customers in the chemical and specialty materials sector.
- In March 2021, Victrex Plc., a leading U.K.-based manufacturer and supplier of high-performance polymers, invested US$ 1 million in the expansion and upgrade of its Asia Innovation & Technology Centre (AITC) located in Shanghai, China. This strategic investment aims to accelerate innovation, enhance the speed-to-market process, and streamline the design-to-mass production workflow for advanced engineering design in the Asian market.
- In November 2020, Covestro, a leading Germany-based manufacturer of engineering plastics, constructed a new production plant for Vulkollan elastomers raw materials in Thailand. This strategic move by Covestro aims to meet the growing global demand for high-performance elastomers, which are specialized engineering materials used in a wide range of applications.
Key Players
Arkema Group, Asahi Kasei Corporation, BASF SE, Celanese Corporation, Covestro, DSM N.V., Dupont, Lanxess, LG Chem., Mitsubishi Engineering-Plastics Corporation, Saudi Basic Industries Corporation (Sabic), Solvay SA, Teijin, Toray, Victrex Plc., Bhansali Engineering Polymers Limited., Chiripal Poly Film., Gujarat Fluorochemicals Limited (GFL), Hindustan Fluorocarbons Limited., INEOS
