The Molded Plastic Market is estimated to be valued at USD 561.85 billion in 2024, exhibiting a CAGR of 6.1% over the forecast period (2024-2031). Furthermore, steady growth in automotive production as well as infrastructure development activities are expected to drive the demand for molded plastics in the coming years.
Increased Automotive Production
Molded plastics find wide application in the automotive industry for manufacturing various interior and exterior parts such as dashboards, door panels, bumpers, and others. With rising vehicle ownership worldwide, automotive production continues to grow steadily, thus propelling the demand for molded plastics.
Rising Infrastructure Spending
Infrastructure development activities such as construction of buildings, roads, and bridges require molded plastic products for piping, insulation, electrical components and others. Growing urbanization in developing economies is spurring infrastructure investment, thereby augmenting the market growth. Governments across regions are allocating higher budgets for infrastructure improvement which will further drive demand.
Increased Demand from Packaging Industry is Driving the Molded Plastic Market
The packaging industry has seen significant growth over the past decade due to the expansion of the e-commerce sector and changing consumer preferences. Molded plastics offer advantages like durability, printability, moldability, and low cost that make them ideal for various packaging applications. From bottles and containers to caps and closures to protective packaging, molded plastics are used across food and beverage, consumer goods, industrial goods, and pharmaceutical packaging. This increased demand from the packaging industry is a major driver for the molded plastic market.
Growth of the Automotive Industry is Fueling the Demand for Molded Plastics
Plastics have replaced many metal components in vehicles due to advantages like lighter weight, lower cost of production, resistance to corrosion, and ease of manufacturing complex parts. Molded plastics are extensively used in both interior and exterior automotive components such as dashboards, instrument panels, bumpers, fenders, door panels, and others. As automotive production increases globally to meet rising vehicle ownership, particularly in emerging economies, the demand for molded plastics from the automotive industry continues to stimulate the growth of the overall market.
Stringent Environmental Regulations Pose a Challenge
Plastics are coming under increasing environmental scrutiny due to issues like the non-biodegradability of conventional plastics and greenhouse gas emissions from the production and incineration of plastic waste. Many governments worldwide have introduced stringent regulations regarding the use of plastics and methods of plastic waste disposal and recycling. These regulations present a challenge for molded plastic manufacturers to modify their processes and develop sustainable bio-based and recyclable alternatives. Complying with the various regulatory frameworks across nations adds complexity and costs for companies operating in this market.
Fluctuating Raw Material Prices Restrain the Market Growth
Molded plastics are derived from petroleum-based raw materials whose prices are subject to volatility based on global commodity price trends. Disruptions in crude oil production and supply due to geopolitical issues or natural disasters directly impact the prices of plastic resins. Sudden and sharp price rises of key raw materials squeeze profit margins for plastic molders and converters. This uncertainty and lack of price stability in upstream petrochemical feedstock costs act as a restraint on the steady growth of the molded plastic market.
Developments in 3D Printing Open New Avenues
Advancements in 3D printing technologies using plastics have enabled mass customization and quick turnarounds for low-volume production. Molded plastic manufacturers are exploring applications of 3D printing for rapid prototyping and supporting architectural mockups, medical devices, and specialized industrial parts. The market is also eyeing 3D printing as a potential sustainable alternative to conventional plastic molding with its ability to optimize material usage. Investing in 3D printing capabilities allows plastic molders to tap into new high-margin opportunities emerging from customers in industries like consumer goods, healthcare, and automotive.
Growing Adoption of Lightweight Plastics Boosts Market Prospects
With concerns over fuel efficiency and emissions, automakers are increasingly adopting plastics to lower vehicle weight without compromising on load-bearing and safety requirements. Plastics also aid in meeting tightening CAFE standards. The aerospace industry too prefers plastics for their lightweight characteristics in aircraft components. Molded plastic manufacturers producing engineered materials like carbon-reinforced and glass-filled nylon and polycarbonate are well-positioned to benefit from this trend of switching to molded plastics from metals in transportation applications. Continuous advancements in reinforcement technologies and multi-material integration create high growth potential.
Link - https://www.coherentmarketinsights.com/market-insight/molded-plastic-market-908
Key Developments
- In 2023, PulPac, a leading provider of sustainable packaging solutions, delivered on its promise to make Dry Molded Fiber (DMF) technology more accessible to people worldwide. The company launched a new machine platform that revolutionizes the way DMF is produced and distributed.
- In February 2022, Davies Molding LLC, a leading manufacturer of custom plastic components and assemblies, completed the acquisition of EA Plastics, a high-precision injection molder. This strategic move has allowed Davies Molding to expand its injection molding capabilities and strengthen its position in the industry.
- In 2022, LS Mtron, a leading manufacturer of industrial machinery and automation solutions, launched a groundbreaking AI-based smart injection molding system. This innovative system leverages advanced artificial intelligence technologies to optimize the injection molding process, improve product quality, and enhance overall efficiency.
- In November 2021, IGS GeboJagema, a renowned Dutch mold maker based in Eindhoven, announced the creation of a U.S. subsidiary in Washington D.C. This strategic move aims to support the company's existing customer base in North America and strengthen its presence in the global market.
Key Players
BASF SE, Eastman Chemical Company, SABIC, Huntsman Corporation, LyondellBasell Industries N.V, INEOS Group AG, Chevron Phillips Chemical Company LLC, Reliance Industries Limited, Takween Advanced Industries., DuPont , ExxonMobil, Sinopec, Dow Inc , Formosa, Plastics Corporation, Solvay, China Plastics Extrusion Ltd., Lanxess AG , Versalis, and LG Chem
