Engineering plastics are synthetic materials that have superior properties compared to commodity plastics in terms of strength, temperature resistance, and durability. These plastics are extensively used in applications requiring high strength and stiffness like automotive parts, machinery components, electrical & electronic goods, and construction materials. Engineering plastics provide advantages such as higher heat resistance, corrosion resistance, dimensional stability, and fire resistance compared to other materials. With the growth of automotive, construction, and electronics industries, the demand for engineering plastics from these end-use industries is rising considerably.
The global Engineering Plastics Market is estimated to be valued at US$ 130.68 Bn in 2023 and is expected to exhibit a CAGR of 7.2% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Opportunity:
The opportunity of higher heat resistance and durability of engineering plastics compared to other materials is driving their demand. Engineering plastics can withstand high temperatures without degradation and offer longer product life. They are increasingly replacing traditional materials like wood, plastic, and metal in applications involving heat, friction and wear & tear. For example, in automotive industry, engineering plastics are being extensively used to manufacture engine components that require withstanding high under-hood temperatures. Their use helps reduce vehicle weight and improves fuel efficiency. With stringent regulations regarding fuel efficiency and emission norms, the demand for lightweight engineering plastic components in automobiles is growing steadily. The opportunity to manufacture durable and high-performance products at lower costs will continue driving adoption of engineering plastics across various industries over the forecast period.
Porter’s Analysis
Threat of new entrants: New entrants face significant barriers as the engineering plastics market is highly consolidated with major players having strong brand recognition and financial strength. Bargaining power of buyers: Large buyers such as automakers have significant bargaining power to negotiate lower prices and demand better quality and services from suppliers. Bargaining power of suppliers: Few main suppliers exist for each plastic resin type which provides them bargaining power over customers. Threat of new substitutes: New substitute materials such as hybrid plastics and plant-based resins pose a moderate threat as they offer properties addressing sustainability demands. Competitive rivalry: Intense competition exists among key players to continuously innovate and develop new applications, grades and processing technologies to gain market share.
SWOT Analysis
Strength: Engineering plastics have high strength, durability and corrosion resistance making them suitable for transportation, electrical & electronics and other industrial applications. Weakness: High manufacturing costs and dependence on crude oil prices for raw materials are weaknesses. Opportunity: Growing demand for lightweight and sustainable materials from industries like automotive and packaging presents opportunities. Threats: Stringent environmental regulations targeting single-use plastics pose threats. Substitution threat from bio-based and hybrid materials.
Key Takeaways
The global Engineering Plastics Market Share is expected to witness high growth over the forecast period of 2023 to 2030.
Regional analysis: Asia Pacific as the fastest growing region due to rapid industrialization and growth of end-use industries in China, India, Indonesia and other developing nations. North America and Europe currently dominate the market owing to strong presence of automotive, packaging and electronics industries.
Key players operating in the Engineering Plastics market are Eli Lilly and Company, Sanofi S.A., Cadila Healthcare Limited, Cipla Limited, Castle Biosciences, Regeneron Pharmaceuticals, Inc., Merck & Co., Inc., Vidac Pharma, LEO Pharma A/S, Regeneron Pharmaceuticals, Inc., Merck Sharp & Dohme, and Amgen Inc.
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