A subset of the plastics industry called engineering plastics is used in applications that demand excellent performance in terms of mechanical strength, dimensional stability, impact resistance, thermal stability, and chemical stability. Engineering plastics are typically used to create mechanical components, packaging, and containers. Due to their small weight, they are widely used as preferred alternatives to metal and ceramics. These materials are classified specifically because they can be used in a variety of applications that demand more performance than standard materials and necessitate the use of engineering to create unique products. Because of their longevity, design flexibility, high strength-to-weight ratios, and low densities, engineering plastics are progressively replacing metal in the construction and automotive industries. The end-use industries including automotive & transportation, electrical & electronics, industrial & machinery, packaging, consumer appliances, and others are driving the growth of the worldwide engineering plastics market. Thus, it is anticipated that the development of the engineering plastics market will be helped by these industries' rapid growth.
| ATTRIBUTE | DETAILS |
| Study period | 2020-2029 |
| Base year | 2021 |
| Estimated year | 2022 |
| Forecasted year | 2022-2029 |
| Historical period | 2018-2020 |
| Unit | Value (USD Billion), (Kilotons) |
| Segmentation | By Type, By End-Use Industry, By Region |
| By Type
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| By End-Use Industry
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| By Region
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Engineering plastics are extensively utilized in a variety of manufacturing sectors where excellent performance in terms of chemical stability, impact resistance, durability, and thermal and dimensional stability is required. Because of their high mechanical strength, engineering plastics are quickly replacing metals and wood in the construction and automotive industries. These components reduce the car as a whole and improve fuel economy. They are used in the manufacturing of vehicle exterior and interior components as well as elements for the drivetrain. Due to its excellent resilience to a variety of environmental conditions like chemicals, high temperatures, and abrasion, engineering plastic is also utilized throughout the electronic sector. It is hence the perfect material for producing consumer electronics.
The improvement in fuel efficiency and the trend toward lighter vehicles, along with the replacement of metal in the construction and electrical & electronics industries, are the main drivers of market expansion. Additionally, as engineering plastics are generally used through injection molding into necessary end products, growth in end-user industries supports the market demand for engineering plastics.
Engineering plastics market growth is primarily being driven by the expanding automobile industry as a result of increased urbanization. The European Automotive Manufacturers Association estimates that 79.1 million automobiles were produced globally in 2021, an increase of 1.3% over the previous year. Engineering plastics, which are frequently used in automotive and transportation parts such exteriors, engines, mechanical components, interiors, fuel systems, and electric and electronic components, are in greater demand as vehicle production increases.
In electronic industry engineering plastic's market is expanding as a result of expansion in the electronic and electrical industries brought on by a rise in demand for electronic products including storage batteries, computers, communication devices, switchgear, and switchboard. Also, an increase in the quantity of educational institutions with computer labs is a significant factor boosting the market expansion of engineering plastic during the anticipated period.
The global engineering plastics market is expected to grow at 5.4 % CAGR from 2020 to 2029. It is expected to reach above USD 155.63 billion by 2029 from USD 95.53 billion in 2020.
Asia Pacific accounted for 34 % of the market share across the globe.
Growing demand for polyamide in 3D printing, Development of small and medium-sized enterprises in emerging economies, and increasing demand from the automotive and packaging industry are the some driving factors for the engineering plastic market.
The Engineering Plastics market key players include BASF SE, Covestro AG, Solvay S.A, Celanese Corporation, The Dow Chemical Company, LG Chem Ltd, SABIC, Evonik Industries AG, LANXESS AG, Mitsubishi Chemical Holdings Corporation, Bayer AG.
Asia Pacific accounted for the largest market in the engineering plastic market. Due to the increased use of engineering plastics in many industries, including automotive, packaging, building, and construction, in rapidly developing nations like China, India, and Japan, the Asia-Pacific region held the largest share of the market.
The global engineering plastics market is segmented based on type, end-use industry, and region. Based on type the market is bifurcated into acrylonitrile butadiene styrene, polyamide, polycarbonate, thermoplastic polyester, polyacetal, fluoropolymer and others. Based on the end-use industry the market is bifurcated into automotive & transportation, consumer appliances, electrical & electronics, industrial & machinery, packaging, and others.
Based on the type of acrylonitrile butadiene styrene segment is dominating the market. Abs provides a good balance of stiffness, electrical properties, surface hardness, tensile strength, impact, heat, chemical, and abrasion resistance. Even at low temperatures, abs plastic keeps its strong, rigid, and resistant qualities. It comes in grades that are heat-resistant, fire-retardant, and platable. Abs provides high rigidity and good impact resistance. Abs is a popular thermoplastic, that is used to create light, hard, molded goods like pipe, automotive body pieces, wheel covers, enclosures, and protective headgear. Abs is mostly used in the automotive and transportation industry. Many automotive components, including the dashboard, bumpers, external panels, and others, are made of acrylonitrile butadiene styrene. By using abs material for these parts, an automobile's overall weight is reduced. Increasing demand from the automotive and transportation industry helps to propel the acrylonitrile butadiene styrene segment growth.
Based on the end-use industry automotive segment is dominating the market. The CAGR for the automotive market is predicted to be 7.0%. The largest CAGR, 7.3%, is anticipated for packaging, though. Because engineered polymer composites and plastics were used in so many different applications, the automotive industry had seen the highest revenue growth. The second most popular category of automotive materials, after ferrous metals and alloys, is engineering plastics. Engineering plastics are replacing a number of other materials in cars as the emphasis on reducing weight, enhancing fuel efficiency, and controlling emissions increases. Modern plastic materials are being used by automakers to reduce and increase the fuel efficiency of their automobiles. This factor helps to generate more revenue from the automotive industry. A recent study found that every 10% decrease in vehicle weight results in a 6-8% reduction in fuel consumption. Engineering Plastic market growth is directly impacted by the rise in automobile production.
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Asia Pacific accounted for the largest market in the engineering plastic market. Due to the increased use of engineering plastics in many industries, including automotive, packaging, building, and construction, in rapidly developing nations like China, India, and Japan, the Asia-Pacific region held the largest share of the market. In the area, China is both the major producer and user of engineering plastics. The aircraft sector in China is anticipated to become profitable again in 2022 after seeing a sharp drop in the preceding years. According to estimates from China's Civil Aviation Administration (CAAC), domestic air travel will eventually reach 85% of pre-pandemic levels. In China, approximately 8,700 new deliveries will be made by 2040, with a market service value of USD 1,800 billion, predicts the Boeing Commercial Forecast 2021–2040. A total of 4,399,112 vehicles were produced in India in 2021, a 30% increase from the 3,381,819 vehicles produced in 2020. Throughout the forecast period, the market is anticipated to grow due to the expanding automotive sector. Also, the government's initiatives, such as the "Made in India" and "Atama Nir Bhar Bharat" programs, are probably going to help the automobile sector.
India is anticipated to have the fastest growth in both the region and the entire world. With the expansion of the automotive, electrical, and electronics industries as well as semiconductor production and exports of televisions and other consumer devices, the demand for engineering plastics has increased significantly. It is anticipated that the region's rapidly expanding economies, including Taiwan and India, will fuel the need for engineering plastics in the Asia Pacific region.
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