Engineering Plastics Market

Global Annual Engineering Plastics Production Exceeds 25 MT

The Engineering Plastics Market is valued at USD 102 Bn in 2026 and is projected to reach USD 144.5 Bn,  growing at a CAGR of 5% by 2033.Engineering plastics account for more than 10% of total plastics demand worldwide as they demonstrate an exceptional performance, and mechanical properties when compared to other popular commodity plastics such as polyvinyl chloride (PVC), polystyrene, polyethylene, and polypropylene. Superior heat resistance, chemical resistance, fire retardancy, and impact resistance are expected to position engineering plastics as an ideal material for a wealth of engineering applications, thereby pushing the performance of engineering plastics market. Every year more than 25 MT engineering plastics are produced across the globe. Engineering plastics are used in variety of industries, including building and construction, automotive, electrical and electronics, consumer goods, packaging, medical, and industrial goods. Automotive was the largest consumer industry of engineering plastics in 2018.

Automotive Industry Remains at the Forefront of Demand Generation, Electronics Industry Follows

Demand growth in automotive industry is primarily driven owing to the rising trend of lightweight, and fuel-efficient cars. Fuel efficiency has become an integral part in car designing due to the stringent environmental regulations, rising fuel costs, and rapid e-mobility journey firming up worldwide. Engineering plastics present an ideal material for lightweight cars, replacing metal and glass in various interior and exterior applications. Electrical and electronics are also one of the major consumers of engineering plastics. Engineering plastics offer freedom in product design and possess the ability to match design and functional complexities in electronic devices. They also add durability, thermal and electrical insulation, and impact resistance to end products.

In terms of demand and production, Asia Pacific region was the leading region in 2018 with China occupying the lion’s share. Automotive, and electronics industries in China are expanding at a rapid pace owing to the shift towards lighter, and durable materials, thus providing ample opportunity for strong market growth. Europe, and North America are also likely to exhibit steadfast growth especially due to stringent government regulations regarding greenhouse gas emissions, and persuasion for developing lightweight materials for automotive industry.

Engineering Plastics Market Benefits from a Shift Toward Lightweight, and Durable Materials

Introduction of effective metal alternatives continues to progress in various end-use industries, which will continue to thrust the growth of engineering plastics market. New technological advancements, and material innovations will further allow engineering plastics to explore new application areas. A strong rebound of construction industry across developed economies is likely to bode well for engineering plastics market. Soaring adoption for application in skylights, window glazing, and roofing systems of non-residential buildings is expected to drive the demand for engineering plastics further. ABS, polycarbonate, and polyamides will continue to be the most sought-after product categories in engineering plastics market, which collectively accounted for more than 65% of the global demand recorded in 2018.

There is also a growing trend of shift from traditional materials such as glass, and metal towards engineering plastics to be used in medical devices. Engineering plastics can compete their metal counterparts when it comes to strength, and gives them an added advantage of being lightweight, cheaper in price, and flexible. Manufacturers are also looking for alternative materials like engineering polymers to reduce expenses with elements like payment reforms, medical device taxes, and globalisation bringing them down.  

Low Recycling Rates Could Play a Spoilsport

Recycling remains one of the major challenges facing the otherwise flourishing engineering plastics market. Plastic recycling rates are also remarkably low across all the regions, thus generating even larger waste volumes that are either incinerated or landfilled. Governing authorities across developed economies are developing new business models, and processes to recycle this waste. Europe is leading the way for recycled materials with policies in favour of adoption of circular economy, and technological advancements in recycling process. Increasing global focus on clean technologies, and e-mobility elements like electric vehicles will however take a toll on the demand for a few engineering polymers, especially those employed in under the hood applications. Advanced composites can compete with engineering plastics and thus might scupper the growth of engineering plastics market across certain areas of applications.  

Strategic Focus Continues to be on Capacity Expansion, and New Product Developments

Capacity expansion and product innovation has key to gain advantage in the competitive market. Some of the most prominent companies in engineering plastics market such as BASF, Celanese, Covestro, SABIC, Domo, and DSM have expanded their production capacities in the recent past to meet the incessantly growing demand from key end-use industries, including automotive, electronics, and building and construction. Furthermore, companies at the forefront in engineering plastics market space are also focusing on production, and logistics digitalisation to mitigate inefficiencies, and environmental impact. Manufacturers have been majorly relying on strategic M&A, and joint ventures to strengthen their regional foothold.

Recent Notable Developments

• In 2019, DSM acquired SRF’s engineering plastic business to gain a competitive advantage in the Indian market. With this acquisition, the former saved capacity expenditure, as well as acquired consumer base in India’s automotive, and electronics markets
  
  
• In 2020, BASF SE also acquired Solvay’s polyamide business to strengthen its position and integration across the value chain

Regional Classification of the Global Engineering Plastics Market is Listed Below:

North America

• U.S.
• Canada

Europe

• Germany
• France
• Spain
• U.K.
• Italy
• Russia
• Rest of Europe

Asia Pacific

• China
• Japan
• India
• Southeast Asia
• Rest of Asia Pacific

 Latin America

• Brazil
• Mexico
• Rest of Latin America

Middle East and Africa

• GCC
• South Africa
• Rest of Middle East & Africa

*Regions and countries are subject to change based on data availability.

Key Elements Included In The Study: Global Engineering Plastics Market

• Engineering Plastics Market by Product/Technology/Grade, Application/End-user, and Region
• Executive Summary (Opportunity Analysis and Key Trends)
• Historical Market Size and Estimates, Value and Volume, 2019 - 2022
• Volume Consumption at Regional and Country Level, 2023 - 2030
• Market Dynamics and Economic Overview
• Market Size in Value and Volume, Growth Rates, and Forecast Figures, 2023 - 2030
• Competitive Intelligence with Financials, Key Developments, and Portfolio of Leading Companies 
• Regional and Product/Grade/Application/End-user Price Trends Analysis
• Production Output Analysis (Major Producing Regions)
• Value Chain and Five Force’s Analysis
• Regional/Sub-region/Country Market Size and Trend Analysis
• Company Market Share Analysis and Key Player Profiles

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