July 12, 2024
Engineering Plastics Market

Engineering Plastics Market: Growing Demand for Lightweight Materials Drives the Market Growth

The Engineering Plastics Market is estimated to be valued at US$ 115.0 Billion in 2021 and is expected to exhibit a CAGR of 6.6% over the forecast period 2022 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market Overview:
Engineering plastics are a type of lightweight materials that offer various advantages such as high strength, durability, impact resistance, and thermoplasticity. These plastics are extensively used in various industries including automotive, aerospace, electrical and electronics, and consumer goods. The increasing demand for lightweight materials to reduce fuel consumption and enhance performance is driving the growth of the engineering plastics market. Additionally, the need for high-performance plastics with superior mechanical, thermal, and chemical properties further boosts the market growth.

Market Key Trends:
One key trend in the engineering plastics market is the increasing adoption of bio-based and eco-friendly engineering plastics. With growing environmental concerns and stringent regulations on plastic usage, manufacturers are shifting towards sustainable alternatives. Bio-based engineering plastics, derived from renewable resources, offer similar performance characteristics while reducing carbon footprint. These materials are gaining traction in various end-use industries, especially automotive and packaging, thereby driving the market growth for eco-friendly engineering plastics.

Porter’s Analysis

Threat of New Entrants:
The threat of new entrants in the engineering plastics market is relatively low. The market is highly capital-intensive, requiring significant investment in R&D, manufacturing facilities, and distribution networks. Established companies already have a strong presence and enjoy economies of scale, making it difficult for new players to enter the market. Additionally, stringent regulatory requirements and the need for specialized knowledge act as barriers to entry.

Bargaining Power of Buyers:
Buyers in the engineering plastics market have moderate bargaining power. While there are many suppliers in the market, the differentiated nature of engineering plastics and their specific applications gives suppliers some leverage. However, buyers can still switch between different suppliers based on factors such as pricing, product quality, and technical support.

Bargaining Power of Suppliers:
Suppliers in the engineering plastics market have moderate bargaining power. Although there are several suppliers in the market, they hold significant control over the availability and pricing of raw materials used in the production of engineering plastics. This gives them some leverage in setting prices and terms of the supply agreements with manufacturers.

Threat of New Substitutes:
The threat of new substitutes in the engineering plastics market is relatively low. Engineering plastics offer superior performance characteristics, such as high strength, heat resistance, and chemical resistance, which make them ideal for various applications across industries. Finding alternative materials that can match these properties is challenging, limiting the threat of substitutes.

Competitive Rivalry:
The competitive rivalry in the engineering plastics market is high. The market is fragmented, with many key players competing for market share. Companies are constantly innovating and launching new products to gain a competitive edge. Price competition is also intensifying, putting pressure on profit margins. Additionally, mergers and acquisitions are common in this market as companies look to expand their product portfolios and global reach.

Key Takeaways

The global Engineering Plastics Market Analysis is expected to witness high growth, exhibiting a CAGR of 6.6% over the forecast period. This growth can be attributed to increasing demand from sectors such as automotive, electrical and electronics, and construction. Engineering plastics offer superior mechanical properties, weight reduction, and design flexibility, making them increasingly popular in these industries.

Regionally, the Asia Pacific is the fastest-growing and dominating region in the engineering plastics market. The region’s rapid industrialization, infrastructure development, and rising disposable incomes are driving the demand for engineering plastics. Additionally, the presence of major automotive and electronics manufacturers in countries like China, Japan, and South Korea further fuels market growth in this region.

Key players operating in the engineering plastics market include 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, and Victrex Plc. These players are focused on product innovation, expansion into emerging markets, and strategic collaborations to gain a competitive advantage in the market.

*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it