Engineering plastics are a group of plastic materials that exhibit superior mechanical and/or thermal properties compared to commodity plastics like polystyrene (PS), poly (vinyl chloride) (PVC), and polyethylene (PE). They are engineered to be stronger, harder, and more resistant to heat and/or cold than typical plastics. Key types of engineering plastics include polycarbonate (PC), acrylonitrile butadiene styrene (ABS), polyamide (PA), and polyacetal. These plastics find widespread applications in automotive, electronics, medical devices and healthcare due to properties like solvent resistance, high tensile strength, durability, barrier properties against moisture and chemicals, high heat resistance and dimensional stability.
The Global Engineering Plastics Market Demand is estimated to be valued at US$ 150.55 Mn in 2024 and is expected to exhibit a CAGR of 7.2% over the forecast period 2024 to 2031.
Key Takeaways
Key players operating in the Engineering Plastics 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. They hold a significant share of the market with their extensive product portfolio and global marketing and distribution networks.
The engineering plastics market is driven by growing demand from key end-use industries such as automotive, consumer goods, industrial & machinery, packaging, electrical & electronics, and others. Within the automotive industry, increasing adoption of engineering plastics to manufacture lightweight vehicles is a major factor driving their demand.
The engineering plastics market is expected to witness significant growth in the Asia Pacific region over the forecast period. This is attributed to rapid industrialization and infrastructure development activities in major economies such as China, India along with prevalence of automotive and electronics industries in the region.
Market key trends
One key trend gaining traction in the engineering plastics market is the growing demand for bio-based and sustainable plastics. Strict environmental regulations regarding emission of greenhouse gases have increased focus on developing plastics from renewable feedstock such as sugarcane, corn starch, vegetable fats and wood pulping byproducts. These bioplastics exhibit comparable mechanical and thermal properties to conventional plastics while providing benefits of reduced dependency on fossil fuels and lower carbon footprint. Major players have introduced product lines of bio-polyamide, bio-PET and bio-PE materials to capitalize on this emerging trend.
Porter’s Analysis
Threat of new entrants: New players need significant investments to set up production facilities and R&D centers which require high capital investments limiting threat of new entrants.
Bargaining power of buyers: Engineering plastics have applications in various industries giving buyers multiple substitutes to choose from increasing their bargaining power.
Bargaining power of suppliers: Raw material suppliers have established presence globally reducing individual buyer’s influence on pricing and supply giving more bargaining power to suppliers.
Threat of new substitutes: New substitute materials constantly being researched and developed posing threat of substitution.
Competitive rivalry: Intense competition exists among key players to gain higher market share.
Geographical Regions
North America accounts for the largest share of the engineering plastics market in terms of value owing to massive manufacturing and automotive industries in US and Canada.
Asia Pacific market is poised to witness fastest growth during forecast period due to increasing consumption from developing nations like China and India driven by expanding automotive, electronics and construction industries.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it