Engineering plastics market worth $102 billion by 2022

The global market for engineering plastics is expected to rise to $102 billion by 2022 from 2015 market value of $67 billion, growing at a CAGR of 6.4% during the forecast period, according to a study by Acute Market Reports. 

 

Engineering plastics, a segment of the plastic industry, are used in applications that require high performance with respect to thermal stability, chemical stability, impact resistance, mechanical strength, and dimensional stability. The specific categorization of these materials is due to their utility in various applications that require higher performance than commodity materials and require engineering to design customized products. Engineering plastics are gradually replacing metal from construction and automotive industries due to their durability, designing flexibility, high strength-to-weight ratios, and low densities.

 

 

Major factors that drive the market growth are the growth in trend of reducing vehicle weight and improvement in fuel efficiency coupled with metal replacement in the construction and electrical & electronics industries. In addition, the demand for engineering plastics market is supplemented by growth in end-user industries, as engineering plastics are primarily utilized through injection molding into required end product. However, fluctuating price of crude oil and regulatory challenges regarding CO2 emissions are expected to restrain the market growth.

 

Automotive was the highest revenue-generating segment in 2015, followed by electrical & electronics and consumer products. This segment is estimated to grow at a CAGR of 7.0%. However, packaging is expected to grow at the highest CAGR of 7.3%. Automotive generated maximum revenue owing to the usage of engineered polymer composites and plastics in a wide range of applications. Engineering plastics are the second most common class of automotive materials after ferrous metals and alloys. With increased emphasis on decreasing the weight of the car, improving fuel efficiency, and regulating emissions, engineering plastics are replacing several other materials.

 

Among all regions, Asia-Pacific generated the highest revenue, while LAMEA is projected to grow at a significant CAGR of 7.8%, due to several emerging economies with expanding end-user industries such as automotive, construction, and consumer products. The German engineering plastics market accounted for nearly 32% of the European engineering plastics market in 2015. In 2015, BASF announced the expansion of compounding capacities for engineering plastics in Europe. From 2017, it will be possible to additionally produce up to 70,000 metric tons per year of Ultramid (PA) and Ultradur (PBT) at the Schwarzheide site, Germany.

 

Major players in the engineering plastics segment have adopted expansion, product development, and product launch as their key development strategies. Important players operating in the market include BASF SE (Germany), LG Chem (South Korea), Sabic Innovative Plastics (Saudi Arabia), Solvay SA (Belgium), Evonik Industries AG (Germany), Arkema SA (France), E. I. du Pont de Nemours and Company (U.S.), Royal DSM NV (Netherlands), Lanxess AG (Germany), and Bayer AG (Germany).