Engineering plastics market poised for rapid growth

Engineering plastics are widely used across various manufacturing industries that require high performance with respect to chemical stability, impact resistance, durability, and thermal and dimensional stability. Engineering plastics are rapidly replacing metals and wood across construction and automotive industries due to high mechanical strength. These materials reduce the overall weight of the vehicle and enhance fuel efficiency. They are used in the production of the automotive exterior, interior parts and used in the powertrain. Engineering plastic is also used across the electronic industry due to its high resistance to various environmental factors such as chemicals, high temperature, and abrasion. This makes it an ideal material for manufacturing of consumer electronic goods. 

The Coherent Market Insights report shows that global engineering plastics market, which was valued at US$ 115.0 billion in 2021 in terms of revenue, is projected to post a CAGR of 6.6% during the forecast period of 2022 to 2030. The growing automotive industry due to rapid urbanisation is predominantly fueling the market growth of engineering plastics. According to the European Automobile Manufacturers Association, 79.1 million motor vehicles were produced around the world in 2021, an increase of 1.3% from 2020. Increasing production of the automobile is pushing demand for engineering plastics which are widely used across automotive and transportation parts such as exteriors, engine, mechanical components, interiors, fuel systems & electric and electronic components.

Growth in the electronic & electrical industry due to rising demand for electronic goods such as storage batteries, computers, communication equipment, switchgear, and switchboard are propelling the market growth of engineering plastic. Moreover, rising number of educational institutes with computer laboratories is another major factor augmenting the market growth of engineering plastic over the forecast period.

Among regions, Asia-Pacific dominated the global engineering plastics market, accounting for 28.8% share in terms of value in 2021. Growth is attributed to increasing sales of automotive and rising demand for electronic products such as storage batteries, computers, communication equipment and others. According to the China’s Ministry of Industry and Information Technology, in 2021, operating revenue of the electronics industry in China was amounted to about US$ 2.2 trillion.

According to Imarc Group, increasing investments by private and public agencies in infrastructural development projects have led to the rising utilisation of polyvinyl chloride (PVC) pipes for water supply systems, which is providing a boost to the uptake of engineering plastics as well. These plastics are also extensively used across the healthcare industry for packaging medical equipment and manufacturing medical implants, which is catalyzing the market growth across the globe.

Additionally, engineering plastic is widely used for the manufacturing of medical devices due to their superior physical and chemical properties such as lightweight, flexibility, ease of processing, non-ferrous properties, and excellent biocompatibility. They are used in the production of a wide range of medical devices, surgical instruments, diagnostic & drug delivery systems, orthopaedic implants, and orthopaedics.

Researchers around the world are focusing on developing advanced technologies to ease the mechanism of engineering plastic, which will favour the market growth over the forecast period. For instance, in May 2022, BASF announced the high-performance solutions related to three key stages of the mechanical recycling process for plastics. It will benefit in identifying the grade of plastic, improving the cleaning processes for recycling, and boosting the quality of recycled polymeric materials. Some of the other factors contributing to the market growth include continual product innovations and extensive research and development (R&D) activities conducted by key players.

Rise of super-engineered plastics

Plastics fall into two categories: thermosetting resin and thermoplastic resin. Thermoplastic resin is further classified into general purpose plastics and engineering plastics. Engineering plastics are classified as thermoplastic resin that can withstand heat of over 100˚C. Even more heat-resistant thermoplastic resins able to be used for a long period in heat of over 150˚C are called “super engineering plastics”. Super engineering plastics are at the highest end of the spectrum, generally with very high strength and thermal resistance. They are used in high temperature, high stress applications, in harsh environments, and low to medium volume production, as stated by Kingpin Market Research.

Special engineering plastics are also called super engineering plastics, according to Fortune Business Insight. These plastics function under rigorous electronic, mechanical, and chemical conditions, thereby making them superior when compared with normal plastics. Special engineering plastics are categorized into aromatic polyester, polyetheretherketone, polyethernitrile, polyetherimied, polyethersulfone, polyamideimide, fluoropolymers, and polyimide. Furthermore, these plastics possess heat resistance, strong resistance to chemical corrosion, and electrical properties. Also under extreme temperature, they have low mould shrinkage, intrinsic fireproofing, and low water absorption. These benefits make them an ideal choice and surge their demand in automotive & transportation, electrical & electronics, packaging, and building & construction.

For Data Intelo, super engineering plastics (SPEs) are high-performance engineering plastics that offer excellent mechanical properties, such as stiffness, strength, and heat resistance. The product is used in various end-use industries including automotive & transportation, electrical & electronics, and consumer goods.

Super Engineering Plastics (SEP) market is expected to witness significant growth on account of the increasing demand for lightweight materials in the automotive and construction industries. Increasing usage of polyphenylene sulfide (PPS) as a replacement for metals in various applications including medical devices, aerospace systems, consumer goods, and electrical & electronics is expected to drive the PPS market.

The global SEP market is anticipated to rise at a considerable rate between 2023 and 2030. In 2022, the market is growing at a steady rate and with the rising adoption of strategies by key players, the market is expected to rise over the projected horizon. The market is expected to grow at a CAGR of 5% by 2022-2030. The growth of the market can be attributed to the increasing demand for super engineering plastics from the automotive industry, machinery equipment, electrical & electronics, and other industries. Asia Pacific is expected to be the fastest-growing region during the forecast period.

Fortune Business Insights sees that the increasing demand for special engineering plastics from the automotive industry will flourish the market growth. The properties such as excellent dimensional accuracy and stability, high tensile strength, and chemical resistance make special engineering plastic an ideal choice in the automotive industry. It is highly used as a fuel and ignition system components, vaporizer, water tank, temperature sensor, auto lamp, water room, lamp reflector, seat, and brake valve. The increasing research and development activities coupled with rising demand for electric vehicles will boost the automotive industry, thus contributing to the growth of the special engineering plastic market  during the forecast timeline.

Data Intelo also states that the global demand for engineering plastics has witnessed a paradigm shift due to the growing importance of green technologies in various end-use industries. The automotive industry is no exception and hence, super engineering plastics are being increasingly used in this sector. They are used to make lightweight parts that reduce fuel consumption and increase fuel efficiency by reducing vehicle weight. Automotive applications include instrument panels, engine blocks, transmission cases, body side moldings/flares (aero), door modules (hydraulic), seat pan frames (electrical & electronics), steering column covers (hydraulic), and front-end structure components among others.

Asia Pacific was the largest regional market in terms of revenue. The growth can be attributed to rising demand for consumer electronics, automobiles, and electrical & electronics products in China, India, Japan, and South Korea among other Asia Pacific countries. Europe was the second-largest market with a share of over 25% owing to high demand from end-use industries coupled with stringent environmental regulations by the European government regarding waste disposal and manufacturing processes that are driving innovation across all industry verticals leading towards sustainable development.