Burgeoning automotive industry lends momentum to engineering plastics market in SE Asia

Improved economic conditions and favorable manufacturing environments in Singapore, Malaysia, Indonesia, Thailand, and the Philippines have drawn significant investments to the engineering plastics market in Southeast Asia.

The market for engineering plastics is expected to develop in tandem with the electrical, electronics as well as automobile sectors, which are expected to grow by more than 10-15 % from 2012 to 2018. Industry analysts find that the market earned revenues of over USD 2.07 bn in 2011 and estimates this to reach USD 4.28 bn by 2018.

The higher affluence of consumers in Southeast Asia will have a positive bearing on the domestic adoption of electrical appliances and automobiles in the region, especially of two wheelers in Indonesia.

Several Japanese electronics and office equipment manufacturing companies are setting up bases in Indonesia, Thailand, and the Philippines. The application of engineering plastics in these growing end-user segments boosts the market's revenue.

In addition, research and development will result in advanced plastic grades that can be used in numerous new applications. However, escalating oil prices impede the growth of this price-sensitive market, since crude oil is the key source for raw materials. As these costs are passed on to the end-user segments, automobile and electronic producers tend to opt for cheaper plastics. Producers need to find alternate resources to reduce oil dependence in the coming years to also address environmental concerns, paving the way for bio-based engineering plastics.