The plastic injection molding market remains bullish with anticipated growth to persist in the next three years. In a report by MarketsandMarkets, it projected the plastic injection molding machine market size, estimated at US$8.9 billion in 2020, to reach US$10.6 billion by 2025, at a CAGR of 2.74%. The market is mainly driven by the rising demand for plastic injection molding machine in end-use industries such as automotive, consumer goods, packaging, healthcare, electrical & electronics and others. Factors such as growing demand from healthcare industry, rapid industrialization in growing economies like China, India & Thailand and increasing demand for plastic molds in electric vehicles will drive the plastic injection molding machine market.
Impact of COVID-19 on plastic injection molding machine market
Asia Pacific is the largest market for plastic injection molding machine market. The plastic injection molding machine has been adversely affected during COVID-19 which has, opened up avenues of opportunities for plastic injection molding machine market. Recently, there has been a rise in demand for plastic injection molding machines from the makeshift hospitals and healthcare institutes all around the world for manufacturing of various medical equipments.
The report further states that the outbreak of coronavirus across the globe has highlighted the healthcare industry. Due to explosive surge in the number of Covid-19 cases, the demand for medical equipment like syringes, air systems, and other medical instruments increased exponentially. Countries such as India and China became the hub for manufacturing and meeting the demand for all these equipment across the globe.
Growth drivers: Rising awareness about energy saving
As the report points out, there is growing awareness regarding energy saving worldwide. This is leading to increasing demand for all-electric injection molding machines. All-electric is the fastest-growing type of plastic injection molding machine. The main reasons are its various advantages such as energy savings, increased precision and re-usability, low maintenance without the requirement of oil for cleaning, and high speed. All-electric injection molding machines outperform hydraulic machines in terms of efficiency, reliability, cost savings, cycle-time savings, and re-usability. They save up to 70% of energy as compared to conventional hydraulic machines. They operate with digital control systems. As a result, various components of all-electric injection molding machines are mechanically driven. The operating cost is significantly low as they require less power. There is no chance of fluid leakage or misting in all-electric injection molding machines, which reduces the possibility of material and surface contamination.
Restraints: High initial and maintenance costs of machines
All-electric injection molding machine has production efficiency, short injection times due to dynamic servo-motors, greater repeatability, reduced noise, and best acceleration performance. Due to the high technology of all-electric machines, the investment costs are high. Another disadvantage is the extraordinary maintenance in case of waste. In case of motor failure, the entire system must be changed, which entails significantly high maintenance costs.
Opportunities: Demand for large-tonnage plastic injection molding machine
According to a report, there is a growing demand for large tonnage plastic injection molding machines which are used for making large molded parts for automotive, appliances, and industrial applications. Earlier, due to plant infrastructure expenses, the demand for plastic injection molding machines was not beyond the 400 tons range with 500 presses being the maximum limit. Over the years, the demand has changed. There is a great demand for large parts. The ability of machinery manufacturers to build a large energy-efficient machine that offers fast cycle time has increased. According to the Plastics Industry Association, the shipment of large machines has increased more than small machines. Large plastic injection molding machines give companies good business opportunities in various markets, including sports, agriculture, and automotive.
All-electric injection molding machine utilizes electric servo motor powering gears, racks, and ball screws to drive most of the machine functions. All-electric presses are noiseless faster, and more accurate as compared to other types of injection molding machines; however, the machine is more expensive. Since servo motors run all-electric injection molding machines, they require power only when they are in operation. All-electric injection molding machine can save up to 50–70% energy as compared to hydraulic injection molding machine. All-electric injection molding machine is currently the most preferred machine type owing to its lower use of chilled water, decreased housekeeping and preventive maintenance, less energy and oil consumption, and lower repair rate. Thus, All-Electric injection molding machine is the fastest growing segment during the forecast period.
Applications in Key Industries
Plastic injection molding machines are predominantly used in manufacturing automotive components, interior wrapping, and assembly parts, such as automotive exteriors, car lenses, interior components, under-the-hood components, and filter components. A strong shift in the use of plastics instead of iron and steel in the automotive industry is expected to drive the plastic injection molding machine market during the forecast period. Stringent government regulations have forced automotive manufacturers to use plastics instead of other materials such as iron and steel. Rapid economic growth, improved infrastructure, and rising middle-class population in emerging economies have led to an increase in vehicle production and sales, which, in turn, increase the demand for plastic injection molding machines. The rapidly growing automotive industry in APAC is also one of the major factors driving the plastic injection molding machine market.
Demand in Regional Markets
The APAC comprises major emerging nations such as China and India. Hence, the scope for the development of most industries is high in this region. The plastic injection molding machine market is growing significantly and offers opportunities for various manufacturers. The APAC region constitutes approximately 61.0% of the world’s population, and the manufacturing and processing sectors are growing rapidly in the region. The APAC is the largest plastic injection molding machine market with China being the major market which is expected to grow significantly. The rising disposable incomes and rising standards of living in emerging economies in the APAC are the major drivers for this market.
The increasing population in the region accompanied with development of new technologies and products are projected to make this region an ideal destination for the growth of the plastic injection molding machine market. However, establishing new plants, implementing new technologies, and creating a value supply chain between raw material providers and manufacturing industries in the emerging regions of the APAC are expected to be a challenge for industry players as there is low urbanization and industrialization. Booming automotive, consumer goods and packaging sectors and advances in process manufacturing are some of the key drivers for the market in the APAC. Countries such as India, Indonesia, and China are expected to witness high growth in the plastic injection molding machine market due to the increasing demand from the automotive industry.
Europe is the second-largest plastic injection molding machine market in the world. Key countries in the region include Germany, France, the UK, Italy, and Spain. As the market in Europe is mature, it is projected to grow at a lower CAGR during the next five years. Europe has always been a major plastic injection molding machine market due to presence of developed automotive sector in the region. This market is more growing due to high demand of plastic molds in electric vehicles. Key countries such as Germany and Italy have shown promising demand for plastic injection molding machine which is expected to continue in the near future.
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