Market Trends of Acrylonitrile Butadiene Styrene (ABS) Resin Industry
This section covers the major market trends shaping the Acrylonitrile Butadiene Styrene Resin Market according to our research experts:
Increasing Demand from the Electronics and Appliances Industry
- The electronics applications for ABS resin mainly include plastic components for electricity transfer. These include boxes, casings, wiring channels, and plastic enclosures.
- ABS plastics are impact-resistant, durable, lightweight, and flame-retardant. Thus, they are widely used in electronics. Moreover, the growing miniaturization of electronic components and increased safety measures across industries are expected to increase the demand for ABS resin in electronics applications.
- The revenue of the global consumer electronics industry reached USD 1,201.72 billion in 2021 and had increased when compared to USD 1,164.20 in 2020.
- The global electronics industry witnessed massive growth. Asia-Pacific accounts for more than 70% of global electronics production, with counties like South Korea, Japan, and China involved in manufacturing various electrical components and supplying them to various industries globally. Additionally, India is expected to become the world's fifth-largest consumer electronics and appliances industry by 2025.
- In Europe, the German electrical & electronics industry accounts for the largest share owing to high demand from the end-consumer group. Moreover, the industry is supported by a strong presence of multinational electronics manufacturers catering to the wide demand in the country. The electrical industry accounted for 11% of the total industrial production in Germany.
- The volume of consumer electronics in Saudi Arabia reached 58.7 million in 2021 and is expected to reach an annual growth rate of 4% in the coming five years.
- The sales of consumer electronics primarily drive the electronics industry in the U.S. Moreover, industrial electronics have gained momentum in the past decade owing to the rise in industrial operations across the U.S. The high demand for consumer electronics, including television, mobile phones, laptops, and smart gadgets, is expected to increase the utilization of plastic products, thereby positively impacting the market.
- During the forecast period, the market for ABS resin is likely to be driven by continued expansion in the global electronics and appliances industry.
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Asia-Pacific to Dominate the Market
- The market for ABS witnessed rapid growth in the Asia-Pacific region, owing to the increased replacement of traditional plastics by ABS in the growing automotive sector.
- According to OICA, the Asia-Pacific region holds the highest production share in the global automotive market with 46,732,785 units in 2021, and witnessed a growth rate of 6% compared to 2020.
- According to the International Trade Administration, China is the world's biggest automobile market in terms of both production and sales. In 2021, according to the OICA, the automotive production in the country reached 26.08 million, which increased by 3%, compared to 25.23 million vehicles produced in 2020.
- China is estimated to be one of the world's largest electronics production bases. Electronic products, such as smartphones, TVs, wires, cables, portable computing devices, gaming systems, and other personal electronic devices, recorded the highest growth in the electronics segment. This is expected to drive the consumption of ABS in the country.
- The government of Japan has raised subsidies for Evs and aims to increase the number of EV charging stations to 150,000 by 2030. Thus, reviving the automotive industry is likely to boost the ABS market in the country.
- According to Fitch solutions, real household spending in South Korea is estimated to grow by 3.2% in 2022, up from 2.8% in 2021. Retail sales and consumer confidence in the country are rising as Covid-19-related restrictions are eased and the economy is coming back on track.
- Therefore, all these factors are expected to affect the demand for the acrylonitrile butadiene styrene resin market in the Asia-Pacific region over the forecast period.
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