Engineering Plastics Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

Market Overview

The engineering plastics market was valued at around USD 90 billion in 2020, and the market is projected to register a CAGR of more than 6% during the forecast period (2021-2026).

The market is hampered by the COVID-19 pandemic, as lockdowns, social distances, and trade sanctions have triggered massive disruptions to global supply chain networks. The automobile and construction industry has witnessed a decline due to the halt in the activities. For instance, according to OICA, automobile production declined by around 23% in the first nine months of 2020 compared to the same period in 2019. On the other side, this pandemic provided new opportunities in the packaging and medical industry due to increasing health awareness and the rise in demand for protective shields, masks, and PPE kits.

• Over the medium term, the factors driving the growth of the market are largely fueled by engineering plastic rapidly replacing traditional plastics and other materials in several applications and the growing popularity of bio-PET.
• By product type, polyethylene terephthalate (PET) is the most used engineering plastic around the world. However, polyether ether ketone (PEEK) is projected to register the highest CAGR during the forecast period.
• The growing applications in the aerospace industry and the adaptation of green vehicles are expected to provide numerous opportunities for manufacturers in the market.
• Asia-Pacific dominated the market with the largest consumption. It is also likely to register the highest CAGR during the forecast period.

Scope of the Report

Engineering plastics are a group of plastic materials that have better mechanical and thermal properties than the more widely used commodity plastics (such as polystyrene, PVC, polypropylene, and polyethylene). The engineering plastics market is segmented by product type, application, and geography. By product type, the market is segmented into fluoropolymers, polycarbonate, polyethylene terephthalate, polybutylene terephthalate, polyacetal/ polyoxymethylene, polymethyl methacrylate, polyphenylene oxide, polyphenylene sulfide, styrene copolymers, liquid crystal polymers, polyether ether ketone, polyimides, and polyamides. By application, the market is segmented into automotive and transportation, building and construction, consumer goods, electrical and electronics, industrial and machinery, packaging, and medical. The report also covers the market size and forecasts for the engineering plastics market in 24 countries across major regions. For each segment, the market sizing and forecasts have been done on the basis of volume (kilo metric ton) and revenue (USD million).

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Key Market Trends

Automotive and Transportation Sector to Witness Slow Growth

• Engineering plastics find application in automotive in interior and exterior furnishings, power trains, chassis, electrical components, and under the hood parts. It is employed in the dashboard, bumpers seats, body panels, fuel systems, interior trim, under-bonnet components, lighting, exterior trim, liquid reservoirs, and upholstery.
• The increase in demand for lightweight engineering plastic is likely to drive the market growth of the market studied due to current environmental and economic concerns. Automobile manufacturers are now incorporating more advanced plastic materials so as to reduce weight and make the vehicles more fuel-efficient. According to a recent study, every 10% reduction in vehicle weight reduces fuel usage by 6-8%.
• The high absorption properties of plastics also allow the vehicle to meet stricter safety standards, while the use of engineering plastics allows for minimization of the mass of parts used in vehicles, as they offer more design freedom compared to metals. Currently, there are about 30,000 parts in a vehicle, out of which 1/3 are made of plastic. In total, about 39 different types of basic plastics and polymers are used to make an automobile.
• Further moderate growth in the coming years is supported by the ongoing strength of key economies, a solid labor market, rising disposable income of people, low interest rates, etc. The Asia-Pacific is one the fastest growing markets for the automotive sector. India and China are the two fastest-growing markets in the Asia-Pacific region.
• Due to the global economic slowdown after 2018, automobile production witnessed a declining trend. Vehicle production has witnessed a decline of 5.2% in 2019 and 15.8% in 2020. The trend is expected to continue and negatively affect the market in the coming few years.
• By 2030, globally, the number of light vehicles is expected to rise to about 1.6 billion, with an estimated 18% of the fleet (290 million cars) being electric. The increasing production and sales of light-duty vehicles are estimated to directly impact engineering plastic consumption, which, in turn, is anticipated to drive the demand for engineering plastic over the long term during the forecast period.
• There is a growing demand for lightweight materials in the automotive industry in order to provide increased efficiency and design flexibility, which is primarily responsible for the growth of the engineering plastics market. High-performance engineering plastics offer manufacturers the advantages of design and comparable strength of steel, which helps in reducing the overall weight and controlling greenhouse gas emissions.
• Growing demand for electric vehicles is another factor driving the growth of the market. The need for lightweight material in these vehicles to enhance energy efficiency acts as a major impetus for the adoption of engineering plastics.
• Thus, all these factors are expected to show a significant impact on the market during the forecast period.

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