The global engineering plastics market was estimated at USD 89,893.90 million in 2017. The market is expected to register a CAGR of 4.99% during the forecast period, 2018 to 2023. PET dominated the global engineering plastics market with nearly 24% share globally, while the PEEK segment is estimated to register the fastest CAGR through the forecast period.
PET is majorly used in the packaging industry, primarily for packaging of water (bottled), food, and alcoholic beverages. It is a downstream product of crude oils; but with growing environmental concerns and depleting oil reserves, engineering plastic manufacturers are shifting toward the development of bio-based PET. However, the bio-based PET market is still in its growth stage and is commercially available as a partially bio-based product. With increasing concerns about the reduction of carbon emissions, government and environmental agencies, such as US EPA and European Commission, are focusing on creating awareness regarding the usage and benefits of bio-based PET.
With the growing demand for engineering plastics, companies are developing products that can be used for new applications. Engineering plastic manufacturing companies, such as BASF, DowDuPont, and Bayer, are consistently engaged in R&D activities to develop products that are environment-friendly and comply with regulations. Furthermore, they have been investing in developing new technologies to continually enhance their competitive advantage in the industry.
Asia-Pacific has the largest share in the market, accounting for nearly 50% of the global market share in 2017. The market in Asia-Pacific is driven majorly by the increasing demand for engineering plastics by the end-user industries, including electrical & electronics and automotive & transportation. Also, with the increasing automotive production in the major economies of the region, the market for engineering plastics has benefitted to a great extent.
China is the largest producer and consumer of engineering plastics in the region. The demand for engineering plastics is increasing from various end-user sectors, including the electrical & electronics and the automotive & transportation sector in China. Automotive is one of the fastest growing sectors in developing economies like China due to the rise in disposable incomes among the population and various other factors. The abundant availability of raw materials and low cost of production are estimated to boost the demand for engineering plastics market in the country
Key Players: BASF SE, SOLVAY, DUPONT, SABIC, and DSM amongst others.