Market Trends of Acrylonitrile Butadiene Styrene (ABS) Resin Industry
Increasing Demand in 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 global electronics industry has witnessed massive growth. Asia-Pacific accounts for more than 70% of global electronics production, with countries 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.
- China’s consumer electronics market is set to bounce back with positive growth in 2024, driven by growing market demand and innovation while increasing retail spending. China’s total retail sales of consumer electronics are expected to reach CNY 2.2 trillion (USD 305 billion), and the growth rate is expected to increase further to 5% in 2024.
- The German electrical and electronics industry in Europe accounts for the largest share due to high end-consumer demand. 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 sales of consumer electronics primarily drive the electronics industry in the United States. Moreover, industrial electronics have gained momentum in the past decade owing to the rise in industrial operations across the United States. 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 Asia-Pacific, owing to the increased replacement of traditional plastics by ABS in the growing automotive industry.
- China manufactures about 34% of approximately 69 million cars worldwide each year. Japan and South Korea account for 14.7% of that volume, and South Asia accounts for around 10.8% of that volume, according to the European Automobile Manufacturers Association (ACEA).
- Moreover, the Chinese automotive manufacturing industry is the largest in the world. In 2022, the automotive production in the country reached 27 million, which increased by 3%, compared to 26.08 million vehicles produced in 2021, according to the International Organization of Motor Vehicle Manufacturers (OICA)
- 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 country's consumption of ABS.
- As per Invest India, the electronics market in India is worth USD 155 billion, with 65% of the total market being domestic. The display market is growing and is expected to grow to USD 15 billion by 2025. In FY23, electronic goods imported into India increased 8% to USD 87.85 billion. Moreover, India's domestic production registered a 13% compound annual growth rate from FY17's total of USD 49 billion to FY23's total of USD 101 billion.
- 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 the World Bank, household expenditure per capita in South Korea grew 4.6% in 2022 over the previous year. Such growth trends in expenditure will increase the sales of numerous products, including automotive, consumer electronics, and others that utilize acrylonitrile butadiene styrene (ABS) in the coming years.
- Therefore, all these factors are expected to affect the demand in the Asia-Pacific acrylonitrile butadiene styrene resin market during the forecast period.
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