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

The Engineering Plastics Market is segmented by Product Type (Fluoropolymers, Polycarbonate, Thermoplastic Polyesters, Polyoxymethylene, Polymethyl Methacrylate, Styrene Copolymers, Polyamides and Polyether Ether Ketone), Application (Automotive and Transportation, Building and Construction, Consumer Goods, Electrical and Electronics, Packaging, and Others), and Geography (Asia-Pacific, North America, Europe, South America, and Middle-East and Africa). For each segment, the market sizing and forecasts have been done on the basis of volume (kilo metric ton) and revenue (USD million).

Market Snapshot

engineering plastic market size
Study Period: 2017-2027
Base Year: 2021
Fastest Growing Market: Asia Pacific
Largest Market: Asia Pacific
CAGR: >6 %
engineering plastic market key players

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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 (2022-2027).

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, however the market registered posive growth in 2021. according to OCIA the automobile projction registered sligh growth rate 8.4 % in the first nine months of 2021 compared to the same period in 2020.On the other side, this demand for engineering plastics in the packaging and medical industries increasing due to 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, Thermoplastic Polyesters, Polyoxymethylene, Polymethyl Methacrylate, Styrene Copolymers, Polyamides and Polyether Ether Ketone. By application, the market is segmented into automotive and transportation, building and construction, consumer goods, electrical and electronics, packaging, and Others (industrial and machinery, 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).

Product Type
Fluoropolymers
Polycarbonate (PC)
Thermoplastic Polyesters (PET, PBT)
Polyoxymethylene (POM)
Polymethyl Methacrylate (PMMA)
Styrene Copolymers (ABS and SAN)
Polyamides
Polyether Ether Ketone (PEEK)
Application
Automotive and Transportation
Building and Construction
Consumer Goods
Electrical and Electronics
Packaging
Others (Healthcare, Industrial and Machinery)
Geography
Asia-Pacific
China
India
Japan
South Korea
ASEAN Countries
Australia and New Zealand
Rest of Asia-Pacific
North America
United States
Canada
Mexico
Rest of North America
Europe
Germany
United Kingdom
Italy
France
Spain
Russia
Nordic Countries
Netherlands
Rest of Europe
South America
Brazil
Argentina
Colombia
Chile
Rest of South America
Middle-East and Africa
Saudi Arabia
South Africa
Qatar
Rest of Middle-East and Africa

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Key Market Trends

The Automotive and Transportation Segment to Dominate the Market

  • 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 expected to boost 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%.
  • 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.
  • According to OCIA the Global production capacity of Light Commercial Vehicles increased from 11,843,185 units in 2020 to 13,721,531 units in 2021. The Light Commercial Vehicles production increased by 16% in 2021.Thus increase in the production of automobile units likely to increase market for engineering plastics.
  • The growing demand for electric vehicles is another factor driving the growth of the market. More than 10 million electric cars were on the world’s roads in 2020 with battery electric models driving the expansion. China, with 4.5 million electric cars, has the largest fleet, though in 2020 Europe had the largest annual increase to reach 3.2 million.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.
engineering plastic market trends

Asia-Pacific Region to Dominate the Market

  • Asia-Pacific accounted for the largest share of the market due to the increased consumption of engineering plastics in various industries, including automotive, packaging, building, and construction, in rapidly growing countries such as China, India, and Japan. China alone consuming a share of around 35% of the overall market.
  • China is the largest producer and consumer of engineering plastics in the region. The abundant availability of raw materials and low production costs have been supporting the production growth of the country's engineering plastics market for the past few years.
  • In China the automotive is one of the fastest-growing sectors , due to the rise in disposable income among the consumers and expanding automotive manufacturing facilities by manufacturers, such as Tesla and FAW-Volkswagen, among various other factors.The emerging electric vehicle industries expected to improve engineering plastics market in China.
  • China is promoting and undergoing a process of continuous urbanization, with a target of 64% in 2021. The increased living spaces required in the urban areas resulting from urbanization and the desire of middle-class urban residents to improve their living conditions may have a profound effect on the housing market, and thereby, may increase the residential construction in the country.
  • India is the second most populated country in the world after China, and just like China, which has the largest electric bus fleet in the world. India is also pushing hard for the electrification of buses.Indian government released special economic and comprehensive package of INR 20 lakh crores towards promoting manufacturing in India.
  • In February 2021, Ather Energy , India’s first intelligence EV manufacturer moved its US$86.5 million factory from Bengaluru (Karnataka) to Hosur (Tamil Nadu). Ather Energy’s factory is said to have an annual production capacity of 0.11 million two-wheelers. Thus growh in Electric Vehicle (EV) industry estimated to fuel demand for engineering plastics in India.
  • All the aforementioned factors, in turn, are projected to show a significant impact on the market during the forecast period.
engineering plastic market analysis

Competitive Landscape

The engineering plastics market is fragmented in nature, with the top five players accounting for less than 15% of the global market. Most market leaders are vertically integrated, i.e., they produce their own raw materials required for the manufacturing of engineering plastics and are also engaged in the manufacturing of various engineering plastic products. Some of the major players (not in any particular order) in the market include BASF SE, DuPont, SABIC, Solvay, DSM, and Covestro AG.

Recent Developments

  • In September 2021, Solvay had announced the installation completion of its new thermoplastic composites (TPC) manufacturing facility at its Greenville, South Carolina. The new manufacturing facility will helps the company to industrialise its TPC capacity.
  • In February 2020, DSM was futureproofing and expanding the capacity of its high-performance materials compounding plant in Evansville, IN. The project will help to meet increased regional demand for materials such as Akulon polyamide (PA) 6 and 66, Arnite PET/PBT, Arnitel thermoplastic copolyester (TPC), EcoPaXX PA 410, ForTii PA 4T/PPA, and Stanyl PA 46.
  • In May 2019, BASF began operations at its expanded compounding plant in Altamira, Mexico. With an increased capacity of up to 15,000 metric ton per year, the company is providing local production of its Ultradur (PBT: polybutylene terephthalate) and Ultramid (PA: polyamide) product lines. This expansion addresses the increasing global demand for engineering plastics and supports the growing market in Mexico.

Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Assumptions

    2. 1.2 Scope of the Study

  2. 2. RESEARCH METHODOLOGY

  3. 3. EXECUTIVE SUMMARY

  4. 4. MARKET DYNAMICS

    1. 4.1 Drivers

      1. 4.1.1 Growing Popularity of Bio-based PET

      2. 4.1.2 Increasing demand for Engineering Plastics in Building and Construction Industry

    2. 4.2 Restraints

      1. 4.2.1 Declining Automobile Industry

      2. 4.2.2 Impact of COVID-19 on the Market

    3. 4.3 Industry Value Chain Analysis

    4. 4.4 Porter's Five Forces Analysis

      1. 4.4.1 Bargaining Power of Suppliers

      2. 4.4.2 Bargaining Power of Buyers

      3. 4.4.3 Threat of New Entrants

      4. 4.4.4 Threat of Substitute Products and Services

      5. 4.4.5 Degree of Competition

    5. 4.5 Patent Analysis

    6. 4.6 Policies and Regulations

  5. 5. MARKET SEGMENTATION

    1. 5.1 Product Type

      1. 5.1.1 Fluoropolymers

      2. 5.1.2 Polycarbonate (PC)

      3. 5.1.3 Thermoplastic Polyesters (PET, PBT)

      4. 5.1.4 Polyoxymethylene (POM)

      5. 5.1.5 Polymethyl Methacrylate (PMMA)

      6. 5.1.6 Styrene Copolymers (ABS and SAN)

      7. 5.1.7 Polyamides

      8. 5.1.8 Polyether Ether Ketone (PEEK)

    2. 5.2 Application

      1. 5.2.1 Automotive and Transportation

      2. 5.2.2 Building and Construction

      3. 5.2.3 Consumer Goods

      4. 5.2.4 Electrical and Electronics

      5. 5.2.5 Packaging

      6. 5.2.6 Others (Healthcare, Industrial and Machinery)

    3. 5.3 Geography

      1. 5.3.1 Asia-Pacific

        1. 5.3.1.1 China

        2. 5.3.1.2 India

        3. 5.3.1.3 Japan

        4. 5.3.1.4 South Korea

        5. 5.3.1.5 ASEAN Countries

        6. 5.3.1.6 Australia and New Zealand

        7. 5.3.1.7 Rest of Asia-Pacific

      2. 5.3.2 North America

        1. 5.3.2.1 United States

        2. 5.3.2.2 Canada

        3. 5.3.2.3 Mexico

        4. 5.3.2.4 Rest of North America

      3. 5.3.3 Europe

        1. 5.3.3.1 Germany

        2. 5.3.3.2 United Kingdom

        3. 5.3.3.3 Italy

        4. 5.3.3.4 France

        5. 5.3.3.5 Spain

        6. 5.3.3.6 Russia

        7. 5.3.3.7 Nordic Countries

        8. 5.3.3.8 Netherlands

        9. 5.3.3.9 Rest of Europe

      4. 5.3.4 South America

        1. 5.3.4.1 Brazil

        2. 5.3.4.2 Argentina

        3. 5.3.4.3 Colombia

        4. 5.3.4.4 Chile

        5. 5.3.4.5 Rest of South America

      5. 5.3.5 Middle-East and Africa

        1. 5.3.5.1 Saudi Arabia

        2. 5.3.5.2 South Africa

        3. 5.3.5.3 Qatar

        4. 5.3.5.4 Rest of Middle-East and Africa

  6. 6. COMPETITIVE LANDSCAPE

    1. 6.1 Mergers and Acquisitions, Joint Ventures, Collaborations, and Agreements

    2. 6.2 Market Share** Analysis/Ranking Analysis

    3. 6.3 Strategies Adopted by Leading Players

    4. 6.4 Company Profiles

      1. 6.4.1 Arkema

      2. 6.4.2 BASF SE

      3. 6.4.3 Celanese Corporation

      4. 6.4.4 Covestro AG

      5. 6.4.5 Daicel Corporation

      6. 6.4.6 DuPont

      7. 6.4.7 Eastman Chemical Company

      8. 6.4.8 Evonik Industries AG

      9. 6.4.9 INEOS

      10. 6.4.10 LANXESS

      11. 6.4.11 LG Chem

      12. 6.4.12 Mitsubishi Engineering-Plastics Corporation

      13. 6.4.13 DSM

      14. 6.4.14 SABIC

      15. 6.4.15 Solvay

      16. 6.4.16 TEIJIN LIMITED

    5. *List Not Exhaustive
  7. 7. MARKET OPPORTUNITIES AND FUTURE TRENDS

    1. 7.1 Increasing Use in the Aerospace Industry

    2. 7.2 Growing Demand for Green Vehicles

**Subject to Availability

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Frequently Asked Questions

The Engineering Plastics Market market is studied from 2017 - 2027.

The Engineering Plastics Market is growing at a CAGR of >6% over the next 5 years.

The Engineering Plastics Market is valued at 90 Billion USD in 2017.

Asia Pacific is growing at the highest CAGR over 2021- 2026.

Asia Pacific holds highest share in 2021.

BASF SE, SABIC, Solvay, DSM, DuPont are the major companies operating in Engineering Plastics Market.

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