Market Trends of south korea engineering plastics Industry
Growing demand for consumer electronics to foster growth
- South Korea is a strategically important market for advanced components and sophisticated customers, especially in the automotive and electronics industries. South Korea’s electrical and electronics production witnessed a CAGR of 1.40% between 2017 and 2019. Rising disposable income, technological advancements, improvements in living standards, etc., drove the electrical and electronics industry. The presence of global market players, like Samsung Electronics and LG Electronics, positively affected electrical and electronics production during 2017-2019.
- In 2020, the country's electrical and electronic production increased slowly, with a growth rate of 4.7% in terms of revenue than the previous year, owing to country-wide lockdowns and supply chain disruptions. In 2021, the country's electrical and electronics production increased at a rate of 17.4%, as online sales increased from USD 135.1 billion in 2020 to USD 168.5 billion in 2021. The primary reason for the industry's expansion is the increased prevalence of smartphones. PC sales increased from USD 43.4 billion in 2020 to USD 47.8 billion in 2021.
- South Korea benefits from the trend of incorporating virtual reality (VR) into consumer electronics products as it increases manufacturing efficiency and lowers prices. South Korea is investing in goods for gaming and entertainment, which has also accelerated the expansion of the country's consumer electronics sector. The surge in demand for technologically advanced consumer electronics and appliances such as smartphones, laptops, computers, cameras, and televisions are expected to boost production at a CAGR of 7% during the forecast period.
Understand The Key Trends Shaping This Market
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OTHER KEY INDUSTRY TRENDS COVERED IN THE REPORT
- Rapid growth in the demand for commercial and defense aircraft to drive the industry
- Stringent regulations in residential construction to restrain the growth
- Local manufacturing capabilities to boost exports in the future
- Korea plans to cut plastic use by 60% before 2030, and this will boost the recycling of PA and reduction in virgin PA
- Recycled PET production in South Korea was more than 200 kilotons in 2021 with 75% R-PET exported to China
- Rising demand for electric vehicles to propel automotive production
- Evolving consumer trends, coupled with growing e-commerce, to foster growth
- Resin prices to remain under the influence of crude oil prices
- Mechanical recycling of polycarbonate plastics to be challenging because of the poor quality of the recovered material
- South Korea generated over 818 kilotons of WEEE in 2019 which could be an opportunity for manufacturers to produce R-ABS
