The expansion of the automotive industry is a significant driver for the engineering plastics market. These synthetic materials offer superior engineering and technological properties compared to traditional plastics and metals. Key attributes include corrosion resistance, fatigue resistance, favorable strength-to-weight ratio, dimensional stability under heat, and precision molding capability. Engineering plastics find applications in various sectors such as automotive components, electrical appliances, consumer durables, industrial equipment, and construction materials.
According to a report by Coherent Market Insights, the global Engineering Plastics Market is estimated to be valued at US$ 130.68 Bn in 2023 and is projected to exhibit a Compound Annual Growth Rate (CAGR) of 7.2% from 2023 to 2030.
One prominent trend driving this market is the robust growth of the global automotive industry. The demand for engineering plastics has surged in automotive applications, including interior and exterior body parts, electrical components, engine parts, and under-the-hood components. This is due to their desirable properties such as durability, heat resistance, and lightweight nature. The escalating vehicle production in countries like China, India, Mexico, and Brazil is contributing to a higher demand for advanced plastic components. Notably, materials like polyamides or nylons are increasingly utilized in under-the-hood components like intake manifolds due to their resistance to heat and chemicals. The upward trajectory in the adoption of engineering plastics in the automotive sector is anticipated to persist in the forecast period.
SWOT Analysis:
Strength: Engineering plastics possess superior properties compared to traditional materials, making them suitable for diverse applications. These properties include high strength, hardness, stiffness, heat resistance, and excellent electrical insulation.
Weakness: Engineering plastics tend to be more expensive than commodity plastics, necessitating higher capital investments. The research and development of new grades involve lengthy and capital-intensive processes.
Opportunity: Growing demand from end-use industries such as automotive, aerospace, healthcare, and electronics is expected to drive market growth. The increasing replacement of conventional materials with engineering plastics presents new opportunities.
Threats: Volatility in raw material prices poses a threat to stable supplies and profits. Stringent environmental regulations globally restrict the usage of certain engineering plastics.
Key Takeaways:
The global Engineering Plastics Market Size is poised for significant growth.
Regional Analysis: North America dominates the market, maintaining its supremacy due to early technology adoption in countries like the US and Canada. Asia Pacific is anticipated to be the fastest-growing market, driven by countries like China, India, and South Korea, supported by increasing investments in end-use industries.
Key Players: Major players in the engineering plastics market include Eli Lilly and Company, Sanofi S.A., Cadila Healthcare Limited, Cipla Limited, Castle Biosciences, Regeneron Pharmaceuticals, Inc., Merck & Co., Inc., Vidac Pharma, LEO Pharma A/S, Regeneron Pharmaceuticals, Inc., Merck Sharp & Dohme, and Amgen Inc. The market's competitive nature is marked by global and regional players focusing on new product development and expanding into emerging markets to strengthen their market position.
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