What is driving engineering plastic market growth?
November 5, 2018
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The rapid urbanization and rising purchasing power in Asia, particularly China, India and South Asia, have resulted in booming demand for engineering plastics in automotive, electronic, and construction development segments.
According toFrost & Sullivan’s recent analysis, Global Engineering Plastics Market, Forecast to 2024, the market is forecast to reach $104.32 billion by 2024, growing at a compound annual growth rate (CAGR) of 5.4 per cent between 2017 and 2024.
“The market presents enormous opportunities for specialized material manufacturers, as evolving applications demand new R&D, product development and functional solutions,” said Sayan Mukherjee, senior research analyst, chemicals and materials, EIA at Frost & Sullivan. “Product development in novel formulas and solutions to capture new application markets in consultation with OEMs and end users will provide lucrative revenues, product differentiation, and technological advancements.”
For further information on this analysis, visit http://frost.ly/2wg
To gain a competitive advantage, Mukherjee recommends that players emulate market leaders such as DSM, SABIC and BASF, and establish or expand production capabilities and strategic efforts in the Asian Pacific market as it is likely to provide maximum exposure and growth opportunities in the foreseeable future.
Key trends creating growth opportunities in the market include:
- Lightweighting and metal replacement trends in end-user industries driving engineering plastics consumption;
- High demand for engineering plastics in construction, transportation and medical applications with significant market share gains;
- A shift in focus towards niche applications and product differentiation strategies to combat commoditization of engineering plastics; and
- Growth in partnerships, tie-ups and collaboration across the value chain to drive customization.
“Government regulations, price volatility of petroleum, international trade wars, and miniaturization of electrical and electronics components are key factors disrupting supply chains and hindering market growth,” said Mukherjee. “To be future-ready, players should build contingency strategies to mitigate disruptions and include bio-based engineering plastics with a low environmental footprint into their product portfolio, particularly in Europe and North America.”