July 25, 2024

The Engineering Plastics Market Is Driven By Surging Demand From The Automotive Industry

Engineering plastics are widely used in automobiles across various components and parts due to their lightweight, durability, and corrosion resistance properties. They find applications in interior and exterior automotive components such as bumpers, instrument panels, door panels, handles, linings, and trims. Growing automotive production globally driven by increasing vehicle ownership, coupled with stringent emission regulations promoting use of lightweight materials is propelling the demand for engineering plastics from the automotive industry.

The global Engineering Plastics Market was estimated to be valued at Us$ 130.68 Bn in 2023 and is expected to exhibit a CAGR Of 7.2% over the forecast period 2023 To 2030, as highlighted in a new report published by Coherent Market Insights.

Market key trends:

One of the key trends gaining traction in the engineering plastics market is the surge in demand for bio-based and biodegradable engineering plastics. Conventional petroleum-based plastics have considerable environmental footprint. Therefore, manufacturers are increasingly focusing on developing sustainable and eco-friendly bio-based engineering plastic alternatives. For instance, brands and OEMs are utilizing polyhydroxyalkanoates (PHA), polylactic acid (PLA) obtained from renewable resources like corn and sugarcane for various applications including automobile interior parts, electronic enclosures and more. Another major trend is the rising preference for recycled engineering plastics. Growing focus on circular economy is propelling second life applications of post-consumer and post-industrial plastic scrap. Recycled engineering plastics find reuse in park benches, garden furniture and similar applications.

 

Porter’s Analysis

Threat of new entrants: The engineering plastics market has moderate threat of new entrants as it requires huge capital investment for R&D, manufacturing and marketing facilities.

Bargaining power of buyers: Individual buyers have moderate bargaining power as engineering plastics have applications across industries. However, large buyers can negotiate on pricing.

Bargaining power of suppliers: Few suppliers for key raw materials like petrochemicals gives them some bargaining power over engineering plastics producers.

Threat of new substitutes: Alternatives like metals and wood offer some threat but engineering plastics have advantages in properties like durability, lightweight and corrosion resistance.

Competitive rivalry: Intense competition exists among major players to gain market share through product innovation, brand building and geographical expansion.

Key Takeaways

The Global Engineering Plastics Market Demand is expected to witness high growth over the forecast period.

Regional analysis:

Asia Pacific dominates the global market and is expected to maintain its dominance over the forecast period. This is attributed to huge consumption from automotive, electronics and construction industries in China, India and other Asian countries. North America and Western Europe are also significant markets for engineering plastics.

Key players:

Key players operating in the engineering plastics market are 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. These companies are focused on new product development and expansion in fast growing markets through mergers and acquisitions to gain competitive advantage.

Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it