Rise in demand for high performance plastics is due to their well-balanced properties of low density, ease of processing, and low cost. Thermoplastics are also suitable for economical processing from low output-specific packaging to mass production. Demand for lightweight along with high waterproof packaging has significantly reduced demand for paper and cardboard packaging, and has fuelled the market for thermoplastic in the packaging industry.
Increasing plastic waste due to ever-increasing demand from the automobile industry is driving the market for recyclable engineering thermoplastic, as people are becoming more conscious towards sustainable living. Emerging markets, especially large markets such as India and China, have significant untapped potential in expanding the market for engineering thermoplastic. As the geriatric population and healthcare expenditure in these nations continue to rise, a greater segment of the world’s population demands better healthcare and treatment with advanced systems. This, in turn, has been creating demand for medical polymers that are primarily used in devices and equipment for hip & joint replacement and spinal implants. Commodity resins such as PE, PP, PVC, PS and PET are commonly used polymers in medical applications.
As per a new report published by an ESOMAR-certified market research and consulting firm, the global engineering thermoplastic market is anticipated to reach a valuation of US$ 259 Bn by 2021, and is expected to expand at a healthy CAGR of around 6% over the forecast period of 2021 to 2031.
Key Takeaways from Market Study
- In 2020, one-fourth of market revenue was generated solely by North America.
- Semi-crystalline engineering thermoplastic accounts for around 53% of the global sales volume, and is utilized at large by end-use industries established in European countries.
- In 2020, North America and Europe together accounted for more than half of global market revenue. The European market is expected to offer around US$ 60 Bn absolute dollar opportunity over the next ten years.
- The market is highly fragmented, with companies such as BASF SE and SABIC holding around 17% of the global market share.
- In terms of end-use industry, the automotive and transportation industry held around 22% market share in 2020.
- In 2020, around 30% of the global engineering thermoplastic was demanded and delivered in the form of tubes, to account for US$ 75.2 Bn market revenue.
- The market in East Asia is projected to expand at a CAGR of around 7% from 2021 to 2031.
“Enormous size of BASF SE’s global business allows the chemical and material segment to take advantage of mammoth resources, access to which may not be enjoyed by other players. This is superficial in the company’s strong financial standing and diverse product offerings. To tackle the dominance of BASF SE, other key players need to create strong overseas presence. Collaborations and partnerships can result in a competitive,” says a Report Analyst.
Winning Strategy
With increase in disposable income, consumers’ buying patterns have reformed, which has been evident due to globalization. Rising population in emerging regions such as South Asia is boosting demand for engineering thermoplastic from end-use industries such as automotive & transportation, electrical & electronics, consumer appliances, and packaging.
Manufacturers are finding it difficult to source raw materials and maintain revenue along with good levels of profit margins in challenging economies. Therefore, understanding the industry structure and staying connected with the end-use market will not only help understand industry needs but also assist being updated with standard industry requirements. Furthermore, marketing & distribution strategy, minimizing lead time for product availability, along with customer support, strategic collaborations, and partnerships, could be some key winning strategies for manufacturers.
These insights are based on a report on Engineering Thermoplastics Market by Fact.MR.
