The engineering plastics market is expected to grow at an annual rate of more than 5 percent between 2017 and 2024, according to a new report from global consulting firm Frost & Sullivan of London.
Rapid urbanization and rising purchasing power in Asia — particularly in China, India and South Asia — have resulted in "booming demand" for engineering plastics in automotive, electronic, and construction markets, according to the report, which is titled Global Engineering Plastics Market, Forecast to 2024.
Unit shipment and revenue forecasts are provided in the report for ABS, polycarbonate, nylons, polyesters, acetal, acrylic and other engineering resins. In terms of end-user applications, the market has been segmented into electrical and electronics, automotive, medical, consumer goods, packaging, construction and others.
The overall global engineering plastics market is forecast to reach $104.32 billion by 2024, growing 5.4 percent per year between 2017 and 2024.
"The market presents enormous opportunities for specialized material manufacturers," chemicals and materials senior research analyst Sayan Mukherjee said in the release.
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 Asia Pacific market. That market "is likely to provide maximum exposure and growth opportunities in the foreseeable future," he added.
Key trends creating growth opportunities in the market include lightweighting and metal replacement trends in end-user industries; high demand for engineering plastics in construction, transportation and medical applications; a shift towards niche applications and product differentiation to combat commoditization; and growth in partnerships and collaboration across the value chain to drive customization.
According to Mukherjee, key factors disrupting supply chains and hindering growth in engineering plastics include government regulations, oil price volatility, international trade wars, and miniaturization of electrical and electronics components.
He added that to prepare for the future, engineering plastics players should build contingency strategies to mitigate disruptions. Those firms also should include bio-based engineering plastics with a low environmental footprint into their product portfolio, particularly in Europe and North America.