Industrial Plastic Market Size, Share & Trends Analysis Report By Product (ABS, PBT, PEEK), By Application (Building & Construction, Automotive & Transportation), By Region, And Segment Forecasts, 2020 - 2027

Report Overview

The global industrial plastic market size was valued at USD 72.28 billion in 2019 and is expected to witness significant growth in the forthcoming years. Recent developments in the industrial sectors, including electrical and electronics and automobile, are likely to drive the demand for lightweight industrial plastic components in these application segments. Increasing use of environment-friendly and energy-saving products is also expected to positively influence market growth.

Ongoing research and developments in nanotechnology-based industrial plastics are likely to boost the market growth as these plastics offer excellent strength and thermal resistance, along with subsequent weight reduction and improved efficiency.

Technological breakthroughs, innovations, and studies are carried out for expanding the product’s application scope, which is projected to foster the demand for industrial plastics in the forthcoming years. Furthermore, the government and private institutions are increasingly investing in the aerospace and defense sector, thereby contributing to the demand for these industrial plastics.

Rising utilization of industrial plastic components in the packaging, building and construction, electrical and electronics, automotive and transportation, healthcare, and aerospace sectors is anticipated to push industrial manufacturers towards backward integration, thus incorporating raw materials in the value chain over the coming years. Greater participation in the value chain is likely to result in time reduction for transforming raw materials into finished products and in gaining cost advantage.

Industrial plastic manufacturers are expanding their production capacity and infrastructure with an aim to cater to growing market demand. Moreover, many of the industrial plastic manufacturing companies are taking up strategies, like acquisition and partnership, for procuring raw materials. Mergers and joint ventures are an integral part of this market and they allow companies to expand their market position.

Product Insights

In terms of revenue, polyamide emerged as the largest product segment and accounted for a 35.74% share in 2019. Its properties such as rigidity, sliding friction, dimensional stability, and chemical resistance over other substitutes make this industrial plastic suitable for various industries. Polyamide’s lighter weight also results in ease of usage and transport.

ABS is commonly used in electrical and electronics and consumer goods applications and is gaining popularity owing to its high strength, rigidity, and dimensional stability. This industrial plastic is a tough material and is resistant to physical impact, corrosive chemicals, and heat. Thermoplastics such as ABS liquefy allow them to be easily used in injection molding and recycling processes. However, ABS is not used in high-heat situations because of its low melting point. LEGO toys and computer keyboards are also significant applications of ABS compounds.

Polycarbonate plastic has been witnessing increased demand from electrical and automotive applications over the recent past. This industrial plastic is easily moldable and flexible, thereby making it an ideal material for thermoforming applications. Polycarbonate is tough and strong, and some grades of plastics are even optically transparent, making them easy to be engineered. Moreover, rising demand for data storage is expected to create growth opportunities for these industrial plastics during the forecast period.

Application Insights

Increasing use of industrial plastics in automotive components, coupled with the growing production of electric passenger cars and heavy-duty vehicles, particularly in Central and South America and Asia Pacific, is expected to drive the automotive and transportation application segment during the forecast period.

Vehicular weight regulations and standardization of emission norms are likely to contribute to the increasing demand for industrial plastics in automotive applications.ABS is one of the most widely used materials in automotive applications, with its scope extending from engine parts to interior components. This plastic is used as a substitute for metals and other engineering plastics in the automotive industry due to its moldability and superior mechanical properties.

Growing infrastructural development activities in the Middle East and increasing construction spending in emerging economies worldwide are among the major factors boosting the demand for plastics in the construction industry. Polycarbonate is one of the most consumed building materials in various construction activities, including windows, skylights, wall panels, roof domes, exterior trims for LED lighting, and various others. It is modified as per specific requirements to meet structural designs and application specifications.

Factors such as the presence of small-scale electrical components and electronic goods manufacturers, the emergence of a versatile manufacturing landscape supported by the governments of various countries, and availability of raw materials and cheap labor are driving the electrical and electronics industry in Asia Pacific. This, in turn, is expected to boost the demand for industrial plastics in electrical and electronics applications during the forecast period.

Regional Insights

Growth of the industrial plastic market in Europe is expected to be restrained owing to various factors such as stalled industrial output, rising unemployment, and debt crisis. However, a positive scenario across Eastern Europe in terms of consumerism and manufacturing is expected to drive the market.

Furthermore, stringent environmental regulations by regulatory bodies, such as the European Chemicals Agency (ECHA) and the European Commission, among other federal-level agencies characterize the market in Europe. These regulatory policies, however challenging they are, in a way are expected to support industrial development as they are expected to prompt industrial manufacturers to optimize their processes and develop sustainable technologies and products.

In addition, a well-established manufacturing base for electrical and electronics in Taiwan, China, and South Korea is anticipated to provide further impetus to market growth. India has a strong chemical manufacturing industry base, which strengthens its production. Rapid urbanization, improving economic conditions, and increasing infrastructural activities are supporting the growth of the market in Asia Pacific.

Industrial Plastic Market Share Insights

Most of the key players operating in the market have integrated their raw material production and distribution operations to maintain product quality and expand regional presence. This provides companies a competitive advantage in the form of cost benefits, thus increasing the profit margins. Companies are undertaking research and development activities to develop new industrial plastics to sustain market competition and changing end-user requirements.

Research activities focused on the development of new materials, which combine several properties, are projected to gain wide acceptance in this industry in the coming years. Some of the prominent companies manufacturing industrial plastics are BASF SE; SABIC; Victrex plc; Ensinger GmbH; Evonik Industries AG; LyondellBasell Industries Holdings B.V.; Arkema Inc.; Eastman Chemical Company; Solvay SA; Formosa Plastics Corporation; Teijin Limited; and Mitsubishi Engineering Plastics Corporation.

Report Scope

Segments Covered in the Report

This report forecasts revenue and volume growth at the global, regional, and country levels and provides an analysis of the latest industry trends and opportunities in each of the sub-segments from 2016 to 2027. For the purpose of this study, Grand View Research has segmented the global industrial plastic market report on the basis of product, application, and region:

• Product Outlook (Volume, Tons; Revenue, USD Million, 2016 - 2027)

  • Polyphenylene Ether

  • Acrylonitrile Butadiene Styrene (ABS)

  • Polybutylene Terephthalate (PBT)

  • PEEK

  • Polyamide

  • Polysulfone (PSU)

  • Polyphenylsulfone (PPSU)

  • Liquid Crystal Polymers

  • Polytetrafluoroethylene (PTFE)

  • Polyetherimide

  • PEEK

  • Polycarbonate

  • Others

• Application Outlook (Volume, Tons; Revenue, USD Million, 2016 - 2027)

  • Packaging

  • Building & Construction

  • Electrical & Electronics

  • Automotive & Transportation

  • Healthcare

  • Aerospace

  • Others

• Regional Outlook (Volume, Tons; Revenue, USD Million, 2016 - 2027)

  • North America

    • The U.S.

    • Canada

  • Europe

    • Germany

    • The U.K.

    • France

    • Italy

    • Spain

    • Turkey

  • Asia Pacific

    • China

    • India

    • Japan

    • Southeast Asia

  • Central & South America

    • Brazil

    • Mexico

  • Middle East & Africa