The market for engineering plastics is set to reach $104.32bn (€91.6bn) by 2024, driven by “booming demand” in the automotive, electronic and construction development segments, according to a recent report.
According to a report by UK-based consulting firm Frost & Sullivan, entitled ‘Global engineering plastics market forecast to 2024', the rapid urbanisation and rising purchasing power in Asia, particularly China, India and South Asia are the main reasons behind the growth in demand, estimated at a CAGR of 5.4% through to 2024.
“The market presents enormous opportunities for specialised 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.
According to the expert, development of new formulas and products for OEMs and end users will provide “lucrative revenues, product differentiation, and technological advancements” for the industry during the forecast period.
Mukherjee also recommended that smaller players should follow the lead of “market leaders such as DSM, SABIC and BASF” in expanding their capabilities within the Asia-Pacific market.
This, he said, is likely to provide “maximum exposure and growth opportunities in the foreseeable future.”
The Frost & Sullivan report recognised lightweighting & metal replacement as well as construction, transportation and medical applications as key growth opportunities in the market.
Additionally, it noted a shift in focus towards niche applications and product differentiation strategies to avoid the “commoditisation of engineering plastics”.
These growth drivers notwithstanding, a number of key factors that could disrupt supply chain and hinder growth were also identified in the report.
These included government regulations, price volatility of oil, international trade wars, and miniaturisation of electrical and electronics components.
“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,” he added.