Engineering Plastics Market - Growth, Trends, and Forecast (2020 - 2025)
The market for engineering plastics is expected to register a CAGR of over 5% (in terms of revenue), during the forecast period. The growth is largely fuelled by engineering plastic rapidly replacing traditional plastics and other materials in several applications, growing popularity of bioPET, and an increase in the purchasing power in developing economies.
By product type, Polyethylene Terephthalate (PET) is the most used engineering plastic around the world. However, Polyether Ether Ketone (PEEK) is projected to register the highest CAGR during the forecast period.
The growing applications in the aerospace industry and the adaptation of green vehicles are expected to provide numerous opportunities for the manufacturers in the market.
AsiaPacific dominated the market with the largest consumption. It is also likely to register the highest CAGR during the forecast period.
Key Market Trends
Polyethylene Terephthalate (PET): The Most Used Engineering Plastic
Polyethylene terephthalate (PET) is a thermoplastic polyester engineering resin. PET resins are known for their excellent melt flow characteristics, close molding tolerances, and high productivity from multicavity molds. Due to its broad mechanical and electrical properties, PET is often used to replace metals in motor housings, switches, sensors, and other electrical applications.
PET and polyolefins are the most widely used materials in the plastic packaging industry. Some of the major properties of PET as a packaging material are recyclability, strength, and versatility, which drive the demand for these products.
These products mainly include takeout containers, frozen foods, carbonated drinks and juices, ketchup, bottled water, jars, and baked good containers. They are also used in the food industry for clamshells, deli containers, as well as microwave food trays.
PET also has great barrier properties that protect and preserve the contents of the product. PET maintains the fizz in carbonated soft drinks, the vitamins in juices, and the color in ketchup. In other words, it protects products and keeps them on the shelves and out of the rubbish bin, for a longer period.
With an increasing demand for beverage packaging and a lack of better substitute for PET resin for this application, the demand for PET is projected to increase over the forecast period.
AsiaPacific to Dominate the Market
AsiaPacific accounted for the largest share of the market, with China alone consuming a share of around 35% of the overall market (more than double the entire North American region).
China is the largest producer and consumer of engineering plastics in the region. The abundant availability of raw materials and low cost of production have been supporting the production growth of the engineering plastics market in the country, since the past few years.
The consumption of engineering plastics has increased drastically in the recent past, due to the growing population, increasing urbanization, and substitution of many metals by suitable engineering plastics in various industries, such as packaging and automotive.
Furthermore, owing to the increasing automotive production in major economies of the region, the market for engineering plastics has benefitted to a great extent.
The engineering plastics market is fragmented in nature, with the top five players accounting for less than 15% (in terms of revenue generated) of the global market. Most market leaders are vertically integrated, i.e., they produce their own raw materials required for the manufacturing of engineering plastics, and are also engaged in the manufacturing of various engineering plastic products. The prominent players in the market include BASF SE, DuPont de Nemours, Inc., SABIC, Solvay, Royal DSM, Covestro, and Mitshubishi Corporation, among others.
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