The thermoplastics market is expected to register a CAGR of more than 6% during the forecast period. Some of the prominent trends that the market is increasing capacity additions in downstream processing and growing consumer goods and electronics industries.
- Impact of COVID-19 pandemic and various environmental concerns related to thermoplastics are likely to hinder the market's growth.
- Growing popularity of bio-based products is expected to act as an opportunity for the market.
Key Market Trends
Increasing Demand from Automotive and Transportation
- Thermoplastics have been extensively used in numerous automotive and transportation applications. Some of the applications of engineering plastics are as follows: Automotive airbags, Under-the-hood applications, Automotive electrical and electronics among others.
- Growing demand for lightweight materials in the automotive industry, in order to provide increased efficiency and design flexibility, is primarily responsible for the growth of the thermoplastics market.
- High-performance engineering plastics offer manufacturers the advantages of design and comparable strength of steel, which help in reducing the overall weight and controlling greenhouse gas emissions.
- Currently, the Asia-Pacific region is the manufacturing hub for automobiles and its related components. The region is expected to witness the fastest growth during the forecast period, owing to the factors, such as growing automotive sales in the region, coupled with increasing number of automotive OEM manufacturers.
- North America is witnessing a huge demand for lightweight automobiles, driven by the growing consumer preference for high-quality, fuel-efficient automobiles. Therefore, the utilization of engineering plastics for manufacturing automobiles is rapidly increasing in the region.
- Further, the presence of automotive giants in the European region, along with huge investments made in the automotive R&D sector by companies, as well as governments in Europe, is propelling the growth of thermoplastics in the region.
India to Dominate the Market Growth
- India is a growing economy and holds great potential for future market opportunities.
- Automotive and consumer electronics are among the fastest-growing end-user industries in the country. The rising technological expertise and plastic production facilities in the country are projected to boost the demand for thermoplastics, during the forecast period.
- Consumer durables, like electronics appliances, have witnessed tremendous increase in production and sales, owing to the growing middle-class income, rapid urbanization, and change in lifestyle of the working class. Government initiatives have supported the expansion of the consumer electronics production in the country. Many global manufacturers have expanded their production facilities in the country, and many manufacturing projects are expected to be underway over the next decade.
- The aircraft manufacturing, repair, and maintenance activities in the country are increasing at a steady rate, owing to factors, like government partnerships and incentives for private companies, supportive FDI policies, adoption of new technologies, and government focus on improving regional connectivity.
- The demand for new airplanes in the country is expected to rise significantly, which is a positive factor for the adoption of thermoplastics, like PI, PEEK, and PPS, in manufacturing, repair, and maintenance activities.
- The consumption of thermoplastics is increasing the automotive sector in India, owing to the increasing consumer preference for lightweight and fuel-efficient vehicles. Entry of new players (such as Kia and Lexus), and expansions in the current manufacturing facilities by major manufacturers in the country (such as Toyota, Volvo, and Skoda) are expected to drive the demand for thermoplastics used for automotive production purposes.
The thermoplastics market is fragmented, with few players holding the major share in the market. Key players in the thermoplastics market include Arkema, BASF SE, Evonik Industries AG, SABIC, Covestro AG, Solvay, DSM, DuPont, Asahi Kasei Corporation, and TEIJIN LIMITED, among others.
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