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Super Engineering Plastics Market - Forecast(2024 - 2030)
Super Engineering Plastics Market Overview
The Super Engineering
Plastics Market size is forecasted to grow at a CAGR of 6.5% during the
forecast period (2022-2027) and reach US$ 2.1 billion by 2027. Super
engineering plastics can be categorized into various types which include polybutylene
terephthalate (PBT), acrylonitrile butadiene styrene (ABS), polyamide, polyether
ether ketone (PEEK), liquid crystal polymer (LCP) and more. They are used in a
wide range of industries which include automotive, electrical &
electronics, aerospace, solar and other industries. The expansion of super
engineering plastics is primarily driven by their usage in the aerospace industry.
In 2020, the surge in the COVID-19 pandemic negatively impacted aerospace
production activities, thus, temporarily affecting the growth of the super
engineering plastics industry. However, a steady recovery in electronic
production activities has been witnessed since 2021, which in turn, is driving
the demand for super engineering plastics. For instance, Airbus delivered
around 460 commercial aircraft while Boeing delivered 230 commercial aircraft
in 2021. An increase in aircraft production along with the surging demand from
the electronics industry is expected to drive the growth of the Super Engineering Plastics Market size in the coming years. On the other hand, fluctuating
prices of raw materials may confine the growth of the market.
Super
Engineering Plastics Market Report Coverage
The
"Super Engineering Plastics Market Report – Forecast (2022-2027)” by IndustryARC,
covers an in-depth analysis of the following segments in the Super Engineering
Plastics Market.
Key Takeaways
- Polybutylene terephthalate
segment in Super Engineering Plastics Market held a
significant share in 2021. Its wide range of characteristics, along with excellent
impact resistance and stain resistance made it stand out in comparison to other
types of super engineering plastics available in the market.
- Automotive industry held the largest share in Super Engineering Plastics Market in 2021, owing to the increasing demand for super engineering plastics from the automotive sector across the world.
- Asia-Pacific dominated the Super
Engineering Plastics Market in 2021, owing to its increasing demand from the automotive
sector of the region. For instance, recent insights from the International
Organization of Motor Vehicle Manufacturers (OICA) state
that the total automobile production in 2021 in Asia-Pacific increased by 28%
in comparison to 2020.
- A detailed analysis of strengths, weaknesses, opportunities and threats will be provided in the Super Engineering Plastics Market Report.
Figure: Asia-Pacific Super Engineering Plastics Market Revenue, 2021-2027 (US$ Billion)
Super Engineering Plastics Market Segment Analysis – by Type
The polybutylene terephthalate segment held a
significant Super Engineering Plastics Market share of over 18% in 2021, owing
to the range of characteristics and benefits it offers over other types of super
engineering plastics. For instance, polybutylene terephthalate
offers excellent impact resistance, stain resistance
and machining characteristics in comparison to polyamide,
polyether ether ketone and other types of super
engineering plastics. It also offers better electrical insulation properties along
with higher strength and toughness as compared to other types of super
engineering plastics. Furthermore, it offers higher resistance to UV rays and
environmental changes while depicting excellent mechanical and thermal
properties. Hence, all of these properties of polybutylene
terephthalate are driving its demand over other types
of engineering plastics, which in turn, is expected to boost the growth of the market during
the forecast period.
Super Engineering Plastics Market Segment Analysis – by End-Use Industry
The automotive
industry held the largest Super Engineering Plastics Market share of over 25%
in 2021, owing to its
increasing demand from the automotive sectors across the world. For instance, For
instance, according to the International Organization of Motor Vehicle
Manufacturers (OICA), the total global automobile production reached 80.2
billion units in 2021, an increase of 3% as compared to 77.7 billion units in
2020. It further states that the total automobile production in 2021 in Europe,
America, Asia and Africa increased by 25%, 17%, 28% and 37% respectively in
comparison to 2020. Moreover, recent insights from the European Automobile
Manufacturers' Association (ACEA) state that total passenger car production
during the fourth quarter of 2020 reached around 34 million in Asia-Pacific, 14
million in Europe, 1.3 million in the Middle East/Africa, 1.7 million in South
America and 9.6 million in North America respectively.
Super engineering
plastics such as polybutylene terephthalate (PBT), acrylonitrile butadiene
styrene (ABS), polyamide, polyether ether ketone (PEEK), liquid crystal polymer
(LCP) and more are primarily used in the automotive
industry in the production of interior and exterior automotive components,
owing to its excellent durability under thermal stress and harsh chemical
environments. They are mainly used in the automobile for weight reduction,
energy absorption and shock absorption for bumpers. They are also used in airbags, seat belts,
door and seat assemblies, along with subsystems, bumpers, exterior trim and
various other components of the automobile. Thus, such an increase in
automobile production is expected to increase the demand for super engineering
plastics, owing to their above-mentioned properties. This is expected to expand
the Super Engineering Plastics Market size during the forecast
period.
Super Engineering Plastics Market Segment Analysis – by Geography
Asia-Pacific
held a dominant Super Engineering Plastics Market share of around 34% in the
year 2021. The consumption of super engineering plastics is particularly high
in this region due to its increasing demand from the automotive sector. For
instance, recent insights published by the OICA (International Organization of
Motor Vehicle Manufacturers) during the fourth quarter of 2020 state that
around 25 million, 3.5 million, 8 million and 3.4 million units of vehicles
were produced in China, South Korea, Japan and India, respectively, which in
turn, contributed to approx. 50% of the global automobile production during the
year 2020. Moreover, according to the South Korean Ministry of Trade, Industry
and Energy, automobile production in South Korea amounted to 271,054 units in
December 2021. It further states that Hyundai Motor and GM Korea account for
about 53.3% of total domestic automobile production in the country. Furthermore,
in December 2021, the automobile manufacturers in South Korea such as Hyundai
Motor produced 119,621 units while Kia 115,941 units respectively.
In this way, such an increase in automobile production in multiple countries across the region is expected to increase the demand for super engineering plastics for use in the production of interior and exterior automotive components, owing to their range of properties such as excellent impact resistance, high strength, along with excellent durability under thermal stress and harsh environments. This is expected to drive the growth of the market during the forecast period.
Super Engineering Plastics Market Drivers
An increase in aircraft production activities
The properties of super engineering plastics such as
high-temperature stability, excellent chemical resistance, impact resistance, high
strength, excellent durability under thermal stress and harsh environments along
with their inherently flame-retardant properties make them ideal for use in
various components of the aircraft which include aircraft fan thrust reverser,
fan blade wear strips, fuel line spacer and other aircraft components. According to the
Federal Aviation Administration (FAA), the total commercial aircraft fleet is
estimated to reach up to 8,270 by the end of 2037, owing to the growth of air
cargo activities. It further states that the development of the US mainliner
carrier fleet is estimated to increase at a rate of 54 aircraft per year.
Moreover, in 2021, the Indian Air Force (IAF) announced its plans to deliver 73
Tejas Mark-1A fighter jets which are scheduled to be delivered from 2024 to
2028. Furthermore, in January 2021, FedEx Express invested around US$ 6.6
billion for the development of 24 medium and large Freighters from Boeing.
Hence, an increase in global aircraft production is expected to increase the
demand for flame retardant ABS for use in various interior components of an
aircraft is expected to increase the demand for super
engineering plastics such as polybutylene
terephthalate (PBT), acrylonitrile butadiene styrene (ABS), polyamide, polyether
ether ketone (PEEK), liquid crystal polymer (LCP) and more, owing to its
above-mentioned properties and usage. This is anticipated to drive the growth
of the market in the upcoming years.
Surging demand from the electronics industry
Super engineering
plastics are primarily utilized in the electronics industry in order to seal
and insulate delicate, pressure-sensitive, microelectronic components, cables,
semiconductor chips, printed circuit boards and other electronic components.
The properties of super engineering plastics such as excellent electrical
insulation, heat resistance and chemical resistance, along with their inherently flame retardant properties are
driving their demand for use in such electronic applications. For instance, according to
the Japan Electronics and Information Technology Industries Association, the
global electronics production by Japanese electronics and IT companies reached
up to ¥37,300 billion (US$ 339.7 billion) in 2021, an increase of 8% in
comparison to 2020. It further states that the electronics production by the
global electronics and IT industries is expected to increase by 5% and reach up
to US$ 3,536.6 billion by the end of 2022 as compared to 2021. Moreover, recent
insights published on Growth from Knowledge (GRK) in September 2021 state that
the GDP growth rate of consumer electronics which includes electronic
appliances and gadgets such as washing machines, televisions, computers,
laptops, smartphones, tablets and more in countries like India, China, the U.S
and regions like Europe is expected to increase up to 8.1%, 5.7%, 1.4% and 1.7%
respectively by the end of 2022. Furthermore, in December 2021, Taiwan
Semiconductor Manufacturing Co. (TSMC) started negotiations with the German
government in order to build a new semiconductor facility in Germany. The main
motive of this facility development is to boost the production of
semiconductors in Europe and contribute to 20% of global chip manufacturing by
2030.
In this way, an
increase in production from the electronics industry is expected to increase
the demand for super engineering plastics for use in microelectronic
components, cables, semiconductor chips, printed circuit boards and other
electronic components. This is expected to accelerate the growth of the Super Engineering Plastics Market in the upcoming years.
Super Engineering Plastics Market Challenges
Fluctuating prices of raw materials
Some of the raw
materials for super engineering plastics are obtained from crude oil. As a
result, fluctuations in the prices of crude oil may hinder the growth of the
market. For instance, in 2020, the international benchmark for petroleum prices
across the world also known as Brent crude prices decreased to US$ 9.12 per
barrel, which was the lowest record since December 10, 1998. Likewise, in April
2020, India’s Crude Oil Basket (COB) reached US$ 19.90 per barrel, which was
the lowest record since February 2002. During the first 11 months of the year
2020-21, the average annual price of India’s COB was around US$ 42.72 per
barrel, which decreased by 30% more than the average COB price in 2019-20.
Furthermore, as per revised estimates for 2020-21, the COB has increased by
around 35% from its initial budget estimate. In this way, such uncertainty regarding
the price of crude oil may affect the prices of raw materials that are used in
the production of super engineering plastics. Thus, such instability and
fluctuating prices of raw materials may limit the growth of the super
engineering plastics industry during the forecast period.
Super Engineering Plastics Industry Outlook
Technology launches, acquisitions and increased R&D activities are
key strategies adopted by players in the Super
Engineering Plastics Market. The top 10 companies in Super Engineering Plastics
Market are:
- BASF
- Toray Industries Inc.
- Asahi Kasei
- DSM
- Invista
- Ascend
- Sumitomo Chemical
- Excell Corporation
- Dupont
- DIC Corporation
Recent Development
- In October 2021, LG Chem announced its plans to build a new Acrylonitrile Butadiene Styrene (ABS) plant in Ohio to meet its growing demand from the automotive, electronics and other industries. The plant will be built at the company’s tech center in the United States and is scheduled to be operational by 2023. The plant will have a total production capacity of 30,000 tons upon completion.
Relevant Reports
Report Code: CMR 53040
Report Code: CMR 1099
Report Code: CMR 88916
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