Engineering Plastics Market

Engineering Plastics: Characteristics, Types, and Applications

Engineering plastics are a group of plastic materials that possess superior mechanical, thermal, and chemical properties compared to standard commodity plastics. These materials are used in various industries, including automotive, aerospace, medical, electrical, and electronic, due to their excellent performance and durability. In this essay, we will discuss the characteristics, types, and applications of engineering plastics.

Characteristics of Engineering Plastics:

Engineering plastics possess several characteristics that make them suitable for a wide range of industrial applications. Some of these characteristics are:

• High Strength and Stiffness: Engineering plastics have high strength and stiffness, making them ideal for applications that require high load-bearing capacity and structural integrity.
• Heat Resistance: These materials have high heat resistance, allowing them to maintain their mechanical properties at elevated temperatures. They can also withstand exposure to chemicals and other harsh environments.
• Lightweight: Compared to metals, engineering plastics are lightweight, making them suitable for weight-sensitive applications, such as aerospace and automotive industries.
• Electrical and Thermal Insulation: Engineering plastics have excellent electrical and thermal insulation properties, making them ideal for electrical and electronic applications.

Types of Engineering Plastics:

There are several types of engineering plastics, each with unique properties and characteristics. Some of the most commonly used engineering plastics are:

• Acetal: Acetal is a high-strength, stiff, and low-friction engineering plastic. It is commonly used in applications that require dimensional stability, such as gears, bearings, and pump components.
• Nylon: Nylon is a high-strength, flexible, and abrasion-resistant plastic. It is commonly used in applications that require durability and toughness, such as automotive parts, electrical connectors, and medical devices.
• Polycarbonate: Polycarbonate is a transparent, high-impact, and heat-resistant plastic. It is commonly used in applications that require high transparency and impact resistance, such as safety glasses, lenses, and medical devices.
• Polyurethane: Polyurethane is a flexible, abrasion-resistant, and impact-resistant plastic. It is commonly used in applications that require cushioning, such as automotive suspension systems, footwear, and medical equipment.

Applications of Engineering Plastics:

Engineering plastics are used in a wide range of industrial applications. Some of the most common applications of engineering plastics are:

• Automotive Industry: Engineering plastics are used in automotive applications, such as engine components, interior and exterior parts, and electrical connectors, due to their high strength, durability, and heat resistance.
• Aerospace Industry: Engineering plastics are used in aerospace applications, such as structural components, interiors, and electrical connectors, due to their lightweight and high strength-to-weight ratio.
• Electrical and Electronic Industry: Engineering plastics are used in electrical and electronic applications, such as switches, connectors, and circuit boards, due to their excellent electrical and thermal insulation properties.
• Medical Industry: Engineering plastics are used in medical applications, such as implants, surgical instruments, and diagnostic equipment, due to their biocompatibility, durability, and flexibility.

Engineering plastics Market Dynamics

Drivers in Engineering Plastics Market

The market dynamics of engineering plastics are characterized by both drivers and restraints. One of the major drivers for the growth of this market is the increasing demand from end-use industries such as automotive & transportation and electrical & electronics. These industries heavily rely on engineering plastics, and are expected to continue driving the market in the coming years.

In the electrical & electronics industry, the demand for engineering plastics is particularly high due to the surge in sales of consumer appliances like televisions, refrigerators, and iron boxes. These plastics play a crucial role in the manufacturing of such appliances.

Restraints in Engineering Plastics Market

However, the market for engineering plastics is not without its restraints. One of the key restraints is the growing competition from other polymers, especially in the lower-end engineering resins segment. For instance, commodity polymers like polypropylene are increasingly posing a challenge to ABS, which is an engineering plastic. Polypropylene offers superior performance when copolymerized with ethylene and is more cost-competitive in markets such as consumer products and appliances. This competition from other polymers is expected to intensify in the future.

Opportunities in Engineering Plastics Market

The market for engineering plastics is financially attractive due to the growing demand for these materials and their emerging applications. Many players are active in this market, including both global and local companies, leading to increased competition and market fragmentation. The automotive industry generates the highest revenue in this market, followed by electrical & electronics and consumer products. The segment is expected to grow at a compound annual growth rate (CAGR) of 7.7%, with packaging projected to grow at the highest CAGR of 7.9%. Engineering plastics are becoming more popular in the automotive industry due to their lightweight properties, which improve fuel efficiency and reduce emissions.

Challenges in Engineering Plastics Market

However, the use of plastics is also a significant challenge due to its environmental impact. Many environmental NGOs criticize the use of plastics for their harmful effects on the environment, particularly in the automotive and packaging industries, where they contribute to solid waste disposal problems and economic recycling issues. Therefore, these industries are taking a cautious approach to further integration of engineering plastics in their products.

The Engineering Plastics Market Ecosystem

During the forecast period, acrylonitrile butadiene styrene (ABS) accounted for the largest share of the engineering plastics market. ABS is a major type of engineering plastics due to increasing demand from the automotive and transportation industries. The other types of engineering plastics include polyamide, polycarbonate, thermoplastic polyesters (PET & PBT), polyacetal, and fluoropolymer.

Engineering plastics are used extensively in various end-use industries, such as automotive and transportation, electrical and electronics, industrial and machinery, packaging, consumer appliances, and others. Industrial and machinery is the fastest-growing segment due to the superior properties of engineering plastics.

Asia-Pacific accounted for the largest share of the engineering plastics market due to the increased consumption of engineering plastics in various industries, including automotive, packaging, building, and construction, in rapidly growing countries such as China, India, and Japan. China is the largest producer and consumer of engineering plastics in the region. The aerospace industry in China is projected to return to profitability in 2022, and the Civil Aviation Administration of China (CAAC) has estimated the aviation sector to recover domestic traffic to around 85% of pre-pandemic levels. According to the Boeing Commercial Outlook 2021-2040, China is expected to make around 9,000 new deliveries by 2040, with a market service value of USD 2 Trillion.

In South Korea, the electric vehicle industry is expected to grow rapidly, with nearly 71,000 units of electric vehicles sold in 2021. South Korean sales of electric vehicles surged by 96% to 71,006 units in the first nine months of 2021, according to data collected by the Korea Automotive Technology Institute (KAII). The sales figure is expected to increase with growing demand from importing economies in Europe, Asia-Pacific, and the Americas.

Engineering plastics have a wide range of applications in the automotive industry, including interior and exterior furnishings, power trains, chassis, electrical components, and under-the-hood parts. These plastics are used to make dashboard, bumpers, seats, body panels, fuel systems, interior trim, under-bonnet components, lighting, exterior trim, liquid reservoirs, and upholstery.

In recent years, automobile manufacturers have been incorporating more advanced plastic materials in their designs to reduce weight and increase fuel efficiency. Studies have shown that every 10% reduction in vehicle weight can reduce fuel usage by 7%. As a result, the growth in automobile production has a direct impact on the growth of the engineering plastic market.

According to the OCIA, the global production capacity of Light Commercial Vehicles is expected to increase from 12 million units in 2022 to 14 million units in 2023. The production of Light Commercial Vehicles is expected to increase by 14% during the forecast period, which is likely to further increase the market for engineering plastics.

China is the largest manufacturer of automobiles in the world, and the country's automobile industry is experiencing a shift towards battery-operated vehicles due to consumer preference. Additionally, the Chinese government estimates a 22% penetration rate of electric vehicle production. This trend is likely to further drive the demand for engineering plastics in the automotive industry.

In the past, the automotive industry generated the most revenue in the engineering plastics market, followed by electrical & electronics and consumer products. This segment is expected to continue growing at a compound annual growth rate (CAGR) of 9%. However, packaging is anticipated to have the highest CAGR of 10.5%. The use of engineered polymer composites and plastics in a wide range of applications has led to the automotive industry's maximum revenue generation. Engineering plastics are the second most commonly used class of materials in the automotive industry after ferrous metals and alloys. Due to the increased focus on decreasing the weight of vehicles, improving fuel efficiency, and reducing emissions, engineering plastics are replacing several other materials in the industry.

In recent years, the engineering plastics market has seen several notable developments. One such development is the increasing demand for sustainable and eco-friendly engineering plastics. With the growing concern for the environment, manufacturers are shifting towards bio-based plastics and recycled plastics to reduce their carbon footprint. This trend is expected to continue in the future.

Another significant development in the engineering plastics market is the growing popularity of 3D printing technology. The use of 3D printing technology in the manufacturing of engineering plastics has opened up new possibilities for customization, design, and prototyping. The development of new 3D printing technologies and materials is likely to further enhance the growth of the engineering plastics market.

Moreover, the demand for high-performance engineering plastics has also increased in recent years. These plastics offer superior mechanical, thermal, and electrical properties and are used in demanding applications such as aerospace, medical devices, and electronics. The demand for high-performance engineering plastics is likely to continue to grow due to their increasing adoption in various end-use industries.

Additionally, the COVID-19 pandemic has significantly impacted the engineering plastics market. The pandemic has disrupted supply chains, leading to supply shortages and price volatility. However, the market has shown resilience and has adapted to the changing circumstances. The pandemic has also led to a growing focus on the production of essential medical equipment and devices, which has increased the demand for engineering plastics in the healthcare sector.

Dominating Companies in Engineering Plastics Market

• 3M COMPANY
• ADVANSIX, INC.
• ARKEMA SA
• ASAHI KASEI CORPORATION
• ASHLAND GLOBAL HOLDINGS, INC.
• BASF SE
• CELANESE CORPORATION
• CHEVRON PHILLIPS CHEMICAL COMPANY, LLC
• CHI MEI CORPORATION
• COVESTRO AG
• DAICEL CORPORATION
• DSM ENGINEERING MATERIALS INC.
• EASTMAN CHEMICAL COMPANY
• EVONIK INDUSTRIES AG
• GRAND PACIFIC PETROCHEMICAL CORPORATION
• INEOS
• LANXESS AG
• LG CHEM LTD.
• MITSUBISHI CHEMICAL HOLDINGS CORPORATION
• NOVA CHEMICALS CORPORATION
• POLYPLASTICS CO., LTD
• RÖCHLING SE & CO. KG
• SABIC
• SOLVAY S.A.
• THE DOW CHEMICAL COMPANY
• TRINSEO PLC

Recent Developments in Engineering Plastics Market

In 2021, Celanese Corporation, a global chemical and specialty materials company, announced the acquisition of a 45% stake in Chinese engineering plastics company, Nouryon. This acquisition was aimed at expanding Celanese's footprint in the fast-growing Asia-Pacific market for engineering plastics.

Also in 2021, Mitsubishi Chemical Corporation and PMMA manufacturer, Lucite International, announced a merger to form a new company, MC Polymeric Resources Ltd. The merger aimed to combine the strengths of both companies in the field of engineering plastics, with Lucite's expertise in PMMA and Mitsubishi Chemical's knowledge of other engineering plastics.

In 2019, Solvay, a Belgian chemical company, acquired the engineering plastics business of Cytec Industries, a US-based specialty chemicals and materials company. This acquisition was aimed at expanding Solvay's portfolio of high-performance materials and enhancing its capabilities in the aerospace and automotive industries.

In the same year, Covestro, a German polymer company, formed a strategic partnership with Chinese company, Tongji University, to develop and promote sustainable solutions for engineering plastics. The partnership aimed to leverage Tongji University's research capabilities in sustainable technologies and Covestro's expertise in developing high-performance materials.

In 2018, Arkema, a French specialty chemicals company, completed the acquisition of the American company, ArrMaz, a producer of specialty surfactants and additives for the fertilizer, mining, and asphalt markets. This acquisition aimed to expand Arkema's position in the specialty chemicals market, including the production of specialty engineering plastics.

In 2020, global specialty chemicals company, Clariant, announced that it would sell its Pigments business to US-based company, Huntsman Corporation, for $1.6 billion. The Pigments business included a range of products used in the production of engineering plastics.

In 2020, chemical company, LyondellBasell, completed its acquisition of French plastics and chemicals company, A. Schulman, for $2.25 billion. A. Schulman's portfolio included a range of specialty engineering plastics, as well as masterbatch and additives products.

In 2019, chemical company, BASF, announced the acquisition of Solvay's polyamide business, including its engineering plastics portfolio. The acquisition was aimed at expanding BASF's product range in high-performance materials and enhancing its position in the automotive and electronics industries.

Also in 2019, US-based company, Celanese, acquired Indian engineering plastics company, Next Polymers Ltd., for an undisclosed amount. The acquisition was aimed at expanding Celanese's portfolio of specialty engineering plastics and strengthening its presence in the Asia-Pacific region.

In 2018, Evonik Industries, a German specialty chemicals company, completed the acquisition of US-based company, J.M. Huber Corporation's silica business. The acquisition included Huber's portfolio of specialty engineering plastics additives, which are used to enhance the performance of thermoplastic polymers.

In conclusion, engineering plastics are a group of plastic materials that possess excellent mechanical, thermal, and chemical properties. They are used in a wide range of industrial applications, including automotive, aerospace, medical, and electrical and electronic, due to their high performance and durability. Understanding the characteristics, types, and applications of engineering plastics is essential for selecting the appropriate material for a specific application.